PEAK: China's Sample Of International Sports Resources Integration

The suspension of NBA and Yao Ming's retirement did not seem to affect the enthusiasm of NBA Star China bank. Soon after Kobe, Durant and other stars left China, 8 NBA stars, led by NBA champion Dallas Mavericks Supercontrol Jason Kidd, arrived in China. This massive interactive marketing campaign is the sixth Chinese star of PEAK.

"The number of PEAK stars coming to China is only part of our endorser." Xu Zhihua, President of PEAK, said: "as a Chinese sports apparel enterprise dedicated to becoming a world brand, it is our goal to integrate international sports resources."

Deep ploughing NBA:

Sports marketing is unique.

PEAK has become China's basketball shoes under the joint efforts of many NBA stars. market The best selling brand. By the end of 2010, PEAK's authorized retail outlets in China were located in the first tier, second tier and three tier cities in China, with the number of outlets reaching more than 7000. The nineteenth China commodity market recently released Sale Statistics show that PEAK once again won the 2010 year. Basketball shoes "Market share is the first. This is PEAK's third consecutive years of pressure on Nike, Adidas and other international first-line brands, ranking the top of the Chinese basketball shoes market.

PEAK also performed well in the first half of the year. According to the first half of 2011 earnings report released by PEAK in August, PEAK's total sales amounted to 2 billion 260 million yuan as of June 30th, an increase of 24.7% over the same period in 2010, and gross margin increased by 2.2% to 39.9% over the same period last year. PEAK's gross profit reached 900 million yuan in the first half of this year, up 32% compared with the same period last year. Its growth rate is higher than the market average. Goldman Sachs and Credit Suisse maintain PEAK's "buy" and "win win" rating respectively. In the spring 2012, the effective order amount of PEAK increased by 20.2% compared with the same quarter in 2011.

Not only in China, with the NBA, the FIBA, the Houston Rockets' market partners and the global influence of spokesmen such as Kidd, Battier, and Lok Fu, PEAK has rapidly grown into a leading international sports brand. By the end of 2010, PEAK products also exported to over five countries in Europe, the United States, Asia, Africa and Australia over 80 continents. In some regions, such as Lebanon, market share has been squeezed into the top three. Of the total sales in the first half of 2011 released by PEAK, 13% came from overseas markets, an increase of 4 percentage points over last year.

Its internationalization strategy was successful. In February this year, PEAK officially set up an American branch in Losangeles, which will be responsible for PEAK's sales in the US and global markets. "Deepening the internationalization of brands and promoting PEAK to become a world brand is PEAK's historical mission as a national brand." Xu Zhihua said.

At present, basketball shoes and clothing products developed by PEAK R & D center and R & D center in China have been placed on the shelves of many sports shops in the United States. The PEAK star commemorative shoe, which sells for more than $100, has already been comparable in price to that of Nike and Adidas. The average price of PEAK products around 70 U.S. dollars, by virtue of its excellent performance price advantage, once listed, loved by local consumers.

This has made the international dealer who didn't catch cold with PEAK brand. Some well-known international competition agencies and distributors have begun to contact PEAK actively. After the NBA all star slam dunk contest, two stars from the first major league NFL of the United States found PEAK, hoping to endorse it and jointly promote baseball. As many as nearly 10 international distributors have begun discussions with PEAK on agency sales. Xu Zhihua said PEAK plans to increase the number of NBA signing stars to 20 by the end of this year, and become one of the top 3 international brands signing NBA players (the top 2 are Nike and Adidas). "I hope to find the next Kobe in these players, or the next Yao Ming, and let PEAK brand be loved by more consumers around the world."

Based on Basketball:

PEAK insists on "world brand"

Basketball is not all about PEAK, however. After gaining a firm foothold in the basketball market, PEAK began to plan to make use of its successful experience in the field of basketball to expand into all sports fields such as tennis, running and football.

In October 2010, PEAK announced that it signed a contract with the international women's professional network WTA to become its official partner in the Asia Pacific region. In cooperation with WTA, PEAK will receive the franchise rights of production, sale, promotion of WTA and PEAK brand clothing, and will develop products such as clothing and footwear for players.

Meanwhile, PEAK has signed young tennis player Olga Gwatersova as its spokesman. "Our sports medicine departments and science and technology departments will help PEAK create a new tennis product." Faris, managing director of WTA Asia Pacific, said WTA will help PEAK achieve internationalization and specialization more quickly.

Although the WTA Asia Pacific region is not the best tour tournament, it will become the foundation for PEAK to enter the tennis market. Xu Zhihua admitted that, like the original signing of NBA, the alliance WTA is also a new starting point for PEAK's brand image and internationalization strategy. "Professional WTA will help PEAK develop an international standard tennis product, and enter the tennis market with women's tennis, and get a more rapid market response."

This kind of play is exactly the same as that of NBA. Before entering NBA, PEAK played basketball labels for China by sponsoring China's CBA champion team, Bayi team and China MVP Liu Yudong. Then PEAK signed a professional basketball equipment supplier by signing the Greek national team, the European basketball all star game, and the FIBA Stankovic cup intercontinental basketball championship.

Thanks to the excellent performance in Chinese basketball and European basketball competitions, it was only then that PEAK, which was then unknown, conquered other powerful sports brands and became a strategic partner of NBA, thus achieving a sustained lead in the basketball market.

Now, it seems that PEAK has chosen to cut into the whole sports market from tennis. As China's top tennis player Li Na won the French Open, the commercial value of Li Na and his representative tennis in China soared. China's tennis market has ushered in the golden period of development.

"No product specialization, no brand internationalization." Xu Zhihua said that next step, PEAK, which has already achieved capital internationalization, will develop the potential market such as tennis, running, football and so on, like the tilling basketball market, and move towards the goal of internationalization of the market. "Our goal is to increase sales to 10 billion yuan in the next 5 years and become among the top ranked international sports brands." He said.

PEAK's clear-cut marketing strategy makes it a "China Sample" for integrating international resources.