Mainland Brand Shoe Enterprises Attack Taiwan Market

December 8th, XTEP International (1368.HK) announced last week that it has submitted applications to the relevant departments of Taiwan, which will sell 250 million units of Depositary Receipts (TDR) and hopes to be in Taiwan. list 。 According to the analysis of the industry, Anta, PEAK, Li Lang, nine Mu Wang and other brands of shoes and clothing are ready to set up points in the Taiwan area and have made different footprints in developing the Southeast Asian market. There are various signs that Quanzhou shoe and clothing brands are strengthening the market trend of "going south".

XTEP said that the approval process of TDR would take 3 months. After examination and approval, XTEP will be the second spring company after the successful holding of Jinjiang Taishan science and technology group holding company after landing successfully in Taiwan stock market.

It is understood that XTEP intends to issue 250 million units TDR. On behalf of 0.4 shares per unit of Taiwan depositary receipt, XTEP issued a total of 100 million shares. These include 50 million new shares issued by the company, and the Carlyle investment fund selling 50 million of its old shares, which account for about 2.3% of the issued share capital. Ye Jianzhong, an analyst with international bank of communications, told the media that the dilution effect of TDR was not great for the issue of the shares. Because Taiwan's business needs to grow, it will not affect XTEP's performance this year.

For the use of the funds raised, XTEP said it would be used to develop Taiwan's market business. market Promotion and sales, and expansion of plant and equipment. On the other hand, the issuance of TDR will also help attract overseas and local investors in Taiwan, and expand and decentralization of shareholder base.

In fact, as early as June this year, XTEP's first branch in Taiwan has opened in Taipei. XTEP responsible person said that in view of the Taiwan market, XTEP will adopt the regional agent distribution mode and take the middle end price route. In the first year, it will open 8 to 10 stores in Taiwan, with an estimated turnover of 3 million yuan, and finally plan to open 300 stores in Taiwan.

At present, the shoes and clothing brands of Anta, PEAK, Li Lang and nine Mu Wang in the same city are all ready to set up offices in Taiwan area. In an interview with the Morning Post reporter this year, PEAK CEO Xu Zhihua revealed that some retailers in Taiwan were negotiating with PEAK about agents and franchisees. If the conditions were appropriate, they would be willing to try to set up shop in Taiwan. The application for listing in Taiwan shows the importance and ambition of XTEP to Taiwan market. Compared with peers on the sidelines of the Taiwan market, XTEP's predominance of Taiwan market is the first move.

According to Ye Jianzhong analysis, the sports brand market of Taiwan is mainly dominated by Adi, Nike and Puma, while there are not many popular localization brands similar to XTEP, which left room for the mainland sports brands such as XTEP.

According to the analysis of the industry in Quanzhou, the difference between the competitive brand and the city is that the brand positioning of XTEP is mainly in fashion and entertainment. The marketing promotion of the brand in recent years is more focused on entertainment marketing, which is similar to the developed Taiwan market in entertainment industry. It can be said that the characteristics of Taiwan's entertainment market are more conducive to the development of XTEP's brand. The person also believes that Quanzhou's brand entry into Taiwan can also bridge the Southeast Asian market better. As many Quanzhou sports brands have entered the Southeast Asian market, Taiwan has become a blank spot between Mainland and Southeast Asian markets for some time.

In this regard, PEAK CEO Xu Zhihua also has the same view. He believes that Taiwan sporting goods market lacks local brands, which is not an opportunity for mainland brands. Taiwan market will be a good bridge for the mainland to connect with the Southeast Asian market.

Prior to this, Anta, another sports brand with PEAK, also had a plan for the Taiwan market. In 2006, relevant personnel of Anta confirmed to the Morning Post reporter that the plan to open shop in Taiwan was not successful. However, in Southeast Asian market, Anta opened Anta stores and counters in Southeast Asia such as Philippines and Singapore through overseas distributors. {page_break}

It is understood that PEAK, 361 degrees, Hongxing Erke, and Ali have already opened stores in some parts of Southeast Asia.

According to relevant information, since the opening of Taiwan's mainland investment to Taiwan in 2009, the amount of investment from mainland enterprises to Taiwan has reached US $108 million, of which Fujian enterprises accounted for 70%. Following the formal entry into force of the framework agreement on cross-strait economic cooperation this year, land capital has stepped up its pace, and the shoe and clothing enterprises are particularly enthusiastic.