PEAK Xu Jingnan: NBA Shoe Giant

1., in thirty years, the figure was over five billion 2., but missed the basketball match with Nike.

3. the initial involvement of NBA was challenged by the US embassy. The 4. war NBA opened up Chinese culture in the homogenization competition.

5., building 10000 stores plan to enter the first tier cities, 6. enterprises are not sustainable development is the fundamental.

China's economic structure is adjusting, and the global economy has entered a rebalancing process.

As an ancient business tradition of Fujian businessmen, they also face development opportunities and challenges under the new situation.

Thirty years ago, he was a board driver who pported goods on the South Fujian mountain road. An ordinary man who worked hard for his life now has more than five billion of his family.

Xu Jingnan, and what he founded

Peak, a mountain peak, is also a climbing process. How does this constantly challenging and enterprising brand become the first brand of professional basketball equipment in China in a short span of a few years, the first Chinese sports brand entering the NBA arena and the most Chinese brand player signing NBA players?

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With the clarion call for reform and opening up, the desire of Fujian Jinjiang people to change the poverty situation immediately broke out.

In the 80s of last century, a large number of household workshops and small processing factories were produced in Jinjiang, Fujian. These private enterprises, though not producing a lot and producing extensive methods, were able to flourishing business and not to worry about sales. This gave Xu Jingnan an opportunity to start a business.

After investigation, Xu Jingnan looked at the sports shoes, though the movement.

Xu Jingnan: Nike company first built a factory in Quanzhou in the first 86 years.

Then we were 88 years, because it developed very well. We were prepared to match with him. After that, the Nike company moved to Putian in 89 years. After we finished the factory, we couldn't match it.

Xu Jingnan's dream of subcontracting to Nike was shattered.

Xu Jingnan began to pport goods by scooter, and had run many small factories such as packaging factories, slippers factories, wooden box factories, and worked hard to get the first pot of gold. If factories did not start work, Xu Jingnan's efforts for years would be wasted.

Xu Jingnan: we decided to do it ourselves and do it ourselves. After Nike moved away, it had a large number of developers, technicians in Quanzhou, pferred these people to our enterprise, and some of them pferred to enterprises.

Many years later, when he was interviewed by many media, Xu Jingnan also joked that he was an entrepreneur who was forced out.

Xu Jingnan's excellence is that he not only returned the 80% talents left behind by Nike Quanzhou factory but also made up Zhi Cungaoyuan's determination to create an international brand.

Xu Jingnan: our earliest enterprise is called Feng Deng shoe making company. Our original brand is also called Feng Deng brand, but in order to create an international brand, we change from Feng to Nariyama To, and then to PEAK.

PEAK is the pliteration of "peak" in English. The triangle symbol represents the mountain peak and conveys the belief of continuous progress and continuous climbing.

At that time, this brand named in English, clear positioning and cultural connotation is extremely rare in Jinjiang, Fujian.

Before long, PEAK got the attention of the national basketball team.

Xu Jingnan: because there were no very professional basketball shoes in the country at that time, the best ones were the tourist shoes. So there were some of our Quanzhou people who came back to Quanzhou during the Spring Festival. We heard that we were making basketball shoes. To our enterprises, they wanted to use some of our basketball shoes to make use of their basketball shoes and reduce their expenses with Nike. So they took our basketball shoes as their shoes for competition, so the opportunity for us is to create a very good condition for our future positioning.

Before 90s, Chinese basketball players wore rubber coated shoes.

Beginning in 1991, Xu Jingnan quickly entered into cooperation with the Bayi basketball team, and successfully developed the first pair of big yards basketball shoes for the "Bayi team". Liu Yudong, the God of war, became the brand spokesman of PEAK, and PEAK became famous.

Xu Jingnan: so our Bayi team, after using our equipment, has become the champion, probably the fourth, the 93 National Games, the champion, the seven consecutive, seven years and eight years champion.

This has promoted our brand building and promoted our confidence in the research and development of basketball shoes.

And the position that keeps us in basketball.

NBA has been questioned by the US embassy.

NBA, the birthplace of many sports stars, the birthplace of countless wonderful moments, is also a place to turn dreams into reality.

NBA is also the battleground of many brands.

Xu Jingnan: because our aim is to create an international brand and become an international brand. You can't become an international brand without participating in some international activities.

According to statistics from NBA China, the number of basketball players in China is over 300 million, of which 80% are fans of NBA.

PEAK has been accumulating power to march to this star gathering event.

Xu Jingnan: because at that time, the resources were limited. First of all, we should do well the domestic market. Then, in the international market, we should first protect the trademark registration and lay the foundation.

In the past ten years, PEAK has continuously tamped up the domestic market, with sales reaching hundreds of millions of yuan, but it has been making slow progress in the following years.

How to achieve greater growth? How to effectively increase brand influence? Xu Jingnan knows that they have to win by surprise.

Xu Jingnan: in the 03 year, after their graduation from University, this and so on came back to help enterprises to get enough resources for our enterprises. It is still better for us to enter the international market from the time we feel this opportunity, and we also have many brands in China.

