The sports brand Limited by Share Ltd has made many efforts in the cross boundary, but from the current performance, its diversified development is still stagnant, and now it is ready to return to the main sporting goods industry.

However, in the face of fierce competition in the domestic sports market, where is the place where the birds are safe?

You are a veteran sporting goods company in Jinjiang.

According to the latest earnings data, the company's operating income in the first quarter of this year was 520 million yuan, a decrease of 37.40% over the same period last year. The net profit attributable to shareholders of listed companies was 1390 yuan, representing a decrease of 83.66% over the same period last year. The annual report released in 2018 showed that the total loss of the birds in the previous year was 690 million yuan.

The loss is mainly due to the development of the brand diversification business is not enough.

According to the China Commercial Daily reporter, the "bird of honor" was listed on the Shanghai Stock Exchange in January 2014, becoming the first and only sports brand in the A share market.

After the listing, the strategic pformation of "sports industry group" based on "traditional sports shoes and clothing industry" to "sports industry based on sports apparel manufacturing and coordinated development of various forms of sports industry" was confirmed.

In fact, in recent years, the precious birds have been moving frequently in the capital market and are committed to diversification.

In 2015, the company invested 240 million yuan to participate in the financing of tiger sports, and invested 20 million euros to invest in Spanish football brokerage companies.

In 2016, the precious bird invested 383 million yuan to hold a sporting goods retailer's Jay trip, invested 382 million 500 thousand yuan to acquire 51% stake in the Xiamen shoe store, invested 26 million dollars to buy the exclusive operation rights of the US basketball equipment brand AND1 in Greater China for 31 years, and invested 260 million with several companies to jointly establish Ankang insurance; it also invested in Star Sports Technology Internet sports game; in 2017, the company proposed to invest 2 billion 700 million yuan to acquire Welsh's parent company's Wellcome fitness 100% equity, but the acquisition failed to reach the final conclusion.

From the above purchase behavior, we can see that there has been a diversified layout involving sports goods, electricity suppliers, retail, insurance, games and so on.

However, judging from the current situation, the pformation measures of the precious birds have little effect.

It is understood that last year, the first bird made a price of 143 million yuan, the pfer of Kang Pai Si sports shares, followed by 273 million yuan for the sale of tiger sports shares; at the end of last year, at a loss of 130 million yuan at the cost of the pfer of Jay's shares.

A series of selling assets indicate that the diversified business development of the birds is not as good as it imagined.

At present, you are ready to return to the main brand of sports brand and rebuild your main brand.

According to the earnings report of the first quarter of this year, the total revenue of the main brand is 412 million yuan, which accounts for 79.23% of the total business revenue of the quarter. The business income of Nike and Adidas, which is represented by Nike and Adidas, is reduced by 89.67% and 68.67% respectively.

It can be seen that the investment in the agency business is decreasing and more energy has been put on the main brand.

According to the relevant experts of the China clothing association, from the current competitive situation of the domestic sports brand market, the market of Anta and Lining has gradually changed from three or four tier cities to a second tier city. XTEP and 361 degrees are also catching up. It is probably easier to catch the three or four line market left behind by the above-mentioned brands.

By the end of March 31st this year, the number of retail outlets of the brand was 2830, of which 393 were in the first tier cities, 650 in the second tier cities, 1231 in three lines, and 556 in four cities.

From the number of stores, consumers in the three or four tier cities may have better brand acceptance.

But the experts also said that under the trend of escalation of consumption, consumers in the three or four tier cities may also be more interested in international brands. In this regard, it is necessary to see whether the marketing of the birds is compatible with the consumer psychology.

Author: Jie Yu Xing