China'S Trend: Winning The Fashion By Winning The Game

In 2004, Qin Dazhong began to grow long hair and dyed bright golden yellow.

Qin is chief executive of China trend group.

That year, the Italy brand Kappa, the trend group agent, began to pform without slighting the corner of Nike and ADI.

In 2007, China moved forward for five months, with sales amounting to 697 million yuan, up 175% over the same period last year.

The net profit margin in 2006 reached 43%, according to the data provided by Zhang Tianbing, director of AT's Greater China region.

"Sporting goods industry, a better developed enterprise has a net profit margin of around 20%."

In October 10th this year, China's trend was officially listed on the stock exchange of Hongkong.

Chen Yihong, chairman of China trend, also boarded the 2007 Hurun rich list and tied fiftieth with Tencent Tencent at 12 billion yuan.

After Lining broke his tail, Chen Yihong bought the "exclusive" Chen Yihong in 2005. After selling all the Lining group stocks, he bought an unknown company, the predecessor of China trend group.

In Qin Dazhong's words, Chen Yihong was rather hairy when he made his choice.

Beijing trend was founded in 2002. The Lining group has a 80% stake in the Kappa brand, and then Chen Yihong, general manager of the Lining group, is the chairman of Beijing trend. Its privately held Beijing Jiali wind company has the remaining 20% stake.

The new Beijing trend has encountered unprecedented difficulties.

The positioning of "professional sporting goods" is positive for Nike and Adi, while the original Italian designers do not buy it.

"Compared to the larger size of Europeans, loose front designs are sloppy in Chinese.

At that time, the design was largely inappropriate for Chinese people.

Qin Dazhong recalled the scene at that time.

On the other hand, out of the fear of "dressing for others", Lining's money and energy also focused on the main brand, because he signed only five years' agency with Kappa's parent company BasicNet.

The interim management team is also poorly integrated, "people discord" plus "bad weather" - the order volume of SARS in 2003 was horrible.

Under the constraint of internal and external difficulties, the annual sales volume of Beijing in 2002 is only about 17000000 yuan, which is equivalent to the highest annual sales of single stores.

"02 or 03 years are really tough."

Recalling the time, Qin quite regrets.

In June 2004, Lining went public.

Second years in July, Chen Yihong and his wife holding Shanghai Titan Corp bought 44 million 814 thousand of all 80% shares, and Beijing moved away from the Lining group.

As Chen Yihong's right-hand officer, Qin Dazhong left Lining as his general manager of Beijing.

In 2005, kappa has begun to pform and sales have also increased.

"But as a listed company, Lining, under the pressure of long-term value planning, or following the advice of Roland Berger, has abandoned the trend of Beijing with only two years of Kappa agency.

These risks are not very great for a non-listed company. "

Qin Dazhong said.

Chen Yihong's top priority is that he can no longer be trapped by the "five years' curse".

Chance will come soon.

BasicNet temporarily had cash flow difficulties. In early 2006, Chen Yihong and Qin Dazhong went to Italy. After a day's negotiations, they returned a contract. Beijing's trend was to buy Kappa's brand ownership and permanent management rights in mainland China and Macao, at a cost of $35 million.

In fact, they did not have such a large sum of money at that time.

Back to Beijing, Morgan chase, who has been watching the progress of negotiations, has been waiting for the door.

Beijing has sold 20% of its stake and won $38 million of Morgan Stanley's strategic investment.

The trend of pformation and listing in Beijing is spreading.

He made a surprise move: he lingered in Sanlitun, and all the war men were in harmony with Clipsal.

Therefore, those who are curious are infinitely like heaven and earth.

The wall of China's trend office building is inlaid with the "winning game" of Sun Tzu.

In addition to his hair dyeing and advocacy of employees' hair coloring, Qin Dazhong also had frequent access to the bars of Sanlitun, Houhai and Cherry Street on the same day with the company's middle and high management.

In the red wine and green, originally insisted on "sporting goods should be professional, red, blue and black" management has gradually realized that: the original clothes can still wear this, can be tight, can be lake blue and pine yellow, can be very fashionable.

It all stems from the strategic change made by Chen Yihong, chairman of the company.

At the Kappa global conference in 2004, he saw another product line of Kappa: sports fashion line.

After two years of market failure, he was acutely aware that perhaps this is the magic weapon of Kappa's success in China.

Chen Chen's feeling is based.

China's economic development and consumption upgrading have made ordinary consumers not only limited to monotonous sporting goods styles and colors, but their tastes are becoming more and more critical.

However, it is difficult to reverse the deep-rooted ideas of management.

So we went to the bar to see how the young people wore them.

In this way, consumers are around us.

Qin Dazhong said.

Positioning is not only a pair of simple "fashion and sexy" adjectives.

