PEAK Layout Two Or Three Line City To Open Up New Market

Yesterday, PEAK's 2014 earnings report showed that by December 31, 2014, PEAK authorized the number of retail outlets to be 6004, compared with the end of 2013, a net decrease of 8.

According to the city level, the number of retail outlets in the first tier cities decreased significantly from 227 to 165, with a drop of 27.3%.

In its announcement, it said that in 2014, the company continued to prepare for the future growth and further enhance its brand image by closing smaller retail outlets and less efficient outlets and offering larger retail outlets.

It is worth noting that PEAK, which has always emphasized the development of the two or three tier cities, is shrinking not only in the first tier cities, but also in the first tier cities.

The number of retail outlets also showed a marked decline.

From December 31, 2014 to December 31, 2014, the number of retail outlets in second tier cities was 700, down 60 from 760 in the end of 2013, down by 7.9%.

By contrast, PEAK's expansion in the three tier cities is continuing.

The company is in the three tier city.

It reached 5139 in December 31, 2014, an increase of 114 from 5025 at the end of 2013, an increase of 2.3%.

"China's second tier and three tier cities have been the focus of PEAK's marketing in recent years, because these cities are faster and less competitive than the first tier cities.

Therefore, most PEAK authorized retail outlets are located in second tier and three tier cities.

PEAK explained in its announcement.

In recent years, the sports industry which has experienced a rapid development is facing a wave of closing shop. Although many brands have experienced a period of adjustment, the trend of closing stores has weakened. But with the influx of international brands such as fast fashion, the pressure of domestic sports brands is still not small.

As PEAK said in its announcement, the sporting goods industry is facing a new market segmentation.

"On the one hand, the industry is suffering from the impact of fast fashion and e-commerce channels; on the other hand, international sporting goods giants have long been eager to penetrate into the two or three tier cities and actively compete through online businesses."

PEAK said in its announcement.

According to the announcement issued by PEAK, the net profit of the company decreased from 311 million yuan in 2012 to 21.3% yuan in 2013 to 244 million yuan in 2012. According to the combing of the Beijing Commercial Daily reporter, it was found that PEAK's net profit has declined for third consecutive years since 2011.

In the 2014 year, the profit attributable to PEAK shareholders was 321 million yuan, an increase of about 31.3% compared with 2013.