Latest News:  


Sports brands to see sales chill continue

By Wang Zhuoqiong (China Daily)

08:27, December 28, 2012

High inventories caused by quick expansion, product homogeneity, price surges and sliding purchasing power are expected to pressure international and local sports goods brands this winter.

That's on top of a dismal first half for the industry this year.

Nike Inc's sales in China - including footwear, apparel and equipment - declined 11 percent to $577 million, according to the company's second-quarter fiscal report.

Nike's reported future orders, scheduled for delivery from December through April, dropped by 6 percent. In comparison, Nike's revenue has grown 11 percent in other emerging markets to $1.05 billion.

Domestic brands are also struggling due to the weak market demand, a reminder to investors to dilute their investments.

Sequoia Capital, a venture capital fund that has invested in Google and Cisco, has reduced its stake in one of the leading Chinese sports apparel companies, Peak Sport Co Ltd, from 6.22 percent to 3.65 percent.

In 2009, Peak received $60 million from Sequoia Capital China, CCB International and Legend Capital. Analysts said the reduction of Sequoia Capital China's stake in Peak is a result of the depressed sports goods market and the company's sliding performance.

In the first half of 2012, Peak's net profit dropped 43.3 percent to 240 million yuan ($38.5 million). The company has closed 747 of its smaller and less profitable shops since the end of 2011.

Now with 7,059 shops, Peak is a leader among local sports brands, and its network is mainly developed in second- and third-tier cities.

【1】 【2】

We recommend:

Riding on BJ-GZ high-speed railway

The spending of China's rich

More Chinese cities see home price rise

Santa is coming and China takes a lot more notice

Harbin-Dalian high-speed railway starts operation

Nanjing Yangtze Fourth Bridge to open


Leave your comment0 comments

  1. Name


Selections for you

  1. Four warships of navy hold open day to public

  2. Frontier defense soldiers on patrol duty

  3. Winter storm hits eastern U.S.

  4. Stay together forever

  5. Ice fishing event in NE China's Jilin

  6. Top 10 economic events in 2012

  7. Gorgeous Ye Qing's new photo album

  8. Photos of the Day

Most Popular


  1. Time to abandon obsession with theme parks
  2. No grand glory, but plenty to cheer about
  3. Optimism over China's economy surfaces
  4. Internet gaming: 'A winning gamble'
  5. People have right to know what chickens eat
  6. Catchwords in memory in 2012
  7. Why the young Chinese get physically weaker
  8. Why Discover China is popular in the West
  9. The laughter sounds too harsh
  10. Do not confuse Confucious with Santa Claus

What’s happening in China

Many parts of Jiangsu see snowfall

  1. 12 officials suspended over children deaths
  2. More non-governmental support to help needy
  3. China bans forced confessions in investigations
  4. School bus safety
  5. Chinese women prefer older men: Poll