Explore How PEAK Sports Shoes Have Been Successful In The Market.

By the end of September 2007.

Quanzhou, Fujian.

Although the title of the card is deputy general manager, Xu Zhihua is already a new generation leader of PEAK group (hereinafter referred to as PEAK).

As the second generation of family businesses, he deeply branded himself with his unique vigor and international vision.

It is under his trader's hand that in recent years, PEAK has created a new mode of sports marketing, PEAK mode, which is recognized by the industry as a new strategy of internationalization.

Because of the successful implementation of this model, PEAK broke through from the two or three line brand to become a new brand emerging in the international market and with unlimited potential.

"We allocate our resources with the elements of the world". In 2000, when Xu graduated from University, he entered his father's company.

As an excellent student in the Department of electronics of Sichuan United University and chairman of the student union, he has more choices: to enter politics or to enter a large company he likes.

From childhood into the blood of the family sense of responsibility, let him choose to go home to help his father run the company.

At that time, PEAK was in a developing Pinggu period.

PEAK, a Nike processing factory, started its own brand in 1989. Xu Zhihua's father Xu Jingnan was known as "the first person in Fujian's private brand". PEAK, who was the first step forward, soon became famous. "South PEAK and North double happiness" show the industry competition pattern in 90s.

Since 1998, some brands have advertised on CCTV sports channel with "sports stars endorsement + advertising". This new marketing mode has obvious effects, and these new brands are rising rapidly.

Jinjiang, Fujian, is known as the "world shoe capital". 40% of the world's shoes are produced here, including PEAK's main sports shoes brands.

These brands quickly set off a craze for advertising on CCTV sports channels.

In 2004 and 2005, there were as many as 40 Jinjiang sports brands in the CCTV sports channel, and 1/10 yuan from the CCTV market for about 10000000000 yuan a year.

Veteran PEAK is a bit behind the times, although in 2002 chose basketball star Liu Yudong to endorse, but as a follower of this model, PEAK's effect is not significant, quickly submerged in a large number of two or three line brands.

Is it to increase investment to compete for expensive advertising resources, or to open a new path to highlight the encirclement?

PEAK is facing the choice of life and death.

A chance to let PEAK choose another road, and the arrival of Xu Zhihua contributed to PEAK's choice.

In the spring of 2004, a Greek agent tied the line, and PEAK became a special equipment supplier for the Greek and Uzbekistan men's basketball teams at a very low price.

In May of that year, PEAK's first overseas store opened in Cyprus.

For the first time, PEAK went out of the country and achieved success. Xu Zhihua, a flexible brain, sprouted the idea of expanding the European market based on Greece and opening the global market based on the European market.

In early 2005, the board of directors of PEAK passed the draft "PEAK strategic plan for internationalization" submitted by Xu Zhihua.

Under the leadership of Xu Zhihua, PEAK's international market development work is in full swing, and PEAK has been appearing frequently in a series of international high-end events.

In December 2005, PEAK sponsored the NBA Houston TOYOTA Center (rockets home), becoming the first Chinese sports brand to enter the NBA arena.

In April 2006, PEAK became an equipment supplier for Australian men's and women's basketball teams.

In July, PEAK brand entered the highest level in Asia, the world's highest level of the fifth round Qinghai Lake international cycling competition.

In August, PEAK became a strategic partner of the Stankovic intercontinental basketball champions.

In September, Sean Battier, the famous star of the seven member of the American dream team, launched the Batman craze in China. PEAK also became the first Chinese sports brand to sign the seven team of the American dream team.

In August 2007, PEAK signed the sponsorship of the Iraqi national team to the 2008 Beijing Olympic Games.

While strengthening international marketing, PEAK invested a lot of money in product R & D and overseas channel construction: establishing R & D centers in Beijing and Guangzhou to keep abreast of the world trend; at the end of 2006, a branch office was set up in Italy to directly participate in the operation and management of the local market.

By shaping the international brand image, PEAK has entered a period of rapid development.

After signing a contract with the Australian National Basketball Team for two months, PEAK received a $3 million order.

In 2005, PEAK's sales increased by 50% over the previous year, and its growth rate was 80% in 2006.

In 2007, the sales target set by PEAK increased by 80% over the previous year. From the current situation, this goal will be achieved easily.

At the same time, PEAK's brand influence has also been greatly improved, rapidly breaking through the two or three line brand, becoming a domestic first-line sports brand, and emerging in the international market.

"We also carried out some assessments. Our annual advertising cost is about 80 million yuan, and our counterparts spent two or three billion, but the brand influence is not as fast as ours.