So we need to kill the tight encirclement.

To get rid of tight encirclement, we need not only strength but also courage.

In 2005, PEAK decided to sponsor NBA, starting with the rockets that Yao Ming was most interested in.

This kind of big deal is beyond many people's expectation. When Xu Jingnan went to the US embassy to visas, the Americans did not believe that Chinese enterprises would have such strength.

Xu Jingnan: when I was visas in Guangzhou, do I need your sponsorship for such visas NBA in Guangzhou? One is looking down on our Chinese enterprises. The second one can't accept it. NBA also needs your sponsorship. For the first time not giving us a visa, I have provided many photos of the same.

I have never heard of Chinese people sponsoring such competitions before.

So they could not accept it at once.

Facts have proved that Xu Jingnan was not a liar. He successfully obtained his visa in the second time, but in the United States, he met a real liar.

Xu Jingnan: for example, we signed a contract with the Rockets through an intermediary, which was signed by a company in the United States, but we signed a two-year contract with him, but in fact, the Rockets authorized the company to run direct. We signed him for two years and two years' money was taken away by him. After second years, the Rockets put forward that if we want to continue to cooperate with him, we will have to pay again.

We feel very strange, so this is a lesson, so we do not necessarily mean that the outside companies speak credibility, and the companies outside also have a trap and a deceptive person.

So now, although we have been prosecuted in the local court, we have been judged that we win but we can not get the money, so we have many drawbacks to their laws as well as their laws.

Some people say that Xu Jingnan and Xu Zhihua are pioneers. Others say they are the first to eat crabs.

Dare to think and dare to do it. This is a battle against father and son, breaking through many barriers such as language, culture and law, making PEAK the first Chinese advertiser to enter the NBA arena.

In 2005, when the billboard of the Chinese "PEAK China" appeared in the US NBA arena, the consumers' exclamation and huge repercussions were aroused.

PEAK spent two years four million dollars on billboards at home in Houston.

The trial water not only achieved the purpose of upgrading PEAK brand, but also made Xu Jingnan gradually become familiar with the process of cooperation with NBA.

Xu Jingnan: we have some quotations in the international market, some laws may not be very well understood, so many people set up some threshold at the beginning, but after we went in, I also got some sweetness. Actually in the international promotion, its fees are not very high.

After finding out the door, PEAK became a regular army from guerrilla forces, becoming an official partner of NBA, and incense outside the wall. The growth of domestic market demand made PEAK store develop vigorously, and PEAK's profit margins also increased.

War NBA developing Chinese culture in homogenization competition

In 2005, PEAK became the home sponsor of the Rockets. In 2006, PEAK signed the "dream seven" Battier.

In the wake of PEAK's march into NBA, other domestic shoe brands also started their journey to NBA, and a NBA star war started.

Lining signed Damon Jones, O'neal and Hayes in 2006, and in 2007, Anta signed Francis, Scola and Bonzi Wells of the Rockets.

What does Xu Jingnan think of this clustering phenomenon?

Xu Jingnan: there is a kind of interactive relationship in this kind of business. It can be said that he can promote the market and benefit the whole industry.

Reporter: including the possible battle between PEAK and other brands, which may appear in the one or the other of a tournament sponsor, how do you see this convergence of competition?

Xu Jingnan: it is impossible for an enterprise to monopolize all competitions. Nor is it possible for an enterprise to do a lot of competitions. Competition can promote the development of their respective businesses. Competition is a good thing. If there is no competition, it will be done.

Full competition is an important symbol of market maturity. It is inevitable that the common problem they face is how to play the strongest voice in this massive soccer star war, and how will PEAK retain its dominant position?

Xu Jingnan: after the cooperation, Battie got a lot of praise in this NBA field. Many players saw that because he hadn't had any foot injury in our shoes for many years, many players came to us to sign and use our equipment.

With Xu Jingnan's familiarity with the cooperation process, PEAK has more and bigger plans to sign Kidd, Artest, Mutombo and other stars in one breath. PEAK's NBA stars have reached a record 12.

Xu Jingnan: so in the process of using these players in NBA, we have been confirmed, so the positioning of our basketball equipment has been strengthened.

Beginning in 2006, PEAK entered a high-speed development track with an annual growth rate of over 60%. In 2009, PEAK's sales volume reached 3 billion 95 million yuan.

At the same time, PEAK's sales in the international market also began to surge, accounting for 20% of the total sales volume. Distributors and distributors from all over the world came to ask for cooperation.

PEAK, who has tasted the sweetness, decided to kill NBA.

Xu Jingnan: we have become the third largest sponsors of NBA.

So the NBA organization still attaches great importance to our organization.

Our listed companies, including my son, have been congratulated. They all congratulated us in person.

PEAK is not satisfied with customizing and tailoring the contracted NBA stars. They want to create a product image in an all-round way.

The national is the world. PEAK has displayed the rich Chinese elements such as "heaven and earth", "bamboo", "Chinese character" and "four treasures of the house" for the star's customized boots. Its unique design has won widespread praise.

