Sports brand transformation, accelerate supply chain after the first two years of rapid expansion, the domestic sporting goods market has shifted from a seller's buyer's market, in this era of oversupply, sales of products subject to the timely cater to more consumers. Thus, faster supply chain seems to be a bright road. Text / world network's data center Hu Chenchuan China sporting goods industry in crisis is an indisputable fact. The first article in this series has been the financial data from the perspective of the status of the industry of the sort. Clean-up inventory, optimizing channel structure presumably will be the main theme of the last two years. But after the completion of these two sports brands are able to do out of the shadows? We are skeptical. After all, the sky changed! After the first two years of rapid expansion, the domestic sporting goods market has shifted from a seller's buyer's market, in this era of oversupply, sales of products subject to the timely cater to more consumers. Thus, faster supply chain seems to be a bright road. However, this "vampire knight cosplay " road is smooth or tortuous?
We of two. Ordering system reform to accelerate supply chain sporting goods listed generally divided into four seasons, each season-market similar process, but different starting and ending time. Anta, for example, time to market: in the first quarter to early in January; in the second quarter by the end of March to early April; in the third quarter to the end of June early July; in the fourth quarter to the end of September early October. Accordingly, the order will be held four times a year, it held some time in the previous six months to launch new products every quarter. Ordering system generated from the wholesale model. Distributor (channel) needs ago quarterly sample products before deciding the next single, the distributor of brands on order to organize production, production is completed adding to the terminal sales. Currently, the sports brand on the domestic market (including Nike and Adidas) are mainly sold wholesale model, therefore ordering system will continue to exist for a long time. From the left, we can see before and after part of the order will take up 70 days or so. Can this stage of time as short as possible? Now, the difficulty is not small, but some brands are efforts: Adidas nearly two years in the earnings report proposes, to its \u0026 ldquo; clover \u0026 rdquo; and \u0026 ldquo; NEO \u0026 rdquo; two sub-brands made fast fashion brand, product cycle Target shortened to 60 days, and to integrate the experience of these two brands is based supply chain, to shorten its professional sports products (AdidasSportsPerformance) to market cycles. In order to improve the efficiency of ordering and Adidas are implementing virtual ordering tool (VirtualSell-inTool). Adidas claimed in the earnings report, the tool enables Adidas comprehensive display of all product samples to distributors who, and distributors from online orders; the tool on the one hand to speed up the time to market (savings held in line entity under orders of the time), on the other hand can reduce the cost of the sample showing. Adidas expects 2013 to popularize the system to the world 60% of distributors. If the distributor can sit at your computer at any time according to their own sales orders or Tuibu single, which obviously can greatly shorten product launch cycle. But the interview, we found that this system is not popular in mainland China. Li Ning in ordering institutional changes seem more practical. According to the disclosure of its financial statements, on the basis of retaining the original model on order, Li Ning upgrade the enterprise planning system and market data analysis system, based on the two launched a rapid response SKU product lines and the best combination of (A +) product. Li Ning, the company claims, by the rapid reaction product line, distributors can replenishment for some hot models; in the different areas of market data analysis, Li Ning to the regional distributors SKU recommend ordering the best combination of products, such products composition more in line with local consumption habits, so that the distributor's sales more smoothly. Li Ning plans to construct a \u0026 ldquo; inertia best selling SKU replenishment orders + + rapid reaction product \u0026 rdquo; retail leading subscription model. We believe that although the distribution system in the form of the decision ordering the inevitability, but ordering patterns can be changed through innovative ordering methods to achieve the purpose of shortening product life cycle is not impossible.
Ordering is a core part of the supply chain, after the impact of changes in the part of the forward ends inevitably produced transmission, front-end product design and development, backend manufacturing. We found that the product design and production point of view and can not be separated, especially from the perspective of shortening product cycles, the impact of both its consistency. Simplify the design and production to accelerate supply chain do not know if you have not noticed one detail: Nike and Adidas products in recent years in the form of Simplicity, and color trends fan. Footwear products from the point of view, looks more and more close, fabric applications are converging, the color is more abundant. Basketball shoes, for example, used to have a different celebrity endorsement exclusive sneakers, these shoes styles, technology applications are also different. And now, the stars more and more like the foot of the shoes. This phenomenon has been some industry insiders agree. We interpret this phenomenon from four perspectives: first, many styles of development needs the support of new technologies, and in the context of the global economic downturn, increased R \u0026 D investment is clearly uneconomic; second, whether active or passive, consumers of technical pursuit has shifted from the physical experience of digital experiences, which also proved why Nike and Adidas increased R \u0026 D efforts digitization, such as digital products NIKE +, NIKEFuelband, ADIDASmiCoatch and other emerging; Third, Chinese market, strong purchasing power and the older part of consumers goodbye to basketball, football and other basic sports, began to get involved in outdoor sports and outdoor brands thereby causing the rise, affected, Nike and Adidas are positioned toward younger, color tends to enrich it is not difficult to understand; fourth, more simple design makes the production more difficult down the production cycle is shortened means to accelerate supply chain reactions. Enhance the versatility of the material, reducing SKU complexity, this seems to be the consensus of the sports brand. One to reduce production costs, and secondly to accelerate the reaction rate of the supply chain. Information sharing throughout all aspects of the supply chain? Hard! Many people suggested that poor information is one of the main supply chain unresponsive. We quite agree with this statement. Examples sporting goods industry due to the exchange of information arising from the loss of numerous poor. But how to make a smooth flow of information, this is a broad question, we can only try to do some of the discussions. For now, the infrastructure of information communication between brands and the terminal is not bad, most of the sporting goods retail shops have information systems. As long as brands like, information retail terminals can be faster feedback. The key is to establish an effective feedback system and feedback information analysis and processing capabilities. Li Ning stressed the importance of feedback and data analysis in its 2012 earnings report, and said: The Group is starting to build a leading retail business model to adapt effective supply chain and logistics support systems to enhance rapid response capability.