We have got an inspiration. Actually, the cost of participating in international activities will not be more than that of domestic participation.

For example, the cost of our sponsorship of the European all star game is about 20 thousand dollars, but if it is China's all star game, it costs 500 thousand yuan, and the product is still hard to play.

We spend $20 thousand to make the two teams use our equipment, and international competitions are often broadcast on both domestic and foreign TV stations.

Xu Zhihua said.

But he also cautioned that such an internationalization strategy is not something that every business can do.

"Internationalization needs vision and boldness, and needs persistence.

Many people have tried the internationalization strategy, but many people have given up.

So the key is to see whether you insist on it as an enterprise's development strategy rather than just trying it out.

We have persevered, and the measures have also been accepted by the market.

Facts have proved that Chinese brands are capable of internationalization.

We should look at the world from the perspective of the world and allocate our resources with the elements of the world.

Xu Zhihua summed up his international strategy.

"Business is not the same as war." while PEAK vigorously promotes the internationalization strategy, the domestic market is still its main battlefield.

At present, the proportion of pin export is 52.

PEAK's solid foundation in the domestic market has become a strong support for its internationalization strategy.

"We are still dominated by the domestic market, but the way is different.

Our internationalization strategy is only a strategic choice of some international markets.

It is a direction to make international brand. We succeeded for over ten years.

Entering the international market, without the support of the Chinese market, it is impossible to succeed.

It is only in China that there are market brands that can be adopted in this way.

Foreign brands are not profitable at the beginning. They need a lot of input. They can do this because they have the strength and support from the international market. "

Xu Zhihua said.

The international brand strategy has also accelerated the development of PEAK in the domestic market. PEAK brand has made obvious advantages in the market, and the sales situation of individual stores is in the leading position in the same industry.

Today, PEAK's sales outlets are more than 3000, which is still somewhat different from that of its main competitors. PEAK decided to expand sales outlets by increasing the speed of 1000 per year.

Nowadays, there are few brands of Jinjiang sports which are often advertised by CCTV.

Xu Zhihua believes that the competition pattern in the domestic market has changed from "spring and Autumn period to the Warring States period", and the strength of enterprises is relatively balanced.

In Fuzhou, a few sports brands compete for a place to open a store. The rent has been sold to 2 million yuan, and the price war is beginning to show signs.

"Business is not the same as war. Consumers are diverse. A brand can not satisfy everyone.

Entrepreneurs should think about how to do well in this industry, and we should carefully cultivate them to prevent vicious competition.

Xu Zhihua said.

Xu Zhihua, 29, has become PEAK's de facto general manager.

But he did not think it was the light of family business. He believed he could succeed in other enterprises as well.

He said: "when I first entered the company, I started calling and running shop. I believe that God rewards people."

In 1989, when the first pair of PEAK sneakers were listed, PEAK's position was to create the first brand of Chinese basketball shoes.

Over the years, PEAK's position as "China's first basketball equipment supplier" has been very stable.

Xu Zhihua thinks that a single basketball product can no longer meet the needs of the market. It puts forward "brand specialization, product serialization", expands the product line, and extends the brand to other sports fields.

In addition to professional basketball equipment, PEAK has developed many leisure series, including running shoes, casual shoes and so on.

In April 2007, PEAK announced its entry into the sports care product market. This marks PEAK's move towards a diversified sports industry.

"If you have established your leading edge in the professional field, instead of turning this advantage into an overall advantage, it is a huge waste of resources.

Now PEAK has formed a unique R & D and marketing system in the field of basketball equipment. In the next one or two years, we should give full play to our advantages and carry out deep tillage in the market of sports equipment and equipment.

PEAK's goal is to become China's largest sporting goods company and become an excellent international sports brand.

Xu Zhihua confidently said.

"When enterprises are small, they look at benefits and make a bigger contribution."

Xu Zhihua thought that being a man must have a sense of responsibility.

That's how he manages the business.

In the past 17 years, there are many employees watching Xu Zhihua grow up in the enterprise.

A few days ago, Xu Zhihua went to the 16 year old birthday of a senior employee of the company.

"PEAK has been doing this for many years, and has never been in arrears for 18 years. The whole industry is working overtime. I can not work overtime or work overtime, and have a rest day every week.

This and management have a lot of reasons, good management, employees will naturally work hard.

He used his father's way of educating his staff.

"To give employees a goal is not to let employees themselves set a goal, let employees do their own work, the initiative of employees is better.

If you do something wrong, of course you have to criticize him. He will think it should be done. He will be very happy if he is praised.

He wants employees to have a sense of belonging in PEAK.