Xu Jingnan: our Chinese brand, our Chinese elements can appear in the world's top competitive venues, for example, some of our consumers have great confidence, so our enterprises are capable of having this ability to create an international brand.

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Wan shop plans to enter first tier cities

In September 29, 2009, PEAK officially listed on the main board of the stock exchange of Hongkong. The first round of the public offering price was set at HK $4.1 / share, with a total fund raising of about HK $1 billion 700 million. In the absence of the financial crisis, PEAK's robust performance was generally favored by investors.

Xu Jingnan: those listed companies in Quanzhou, especially the sporting goods sector, perform very well in Hongkong. Basically, these listed companies can keep investors' interests according to their meaning.

After the listing of PEAK, a listed company pformed from a family business into an international capital market, the standardization and management decision level of the company's internal management have been continuously improved. The enterprises have made great progress in financial analysis, scientific decision-making, risk prevention and plan execution ability.

Interviewer: what changes do you think PEAK includes yourself before and after more than a year?

Xu Jingnan: This is a big change. This is a new starting point. We want to create an international brand. We are brand internationalization and specialization. Now when we are listed, we have a lot of cash flow and can also gather a lot of talents. So from now on, this listing resource is guaranteed very well, so I think PEAK's development in the future will be very fast.

PEAK has set up a 10000 store plan to open 10000 stores in the whole country, and the implementation speed of this plan has been greatly accelerated.

In the year 2009 alone, there were more than 1000 new PEAK stores, and PEAK's net profit also exceeded 600 million yuan.

Xu Jingnan: the scale of a brand's formation influences its attractiveness, and its scale is large enough to enable consumers to have confidence.

Over the years, PEAK's profit and major markets are in the two or three tier cities of China. Now PEAK is starting to take the opportunity to advance to the first tier cities.

By the end of 2009, PEAK was located in 6000th stores in the country. The industry called it the signal lamp of PEAK's "Shanghai city".

Salesperson: before we could open a shop in a first tier city, because the investment will be relatively large, and the boss will be relatively cautious. Of course, the president of the enterprise is also aware that we need to improve our breaking light rate in the first tier cities. Second, we have these foreign capital and have entered the competition, so that we have better competitive power to realize some of our planning for the channel.

By the end of 2010, there will be more than 7000 stores in PEAK stores nationwide, and 70% of PEAK's store plans will make PEAK's international brand more solid and more popular.

The development of enterprises is a fundamental problem.

In 2009, PEAK turnover for the first time exceeded 3 billion yuan pass, many people have the same question, in China, so many sports goods manufacturers, such fierce competition, PEAK still has much room for growth?

Xu Jingnan: now the market of China is too big. From our feeling that a Chinese consumption of two hundred sporting goods products is about two hundred and sixty billion of the market, then two hundred and sixty billion, if the international brand accounted for one hundred billion, then our domestic enterprises still have one hundred and sixty billion, one hundred and sixty billion, if we divide up ten brands, one brand can still achieve an average of sixteen billion. But at present, our Chinese sporting goods enterprises have not exceeded ten billion, so the space is quite large.

In 2009, PEAK's financial statements clearly indicated that the goal of 2010 was to enter a wider range of sports. This time, PEAK chose tennis.

According to a set of survey data from the China Tennis Association, 130 million of Chinese are interested in tennis. 5 million of the fans often play tennis, which is comparable to that of France, a big tennis country.

The tennis market is about to start a new round of competition.

PEAK held a press conference in Guangzhou, officially announced the signing of the international women's professional networking WTA Tour Asia Pacific official partner, and signed WTA star Olga Gwatersova, PEAK, stepped out of the tennis professional field to extend a historic step.

Xu Jingnan: from now on, I don't feel any sense of keeping up with the profession. I can't abide by it. I can't keep up with it. Only when the development continues to develop, I want to improve the problem on our original basis.

You should not have any illusions, what better ways to do, or better ones. We can improve and improve on the original basis.

Since 2005, the cumulative contribution of the Xu Jingnan family has reached two hundred million yuan. In addition, Xu Jingnan has also created a charitable model to find a sustainable way to win.

In the context of the severe financial crisis and employment situation, in 2009, PEAK began to subsidize young entrepreneurs.

Reporter: what do you think of the problem of youth entrepreneurship? Because PEAK invested twenty million, supporting 150 local youth in Fujian to develop PEAK's franchise.

Xu Jingnan: social progress, no youth entrepreneurship is definitely not progress, this is one, but youth entrepreneurship, every moment there are many difficulties, with obstacles, you have to analyze which is good for your future, there is room for development, but the key to your confidence, do you have the kind of perseverance to complete your this.

Do not do this thing today, if you encounter some difficulties, you can change it. Today, I will change it for another tomorrow, and I will lose it if I change my three chance.

As PEAK's slogan says, "I come to fight for victory", sweat, low tide and failure are all preparations for victory. PEAK is climbing the next peak. It is proving to people that I can make infinite possibilities.