This description and Adidas in the supply chain strategy is very similar expressions. Visible, rapid response supply chain seems to be a way out of sports brands. The rapid response supply chain is not only limited to between brands and terminals, we believe, is the key to the supply chain between manufacturers and brands accelerated. We do this a guess: OEM manufacturers to see the brand's real-time sales data, so that it can discover which products coming out, and which products unsalable, thereby adjusting production strategies, best-selling models to produce more, produce less slow-moving models. Such "shakugan no shana cosplay " a state is clearly to make the production and marketing more efficient and significantly reduce inventory risk. Academic to say that this is the MRP procurement model to VMI procurement model change. But this pattern forming short time is difficult, because there are too many difficulties, we sentence: information flow, capital flow and logistics three streams not harmonious. While looking at the difficult, but a bright future is attractive, so many brands are leading to retail (terminal information in real time across the supply chain, resulting in positive synergy) business model transformation. And Direct, is clearly the fastest in the form of information penetrating. Direct to accelerate the expansion of the supply chain? Direct and distribution time is not ripe, the pros and cons of each other, one is better not jump to conclusions. However, the speed of the flow of information that Direct is more dominant. The past two years, Nike and Adidas are two sporting goods giants are vigorously promoting its Direct business Direct business accounted for 16% of Nike's reached, Adi higher cosplay costumes for sale than 23%. But it is worth mentioning that the Direct business accounted for two brands in China are lower than elsewhere in the world. Visible on the Chinese market, Belle, Bao Sheng, RLT and other large distributors remains the dominant industry. In our view, at least give the supply chain to accelerate Direct brings the following advantages: 1. feedback more directly and quickly; 2 By facing consumers, brands can more accurately grasp the market, resulting in more efficient production arrangements; 3. Direct business can carry out all aspects of ordering, logistics, store selection, personnel management role play exercise; 4. Direct can build a better brand image (flagship stores, concept stores), but also can quickly clear inventory (discount stores, factory stores).
Domestic sports brand Li Ning is the highest proportion in Direct (22%), which may make its supply chain to accelerate more smoothly. Due to huge investment, operation and management capabilities for enterprise requirements, Direct business has been challenging sports brands, in addition to Li Ning, the other domestic sports brands in this regard is still the trial stage, the business accounted for more than small. Direct business growth will be a long process, and accelerate the supply chain is a response to industry crisis of medium-term strategy, so expect the growth of direct marketing services to accelerate the supply chain is not realistic, more efficient collaboration and distribution provider relationship is the key. In the eyes of many industry analysts, Anta's growth is higher than Li Ning, Anta dealer ranks mainly because most of them are his own and culture, there is a high loyalty, ease of control. We might be able to understand this: the more obedient distributors, supply chain reaction sooner. Adi 2008 and 2009 channel reconstruction planning purposes is in this, when it cut a lot difficult to manage dealers, to support a number of more cooperation dealers. We believe that although Direct business model may be more conducive to speed up the reaction rate of the supply chain, but the movement is far from mature products Direct business, it now appears, to optimize more practical cooperation with the dealer. Direction of the transformation: accelerating supply chain studies Nike, Adidas and Li Ning's strategy statements, we believe that the retail-led business model will be the future direction of sports brand's transformation. In order to more quickly meet consumer demand, sports brands have to speed up the response speed of the supply chain optimization products simultaneously. Accelerate the supply chain have to pull time from every aspect of the product life cycle which, while ordering, design and production is the most central of the three links. At this stage, through reform and optimize the design and production of order system to accelerate supply chain is possible, but the information sharing and expand Direct both ways is not yet mature, feasibility is not strong. (As contained in the 'world network operators \u0026 middot; managers,' the July issue) [Welcome to search on a micro-channel \u0026 ldquo; txws_txws \u0026 rdquo; attention to our official micro letter every six to miss the wonderful article. ]