PEAK Sports Continues To Shrink Strategy In The First Quarter

< p > under the pressure of high inventory, PEAK sports, a local sports brand, has taken the initiative to adopt the contractile strategy since last year.

In the first quarter of this year, the number of authorized outlets operated by PEAK in China continued to decrease by 125.

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< p > last year, the number of PEAK retail outlets decreased from 7806 in late 2011 to 6483 at the end of 2012, with a net decrease of 1323.

At that time, PEAK CEO Xu Zhihua said in an interview with reporters that the reduction in the number of stores is an adjustment made voluntarily, hoping for more meticulous management of the channel.

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In the first quarter of this year, the number of authorized retail outlets in PEAK was 6358, which was 125 less than that at the end of 2012. All retail outlets are owned and managed by independent distributors or retail outlets operators. P

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< p > in fact, this contraction strategy is basically to digest inventory. Although the stock of PEAK dropped from 530 million yuan in the middle of last year (up to June 30, 2012) to 390 million yuan at the end of last year, its average stock cycle days still rose from 49 days to 80 days, and net profit also dropped by 60%.

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< p > reporter also learned that PEAK has begun to exert power in the near future and may try O2O mode.

Liu Xiang, director of public relations at PEAK, said that the price of most of the goods in the electricity supplier channel is flat and the price of the new product will be 5% to 10% higher than that of the line.

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"P > this pricing method has also caused some controversy.

It seems hard to attract consumers if the price on line is not significantly lower than that under the line.

PEAK said that the electronic business platform did not want to make the "sewer" to clean up the stock. The main function of the current platform is to push new products and publicize the brand image.

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