XTEP'S Introduction Of Disney'S Brand Performance Net Profit Slipped For The First Time

XTEP's 2012 earnings report released last week showed that XTEP's net profit decreased by 16.18% to 810 million yuan last year, mainly due to the sharp competition in the high-end market, resulting in a decrease in Disney's brand income.

In addition to XTEP, the domestic sports brands have introduced many foreign brands in recent years, but the results are not very good.

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< p > < strong > attracting foreign brands into China's trend. < /strong > < /p >

< p > Disney, as the other brand on the earnings report, as early as 2007, XTEP successfully defeated several opponents after long negotiations, and won the exclusive right of the Disney Disney brand.

In 2010, XTEP strengthened its cooperation with Disney on the basis of its first cooperation.

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< p > according to the terms of operation, XTEP can use the "Disney movement" brand in 21 countries including Southeast Asia, the Middle East and central Europe to carry out "a target=" _blank "href=" http://www.91se91.com/ "> clothing /a", "a target=" _blank "href=" "href=" > shoes, "shoes" and accessories design, production, distribution and sales work.

During the period of cooperation, XTEP first gained the right to operate the brand in mainland China, then gained the management rights of Hongkong, Macao and Taiwan, and then won the franchise of 21 countries.

The purpose of XTEP's cooperation with Disney is to aim at the group of young women who love Disney, and form the most abundant and most potential leisure sport in Disney's brand. < a target= "_blank" href= "http://www.91se91.com/ >" dress less than /a "brand industry, and deduce Disney's clothing classics in China.

And the partners have common ideas, including product confidence and localization, so the two brands are coming together.

However, it is understood that the contract between the two sides has expired on 2012 and whether the renewal will not be announced.

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In August 2008, Lining and Italy sports brand Lotto (Le Tu) entered into a concession agreement. Lotto granted Li Ning Co the right to develop, manufacture, marketing, publicize, promote, distribute and sell the products in China. The exclusive right of trademark exclusive use for 20 years.

Then in October 2009, Anta announced that HK $600 million had acquired the FILA brand's business in mainland China, Hongkong and Macao, and was the first case of the merger of Quanzhou shoe enterprises at that time.

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< p > < strong > the introduction of foreign sports brand is not effective. < /strong > < /p >

< p > however, from the following years, the effect of introducing foreign brands by sports brands is not very obvious.

According to XTEP's earnings, their other brand products accounted for only 1.4% of total revenue in 2012, while XTEP brand products remained the main source of revenue for the group, accounting for about 98.6% of the total revenue of the group.

Earnings report explains that the lack of income from other brands is mainly due to the fierce competition in the high-end market, resulting in a reduction in the income of Disney sports brand products.

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Less than four years after the cooperation of P, a large number of Lotto stores were closed. The Li Ning Co issued a notice announcing the adjustment of the term of cooperation with Lotto concession business, which was revised to 10 years from the original deadline of 20 years.

It seems that domestic sports brands are not easy to join hands with foreign brands.

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< p > "take XTEP, Disney cartoon characters are very popular, but this does not mean that the stone can be turned into gold.

Disney's target consumer group is limited to younger youth, while XTEP's sports brand is more targeted for youth. If the target consumer group does not coincide, then the brand effect of Disney will not come out.

In addition, there is a story behind every cartoon image of Disney. These stories are all about different values and connotations. If we can not understand the connotation and do not choose the cartoon image matching with their brand connotation, cooperation will not be effective.

Disney itself is a highly efficient and mature company, but the cooperation with XTEP only grants the portraits and brand management rights to XTEP, does not participate in the operation of the company and does not provide technical support.

Chen Yi, a retail trainer of Shenzhen Huishida business management consulting company, believes that domestic sports brands need to be cautious when introducing foreign brands. The target consumers should be well positioned to integrate the values of foreign brands with their brands.

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< p > < strong > net profit of XTEP declined for the first time last year < /strong > < /p >

< p > in addition to other brands' omission, XTEP has also been affected by the downturn in the industry environment. Last year, the first net profit fell after its listing.

XTEP's net profit fell 16.18% to 810 million yuan last year.

The decline in performance has long been recognized before the 2012 earnings announcement.

Following the closure of 80-100 stores in 2012, XTEP's closing momentum remained unchanged.

According to He Ruibo, chief financial officer of XTEP, XTEP has reduced orders by 15%-20% in the first half of this year.

In the new year, the company will continue to close its stores while cleaning up inventory and reducing supply. It is expected that XTEP will close 100-200 this year.

Although the company will choose to open new shops in some better locations, the total volume of shops will decline.

Apart from XTEP, other domestic footwear brands have seen a decline in performance over the past year.

It is understood that over the past year, the number of sporting goods brands in China has closed to at least 3000 stores, with an average of about 10 closure each day.

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< p > "now the environment is not good, the market demand is decreasing, the marketing ability of the shops is also decreasing, and some shops lease expires and stores increase.

Moreover, the experience of these listed companies in the capital market is not enough, and their performance is also dragged down.

And there's too much inventory. "

Chen Yi thus analyzes why sports brands are generally weak in the market.

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