Sports Shoes Enterprise Collective Discount Brand Value Or Gradual Loss

[key tips] "200 for 400" and "new product 12% off", which are rarely seen in sports brands, are now very popular. Reporters recently visited the market to find that the price of sports brand has been "hard". In a department store in Guangzhou, most of the Lining and 31st grade products in the field took part in the "200 to 400" promotional activities, which was equivalent to 50 percent off. The sales staff told reporters that the new product can also play 12% off. And Lining counters, in nearly 100 shoes, there are less than 10 signs do not participate in activities.

Editor's comment: discount sales is not a marketing strategy. At present, with the slowdown of domestic economic growth and the increase of store rentals and labor costs, many domestic sports brands are caught up in the "high inventory" crisis. In order to alleviate this tense market situation, most brands have started a vigorous discount sale campaign. Looking at the current second tier market, the discount of brand stores such as Anta, Lining, XTEP and so on is even more noisy. The discount rate of high frequency does not increase the sales volume of these brands, but on the contrary, there has been a downward trend of profit growth. The indicators such as operating profit and gross profit margin are all not optimistic. In this regard, some experts in the industry have indicated that the tendency of the sports shoes industry to have a collective discount has seriously affected the value of these brands, and the proportion of the cost of R & D is too small, so the collective discount sale of the domestic sports brands is not optimistic. To this end, buy back promotion, e-commerce and other channels may become the best way to break out of the current sports brand.