PEAK Attack, Five Measures To Enhance Brand Image To Deal With Crisis

Influenced by the general decline of global economy, China's sports

The market has not been spared.

According to the annual report issued by several well-known sports shoes and clothing enterprises in China, the profit in the first half of 2012 decreased from a year ago, with PEAK's first half performance dropping to 1 billion 610 million yuan, but its overseas market performance was optimistic, accounting for 12.2% of the total turnover, basically maintaining growth momentum.

The danger of a weak market in the sporting goods industry has been showing signs of weakness last year.

In the second half of last year, PEAK first resorted to the banner of reform, upgrading the international brand image, optimizing sales channels, guiding terminal sales, increasing its own capacity and improving product quality, so as to enhance the flexibility of enterprises in order to cope with the fatigue period in the next two to three years and strive for the first recovery.

Xu Zhihua, chief executive of PEAK, quoted the famous English poet Shelley in the press conference. "If winter comes, can spring be far behind?"

Enhance brand image and increase added value of products

PEAK has always believed that brand image is crucial to PEAK's development and future success. Therefore, PEAK will continue to devote most of its resources to build and maintain its brand.

First of all, focus on basketball to maintain PEAK's leading position in basketball in China, including

。

At the same time, increase other sports such as running, tennis and football marketing activities.

PEAK will continue to cooperate with well-known sports organizations such as the US professional basketball league (NBA), the FIBA and other promotional partners including teams, events and athletes, thereby promoting PEAK brand to all parts of the world.

In the 2012 London Olympic Games, PEAK's brand marketing results have been verified, and the sponsorship of the seven national delegations is the most popular sports brand sponsored by the Olympic delegation. Meanwhile, the sales performance of overseas countries increased significantly during the Olympic Games.

The annual PEAK NBA Star China trip, PEAK brand and NBA players were widely reported in the media, which also stimulated the local sales boom.

Optimize sales channels, and promote distributors to set up direct stores.

Since last year, the distribution channels have been optimized to prepare for the future development of the sporting goods industry.

On the retail network, PEAK continues to open larger retail outlets through distributors and retail outlets operators and close more smaller and less efficient retail outlets.

At the same time, retail outlets will be encouraged to open more retail outlets to enhance their market resilience.

In terms of distributors, PEAK group will continue to increase the number of distributors in 2012 to enhance its competitiveness, and encourage distributors to set up more proprietary retail outlets to improve their efficiency and respond to market changes.

At the same time, PEAK also stressed the promotion of single store sales ability.

Set up terminal retail management center to guide terminal marketing.

In 2012, the sporting goods industry is facing a high pressure challenge. For brands, solving practical problems is a good try.

PEAK strives to improve the terminal's comprehensive operational capability through systematic, specialized marketing, service knowledge training and outdoor development projects, which will greatly promote the solution of practical problems.

At the same time, PEAK also carried out the national circuit training meeting, which is suitable for the terminal management strategy.

This year, PEAK set up terminal retail management center, integrated PEAK business school and other resources, shifted the focus of training to the upgrading of terminal operation level, and carried out scientific and targeted training aimed at the store specification, image unification, scientific management and special operation of terminal outlets, so as to enhance the marketing ability of distributors.

Unified terminal management provides a basic guarantee for the effective operation of various distribution outlets.

Increase self capacity and adjust supply and demand in time

PEAK's products are made by their own production facilities or through outsourcing arrangements with contract manufacturers.

Maintaining its own capacity enables PEAK group to control the production process more effectively, offer better bargaining power to contract manufacturers, and have the ability and flexibility to respond quickly to market changes.

Therefore, PEAK group will invest about 80 million yuan in the second half of 2012 to expand the two existing production facilities of PEAK group in Huian County of Fujian province and Shanggao County, Jiangxi province.

To alleviate the impact of rising labor costs in China's coastal areas, PEAK group will build another clothing production facility (Shandong project) in Heze, Shandong.

It is estimated that the annual production capacity of the production facility will reach 30 million, and the total capital expenditure will be RMB 1 billion yuan.

The main building works of the Shandong project started in 2011 and will take at least 5 years to complete.

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Increasing investment in new products and improving product quality

As a professional sporting goods manufacturer, PEAK group is committed to designing innovative, functional and high quality products.

As a result, PEAK's investment in new products continued to grow by about 1% compared to last year.

Up to now, PEAK has four R & D centers in Beijing, Guangzhou, Quanzhou and Losangeles, employing nearly 300 R & D and design professionals.

Through the interaction of different studio design teams, PEAK designs more innovative and stylish products to meet the needs of different customers in different parts of the world.

In the first half of 2012, PEAK launched 300 new footwear products, 571 new clothing products and 282 new accessories products to consumers.

In addition to the functionality and style of products, PEAK's R & D studios will also consider environmental protection elements in selecting raw materials and design products, introducing more environmentally friendly or recyclable materials, and using energy-saving processes to survive their products.

Orders to stay down, PEAK is expected to take the lead in the industry recovery.

With the full implementation of the five measures, PEAK will become the "bull enterprise" that takes the lead in the recovery of the industry once the results are apparent.

Although some analysts believe that the sports industry will remain weak for some time to come, "the sports industry will rebound in 2013" is too optimistic.

However, the opinions of the responsible persons of the sporting goods companies are quite consistent. It is believed that with the gradual emergence of the restructuring of the national leading bodies and favorable policies, the industry is expected to bottom out in the second half of 2013.

According to the China Daily, PEAK's orders for the first quarter ended in 2013, unchanged from the same period this year.

If the order rebounded in the third and fourth seasons next year, it will be seen as a signal of industry warming.

Xu Zhihua, chief executive of PEAK, said: "we are still optimistic about the long-term development of the sporting goods industry.

Through continuous improvement of brands, optimization of distribution channels and investment in new products, we are confident that we will be one of the first to recover from the current integration of sporting goods industry. "