Marketing Of PEAK

in fact, Peak The road of internationalization began in 2005, when most of the Chinese sports enterprises in the "Jinjiang Department" were not famous.

PEAK's path to expand the U.S. market began with its cooperation with the NBA. In 2005, PEAK began to sponsor the Houston Rockets and Toyota Center, then signed with Battier and the Rockets, and won the NBA's strategic partner in China. So far, PEAK has signed 18 players and 3 NBA teams. But at that time, PEAK had not set up a branch office in the United States. Since then, because the process of PEAK's listing in Hong Kong was affected by the financial crisis, PEAK's US branch was not officially established until March 2010.

Facts have proved that it is because of the early "exploration" that PEAK has a better understanding of the U.S. market, and the responsibilities and market pertinence of the U.S. branch are relatively clearer. Su Jia, the general manager of PEAK's US branch, told reporters: "The US branch has three major functions. First, it is responsible for the sales of the whole US and North America. Second, it sets up a research and development center to lay the foundation for the company's research and development. Third, it is responsible for the service of contracted players."

However, the U.S. market is not PEAK's largest overseas market. The reason is obvious. Because PEAK's products are more focused on basketball, Nike accounts for 90% of the U.S. basketball market share, the remaining 10%, and Adidas, Reebok and other big powers are struggling.

The United States is also a highly developed country in all walks of life. This is quite different from the situation that China is full of emerging market opportunities everywhere, so for any foreign enterprises and brand Will have a strong resistance.

However, there is also competition in the Chinese market. In terms of market share and brand degree in China, PEAK's performance is not outstanding. They also predicted that the fierce competition in the Chinese market would lead to a decline in profits and market space. Therefore, for PEAK, early expansion and development in foreign markets is a way to share risks.

In China, PEAK's biggest competitors are Li Ning [4.27 1.67%], Anta, 361 and other enterprises. Among these enterprises, Li Ning is undoubtedly the most successful and largest in overseas strategy. In fact, Li Ning's overseas strategy was earlier than that of PEAK, but due to Li Ning's own reasons, it has almost disappeared in the US market, which gives PEAK a good opportunity.

"Our goal is to develop the American market to drive global market 。 Because we judge that the effect of using the U.S. market to drive the world is similar to that of starting the Beijing and Shanghai markets at home to drive the sales of the whole country. The U.S. will guide and drive other countries and regions more significantly. " Su Jia said.

Unlike most domestic sales from physical stores, although Peak also has physical stores, online sales and franchisee channels are the mainstream of sales. This has a lot to do with the developed network and centralized and standardized channel sources in the United States.

In China, price war is inevitable for all competitions, but in the United States, this situation does not exist at all. PEAK's product pricing is based on that of Nike and Adidas. For products with the same quality and technical content, PEAK's pricing will be 20% lower than theirs.

It is understood that the products sold by PEAK's American branch are all from China. Although there are factors such as the return of American manufacturing, the rise of Chinese employment costs and the rise of logistics costs, PEAK will not consider setting up factories in the United States. "The main reason is that shoe processing is a labor-intensive industry, and industrial supporting facilities are important. If only one factory is set up, supporting facilities cannot be guaranteed," Su Jia said.

Although she has lived in the United States for several years, Su Jia's biggest pressure comes from cultural differences. In doing the same thing, Americans and Chinese have totally different values. Su Jia made an image analogy. One question is that Chinese people and Americans do things differently. For example, how to go from 1 to 3, Chinese people will sit there first and think of ways to go from 1 to 3. The American thinking habits must be 1, 2 and 3. They believe that if the number of 2 is not passed this time, it must be made up later. By then, the waste of time and labor costs will be greater.