PEAK'S Net Profit Rebounded, And The Company Made Marketing Changes.

< p > Xu Zhihua CEO said the sporting goods industry will have a big chance of rebound in the second half of the year. PEAK will be one of the first brands to recover in the industry < /p >

< p > although both operating income and net profit declined in the first half of this year, the net profit margin rose for the first time, rising by 28% over the second half of last year.

The proportion of its overseas market revenue in total revenue increased from 13.4% at the end of last year to 14.8%.

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< p > PEAK sports CEO Xu Zhihua said: "with the withdrawal of many small brands and the stock of major brands to a normal level, the sporting goods industry has a big chance of rebounding in the second half of this year.

PEAK will rely on effective and effective adjustment measures to become one of the first brands to recover in the industry.

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< p > < strong > PEAK net profit rebounded < /strong > < /p >

< p > since 2011, China's sporting goods market has begun to enter a trough. The weakening of the economy and the change of consumption patterns have brought about a sharp increase in the stock of sports brands. The strategy of discount sales has greatly reduced the average profit of the industry, and some brands have even fallen into a big loss.

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< p > in the environment of sports brand's overall inventory clearance, PEAK has also seen a decline in its performance.

According to the China Daily, PEAK achieved 1 billion 173 million yuan in operating income, down 27.3% compared to the same period last year, with net profit of 89 million 900 thousand yuan, down 62.5% from the same period last year.

In this regard, PEAK said that the company has bid farewell to a substantial adjustment stage, the indicators are stable, < a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > class stock has returned to normal level, < a target= "_blank" href= "//www.sjfzxm.com/" > clothing > _blank > inventory has also been greatly reduced, which provides a good foundation for sellers to restore order demand.

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At the same time, PEAK said that the same store sales in the first half of this year were flat compared with the same period last year, while the latest orders for the first quarter of 2014 increased slightly, showing signs of recovery.

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< p > "when distributors and retailers clean up too much inventory, they will replenish new products, and sales will return to growth and enter a virtuous circle."

Xu Zhihua said.

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At the same time, he said that although the practice of cleaning up inventory will continue for some time, it is believed that the structural adjustment of the industry is coming to an end, because a considerable number of small sporting goods companies have already withdrawn from the market, and the operating costs of distribution channels, especially shops rents, have returned to a reasonable level in many places. P

With the deepening of the policy of stimulating domestic demand, the promotion of urbanization and the improvement of export environment, China's sporting goods industry will have an opportunity to recover or rebound.

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< p > < strong > Company's marketing pformation < /strong > < /p >

< p > GF Securities reported that the era of China's sporting goods industry relying on crazy shops to achieve performance growth has ended. Relying on the improvement of single store efficiency can make the performance growth more sustainable.

It is understood that as early as 2011, PEAK proposed to pform from traditional wholesale enterprises to retail enterprises.

The purpose of change is to increase the revenue of single stores, and to face consumers directly by reducing intermediate links.

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< p > PEAK said that the company will divide vertically through sales area and reform vertical distribution agencies, encourage distributors and retail outlets operators to set up larger retail outlets and outlets, and close down smaller and less efficient retail outlets to promote the upgrading of stores.

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< p > data show that the number of PEAK's distributors has increased from 50 at the end of 2011 to 63 at the end of June 2013, an increase of 26%.

At the same time, the average area of PEAK's single retail outlets increased from 79.1 square meters at the end of 2011 to 88.6 square meters in June 30, 2013, and the terminal business area increased by 12%.

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< p > "this is the positive result of PEAK terminal upgrade."

Xu Zhihua said that closing stores and opening stores is a way to break the relationship and close the retail outlets with small size, poor location and low efficiency. The reorganization of resources will be applied to retail outlets with larger, better location and better system, which will help improve the operation flexibility and market adaptability of single stores, thereby increasing the profitability of single stores.

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P also revealed to reporters that another major decision in the second half of the year was to invest about 60 million yuan to build its own production facilities and purchase new production equipment, so as to control the production process more effectively, enhance the bargaining power of contract manufacturers, and respond more flexibly to market changes. "PEAK"

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< p > < strong > PEAK "internationalization" < /strong > /p >

< p > although PEAK's marketing in China has declined, the overseas market revenue has increased.

According to the China Daily, the proportion of overseas market revenue in total revenue has reached 14.8%, which is 13.4% higher than that at the end of last year, consolidating the first status of China's sports brand overseas sales.

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< p > the growth of PEAK's performance abroad has an inseparable relationship with the company's continuous investment in international competitions.

In PEAK's dictionary, internationalization is the best choice to give the brand more value added and competitive power.

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< p > data show that as of June 30, 2013, PEAK has sponsored 18 NBA players, 3 NBA teams and 9 national basketball teams, with 23 international women's tennis players spokesmen, and has maintained in-depth cooperation with NBA, FIBA, WTA and other international sports organizations.

These international resources are not only representatives of PEAK's internationalization and specialization, but also become a stepping stone to PEAK's entry into the international market.

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< p > Xu Zhihua said that internationalization is a long-term work. We are implementing the leap from traditional product export to brand export. I believe that in the near future, PEAK will become the most influential international professional sports brand in China.

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