The autumn breeze is blowing, and it’s a good time for camping again.
In recent years, the domestic camping market has experienced explosive growth. After the explosion, the entire industry is returning to its normal pace of development. Compared with last year, although camping is still one of the hottest outdoor sectors and its scale is rising steadily, the overall growth rate is slowing down.
So, when the camping craze gradually fades, how will the related companies perform? What countermeasures have been taken?
Revenue and orders have declined significantly, and the growth rate may be difficult to maintain.
Not long ago, a listed outdoor brand company announced its semi-annual report.
During the reporting period, the company achieved operating income of 860 million yuan, a year-on-year decrease of 0.84%, and a net profit of 97 million yuan, a year-on-year decrease of 14.28%. Among them, the self-owned brand business achieved revenue of 428 million yuan, a year-on-year increase of 23.59%; the OEM/ODM business achieved revenue of 432 million yuan, a year-on-year decrease of 16.54%.
Compared with clothing, shoes and hats, outdoor sports do not seem to be the most in-demand industry. Data show that in the first half of 2023, the company’s revenue declined significantly, falling by 4.26% in the second quarter. It is worth mentioning that on the day after the semi-annual report was released, the stock price of this listed company finally recovered, rising by about 7%, compared with a 60% plunge a year ago.
If the performance of listed companies is like this, then you can imagine the plight of small and micro enterprises.
A tent fabric company said that as a new company that has been established for 3-4 years, we have not only enjoyed the dividends of the booming camping economy, but also need to face a series of potential risks in the future. Since the beginning of this year, the industry has experienced severe involution, and it has been difficult to receive orders, which has dropped by about 50% compared with last year.
When asked about the reason for the decrease in orders, the company reluctantly replied that our business is relatively simple, and products such as tents are not considered daily necessities. In addition, downstream companies have made a large number of goods in the past two years, resulting in the overall inventory of the industry. On the high side, in the absence of terminal demand support, a large reduction in orders may be inevitable.
Brand upgrade, expansion of customer sources, changes or new vitality
Someone once joked that standing on the wind outlet, pigs can “fly”! When the craze gradually fades and orders and performance are affected, related companies are also working hard to seek new opportunities.
In the popular stage of camping, exquisite camping has become the choice of most people. However, with the reopening of tourism, the isolated camping model has gradually subsided, and more people have begun to explore “treasure camping spots”, such as camp camping, mountain camping, car camping, etc.
Taking the above-mentioned listed companies as an example, although the revenue growth rate has declined significantly, the net profit margin has rebounded in a single quarter, from 8% to about 11%, and the gross profit margin has also rebounded simultaneously. Behind this is a disguised manifestation of brand upgrade, and it is also the result of the company’s early layout.
In addition to brand upgrading, expanding customer sources is also an effective method.
The tent fabric company revealed that it is difficult for a new company to develop the market in the early stage and it takes time to accumulate. Due to insufficient customer reserves, we are also more easily affected by the general environment. For existing products, we plan to develop the luggage segment and gradually enrich the product line.
There is also a textile company that has shifted from women’s clothing to outdoor functions. It divides its product lines according to seasons, into summer camping economy and winter ice and snow economy. It focuses on lightweight and functional concepts and has launched a series of scientific and technological innovations with functions such as sun protection and cold protection. High-quality products gradually gain a foothold.
The reason why a tuyere is a tuyere is because it is time-sensitive! The camping economy, which has been fueled by the epidemic, is “going downhill.” This is the consensus of many people in the industry. How to transform the camping economy from “Internet celebrity” to “long-term popularity” may be inseparable from the joint efforts of the entire industry chain!
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