How Long Can PEAK Support? Reach Out To The Tennis Player For Help.

More and more emphasis on brand marketing sports brand, put a lot of investment in advertising and publicity expenses.

With the opening of the Asian Games and NBA competitions, the trend will reach a climax in the second half of this year.

While jointly optimistic about the great future of China's economic development, three well-known domestic companies

PEAK Road

Recently, PEAK officially announced the signing of an international woman in Guangzhou.

In cooperation with WTA, PEAK will receive the franchise rights of production, sale and promotion of WTA- PEAK joint brand clothing, and will develop products such as clothing and footwear for players.

"Our sports medicine departments and science and technology departments will help PEAK create a new tennis product."

Faris, managing director of WTA Asia Pacific, said.

But in fact, PEAK does not yet have a real tennis product line.

Holding hands with tennis, PEAK's real goal is not only to develop a brand new market for tennis products.

"This is mainly a brand promotion consideration."

PEAK CEO Xu Zhihua said.

Therefore, women's tennis players with outstanding Chinese figure become the first choice for PEAK to join hands.

Xu Zhihua believes that the entry of women's tennis into the tennis market can achieve a more rapid market response.

Faris also said that WTA will help PEAK achieve "internationalization and specialization" more quickly.

This is indeed what PEAK has been striving for in recent years.

But PEAK's purpose is to continue to plough the domestic market.

After all, China's market share accounts for about 9 of PEAK's total turnover.

The PEAK interim report released at the beginning of the month showed that PEAK achieved a revenue of 1 billion 809 million yuan during the period, an increase of 33.3% over the same period last year.

Net profit reached 347 million yuan and profit margin reached 19.2%.

The two or three tier city is still the main source of revenue for PEAK.

Of the 6796 existing stores in PEAK, more than 5000 are located in three tier cities.

This is the structure that PEAK wants to maintain, but also needs to be changed.

PEAK sees that 130 million Chinese are interested in tennis, and 5 million of them play tennis regularly.

But obviously, most of these people are in China's first tier cities, not two or three line cities.

At this time to enter the tennis market, PEAK on the one hand to focus on maintaining the development of the two or three line market, on the one hand, also hopes to enhance the brand to achieve expansion in the first tier cities.

Xu Zhihua said that PEAK has opened about 200 new stores in the northern Guangzhou and Shenzhen four cities this year.

In the first half of this year, PEAK opened 590 new stores in China.

This is where PEAK looks contradictory.

To do tennis, we also want to enhance the brand; to internationalize, we hope to win local recognition through internationalization; to be a first-line City, it will still be placed in the two or three tier city.

This is actually the commonality of domestic sports brands such as Lining and Anta.

Behind all this is the increasingly fierce competition in the domestic sports brand.

Compared with Anta, Lining, the leader of the domestic sports brand, PEAK is relatively small in size.

But when sports marketing became the life of sports brand, PEAK did not hesitate to plunge into fierce brand competition.

Brand melee

The interim report shows that the advertising and promotion expenses of PEAK amounted to 204 million yuan during the period, accounting for 11.3% of the total business revenue.

But there is still a gap between Lining and Anta.

Lining's interim report shows that the operating income of the period is about 4 billion 505 million yuan, with a profit of 582 million yuan and a profit margin of 12.9%.

Among them, advertising and marketing expenses amounted to about 595 million yuan, accounting for 13.2% of business revenue.

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In the same period, Anta's operating income was about 3 billion 453 million yuan, with a profit of 760 million yuan and a profit margin of 22%.

Among them, advertising and publicity expenses amounted to about 414 million yuan, accounting for 12% of business revenue.

By comparison, all brands that focus on R & D are relatively small in investment.

Lining's R & D costs account for 2.5% of business revenue, while Anta's figure is 2.9%, while PEAK has not released relevant data.

Compared with R & D, Lining and others know that brand marketing is life.

As PEAK said in its interim report, the increase in turnover during the period was mainly due to the increased demand for products in the market, and the main reason for the increase in demand was based on its successful brand promotion and marketing strategy.

Lining and Anta also have similar expressions.

The three major sports brands invariably see that China's urbanization process and the improvement of wage income level will provide them with a rare opportunity for development, and the core of this opportunity is brand building.

The development track of PEAK is the proof of this assertion.

Before 2005, PEAK was just a basketball shoe brand in China.

In 2003, PEAK signed a basketball star Liu Yudong as spokesperson.

But Xu Zhihua later admitted that the effect was not obvious.

Only in 2005, when PEAK signed the Houston rockets of the US NBA team and pushed the slogan of "China PEAK" to the Rockets home, PEAK really knew the Chinese people.

At the same time, Lining, Anta and other colleagues have also entered the international sports field.

Nowadays, only in the three major sports brands of NBA, many stars have been awarded.

In the field of tennis, Peng Shuai, Yan Zi and Ljubicic were split up by Lining. Zheng Jie and Jankovic were accepted by Anta, and PEAK was already a latecomer.

In its annual report last year, PEAK made it clear that it had to go into a wider range of sports rather than PEAK's focus on basketball.

To this end, PEAK's brand remodeling must go ahead.

At the same time, Lining and Anta have also launched a brand restructuring, both initiatives and efforts are considerable.

Compared to the first half of the brand promotion investment, the second half of the Asian Games and NBA and other international events came one after another, Lining and Anta predicted that the relevant investment in the second half of this year will be greater.

In fact, these Chinese sports brands have begun to look for opportunities in the 2012 London Olympic Games.