What Is XTEP Billion Gambling?

Billion yuan "big bet" CCTV Olympic advertising, what chips do XTEP hold?

Although it has been two months away, XTEP's impressive masterpiece in CCTV's 2008 gold resources advertising tender is still impressive.

In November 18, 2007, CCTV's "gold resources advertising tender in 2008" was held as usual at the Beijing center.

In the past few years, Jinjiang garment enterprises, which had been firmly occupied by CCTV's 5 advertisements, once again worked hard. The famous enterprises such as the "power pack" and "seven wolves" invested a lot of money, respectively, to win the advertising time of the "2008 Olympic Games live broadcast" and the 2008 news broadcast between 2008 and August.

For this heavy investment, Hong Lianjin, deputy general manager of "strong" Fashion Co. Ltd, always valued "CCTV advertising". He said, "to send five Mercedes Benz to CCTV every day", "to use the more than 10 days in August 2008 to make the enterprise a global brand."

This seems to be the common aspiration of the successful bidder in Jinjiang.

However, compared with those brands which have been famous for more than ten thousand years in China, another late start Jinjiang garment enterprise has become a dark horse in this bidding meeting. XTEP (China) Limited has won the exclusive title right of the CCTV Olympic column "courier" first with 46 million yuan, and then won the "2008 Olympic final live patch placement advertisement" with 63 million 330 thousand yuan.

Perhaps the optimistic view of CCTV's unique resources and confidence in Olympic advertising has become one of the important reasons for XTEP's successful bid, but it is more than 100 million yuan, and it is also understood that XTEP's advertising investment in 2008 will be as high as 200 million yuan, which also requires the company to have enough confidence.

The use of large events to increase advertising investment seems to have become the "tradition" of Jinjiang's clothing companies.

In 2006, the company won the "World Cup shooter list" for 35 million yuan. The winning bid of the company was 89 million 440 thousand yuan. XTEP also became the sole partner of the ten sporting goods industry in 2005 at the expense of 16 million 200 thousand yuan.

One or two years later, in the face of more influential Olympic Games, they increased their investment by coincidence.

Many people regard Jinjiang's clothing companies as a big gamble in Olympic advertising. What kind of chips do you have in XTEP's hands?

It takes XTEP time to build a brand.

The predecessor of XTEP was the Sanxing shoemaking factory. At that time, Ding Shuibo, the 17 year old XTEP head, had a very simple idea. "As long as people need shoes, we have a market."

At that time, the operation process of the factory was as simple as that: to purchase raw materials in the market, and then to the nearby family workshops for production, and after the factory received the shoes, they went to the market to sell them.

At first, the products made by factories were mainly slippers, and their business was very good. In 1990, the output value had reached tens of millions.

However, by the beginning of 90s, with the continuous improvement of the living standards of the masses, the profits of slippers gradually declined, and the sports shoes market came into being. Sanxing factory also decided to shift the focus of production to sports shoes and expand production to meet the market demand.

In the following years, with the advantages of Jinjiang's overseas Chinese hometown, Sanxing began to set foot in foreign trade, and entered the market of South America and Africa, and set up a branch.

However, Ding Shuibo is not satisfied with the wind and water in the foreign trade market. In his view, OEM is not a permanent solution after all.

In 2001, Sanxing company made great adjustments to the development strategy on the basis of the situation: from international manufacturing to domestic brand operation, and the creation of "XTEP" brand, sounded the clarion call to enter the domestic market.

"In 2001, Sanxing had gone through more than 10 years of wind and rain.

At that time, the environment of enterprise development was different from that in 80s, and all kinds of construction and communication channels were more sound.

We realize that we should improve our products. "

Ding Shuibo said.

In fact, the competition of the domestic sports shoes market was very intense at that time. Domestic brands such as Adidas, Nike, Reebok and other international brand high-end markets, such as Lining, Anta and double star, occupied the mass market. In the following three or four line markets, regional brands were numerous, and the remaining market share was partitioned.

How to survive and further develop has become a difficult problem before Ding Shuibo and XTEP.

But Ding Shuibo's understanding is also very clear, "from the long-term OEM for others, to pfer their own operation of the domestic market, for enterprises is a major event.

There is a big difference between the two. In the past, the OEM process was based on the samples produced by others, ensuring the quality and delivery time. Now it has become a brand operation, from product development, production, marketing, store design, display to service, and all links must be done.

But with their own brand, the enterprise has gained a good ability of sustainable development, and also avoided the huge risk that the OEM processing may come.

Fashion campaign: differentiated management in Ding Shuibo's view, the preparation before the launch of the brand is necessary.

This includes not only the primitive accumulation of funds, but also the specific positioning of products and brands, as well as surveys by consumer groups.

XTEP believes that for a sporting goods brand, the target market should consist of four parts: the professional athletes equipment in the high-end market; mass sports; consumers who are eager to exercise but seldom actually exercise; and the non sportswear groups pfer the market.

