From Salesperson To "Godfather Of Fashion Sports Brand" Is Luck Or Necessity?

Chen Yihong, the salesperson of the top ten sneakers and the footwear manager of Li Ning Co, is now called "the godfather of the Chinese fashion sports brand". He once helped build up 3 brands by knowing very well what Chinese young people like to wear.

Now, when young people in North and South China are proud to wear "Kappa" LOGO clothes to make it the most popular sports brand in China nowadays, the Chinese trend that he led was officially listed on the Hongkong stock exchange in October 10th.

At 16 o'clock on the same day, the first day of trading in China listed on the Hongkong Stock Exchange (3818.H K) received HK $5.43.

At this price, China's total market capitalization reached 29 billion 870 million yuan, far exceeding that of Lining and Anta, which were listed in Hong Kong earlier.

The fortunes of the Chen Yihong family, which controls 64.7% of China's stock, reached 19 billion 300 million Hong Kong dollars, while Chen Yihong's personal worth 53.32% reached 15 billion 900 million yuan.

Far more than the "old club" Lining's sixty-fifth place (10 billion yuan).

In this way, in less than 20 years, Chen Yihong was ranked thirty-sixth among China's richest people from an ordinary salesperson.

The price of Chinese cabbage has bought a gold mine. In fact, from a soldier to a migrant worker and then becoming an entrepreneur with an international brand name, Chen Yihong has been winning by surprise for more than 20 years.

In the most shocking way, in March 2006, Chen Yihong bought the Kappa ownership in China and Macao through the Chinese valuation at that time, which was regarded as a sky high price (the paction price was about 70% of the company's market value).

We should know that Kappa was operated by Lining group in the "Beijing trend", and the Beijing trend was founded by Chen Yihong, of which Lining group holds 80% stake and Chen Yihong holds 20%.

At that time, only the exclusive distribution rights of Kappa in China and Macao as of 2007 were signed.

Moreover, Kappa was suppressed by international brands Nike and Adidas in the Chinese market, and was squeezed by Lining and Anta from the mainland.

Because of the unclear prospect, Lining group decided to adjust its strategy and pursue the long-term value of the brand. So it sold Chen Yihong's 80% stake in Beijing to 44 million 800 thousand yuan.

Since then, Chen Yihong has wholly owned the "Beijing trend" and reorganized it into "China's trend".

Life is always so dramatic!

"When it comes to this process, Chen Yihong always makes such jokes, but the outside world is extremely envious, saying that Chen Yihong bought a gold mine that could never be dug out at the price of Chinese cabbage.

How do we manage to change the fashion movement, the godfather, to buy out the ownership of Kappa in China and Macao?

This is a problem Chen Yihong must face.

In view of Kappa's struggle in the Chinese market, Chen Yihong resolutely decided to implement a differentiated development strategy: I didn't do what others did, but I did what I had never done before, and did better.

In fact, this idea is inspired by Chen Yihong's Kappa global conference in 2004.

He noticed at the time that Kappa had another production line for fashion products. However, sporting goods in the Mainland generally tended to be practical in sports and lack fashion trends.

So Chen Yihong decided to change the direction of China's Kappa: changing the line of sportswear in the past and turning it into a fashion style in sports elements.

In order to implement this idea thoroughly, the Chinese trend began to look for the designers who meet the requirements around the world, and even hired a designer from South Korea to take charge of the general design route at the price never seen before in the Chinese design field.

"In the final analysis, the production cost of Kappa products is much higher than that of the past. However, due to the interests of consumers, especially the trend group, the new products are sold nationwide immediately, so the retail price has increased a lot compared with the past.

"Battle of war!

From then on, Chen Yihong was known as the godfather of "fashion sports brand" by the mainland.

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