The Secret Of The Rise Of The "Jinjiang Series" Brand: Burn Money, Smash Ads + Technology Escort

On April 27th, the "secret" of the rise of the "Jinjiang sports" brand seemed to be well known: engaging stars to endorse, sponsoring major sporting events and throwing heavy gold on the CCTV sports channel (dubbed "Jinjiang channel").

In fact, Anta began to be familiar with the market after signing the table tennis champion Kong Linghui in 1999.

PEAK has signed more than 10 NBA stars such as Javier Maggie, and has sponsored some NBA events, and has established the dominant position of domestic basketball shoes.

XTEP was popular for asking Nicholas Tse to endorse a red hot fire shoe.

For a long time, Jinjiang sporting goods enterprises have been used to closely integrate marketing and sports events.

For example, Anta sponsored the Chinese Basketball League CBA, XTEP sponsored the Xiamen International Marathon, PEAK sponsored the NBA and so on.

According to the latest data provided by the Jinjiang municipal government, there are more than 70 movie and sports stars hired by the shoe business in the city, and the annual advertising cost is nearly 1 billion yuan.

Among them, the cost of brand marketing of Anta alone increased from 10 million yuan in 2000 to 1 billion in 2010.

A huge increase in marketing costs has resulted in a substantial increase in turnover.

"The biggest difference between Dongguan and Jinjiang is that they can't get their own brand products!" Fan Hong, director of the city brand research office of Tsinghua University in Dongguan, China, was invited to Jinjiang in April 20th to make a keynote speech at Jinjiang lecture hall, the development of urban brand and cultural industry. "Jinjiang has produced many products that call names."

You bet,

But spending money on advertising is only one aspect of the success of Jinjiang's brand.

In the industry, the key weapon for the rise of the "Jinjiang system" lies in its commitment to R & D efforts, understanding of capital operation, and mastery of market channels and supply chains.

In 2004, Anta began sponsoring CBA.

At that time, many athletes would rather be fined or unwilling to wear because they were worried about quality problems.

"A pair of shoes has 47 patents.

Sole sole material shock absorption research and development, has lasted for 8 years, has experienced 7 big technical improvements.

Xu Yang, chief designer of Anta Sports Products Limited brand, told people net reporter that in the past 21 years, Anta's R & D design fees have increased by nearly 200 times from 2 million in 1991 to 4 hundred million per year in annual revenue, and "by products of technology in recent years, our products have been able to meet the needs of the world's top athletes in the top sports events. Kevin Garnett was the spokesman of Nike first, and then passed ADI's shoes, and finally chose Anta!"

It is understood that at present, the footwear industry in Jinjiang controls over 2000 core technologies and 189 patents.

However, shoe companies are still not satisfied with this.

At this shoe fair, Jinjiang shoe enterprises have signed 5 new technology innovation projects, with a total investment of 2 billion 70 million yuan.

The direct effect of core technology is that the price of "PEAK", "XTEP" and "Hongxing Erke" are 1 times higher than the average price of each pair of shoes, and the highest unit price is 39 dollars.

At present, the footwear industry in the city has 15 listed companies. In 2011, 2 tax giants who paid more than 600 million yuan in taxes were sprung up in Anta and 361 degrees.

Li Hongjie, deputy director of the Fujian Provincial People's government and vice president of the Academy of Social Sciences, said: "from the successful experience of Anta and 361 degree, capital operation plays a very important role.

After raising funds through the capital market, enterprises can quickly expand and strengthen by expanding production or merging other enterprises.

In terms of market channel and supply chain control, the "Jinjiang Department" sports brand also has comparative advantages.

In 2011, Jinjiang has 3016 footwear manufacturers. The city has formed a coordinated production team of shoe machine, shoe material, leather, footwear chemical industry, shoes and finished products.

Among them, Chen Dai has only attracted more than 600 shoe and shoe machine enterprises at home and abroad, and the annual turnover exceeds 20 billion yuan.

"Get access to the world and get profits from the supply chain."

Zeng min, the head of the Hongxing Erke electric business who has been engaged in shoe sales for many years, has interpreted the development of the "Jinjiang Department" from another side.

Earlier, Su Shulin, governor of Fujian Province, held a symposium on private economy in Jinjiang last year, praising Jinjiang entrepreneurs for recognizing "celestial phenomena". They have keen market insight and long-term vision. They will see "Feng Shui" and see and play their own advantages to make their own industries bigger. They dare to take the "night road", dare to take risks, take the courage to play the role, be good at exploration and be invincible, dare to rush into the "torrent", dare to speak at the crucial time, and fight hard to win.

