Jordan Starts 470 Million Funds To Create 27 Strategic Outlets

At present, Jordan sports Limited by Share Ltd (hereinafter referred to as "Jordan sports") first application is received.

The prospectus shows that Jordan sports established a shoe factory in 2004 and completed in 2010.

The sales volume of Jordan shoes has maintained a rapid growth in recent years.

In 2008, the company sold 5 million 750 thousand pairs of shoes products, achieving sales of about 490 million yuan, an increase of about 96% over the same period last year; sales of 8 million 550 thousand pairs in 2009, sales of about 720 million yuan, an increase of about 49% compared to the same period last year; sales of 13 million 600 thousand pairs in 2010, sales of about 1 billion 180 million yuan, an increase of about 63% over the same period last year.

According to the analysis of Jordan sports's past sales and the analysis of the future sports shoes market, with the continuous expansion of market demand, the company's existing sports shoes production capacity will be increasingly unable to match sales volume increasing year by year.

Insufficient production capacity will restrict the future development of the company, which puts forward the urgent need for the expansion of the existing production base.

Another important direction for Jordan sports to raise funds is to expand direct stores.

It is expected that within two years, the Jordan brand will have 27 new strategic shops in the national first tier cities (Beijing, Shanghai, Tianjin, Taiyuan, Wuhan, Zhengzhou, Changsha, Hangzhou, Ji'nan, Xi'an, Xi'an, Xi'an, and so on), and all of them will be directly operated, with a total investment of 470 million yuan.

Among them, the number of shops for purchasing property is 9, about 3000 square meters, and the number of shops rented is 18, with an area of 5400 square meters.

Prospectus shows that in 2002, fewer than 1000 Jordan sports shops, and by the end of June 2011, its stores grew to 5715, especially in recent years, the number of shops has accelerated growth, and network coverage of all levels of cities nationwide.

At the same time, the company continues to give support to different levels of outlets to enhance the brand influence of terminals.

Its national network system is divided into 4 sales areas, 32 sales areas, and 53 distributors and 7 wholly-owned subsidiaries.

However, most of its current stores are small and low grade dealer stores, the size of the shop is generally below 100 square meters, and the area of the single store is generally small.

Of the 27 newly built strategic shops, 26 are planned for 300 square meters or more, about 400-500 square meters, and are built in important commercial areas of key cities (such as Beijing Wangfujing street, Xi'an East Street, Chengdu Chunxi Road, Wuhan Jianghan Road pedestrian street, etc.).

In this regard, Jordan sports pointed out that the terminal image is the vivid carrier and fresh advertisement of the brand image, and the brand image is the spiritual concentration and value promotion of the terminal image.

Through the expansion of single store area, door decoration, store decoration and display of goods can be more fully demonstrated Jordan's brand image and cultural connotations, so as to achieve the goal of enhancing the overall image of the brand.

And through the expansion of channels, we will further strengthen the market penetration of Jordan brand, enhance market control power, and better cope with all aspects of competition.

Specifically, through the increase in the number of retail terminals, the scale of business can be expanded and the profit level has been raised.

A more important role is to help the flagship store become a fast collection and feedback Center for regional market information, and collect, collate and analyze market information more directly, and directly feed back to the company headquarters.

At the same time, we will promote the sales performance of the original stores in the region by virtue of the good design of the new quality shops and the stronger display of products.

In fact, the competition in the domestic sporting goods market is fierce now. A number of leading brands such as Nike, Adidas and other local brands such as Lining and Anta have launched a positive contest in the first tier, even the three or four tier cities.

The expansion of marketing network has become a direct driving force to promote the growth of brand revenue and scale expansion. It has also become the most direct window and way to publicize and promote brand culture and image, and to feel the change of consumer market demand.

To this end, all brands have speeded up the horse race enclosure to seize the market, especially to speed up the opening of stores, open up large stores, and implement the winning terminal strategy.

Because of the strategic significance of the layout of the channel, the main investment of the listed brands is used for the expansion of the network.

Take Lining as an example, it accelerates channel penetration after the listing of HKEx.

At the end of -2010 in 2007, the number of terminal retail outlets of Lining was 5233, 6245, 7249 and 7915, with an average annual shop growth rate of nearly 15%.

Jordan sports, who takes part in fierce competition, obviously knows this point and accelerates in this direction.