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UMBRO'S Withdrawal From Hangzhou Market Is Past.

2012/5/10 11:44:00 15

UMBROAdidasKAPPA

Sales in January four thousand or five thousand


The reporter came to the sports hall of the first floor of Wah Yuen's new Hangzhou, the British sports brand UMBRO counters were located in the middle of the sports hall, with a small area.

A promotional sign was placed at the entrance of the counter, with 3 to 50 percent off clothing, 5 to 30 percent off shoes, and some winter clothes and hangers scattered in the shop.


"I don't know where to go. I'll be back later. They'll have to withdraw."

UMBRO opposite a sports brand salesperson told reporters.


About ten minutes later, UMBRO salesman Xiao Mao returned to the counter, and he confirmed the news of the withdrawal of the cabinet to reporters.

"Yes, but we don't know the exact time. We are still waiting for the notice."


Xiao Mao said that at present, there are only UMBRO counters in the Hangzhou area, and there is no UMBRO counters in the whole Hangzhou if there is a dismantling of UMBRO.


Xiao Mao came to work here in the first half of the year. In his impression, the sales situation of the counter has not been ideal.

"When I first came, I still had about more than 10 thousand sales per month. Now I'm getting worse and worse. I can only do four thousand or five thousand pieces a month."

And in the new sports hall of Wah Yuen, some brands that sell better can reach more than ten thousand yuan a day.


In fact, there are still many people who know UMBRO, but the company is too slow to update the goods and customers are reluctant to buy it. Our store usually only has seasonal clothing when it comes to the season change. As for shoes, I have been working here for 8 months, and I have always had such styles, and have never been updated.

Xiao Mao analysis.


Reporters then called UMBRO Hangzhou regional distributor, Shanghai Hui Tian commerce and Development Co., Ltd. Hangzhou branch Ms. Wu.

The latter said frankly that at present, there is only Wah Yuen in Hangzhou, which has UMBRO counters, and will be removed at the end of this month.

This also means that UMBRO will withdraw from the Hangzhou market at the end of this month.


UMBRO discount stores still open


UMBRO was stationed in Hangzhou in the 90s of last century. Once there were more than 20 stores and counters in Hangzhou. Why are they now in such a position?


"In recent years, the situation of sports brands has fallen so much that UMBRO is not immune to it."

Miss Wu of Hangzhou branch of Hui Tian commerce analyzed the reason for removing the cabinet.


Is there any problem in UMBRO's internal management? Why is the new product updated so slowly? "We do not have any new products available now, but because of UMBRO's products for many years, there is still a lot of stock."


However, Ms. Wu also said that although it is difficult to make a positive shop in Hangzhou, it is possible to open discount stores, especially where students are more concentrated. In fact, UMBRO's new Wah Yuen counters are also a discount store. "Compared with the first-line sports brands, the price ratio of UMBRO products is still relatively high. If it's a student market, it's a discount store. It should still try."


An insider told reporters that UMBRO itself is a very good brand. This time out of Hangzhou, there may be a problem with the connection of the agents, resulting in no new goods available in the Hangzhou area.


The UMBRO counters of Hangzhou Yintai Wulin store were also evacuated in February of this year.

"The renewal rate of goods is slower, and the performance decline is also more obvious."

Wang Xiang, deputy general manager of Yintai general store, told reporters.


Special discount households


UMBRO's decline in Hangzhou is related to its internal convergence, but UMBRO dealers say the decline of sports brand is not just a pretext.


Nowadays, the price of first-line sports brands such as Nike has not been strong in Hangzhou in major shopping malls and brand stores.

In May 8th, in Yintai Wulin shop, Nike wrapped 15% off of the products, Adidas part of shoes 20 percent off; KAPPA 298 yuan to reduce 50 yuan.

The Nike and Adidas stores on the stadiums are selling 10 percent off of the newly released summer dresses, while the Nike discount stores, which are 20 meters away from the two stores, even offer a 80 percent off discount.


As for Lining, Jordan, XTEP and other sports brand stores, it has become a truly "discount professional", some brands of new products discount can be between 7 and 20 percent off.


Some sports brands are also planning to reduce the number of existing stores.

KAPPA Wu Shufei, general manager of Zhejiang Hangzhou jiaxhu district distributor and Zhejiang Mai Sheng Yuehe sporting goods Co., Ltd., told reporters that KAPPA now has more than 100 stores in Hangzhou, Jiaxing and Hubei, including more than 30 Direct stores. "But now the rent is rising too much, and many domestic sports goods stores are also very large, so KAPPA has plans to reduce stores."


Reporters counted the annual reports released by Lining, Anta, XTEP, 31st degree, PEAK and the six domestic sports brands this year, and found that their sales growth rates all declined. At the same time, inventory, operating profit and gross margin were also not optimistic.

Lining's 2011 Annual report shows sales revenue of 8 billion 930 million yuan, down 5.8% from the same period last year.


In the first quarter results of the 2012 fiscal year announced by Nike, the income of the Greater China region increased by 15% compared to the previous year, and the pre tax profit increased by 4% compared with the previous year, of which the pre tax profit growth was the lowest in the 5 quarter of the Nike Greater China region.


The market has always been a barometer of the market, and it knows all about the movement of the brand.

"After the Beijing Olympic Games, we felt that the market situation of sports brand was weakening. Therefore, we added jeans and other fashionable commodities and brands in the sports hall investment process. After all, the clothing collocation of consumers is more diversified. Maybe the upper body is sportswear, and the following are jeans and canvas shoes."

Yintai Wulin shop Wang Xiang said.

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