The Price Is High And Customers Are Hard To Accept. Lining Is Not Against Shanzhai Nike.

Mainland famous

Lining (2331) lost more than 80% in the first half of the year, and closed 952 stores.

Affected by bad performance, Lining's share price has been cut down in recent six months and investors have suffered heavy losses.

At the same time, trends (3818), PEAK (1968), 31st degree (1361) and Anta (2020) also declined sharply.

These mainland sporting goods companies are facing difficulties, but Lining is the most serious.

The main reason leading to a sharp decline in the performance of sporting goods companies in the mainland is undoubtedly the rising cost, the influence of brand constraints and the intensification of competition among competitors, as well as the impact of Shanzhai brands.

The price is high and customers are hard to accept.

In the streets and alleys of Shenzhen, sporting goods shops can be seen everywhere, and their competition is fierce.

In Luohu District Qingshui River commercial street, there are shopping malls, Lining and Anta stores on less than 200 meters, and there are 4 to 5 shops near them.

And the small business of leather shoes business, and 6 to 7 stores that sell sportswear.

Therefore, the competition among businesses is fierce. The core of competition is price and brand.

In Lining and Anta stores, the price of a pair of sneakers is at least 200 to 300 yuan (RMB), while in nearby shops, the number of unknown mainland brands is about 100 yuan, while the prices of cottage Nike (Nike) or Adidas (Adidas) are about 70 to 80 yuan, only the quality of Shanzhai is not as good as that of Lining and Anta.

However, for many ordinary consumers, most of them bought unknown sports shoes from mainland brands, some of them bought more Shanzhai sports shoes, and really willing to spend more than a couple of times on the purchase of mainland brands such as Lining and Anta.

Lining and Anta have to sell high brand advertising fees and store rentals.

Shenzhen's famous cheap shopping paradise east gate, from the Pearl River Delta and Fujian manufacturers of sports shoes are also very rich and varied, a pair of sports shoes price is also about 100 yuan, but like Lining, Anta, 360 degrees and other brand sales because of the high price, naturally far behind the sales of his general sports shoes.

In Dongmen, a summer sports wear or a fake Nike.

The price is less than 100 yuan, and Lining and Anta stores at least 150 yuan or even more than 200 yuan, the price is at least 50% or even doubled, so it can hardly be favored by the masses of consumers.

In some shopping malls or high-end department stores, Nike, Adidas, Lining and Anta stores, some high-end consumers still like these famous brands, the price of thousands of yuan can also be accepted, but after all, sales are limited.

Advertising expenses are huge.

For Lining, Anta and other sports brand manufacturers, because of the rise in labor costs and raw material prices, they face enormous cost pressures, and the high advertising cost has become a huge expense.

Therefore, under the background of poor economic environment, they are hard to get good results.