Footwear News: How Is The Brand'S Financial Report Of Sports Footwear And Clothing

Sportswear retailer Tauber International Holdings Co., Ltd. recently announced its latest unaudited annual performance announcement. In the year ending February 28, 2022, Taobo recorded an income of about 31.877 billion yuan, a decrease of 11.5% over the same period of the previous year. Operating profit was about 3.43 billion yuan, down 14% year on year; The profit attributable to equity holders of the Company was 2.447 billion yuan, down 11.7% year on year.

The financial report pointed out that the decline in revenue and profit data was related to the repeated epidemic. At the same time, the shortage of international supply chain in the second half of the fiscal year also had a negative impact on retail business, which was partially offset by the growth in scale brought about by the strategic increase in wholesale business.

In terms of brands, the revenue of Taobo's main brands in this year was about 27.569 billion yuan, accounting for 86.5% of the revenue of the headquarters, and that of other brands was about 4.005 billion yuan, accounting for 12.6%.

It can be seen that the main brands, including Nike and Adidas, still have the advantages, and the proportion of revenue in the past three years has remained stable at more than 85%. However, compared with 31.421 billion yuan in the same period last year, the revenue of the main brands in this year has dropped 12.3%, and the impact of unstable market environment and supply chain shortage is significant.

The revenue of other brands including Puma, Converse, Weifu Group's brands (namely, Vance, The North Face and Tian Bolan), Arthur's, Gezuka Tiger, SKECH and Li Ning remained in the range of 4 billion yuan, down 6.1% from 4.266 billion yuan last year.

It is worth mentioning that the domestic brand Li Ning will cooperate with Taobo in 2022. At present, you can search and purchase relevant products of Li Ning in TOPPORTS Taobo Sports applet.

In the market of sports and leisure shoes, Taobo and Li Ning once had a competitive relationship. With the rise of the national tide, the competition between domestic brands and foreign brands has become increasingly fierce. However, Taobo's choice to join hands with Li Ning may mean that it will gradually start cooperation with domestic brands.

Since the epidemic, the demand for sports and fitness has been growing, and the size of the global sports apparel market has shown a steady growth trend, and the Chinese market is no exception. According to Euromonitor consulting data, the retail scale of China's sportswear market in 2021 will be 371.8 billion yuan, with a year-on-year increase of 19.1%. Of course, this is related to the low base caused by the epidemic in 2020, but it also reflects the transformation of consumer demand in the post epidemic era and the possibility of growth of the sportswear consumer market.

At the same time of stable growth, high concentration is also one of the characteristics of the domestic sportswear market. In the article "63 Clothing Annual Report Inventory: 500 times the difference between the highest and the lowest", the number of brands pointed out that in 2021, the CR5 of sportswear track (the five largest enterprises occupy the relevant market share) was 58.1%, and the five major brands were Nike, Adidas, Anta, Li Ning and FILA. The 2021 Research Report on the Domestic Brand Clothing Industry released by Guosen Securities also said that the industry concentration of sports shoes and clothing is far higher than that of men's clothing, women's clothing, children's clothing and other sub industries.

High concentration is closely related to the technical, professional, innovative and other requirements of the sports shoes and clothing industry, and the market focus and resource accumulation extended from this enable Taobo's diversified brand stores to better play their own advantages. After all, compared with unknown brands, consumers have higher recognition for the head brands that have occupied a certain market share.

At present, Taobo's cooperation brand matrix is constantly enriched, covering 11 well-known international and domestic sports footwear brands in the Chinese market, including Nike, Adidas, Puma, Li Ning, etc. In the complex market changes, the diversified brand combination and optimized store structure endow Taobo Sports with strong pressure bearing capacity and explore many possibilities in the sports shoes and clothing market.