618 Sports Brand Low Discount Promotions Behind Sporting Goods Consumption Is Now The Turning Point Of Vitality Recovery.

From the end of May, the 618 big promotion came to an end, and the sports brand was in full swing to usher in a consumption rebound.

Despite the fact that the sports brand has accumulated a lot of stock due to the closure of events and the closure of offline stores, the 618 period will become a turning point in sports consumption. With the promotion of 618, the inventory pressure of sports brand enterprises can be alleviated, and the sales potential of sports goods can be released, so that the recovery of sports brand market will be revival.

Price war starts

The 618 big push for a long time is coming to an end. The sports brands have ushered in a consumption boom during the epidemic and began the final sprint.

In June 18th, the Beijing Commercial Daily reporter found in Tmall Adidas official flagship store that Adidas offered a discount of as low as 50 percent off, and implemented a full 300 reduction of 70, a full 600 reduction of 140, a full 900 reduction of 210, some sneakers priced at less than 200-300 yuan, and some short sleeved T-shirts priced below 100 yuan.

The discount sale on Tmall platform is far more than Adidas's one. Nike, NEW BALANCE, PUMA, Skech, Lululemon and so on also offer different discounts and full discount. In addition to international brands, the domestic sports brands have also joined the ranks. Lining, PEAK, 361 degree, XTEP and so on play the full price reduction which does not have the price.

Sports brand promotions also stimulate consumers' desire to buy. According to data released by Tmall, total sales volume increased by 515% in the first 618 hours of pre-sale. Follow up data show that sports outdoor products break 100 million sales in 45 seconds. Among them, Nike broke through 100 million sales in 2 minutes and 59 seconds, and Vans reached first of the total turnover in the last first days. The number of sports brands including Adidas, Andrea, FILA and other sports brands reached 100 million yuan on the first day of 618.

At the same time, the high-end niche movement quietly became popular. According to the sales statistics of Jingdong platform June 1st -14, the turnover of Baseball Clubs increased by 120% over the same period last year, and the turnover of tennis trainers increased by 231% over the same period. The equestrian helmets such as equestrian helmets and equestrian boots increased by 70% over the same period last year, and the turnover of golf iron rods increased by 126% over the same period last year.

In fact, this is not the first big promotion campaign for sports brands since the outbreak. During the "38 goddess Festival" and "55 Shopping Festival", there has been a wide range of discount promotions. During the "55 Shopping Festival", Nike launched a time limited "discount 10 percent off", and at the same time issued a full 1000 reduction of 80, a full 799 reduction of 50, 499 reduction of 30 and other coupons; Cage launched a 1 hour before the discount folded, full 300 reduction of 300 coupons, full of the reduction of the superposition of vouchers, coupons and full use of the reduction of the coupons.

In view of the 618 big promotion related data and significance, Beijing Commercial Daily reporter interviewed lululemon and other related enterprises responsible person, but as of press time, did not get a reply.

In the textile and clothing brand management experts, Cheng Weixiong, founder of Shanghai Liang Qi Brand Management Co., Ltd., it seems that under the impact of the epidemic, the international brand stores are facing great challenges, and the consumer demand in the Chinese market can be transformed through discount promotions. At present, as a supplement to offline channels, the sports market has not yet returned to the same level in 2019, but has already released the signal of consumption warming.

Helplessness of inventory crisis

In fact, behind the 618 discount sale is a crisis of high inventory prices that can not be evaded by sports brands under the epidemic situation.

Yang Dayun, a fashion industry investor and CEO, believes that the product design, production and manufacture of shoes and clothing brands will be several months ahead of the sales cycle. Therefore, the epidemic will bring great pressure to products in autumn and winter 2019 and spring and summer in 2020. In addition, autumn and winter sales are not the strength of sports brands, and spring and summer sales will result in an overstocking of stocks.

Take the Lululemon that nearly doubled in the 618 promotions as an example. Data show that as of May 3rd, the first financial year in fiscal 2021, the main reason for the jump in inventory in the Lululemon quarter is not willing to discount. In addition, 40% of the inventory is made up of core products. These products are sold for a long time and have large demand, not seasonal goods.

Similarly, Adidas's first quarter results showed that Adidas's inventory continued to rise, and in the first quarter of 2020, Adidas's stock increased to 4 billion 334 million euros.

Despite many years of online layout, sports brand offline sales occupy a large share of the total sales. According to the data from AI media consulting, the sales volume of China's sports shoes and clothing market under the online and offline channels in 2018 was 46 billion 500 million yuan and 14 billion 400 million yuan respectively.

Earnings data show that in 2019, Lululemon's offline stores contributed nearly 63% of its revenue. In the domestic brand, Lining accounted for 22.5% of the revenue from the electricity supplier channel in 2019. Most of the revenue came from stores directly operating and selling franchisees.

In Cheng Weixiong's view, low price discount stimulating public consumption is no doubt a good way to clean up inventory. Sports brands in the industry will be discarded by consumers when they are more or less discounted.

Turning point of recovery

It is noteworthy that with the promotion of resumption of work and production, online sales promotions have become the norm for major sports brands to clean up stocks. Nike released its third quarter 2020 earnings report. Nike once closed more than 5000 stores in the Greater China region. However, its online revenue grew by more than 30% in the fiscal season.

Domestic sports brand Anta also said in the first quarter earnings report, sales in the first quarter achieved more than 20% negative growth, but online performance exceeded expectations, realized the number of units increased; the number of units in the FILA brand online and offline was negative, and the overall electricity supplier grew by more than 1.6 times in the first quarter.

The data of the electronic business platform also began to increase sharply. The sports consumption data released jointly by suning.com, Suning sports and PP sports show that in the 1-5 month of this year, the retail sales volume of sports increased by 152% compared with the same period last year. The number of home sports equipment such as fitness equipment and treadmill increased significantly, which increased by 280.6% and 179% respectively. At the same time, the new mode of live broadcasting and goods led to obvious transformation effect. The sales growth of single brand single live broadcast increased by 435% and UV increased by 632%. Among them, running shoes, sports T-shirts, sports shoes, basketball shoes, sports pants five categories of stable sales TOP5, respectively, 144.12%, 138%, 106.5%, 91%, 85.42% year-on-year growth.

In contrast, the 618 sales promotion is also related to the subsidies of the electronic business platforms. Beijing Business Daily reporter combing found that Tmall hand in hand with many local governments and brands together with the release of the estimated amount of more than 10 billion yuan of consumer coupons and shopping subsidies, Jingdong and Suning side also during this year's activities to provide 10 billion yuan of shopping subsidies and up to hundreds of millions of dollars discount.

However, there is an industry view that clear inventory is also a helplessness. After all, this will not only cause confusion in the market price, but also to a certain extent, lead to the decline of brand image. If it leads to consumers being used to the discount price for a long time, so that they do not want to spend the original price on new product purchase, then the next series of new sale will also produce phase. When it comes to negative effects.

In response, Yang Dayun said, for sports brand, the 618 big promotion can enable consumers to buy sporting goods at a lower price, so that the sports brand financial pressure has eased.

In fact, it is not difficult to find out from the data of fast-growing sports retail consumption. After nearly 6 months of online fitness, home sports and other new consumption habits, the vitality of the sports industry is being stimulated. 618 is also expected to become a wind vane for the bottom up of the sports brand market.