Local, Int'l Sports Brands Suffer In China; Slump Carrying Over To '13
High inventories "caused by quick expansion, product homogeneity, price surges and sliding purchasing power are expected to pressure int'l and local sports goods brands this winter," according to Wang Zhuoqiong of the CHINA DAILY. Nike's second-quarter fiscal report revealed that Nike sales in China -- including footwear, apparel and equipment -- declined 11% to $577M. Nike's "reported future orders, scheduled for delivery from December through April," fell by 6%. In comparison, Nike's revenue has increased 11% in other emerging markets to $1.05B. Domestic brands "are also struggling due to the weak market demand." 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," from 6.22% to 3.65%. Anta Sports Products saw its first-half revenue down 11.6% year-on-year to 3.93B yuan ($630M). Anta said that its orders for the first quarter of '13 have fallen by 20 to 30% (CHINA DAILY, 12/27).