In a sense, the summing up of "Jinjiang experience" by Governor Su Lin is actually a summary of the success of Jinjiang shoe industry.

In fact, in addition to its own efforts, the rise of the Jinjiang sports brand is also an invisible hand - the annual Shoe Fair is pushing forward.

During the shoe fair, which ended in April 22nd, it reached a turnover of 11 billion 860 million yuan, an increase of 18.2%.

It is no exaggeration to say that the shoe Fair has become a booster for the development of the footwear industry in Jinjiang.

I want to compare with Nike ADI.

Compared with Lining, the main competitor of domestic sports brand, the brand of Jinjiang department, represented by Anta, is catching up.

The reason why it can catch up is mainly because Lining's performance in recent years has been on the March or even gone up and down, giving Jinjiang the opportunity to surpass Jinjiang, which never stops.

However, if compared with the world sporting goods giant Nike and Adidas, Jinjiang brand still has a long way to go.

Nike's 2011 financial year results (May 2010 ~2011 May), only in the Greater China market, Nike achieved sales revenue of 2 billion 60 million U.S. dollars (by April 22nd, 1 yuan =6.298 yuan, or 13 billion yuan), an increase of 18% over the same period, the pre tax profit of 777 million U.S. dollars (about 5 billion yuan), an increase of 22% over the same period.

Nike's global revenue in 2011 was as high as 19 billion 14 million yuan (nearly 120 billion yuan).

The sales revenue of Adidas group increased by 13% in 2011 to 13 billion 300 million euros (by April 22nd, 1 euros =8.3241 yuan, about 110 billion 700 million yuan).

Among them, sales revenue in Greater China reached 1 billion 229 million euros (10 billion 200 million yuan), an increase of 23%.

{page_break}

In order to narrow the gap between Nike and Adidas, to expand their "size", to "Wan Dian" has almost become a common goal of Jinjiang sports brand:

In 2011, Anta planned to increase its network to 1, and in the same year PEAK and 361 degrees also proposed the goal of expanding the scale of stores to 1 000 in 4 years.

The number of sales outlets, then Anta 7549, PEAK 7224, 361 degrees 7263.

However, due to the rapid rise in rents, it has brought great challenges to the new store expansion mode that is expected to enhance performance through opening stores and opening stores.

In 2011, the number of Anta stores was reduced from 8200 to 7800 - 8000.

Zhang Tao, vice president of Anta group, said in an interview with the media that the slow pace of opening up was mainly due to the pressure of the rent increase. "The increase in the rent of some shops is not a 1 fold increase, but rather a zero added directly to the original rent."

Compared with the international brands such as Nike and Adidas, represented by Anta, apart from "weight", it is not a "heavyweight", but the biggest difference is the disparity of brand value. "Jinjiang"

"The brand of Jinjiang so far, at best is the name of the country brand, only domestic know, foreign people know very few.

It's the same product, the price of internationalized products sold in China is even more than 1000 yuan, but our product is only more than 100 yuan abroad, which is the brand effect.

Li Hongjie, deputy director of the Fujian Provincial People's government and vice president of the Provincial Academy of Social Sciences, said that Jinjiang brand still needs a long way to go from regional brand to international brand.

The government of Jinjiang has also realized this.

At the beginning of this year's "two pioneering" conference of private enterprises in Quanzhou, the Quanzhou municipal Party Committee Standing Committee and deputy mayor of Jinjiang municipal Party committee, Yau Meng Jun, said in an interview with the media that Jinjiang's industrial and economic development has reached the critical crossroads and urgently needed industrial pformation and upgrading.

To promote the pformation and upgrading of enterprises, the government will provide support to enterprises in three ways: supporting listing, supporting brands and supporting technological pformation.

Prior to that, in 2011 alone, the Jinjiang municipal government focused on the implementation of 40 enterprise technological pformation projects and 150 science and technology projects.

In order to create more international trade opportunities for Jinjiang enterprises, and in order to better enhance the comprehensive competitiveness of Jinjiang footwear enterprises, Jinjiang is now referring to the "Yiwu mode" to dismantle 8 billion yuan RMB to build a super large international trading platform, China Jinjiang international shoe spinning City. After the completion of the international trade complex with a planned area of more than 2500 mu, it is estimated that the annual turnover can reach RMB 120 billion yuan.

This super large investment has undoubtedly injected a shot in the arm to the development of Jinjiang shoe enterprises.