Domestic Sports Brand 361 Released Half Year Report Results

On August 17, 361 domestic sports brands released their semi annual results. According to the report, in the first half of 2021, 361d's revenue was 3.107 billion yuan, a year-on-year increase of 15.7%, and a net of 401 million yuan, a year-on-year increase of 32.9%. The double-digit growth of net income at the same time seems to have handed in a good mid-term answer paper.

But on closer inspection, we found that, The "late growth" of 361 degree did not cover up the embarrassing situation of "falling behind".

As for the growth of performance, 361 degrees attributed it to the strategy of "single brand, double drive and omni channel" during the reporting period, continuously strengthened its core competitiveness, and further realized the steady improvement of business scale and performance.

From the specific business point of view, shoes and clothing products are still the main source of contribution sales of 361do group. In the first half of the year, the growth rate of adult footwear business was 361 degree, with the income growth rate of 22.5% and the income of adult clothing increased by 6.1%. The proportion of the two in the total income was 44.4% and 37.6% respectively.

From the data point of view, the interim performance figures in 2021 may temporarily relieve 361 degree, but the pressure still exists in front of 361 degree. On the contrary, the popularity of 361 ° in China is far less than that of the other three domestic sports brands.

As a "top student" in the "sports class", 361 degree foundation is good. However, after the fierce competition in recent years, 361 degree seems to fall behind. Compared with Anta, Li Ning and Tebu, the 361 degree step is a little flustered. Even if it is to achieve double-digit growth, it is still not brilliant compared with its friends. The data shows that the revenue of 361 degree is less than 1 / 3 of Li Ning, and the net profit is less than 1 / 4. In addition, the growth rate of relevant indicators is also lower than Anta and Tebu.

However, compared with the declining peak and the rich bird, it is not easy to get this report card at 361 degree.

　　 "Low end" is difficult to tear and "high end" is difficult to paste

A series of problems encountered by enterprises are rooted in the brand. On June 18, 2019, 361 degrees released the "brand reconstruction plan" on the 10th anniversary of its listing. In this plan, the focus is on how to attract young consumers, improve the product premium ability, and explore the possibility of brand upgrading.

Subsequently, 361 degrees through the sponsorship of large-scale sports events, continued development of professional sports categories and trends of IP products, contract spokesmen, investment in popular E-sports competitions and other ways to try to win over consumer groups. But in the past few years, it seems that the chips have not been able to label themselves as young and high-end as they wish.

In the first half of 2021, 361 degree pointed out that in the first half of 2021, China's domestic sports industry continued to recover and full of opportunities. 361 degree insisted on the concept of "taking consumers as the core", strengthened the brand positioning of "specialization, youth and internationalization", deeply explored consumer demand, promoted the upgrading of consumption experience in all channels, and expanded the broader market space.

But even so, the e-commerce business of 361 degree heavy money bets has also been stumbling, and the weakness of the e-commerce platform is another problem in front of 361 degree. According to the statistics, we can see the fans of tmall flagship stores of the four major sports brands. Li Ning is more than 23 million at most, and 361 degrees is the least. At present, it is only 7.91 million.

Looking at the past, it is not difficult to find that when friends began to transform or acquire foreign brands, 361 still focused on the third and fourth tier cities, focusing on the low-end market. Obviously, it lags behind in improving brand image and brand premium ability. In addition, in addition to the brand, the competitiveness of the business sector in the current market environment needs to be improved. The huge pressure of the channel is also a problem that must be considered in 361 degree.

In the past two years, 361 degrees is also actively expanding online channels, striving to promote each other through offline physical store terminals, online e-commerce and new retail channels, and jointly promote the upgrading of Omni channel consumption experience. But after all, it has been left behind by peers for a long time. In e-commerce, 361 degree is still relatively slow.

In the long run, there is still a long way to go for 361 degree brand reconstruction.

　　 "Blood transfusion" children's clothing business

Children's clothing business is a card that can be taken in 361 degree financial reporting season. Under the continuous development of the children's clothing market, 361 degrees also continue to "blood transfusion" to children's clothing business. It is not difficult to see that 361 expects to deepen the differences of its children's brands, strengthen the linkage with the main brands, help them expand market share and boost the company's performance growth.

According to the data, 361 degree children's business is the second largest source of income of the group, accounting for 16% of the total revenue. During the reporting period, the sales volume and growth rate of 361 degree children's clothing business increased by 22.9% and 24% respectively year-on-year, which was the fastest growing business. In order to expand children's clothing business, 361 degree accelerated the distribution of sales outlets. At the end of the report period, there were 1745 children's clothing stores, an increase of 42 compared with the end of 2020; At the same time, there are 453 children's clothing stores of the fourth generation, an increase of 246 compared with the end of 2020.

It looks like a good growth potential, but it faces great uncertainty.

In terms of children's wear track, although 361 degree is one of the earliest sports brands to do children's wear, it is still uncertain whether the future is clear due to fierce competition in children's wear business.

It is not only 361 degree that aims at children's wear market, but also international brands in addition to domestic Tebu, Anta and Li Ning. According to incomplete statistics, there are more than 20 domestic listed companies expanding to children's wear market. Take Anta as an example, Anta will layout the children's clothing market in 2008, and grow at a faster speed.

In the past, the rapid development of China's economy has laid a good foundation for the sports industry, and also promoted the sports industry to develop in the direction of refinement and standardization. Driven by multiple factors such as steady economic growth, policy promotion and residents' health concept, China's domestic sports goods market, especially the sports apparel market, has entered a period of rapid development. According to Euromonitor data, from 2014 to 2022, the market size of China's sports apparel industry increased from 148.3 billion yuan to 315 billion yuan, with a compound annual growth rate of about 13.37%.

All kinds of signs show that the sports market ushered in a golden period of development. This time, whether we can no longer miss the opportunity to stand on the tuyere depends on whether the 361 degree brand can quickly stand on a new level. After all, brand remodeling is not a day's work, especially in the fierce competition of sports brands.

Another notable thing is that the tide rises and the boat goes up. Overall, the performance of 361 degree in the first half of the year seems to be excellent compared with previous years, but it is more based on external factors such as market recovery and the rise of national tide.

For 361 degrees, to achieve sustained and rapid growth on this golden track, breaking through its own empiricism or more difficult issues.