It Is Hard For Sports Brand Enterprises To Fight Against The Olympic Downturn.

London Olympic Games are more than half of the schedule, sports listed in Hongkong.

The stock finally came to an end.

Yesterday, Anta sporting goods market soared in Hongkong.

At the close, Anta sports soared 17.15%, Lining rose 12.15%, XTEP international rose 8.75%, PEAK sports rose 8.93%, and the 31st degree was up 5.71%.

Difficult Olympic year

When the London Olympic Games were in full swing, and when the athletes from all over the world fought for honor, the Chinese local sports brands also appeared on the athletes' robes and set off a brand war.

As the highest level strategic partner of the Chinese Olympic Committee, Anta provides exclusive Chinese national team award dress. According to the industry estimates, Anta's sponsorship fee may be as high as 600 million yuan in order to beat rivals such as Adidas and Lining.

Earlier this year, Anta chief operating officer, Lai Shi Hsien, also admitted that the "cooperation with the Chinese Olympic Committee" covered the wide range of interests, the length of service and the high sponsorship, which is unprecedented in the history of Olympic Games in China.

He said that the sponsorship fee would be allocated between 4 and 2009 to 2012.

In contrast, Lining, 31st degree, and PEAK made another way to get exposure.

Lining sponsored 5 gold medals in China, including diving and badminton. Thus, a new generation of diving sister Wu Minxia, though wearing a Anta sports coat, won the gold medal, but during the competition, she wore Lining swimsuit.

In addition, Sun Yang signed a bet before the game.

PEAK fishermen cast a net sponsorship of 7 national teams, with fewer than 11 Adidas sponsors and a Nike sponsor of the US national team.

At present, from the effect, Sun Yang's action has gained some praise, but on the whole, brokers are not optimistic about the advertising effect of sponsoring the Olympic Games.

Zhao Xiao, an analyst with China Merchants Securities, believes that the proportion of advertising cost of sports shares in sales this year will be 1 to 2 percentage points higher than in previous years, but Olympic sponsorship has almost no help in performance.

Ying Zongjie, senior research analyst at Paget retail industry, said that if the sponsorship fee of Anta Olympic Games was 600 million yuan, he could not understand, "this money is not to be taken in, it is like doing an advertisement."

Anta gave up the CBA (Chinese men's Basketball League) earlier, and granted the sponsorship to Lining. Although the sponsorship fee of the CBA was 2 billion yuan, the season lasted for 5 years, and the exposure rate was higher than that of the Olympic Games only two weeks.

In addition to yesterday's rally, the sports apparel stock has little chance of performance since the opening of the Olympic Games.

This year, in addition to XTEP's rise of 6.1%, many sports apparel stocks fell by more than 40%.

JP Morgan believes that for all sports stocks, 2012 will be a difficult year, and the industry's profit margin will narrow until 2014.

Painful achievements

Yesterday, Anta announced its interim results. In the first half of the year, net profit fell by 17% to 769 million yuan per Annex. Although net profit fell significantly, it was a better than expected figure for Anta, which was higher than expected in the market. It has become the trigger for Anta's surge yesterday.

Anta said competition in the domestic sporting goods industry continued to be fierce.

Although the group has been taking cautious steps to tackle the uncertainty since the second half of 2011.

However, its profitability is still inevitably affected by industry problems.

The group continued to adopt a more flexible supplement arrangement, and actively communicated with the distributors and franchisees to adjust the orders. The order volume of the group's first quarter order ended in July was about 20% to 30% decline in the year ended in 2013.

Anta's distributors and franchisees operate, and Anta retail stores, which operate for more than a year, calculate the same store sales growth of Anta brand products in the first half of this year, a decrease in the number of units per unit compared with the same period last year.

But it can't hide the whole story.

In the doldrums, Lining, PEAK and China have already issued a profit warning and expect a sharp regression in the net profit in the interim. Unnamed analysts believe that the company has announced that it is more honest with the industry.

JP Morgan even said that the whole sports stock market should be avoided.

Considering that high inventory and poor sales are the common problems faced by the whole sporting goods industry, it is difficult for individual enterprises to be independent.