Over the years, international brands such as Nike and Adidas have built up high-end brand image through long-term sponsorship and promotion of top events, and influenced and promoted the mass sports market with the image of professional market.

Domestic brands such as Lining and Anta are also competing with international brands to squeeze into this market and form a competitive situation.

In the face of high, middle and low market, the situation of all kinds of brands has been flooded. If there is not enough differentiation, any brand will probably become a product of the main road.

After market research, XTEP decided to take a different path from its positioning to the main fashion movement, and the target customers were also defined in the 13-25 year old young people.

"We conducted a survey and divided the market into small groups.

On the one hand, they are more stable consumer groups in the sporting goods market, pursuing fashion, individuality and freedom.

On the other hand, high-end products like Nike need more mature and economically based consumer groups to support them.

We see the difference and vacancy. "

Ding Shuibo said.

In fact, the creation of the brand in 2001 can be regarded as the first year of differentiated development of XTEP.

Since the beginning of this year, XTEP has actively implemented differentiated marketing strategy and combined sports marketing with entertainment marketing, which is very consistent with the brand positioning of XTEP fashion.

The company signed Nicholas Tse, an entertainer with a strong appeal in the younger generation, as an image endorsement, highlighting the brand characteristics of XTEP with its personality and fashion image.

And the establishment of specialized departments and Nicholas Tse's parent company closely cooperate, in the first few years, Nicholas Tse to the mainland every media meeting, will hold a XTEP signing conference.

The company has carried out extensive promotional activities in dozens of major cities across the country, making XTEP's brand image recognized by XTEP's target consumers.

At the same time, the company is also closer to fashion in product design, making bold breakthroughs in product color and style design, launching its own theme merchandise every season, integrating fashion elements into product design, giving customers the quality of products while fully satisfying consumers' desire for fashion and personality.

At present, XTEP has gradually formed a marketing system based on integrated sports stores, with more than 4000 franchised stores and flagship stores in large cities such as Beijing and Shanghai.

"We are creative, including differentiated marketing strategies, which we explored.

At present, both our basic VI system, marketing promotion, and our products, terminal construction and services have their own characteristics.

Ding Shuibo said.

Using information technology to achieve leapfrog development and rapid growth and scale development, the company's management has put forward higher requirements.

After the brand has been accepted and recognized by the city, the company is considering how to make the enterprise remain invincible in the fiercely competitive market. With the opportunity of the 2008 Olympic Games, the company has been developing again.

With the help of information tools, it is the direction of XTEP to optimize business processes and establish a scientific management system so as to make the internal management of enterprises develop in a systematic and meticulous direction.

The company believes that the sports shoes industry in Jinjiang is homogenized, which is very similar from product type to channel mode.

Such a market environment requires a high degree of demand for product R & D and sales information collection. Only when consumers are contacted more closely, consumers' needs can be fed back to product R & D departments more quickly, so that they can win in fierce homogenization competition. At the same time, the management level of sporting goods industry is complex, with general company level, sub company level, and then to retailers.

In the past, the information from the market was sent back to the company headquarters by telephone and fax. Finally, it was not only time-consuming, but also very easy to distort the information in the process of pmission. In addition, XTEP's "fashion" positioning had higher requirements for popular information, and the products launched should quickly meet the needs of the market.

All these need to be solved by management informatization.

In fact, as early as in 2006, Ding Shuibo led the management of XTEP to Tsinghua University for training, and visited the famous companies such as Haier group and Tsingtao Brewery.

Since then, management informatization has become the top priority of the company.

In January 2007, XTEP information consulting project was officially launched.

The project team includes all the top and middle level leaders of XTEP, and the AMT consultant team composed of industry consultants and expert consultants.

Through the analysis and diagnosis of XTEP's business mode and management system, the project group clearly defined the development direction of business mode supported by IT, analyzed the overall goal and dependency relationship of management improvement and IT construction, formulated the blueprint, construction strategy and steps of XTEP's future IT construction, selected the breakthrough point, realized the successful combination of "management + it", and worked out the IT master plan for supporting enterprise's leapfrog development.

In August 2007, the company signed a contract with Xiamen Weier Software Co., Ltd., with XTEP's synergy office system, to build a modern enterprise information management platform, laying the foundation for the expansion of the overseas market, improving management, improving efficiency and overall strategic management.

At present, the management informationization of the company has already achieved initial success. The company's resources utilization, process control, business channel collaborative operation and decision analysis have been improved.

For example, the Sales Department of the company has improved the accuracy and timeliness of the order, delivery, control and analysis of sales data, and realized the rapid response of the market.

Employees also have more time to communicate with customers and provide more services.

Ding Shuibo once described the vision of XTEP as "the first brand of Chinese fashion movement". Perhaps under the dual function of differentiated management and information management, XTEP will accelerate its goal in the Olympic year.