XTEP Shove XTEP &Nbsp Into The International Market

January 14th hearing

XTEP international is about to issue Taiwan Depositary Receipts (TDR) in March this year. It expects to raise 100 million US dollars, and funds will mainly be used to enter the Taiwan market.

According to the internal plan, 15 stores will be expanded in Taiwan in the next two to two years, with a target of 200 to 300 stores in the long run and Taiwan market as a springboard to enter the international arena.

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"After the maturity of a brand, the next step is to think about how to go out," said He Ruibo, chief financial officer of XTEP. "Taiwan is indeed a good market for XTEP internationalization."

He Ruibo explained that Taiwan has many advantages. In addition to the opening of the capital market, for example, XTEP has hired Taiwan stars to endorse, because Taiwan stars are very popular in mainland China. Secondly, Taiwan has high technology level in shoemaking and clothing making, so it is worth learning. In addition, the concept and practice of operation management in the zero sale industry is quite advanced, and it is also a way to follow XTEP's internationalization.

The mainland sporting goods market is facing fierce competition. Not only is the international first-line sports brand strong, but local brands are also actively taking the place. XTEP takes fashion movement as its appeal, takes the middle grade price, and develops rapidly with the focus of the two or three cities.

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He Ruibo pointed out that with the estimated market share of about 5% cities in XTEP, the retail market has an annual business scale of about 120 billion yuan (RMB, the same below) to 150 billion yuan, while China's retail sales now grow at an annual rate of about 16%, while the sporting goods market is growing by more than 18%. From the first quarter and 2 quarter of this year, the growth rate of XTEP is about 23% to 25%.

At present, XTEP has more than 7000 retail outlets in mainland China. This year, it will continue to increase 800 to 1000 stores, with 1 stores in the initial stage.

He Ruibo pointed out that after the scale of the network reaches 1 stores, the strategy will pay more attention to the promotion of single store sales, but the pace of developing new stores will not stop.

He pointed out that since XTEP's key layout is mainly in the two or three tier cities, there will continue to be new markets in the process of accelerating urbanization in the mainland, and there will still be room for growth.

XTEP's pricing strategy is also dominated by medium grade products. For footwear products, the average price is about 200 to 300 yuan per pair, compared to NIKE's 400 to 800 yuan, which is only half the price. The most expensive winter clothing is about 400 to 600 yuan per piece.

XTEP emphasizes that it is a fashion brand that consumers can afford.

In fact, XTEP has planned to enter the Taiwan market strategy.

He Ruibo pointed out that every market has its own characteristics and there will be market differentiation.

Taiwan is a mature market, the future will be the main product of multi-functional, high quality fabrics, to meet the market demand, the price strategy is also high.

XTEP also plans to set up the first overseas branch in Taiwan this year, and to take charge of the local team management. At the same time, it will take the parallel strategy of Direct stores and franchisees, starting from the Taiwan market, and will continue to move forward to the market in Singapore, Vietnam and Malaysia in the future.