"We are implementing the differentiated route and the blue ocean strategy.

Why do we pform?

Because we can't beat Nike and ADI.

Traditional sporting goods are strong in brand, but in fact their retail ability is not strong.

We have also considered fashion lines like Esprit and jack&jone, but they are very strong in retail.

So we set ourselves a red line that we can never touch: always remember that we are a sports brand.

The choice and pformation at that time seemed rather difficult for Qin Dazhong, but it was also effective.

"Because we firmly grasp the small share of the 100% share of demand."

In order to break the concerns of dealers, Kappa, who has just pformed, has entered the market through the first "consignment system" to sell products that the dealers consider "good-looking but not sold / dared to sell".

A shot.

Of course, differentiation is a whole concept, including design and development.

According to Zhang Tianbing, director of AT Corni, "the differentiated product design based on sports and fashion is closely related to international fashion, and on the one hand, we must have an in-depth understanding of Chinese consumers' preferences."

The design center of a small white building in Yizhuang, Beijing, is not licensed by Chen Yihong. No designer can enter it.

These designers come from Italy, from neighboring Japan and Korea.

Every year, more than 2000 designs come from Italy and enter the market after refining and adding more elements suitable for Chinese consumers.

In 2005, China's sales volume reached 150 million, and it reached nearly 900 million in 2006, with more than more than 1400 stores.

"Adoption" and takeover: the two leg race, the 2008 Beijing Olympics, further stimulated the development of China's sporting goods market.

A report by Zou marketing, a professional sports strategy planning agency, has predicted that the sporting goods market in China will reach $6 billion 200 million in 2008.

Such a big cake, whether Nike ADI and other international brand alligators, or Lining, Anta and other domestic brand stars, are naturally eyeing.

China is no exception.

Among investors in China, Yintai is not the most popular investor in China.

"We will become a strategic partner next year, which is in the process of being approached.

Yintai is a major shareholder of many retail companies. It also operates a department store and will have abundant retail resources in the future.

Qin Dazhong said.

Long term and big channel construction is in progress.

"First, the risk of sales is always there. Once a design can not catch consumers, the rapid adjustment of department stores is inevitable and fatal, so we must first build good relations with the channel operators. Secondly, this is also considered for the development of multi brands, so as to facilitate other brands to enter the market faster and better."

In addition to Kappa's blue socks and white shoes, Qin Dazhong wore a navy blue Rukka pullover on the day of the interview. This is the new brand they launched, and now they have opened 29 stores.

Unlike Kappa, Rukka from Finland L-Fashion, Europe, is positioned in high technology and high taste.

In the trend system, Kappa and Rukka are two independent teams, and there are competitions in the internal assessment. But in practice, they are completely independent from the initial R & D, positioning, design, technology, production organization, channel management and marketing, and there are differences in the way of operation.

But Rukka's exclusive distribution and franchise is only ten years old. Has Kappa ever faced the same problem?

"Signing contracts with us at least indicates that they do not yet have the ability to enter the Chinese market independently, and at that time, we will be the best domestic companies both in brand promotion and channel construction, and they will still choose us."

Qin Dazhong said.

At the same time, Kappa kids is also being developed and produced, and is scheduled to be launched in the second half of 2008.

"This is to satisfy the needs of consumers like my daughter," Qin says. "Of course, the goal is far from being so simple." we should start with the baby and cultivate the brand loyalty of our customers.

The trend of China has realized that the single brand may restrict the long-term development of the company. "In this industry, the largest market has been taken away, but we can use many brands to create a Chinese trend together."

Further, brand agency and acquisition are inevitable, but correspondingly, management problems will follow. How to coordinate different management modes and company culture is a problem before Chen Yihong and Qin Dazhong.

But after the listing, "the real difficulty is capital management. It's hard to find money. It's even harder to use money effectively."

However, where part of the money is used is obviously clear. "We will invest about 50% in the acquisition of brands," according to the prospectus, China plans to open 1800 stores by the end of 2007. "But in fact, it should exceed the promise of the prospectus."

On the eve of the launch of China's trend, it has signed a "betting agreement" on investment, which stipulates that the profit target of China next year will be US $49 million 700 thousand. If we fail to achieve the above goal, the group's main shareholders will pfer the issued share capital to more than 20% of the second largest shareholder, 20% of the second largest shareholder, with a nominal price of $1.

On the contrary, the group can earn more than 55 million 900 thousand dollars in the period, and the company will pfer 1% of the issued share capital to the other party.

Among them, there is a secret subsidiary agreement, which is the resignation letter of Chen Yihong and Qin Dazhong: if the performance of China is not up to date, they must be swept away.

But we are sure we will win.

Qin Dazhong, who still has a fashionable long hair, is quite confident about this.