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China Daily Website

Shoemaking firms urged to be more innovative

Updated: 2013-04-03 10:30
By Wang Zhuoqiong ( China Daily)

China's sportswear industry has been plagued by high inventories and market saturation in recent years, forcing many companies to close stores.

Li Ning Co Ltd, China's leading sportswear maker, reported a net loss of 1.98 billion yuan ($318.78 million) in 2012, its first loss since 2004.

The company's revenue declined 24.5 percent year-on-year to 6.74 billion yuan.

Net profits at Anta Sports Products Ltd dropped 21.5 percent year-on-year in 2012 to 1.359 billion yuan.

Peak Sports Products Co Ltd, a major sports clothing manufacturer, saw its revenue fall 37.5 percent year-on-year during the year, with a net profit margin of just 10.7 percent, its worse result since 2008, according to its annual report released on March 11.

Li Ning Co Ltd cut its stores by 1,821 to 6,434 in 2012 and launched a strategy in December 2012 to improve the profitability of the group, while 361 Degrees closed 96 of its retail branches toward the end of last year.

wangzhuoqiong@chinadaily.com.cn

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