Recently, the information on the 2018 annual general meeting of shareholders released by the sports brand Limited by Share Ltd is showing that the company has adjusted its long-term strategic plan to "return to the main business". At the same time, its business plan is adjusted to "strive to turn losses into profits in 2019" after experiencing the 2018 performance deficit. According to the China Commercial Daily reporter, the diversified business development of the birds is not very smooth. It is still necessary to observe whether the performance will turn well after returning to the main business.

Improving channels to enter the high-end market

In the announcement, the bird said frankly: "in 2018, the cost of social financing rose significantly, and the high interest expense continued to dilute the profits of the company."

In order to increase profits, the specific strategy of returning the main business is: in terms of channels, the brand channel of the "noble bird" will be flattened to adjust, reduce the level of distribution channels, and continue to look for mature and capable exclusive distribution partners in the regional market, and increase the number of new business partners. In addition, the company will cooperate with Jingdong in strategic planning and strategic partnership to develop new retail businesses, improve turnover rate, enhance operational efficiency and ensure smooth operation of core equipment business.

In cleaning up inventory, the birds will be mainly Oteri J, such as Wangfujing Ole, sand boat OLE and so on. At the same time, you will combine Jingdong, love inventory and other online channels to boost inventory sales.

In terms of brand operation, you are ready to increase the development and promotion of basketball brand AND1 products, timely launch the tennis brand PRINCE products, enhance the brand premium capability, and enter the middle and high-end market.

For the strategy of entering the middle and high-end market, the relevant experts of the China Clothing Association told reporters that from the current positioning of the birds and the number of shops, the three or four tier cities have a better acceptance of the brand. The birds should consolidate and stabilize the three or four line consumer groups and gradually improve their performance.

According to data released by the famous birds, by the end of March 31, 2019, the number of retail outlets of the brand has reached 2830, including 393 in the first tier cities, 650 in the second tier cities, 1231 in three lines, and 556 in four cities.

Diversified business development

According to the reporter, in 2014, the goal of "sports industrialization group based on the manufacture of sporting goods and clothing and the coordinated development of various sports industries" was proposed.

In early 2015, the great bird announced that it became the second largest shareholder of tiger sports. In July of the same year, the noble bird joined the tiger sports and Jing Lin capital to set up capital of mobile capital, investing in Spain football brokerage company THEBESTOFYOUSPORTS, S.A, holding 30.77% of its equity.

In 2016, the expensive bird bought the US basketball equipment brand AND1 in the Greater China region for 31 years, exclusive operation rights, under the holding line retail channel Jay's trip and the famous shoe Library Network Technology Co., Ltd., joining the star technology layout Internet sports game.

You also want to set foot in the field of sports insurance. In December 2016, the company announced that it was planning to establish Ankang insurance with seven companies such as Xinjiang Guanghui Industrial Investment Co., Ltd. and Hong Kong Group.

However, in 2018, the precious birds first transferred the shares of the sports club with 143 million, and then sold the tiger stock sports shares by 273 million. At the end of the year, they transferred Jay's shares at the expense of 130 million. A series of behavior of selling assets indicates that the diversified business development of the birds is not as good as it imagined.

According to the latest earnings data, the business income in the first quarter of 2019 was 520 million yuan, a decrease of 37.40% over the same period last year. The net profit of shareholders belonging to listed companies was more than 1390 yuan, representing a decrease of 83.66% over the same period last year. The 2018 annual report released in the same period showed that the total loss of the birds in the previous year was 690 million yuan.

Can this strategy of returning to the main industry enable the birds to take off again?