PEAK Chairman Xu Jingnan: Strive To Build An International First-Class Brand

December 14th, enterprise With the increasingly fierce competition and increasing level of development and overall competitiveness, the development of enterprises is facing an important issue. Recently, I made an exclusive interview on how to build a world-class brand. Peak Sporting Goods Company Limited Chairman Xu Jingnan.

The author: 2010 is coming to an end. What are the growth points of PEAK in the rapid development? How many stores are there, how many stores are there?

Xu: at the beginning of 2009, PEAK's channel construction process has obviously accelerated. At present, PEAK stores have exceeded 7000. We strictly regulate distributors and unify training. In the channel development, we also have some subsidy incentives, and we have to grant some capital subsidies to the larger stores.

The author: what branch does PEAK currently have in addition to the Jiangxi branch, but also ready to set up in the Midwest?

Xu: Shandong will build a clothing base and plan three places for clothing bases. Shandong is basically set. Jiangxi has added a garment center base on the base of its original base, and plans to build a clothing base in Henan.

In the future, the construction of the production base, the headquarters construction of the branch office, and the 30 provinces in the whole country will be able to build some local headquarters in the first phase, and Anhui and Jiangsu may have a factory together. Headquarters in 10 years to exceed 20 billion sales, a province of about 7 hundred million. The second must include logistics construction, which is a matter of consideration.

Anhui's labor force is relatively saturated, especially in Bengbu and Fuyang.

The author: in the early days of PEAK, the strategic layout of "encircling the cities in the countryside" was chosen more frequently. The two or three tier cities were their main consumer markets. What is the situation in the first tier cities?

Xu: Beijing, Shanghai, Shenzhen and Guangzhou have been stationed smoothly, especially in Shenzhen, which exceeded 1 hundred million this year and may exceed 2 hundred million next year.

Shanghai, Beijing and other cities are a vibrant city in China's economy, a barometer of the national economy, and an important city for consumer value orientation research. These cities have more international brands and consumers are more keen on international brands. PEAK's entry into these cities is not difficult, because these cities are more successful in building international brands, and PEAK is also an international brand.

The author: at the end of 9 last year, as the fourth garment enterprises in the mainland successfully listed on the HKEx, how did the brand internationalization and globalization strategy work? What are the new initiatives? How about the development of the R & D centers and branches in the US?

Xu: after the listing, he expanded the international market, and developed R & D centers and sales centers in Losangeles, and achieved further internationalization from product R & D, market development and talent introduction.

We have registered trademarks in more than 160 countries around the world, and have increased brand promotion, so that we are ready to expand the international market in the future. {page_break}

During the Asian Games in Guangzhou this year, PEAK joined hands with six national sports delegations, including the Iraqi delegation, the Lebanese delegation, the Tajikistan delegation, the Palestinian delegation, the Iran National Basketball Association and the Kyrgyzstan National Football Association. During the Asian Games, PEAK sponsored the sports equipment of the delegations of four countries and specially designed the exclusive uniforms for the Iraqi delegation. The Iran National Basketball Association and the Kyrgyzstan National Football Association also compete in PEAK professional uniform for the Asian Games. The six Asian Games sponsored by PEAK are from Central Asia and the Middle East. There are already many PEAK stores in the Middle East. PEAK is expanding its agents in the Middle East and West Asia. The demand in the local market is very conducive to the development of sports brand. PEAK will continue to exert its efforts to leverage the cooperation of international competition resources to pry the development of overseas markets.

PEAK sold $20 million before its IPO, which was US $about 45000000 in the first three quarters of this year.

The US R & D center has been building for half a year, and basketball shoes are running well. American locals were hired and sales started.

How much money does PEAK spend on advertising and marketing every year? Apart from these external images, such as NBA rockets, NBA nets and the International Basketball Association, how much investment do you have in internal control, especially on quality and R & D? What are the new initiatives? It is understood that 50% of your products are not outsourcing, but how to ensure quality?

Xu: in the first half of 2010, advertising and marketing expenses accounted for about 11% of sales, research and development accounted for about 0.5%, and investment in R & D would be further increased.

Internal control is very important. We must unify our thinking and reduce internal friction. First, the large-scale ERP began to operate, signed the ERP information management startup protocol with Kingdee company; secondly, it simplified the structure and system and saved some internal resources; thirdly, it implemented the performance evaluation method combining planned management and target management.

In terms of quality assurance, the implementation of standardized management, strict quality standards, there is a five: no material can not be used, semi-finished products can not come out. This is the bottom line.

The author: last April 30th, your company launched a unit building project Fairview Wah Ting, how are things going now? Will your company try to operate other types of real estate projects? Will you consider diversifying strategic investments?

Xu: the listed companies did not consider entering into real estate, making sporting goods a world-class brand. This is the mission, goal and purpose of the listed company. Family companies can consider entering real estate.

Listed companies do the brand, the annual family dividends, family companies invest in real estate. This piece of real estate is on the way to start. Next year, "Fairview" will be completed, and most of them will be sold to our employees.

It is impossible for a company to operate in a diversified way and become a world-class brand in the world. This mission is big enough. How many years can it be done?

Author: when you began to engage in sporting goods, did you think that you would be so successful today? When you encounter low tide and lose time, do you have the idea of shrinking?

Xu: I think I will succeed. It is difficult to make a brand when it comes to a certain time. I believe two points: effective allocation of resources; resources to brands and large enterprises. At that time, a confidence: the future market is the brand market, reform and opening up, resources can be effectively allocated. Firmly believe that international brands need support from the government as well as consumer support. Overseas Chinese called back: This is the right thing to do. They were happy to see the first Chinese brand on the NBA.

There must be a low tide. The first generation of team members, especially the senior ones, have gone wrong with the team's aim and confidence in creating international brands.

There is also a change in the external environment leading to internal adjustment. In the early 90s, state owned enterprises dominated, and the main channel was department stores. After adjusting the stores, there was no management mode at that time. Depending on the consumers, could it be adjusted successfully? It took two or three years and 1996-1998 years to adjust the channel successfully, which is also a low tide period.

The adjustment of internal property rights is rather difficult.

Confidence, channels and equity are mainly three kinds of low tide. {page_break}

My confidence in the purpose, most of the company's recognition of the direction and objectives of the international brand, was adjusted. Especially, I attached great importance to it and firmly supported it, so I adjusted it very quickly, and it was also the purpose of my work.

Author: is your company short of qualified personnel? What kind of talents do you lack? What do you think is the standard of talents?

Xu: talent must be lacking for a long time. We aim to improve the quality of personnel through target management, team education and training. One is to bring in, one is to train and improve oneself. How can we master the changes in the internal and external environment of our company? We should learn from wars and constantly improve ourselves.

There are many talents, such as R & D personnel, and some professionals, who are more consistent with your strategy. They need strategic thinking and practical experience.

Talent standards: people who want to do well. I am willing to do and love and pursue my career. Want to do is a prerequisite. If you want to do it, you will learn, summarize and improve. If you don't want to do it, it will be weird.

During the interview, chairman Xu Jingnan talked about the most important thing: "creating world-class brand", "goal" and "purpose". He is very clear about the rapid development of PEAK in the future. He has full confidence in the future. His strategic objectives are clear and his tactics are very effective. We believe that in the development of brand internationalization, specialization and product serialization, "PEAK" must drive higher and go further, driven by Xu Jingnan and team.