the competition in the sports goods category in the Chinese market has become increasingly fierce. How much opportunity is left for Puma? Puma's revenue increased in the first quarter of 2024, but pro

Puma presented a performance in the first quarter of 2024 with increased revenue but decreased net profit.

According to the report, Puma achieved sales of €2.102 billion, a year-on-year increase of 0.5%, but net profit decreased by 23.5% to €87.3 million.

It's worth noting that there were some highlights for the Chinese market in Puma's financial report, making China one of Puma's core strategic focuses.

However, with the increasingly fierce competition among sports brands in the Chinese market in recent years, how much opportunity does Puma still have?

Although Puma's CEO, Arne Freundt, believes that the first-quarter performance in 2024 met expectations, Puma also expects an improvement in the second quarter.

However, before that, Puma may need to consider more about the issue of increased revenue but not increased profit.

In the first-quarter financial report, Puma did not elaborate much on the reasons for the decline in net profit.

However, in the full-year financial report for 2023, Puma mentioned that the increase in operating expenses affected some gross margins, resulting in a 3% decrease in Puma's operating results to €621.6 million in 2023.

Regarding the reasons for the increase in operating expenses, Puma believes it is due to the growth in distribution related to sales and other variable costs, as well as ongoing marketing investment driving.

Some commentators believe that Puma's decrease in net profit is due to increased marketing efforts and discounting to gain more market share.

While some researchers believe that the development of competitors such as Nike, Adidas, and the competition from emerging brands are all reasons that affect Puma's sales.

Although there were some highlights for the Chinese market in Puma's financial report, with changes in market competition, especially the rapid development of domestic brands such as Anta and Li-Ning, Puma's opportunities may be limited.

However, despite facing competitive pressure, Puma is still increasing its investment in the Chinese market.

According to financial data, in the first quarter of 2024, driven by continuous growth in the Greater China region, Puma's sales in the Asia-Pacific region reached €456.6 million, a year-on-year increase of 0.6%.

In the full-year financial report, the Asia-Pacific region became the only region where Puma grew, and Puma explicitly stated in the financial report that this was mainly due to the strong growth of the Chinese market.

To better develop the Chinese market, Puma has taken a series of measures.

For example, Shirley Li was appointed as the General Manager of the China region, local production was increased, and sports marketing efforts were intensified.

However, despite these efforts, Puma still faces fierce competition from domestic and international brands and needs to continuously improve its brand image, product quality, and marketing capabilities to achieve better performance in the Chinese market.