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    From Manufacturing To Creation, An Interview With Xu Jingnan, Chairman Of Sports Brand PEAK

    2011/8/31 15:33:00 543

    Create A Sports Brand Xu Jingnan

    Xu Jingnan, Fujian Quanzhou Peak Chairman of the (Group) Company. Xu Jingnan has hundreds of millions of wealth, but you can hardly see him in the VIP directory of luxury cars and yacht clubs. Xu Jingnan in front of the reporter, bamboo tablets and silk used for writing With polished black round head leather shoes Short and concise His speech style gives outsiders an unusually capable feeling. No conversation with him Tedious prose Even he seldom says long sentences. His style is similar to Wang Yongqing, the president of Formosa Plastics Group, but Xu Jingnan always has a smile on his face, which is simple Open-minded 。


    The sporting goods industry is facing a crisis of general decline in performance. The latest performance of Anta and Tebu shows that the orders of enterprises next year show signs of slowing down, while Li Ning's net profit in the first half of this year also fell by nearly 50% year on year.


    However, sports brand Peak recently released its 2011 interim financial report, which showed that its turnover and gross profit increased by 24.7% and 32.0% respectively compared with the same period last year.


    On August 24, Xu Jingnan, chairman of PEAK Sports Goods Co., Ltd. (hereinafter referred to as "PEAK"), said in an interview with the author of this newspaper that the reason why PEAK's performance is better than that of its peers is that he is focused. If PEAK also does real estate like some peers, perhaps he can't escape the fate of declining performance.


       Win the market in the first half of the year


    Author: The latest reports of Anta, Tebu and Li Ning all show that their orders and growth have slowed down significantly. What is PEAK mainly relying on to support its growth level higher than that of its peers?


    Xu Jingnan: PEAK's growth mainly depends on three aspects: First, our single store sales are growing. In the first half of the year, our single store business area increased by 18.4% compared with the same period last year, and the single store turnover also increased by more than 10%; Second, our speed of opening new stores is still very strong. In the first half of the year, we opened 395 new stores, half of the annual goal, and the sales of new stores also brought growth; Third, with the deepening and upgrading of brand marketing, the international PEAK brand has gradually become popular, which has brought the possibility of premium for PEAK's products.


    Author: Does the slow growth of other sporting goods enterprises mean that the winter of this industry is coming?


    Xu Jingnan: I don't think the sporting goods industry has entered the winter. It is still a sunrise industry. There are two main reasons for the slowdown in the growth of the sporting goods industry: one is that people are more cautious in consumption because of high inflation; The other is that this year is the off-season year for sports marketing. There is no Olympic Games or stimulus from such large-scale events as the World Cup, so the performance of the whole industry is relatively stable, or slightly lower than that of previous years, which is normal market performance.


    The rise in raw material prices since last year, especially the rise in cotton prices, has forced sports brands to raise prices, which will test the affordability of some brands. If the brand height and popularity are not enough, it may be greatly affected. However, some brands with an upward trend, such as PEAK, can well absorb this premium and make consumers accept this fact. ?{page_break}


       Overseas sales soared


    Author: What is the proportion of PEAK's sales in the domestic and foreign markets in the total sales?


    Xu Jingnan: At present, PEAK's products have been sold to more than 70 countries and regions in Europe, America, Africa, Asia, Oceania and other five continents. In the first half of 2011, PEAK's overseas sales increased by 20.2% year on year, accounting for 10.3% of PEAK's total sales revenue. Our strategic goal is to influence the global market through the U.S. market.


    From the moment we entered Europe and the NBA, we positioned ourselves as an international sports brand, for which we have done a lot. From sponsoring Europe's top basketball all-star game to forming an alliance with the world's best basketball league, NBA, signing Kidd, Battier and other internationally influential players, we have made a footprint step by step, leaving Pike in the international market.


    In June this year, PEAK's international marketing was upgraded again, officially from FIBA's "Asia Partner" to "Global Strategic Partner", which means that it has considerable advantageous resources, including "World Basketball Championship", "World Youth Basketball Championship for Men and Women", "Olympic Basketball Project" and so on. So far, in the basketball field, PEAK has occupied the two top resources of NBA and FIBA.


    Author: In the process of globalization, has the conflict between PEAK and sports giants like Nike and Adidas intensified?


    Xu Jingnan: For example, we used to only choose some players that Nike and Adidas didn't like to cooperate with. Now we have begun to compete with them for top players. Whether it is an all-star player Kidd or a young rookie, we have enough strength and brand appeal to compete with our competitors. Moreover, we have been looking for the next Yao Ming and the next Kobe Bryant to compete with them at the starting line.


    PEAK has established a subsidiary in the United States, which will be a landmark step for PEAK to enter the international market. We plan to open stores in the United States in the second half of the year. With the full distribution of goods in the American market, PEAK's international market penetration will further increase, and its international revenue is expected to further increase. And PEAK's American R&D and Design Center, which has been put into use, will provide PEAK with designs and products that meet the needs of the local market when it attacks the international market.


    Author: From Made in China to Created in China, what efforts should sporting goods companies make?


    Xu Jingnan: From manufacturing to creation, in the final analysis, it is a grasp of international trends. Through years of exploration in NBA and international basketball, PEAK has changed imperceptibly.


    In the first half of this year, PEAK has doubled its R&D and design expenses to 1% of its total business. At present, PEAK has opened four R&D studios in Beijing, Guangzhou, Quanzhou and Los Angeles respectively. These studios have employed about 250 research and design professionals.


       Keep enough cash to prevent risks


    Author: At present, there are still some uncertain factors in the global economic situation. Everyone is afraid that the economic crisis will come again. Some manufacturing enterprises have reduced production or shut down. How about PEAK's current cash flow?


    Xu Jingnan: As you can see from the report, we have 2.6 billion yuan in cash and 130 million yuan in cash in the first half of the year. It can be said that our development is very healthy. The Board of Directors of PEAK believes that in the face of uncertainties in the market outlook, holding sufficient cash will help the company to respond to sudden changes in the market in a timely and effective manner.


    Author: What are PEAK's plans for the market layout in the second half of the year and 2012?


    Xu Jingnan: I think that as the Chinese government increases its efforts to control inflation, China's mass consumer market will further improve, which will be conducive to the overall improvement of the sporting goods industry.


    The order amount of PEAK increased by more than 20% in the third and fourth quarters of 2011 and the first quarter of 2012. In order to ensure stable product supply, PEAK will also invest about 80 million yuan as planned in the second half of 2011 for the continued construction of two production bases in Hui'an County, Fujian Province and Shanggao County, Jiangxi Province. In addition, the construction plan of Heze production base in Shandong Province has also been put on the agenda, and the total investment in this plan is expected to reach 1 billion yuan.


    With the completion and operation of these factories, our product lines will be more abundant and our product categories will be more complete, which will enhance our competitiveness in various market segments and countries.


    ?

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