Nike's global rivals Adidas in 2008 on account of high inventories have experienced income right channel, clearance stores, long growing pains. Adidas was started to strengthen collaboration with dealers, not only to allow dealers to open discount stores, but also allow dealers to sell Nike Air Max Outlet a certain percentage of trade-terminal single-volume product updates. At the same time, it is sent to the dealer store personnel UGGs Outlet Online supervision, and distributors through the crisis together. In 2011 after, Adidas Performance has started to recover, and to maintain the growth momentum in 2012.
Recently, the domestic sports brand Li Ning Company has released giant expects a substantial loss in 2012 results announcement, which is expected to substantial losses for the first time since the Li Ning Company since June 2004 listed eight years. Board explained in the announcement, the loss is due to the revival of plans including channel change program involving one-time expenses. Channel revival plan requires a one-time budgetary support 1.4 billion yuan to 18 billion yuan, it will involve the Nike Air Max 2014 Mens provision for bad debts and inventory provisions Nike Air Max 90 Womens on accounting.
It is understood that Li Ning's high inventories in major factor originated after 2008 Olympics consumer Nike Air Max 95 Womens market estimate too high. Li Ning Company after the big expansion was closed stores and discount tasted the bitter fruit of clear inventory. Data show that in the past ten years, Li Ning, the company rapidly expanding wholesale operations through the marketing network, capture the market share, seize the opportunity of the first round of development. Between 2004 to 2008, Li Ning stores from 2272 to 5935, revenues grew from 1.878 billion yuan to 6.69 billion yuan.
From 2009 to 2010, Li Ning, the company achieved operating profit of 1.342 billion yuan, 1.547 billion yuan, in 2011 fell to 631 million yuan, far below 2008's 960 million yuan. The first half of 2012, the company operating profit is only 184 million. Over the past two years, Li Ning brand transformation fails, highlighting the sequela, high inventory, Goldman UGG Boots Clearance Sale Sachs investment exit. Since then, the company launched a series of self-help action: close stores, lay off weight, the introduction of new investors, major management shake-up, and so big.
Li Ning Company from the released earnings, as of June last year, Li Ning stock reached 1.138 billion yuan, while accounts receivable from the point of view, the pressure part of the inventory at the dealer as much as 2.5 billion yuan, adding almost two and unchanged from the same period of 3.83 billion yuan revenue. If you can not solve the failures of transition in 2010 generated a huge inventory at the end, Li Ning, the company's entire distribution channels are likely to be huge receivables collapse, its new year marketing plan will also be affected. Once the dealer forced under pressure to expand its own repayment eliminate inventory Brandon Bolden Jersey action, Li Ning, the company's brand and the entire price system would be shaken.
It is reported that, at this stage, Li Ning dealers face high inventory, the company has been unable to pay the arrears. In between sports shoes and apparel industry, brand companies and auto payment period of trade is generally 90 days, that the dealer paid in full within 90 days of delivery of the goods balance due. Li Ning's data show that turnover days of accounts receivable from its 2010 average of 52 days increased to 102 days in the first quarter of 2012.