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PEAK'S Brand Internationalization Strategy

2013/10/3 9:53:00 16

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PEAK New Thinking Brand Internationalization

Unlike P, which is different from many developed cities along the coast of China, the central city of Quanzhou and even many ancient towns basically have such a pattern: a ancestral hall, a temple, a street in the middle, and a vast family of lights extending along the street; even in many shoe and clothing factories, there will be a small family temple embellishment.

No matter how far away, the people of Quanzhou stick to the belief in traditional culture, and their hearts are firm and peaceful.

In the face of PEAK CEO Xu Zhihua, P can also feel his strong Quanzhou temperament.

His face was big and his head was shaved. His face was similar to his father, Xu Jingnan, founder and chairman of PEAK sports. He also attended any public occasions and wore clothes with a PEAK logo.

When chatting with a guest, he would also be like his father, who used to make a pot of fragrant Southern Fujian tea and drink and chat.

He seldom sat tight while chatting, but he was a bit too serious.

Outsiders say he is more likely to express his likes and dislikes directly, while his father is more experienced and more approachable.

Xu Zhihua doesn't like to think that his achievements today come from the platform of the "two generation generation". He prefers to regard his brand internationalization as the two venture of PEAK group because "the tradition of Minnan people is that men must have their own business", which is similar to what his father likes to say, "love to fight and win."

his father once promoted PEAK to national brand by sponsoring Chinese basketball star "ares Liu Yudong" and advertising on CCTV. He promoted the internationalization of PEAK brand through sponsoring all kinds of large-scale international basketball matches, especially through a series of deep cooperation with the US P and famous star endorsements.

In the past two years, PEAK also expanded its overseas market by sponsoring competitions, such as sponsoring more than 10 national teams at the London Olympic Games, sponsoring the international round lake competition in Qinghai to promote outdoor equipment, and signing WTA stars, Kopova, to promote tennis equipment for two consecutive years.

in the first half of 2012-2013 years, the domestic sports brand suffered the biggest performance decline in the past 10 years.

In the 6 sporting goods companies listed on the Hong Kong stock market, except for Lining's huge losses last year, the performance and net profit of other companies have declined sharply. As of 2013, the annual order volume of 2013 companies has not recovered.

Among them, Lining, the industry leader, from 2009 to 2011, realized profits of 1 billion 342 million yuan, 1 billion 547 million yuan and 631 million yuan respectively, but a huge deficit of 2 billion yuan in 2012.

PEAK has not been spared.

In 2012, the group's turnover was 2 billion 900 million yuan, down 37.5% compared with the same period last year. Net profit dropped by 60.1% yuan to 310 million yuan from 778 million yuan in 2011, and the net profit margin also dropped from 16.7% to 10.7% due to vigorous cleaning up of stocks.

Xu Zhihua, who has entered the industry for more than 10 years, is in a calm mood. "Actually, the overall environment of the world has not been good since 2012, and many traditional industries have suffered losses." P

Last year most of the sports brands were making money, but they were earning less than they used to be during the rush hour.

And there is no big problem with PEAK's cash flow. "

In his view, this is only the second time PEAK has started from the bottom.

in the 80s of last century, Quanzhou became the processing base of foreign trade shoes and garments.

Xu Jingnan started from foreign trade processing, and later took 80% of the workers and technology left behind after the relocation of Nike factory. In many enterprises or manual workshops, PEAK realized pipeline operation.

Moreover, Xu Jingnan created his own PEAK brand. This is the first private sports shoes brand in China, apart from the old brand of state-owned brands, the double star.

In 1997, PEAK's intangible assets valuation has reached 200 million yuan.

But by the end of the 90s, Xu Jingnan was confronted with a strong challenge from Quanzhou's new generation of entrepreneurs. In 2000, Anta replaced PEAK as the shoe king of Quanzhou. Most of Jinjiang's shoe companies also adopted the marketing strategy of "celebrity endorsement + CCTV advertising" in 2000. According to statistics, the Jinjiang brand appeared on CCTV sports channel in 2000, 16 in 2001, 33 in 2002, and 36 in 2002.

Before Xu Zhihua brothers entered PEAK, the company's performance has been in place for 5 years in a row.

at the same time when sons enter the company, Xu Jingnan is giving them full support.

He coordinates the internal relationship of the team and controls the main strategic direction of the company and endorse it.

For example, PEAK shifted from shopping malls to stores at the time, and every time it adjusts a regional branch agency, it will lose 2 million yuan that year, when PEAK's annual profit was only about 5000000 yuan.

In 2002, when PEAK finally completed the pformation of the channel, Xu Jingnan supported Xu Zhihua's signing of the 3 million advertisement on CCTV on behalf of PEAK, but the company was short of cash. Finally, it found a media agency to advance a part of the advertising fee, and the PEAK paid more than a year later.

however, since 2002, PEAK has started an average annual growth of about 30%, after 5 years of performance.

This is seen as a good start for PEAK's two pioneering effort by Xu Jingnan.

In 2005, after his father's approval, Xu Zhihua strongly promoted PEAK's "brand internationalization" and began the deep cooperation with NBA Houston rockets.

PEAK became an internationally famous brand after its operation, and successfully launched IPO at HKEx in 2009. It has maintained a performance growth of more than 60% for 3 consecutive years.

From 2009 to 2011, PEAK's turnover increased from 3 billion 90 million yuan to 4 billion 650 million yuan.

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P, --EndFragment--! Although PEAK leapt to the top of the mainland basketball brand, PEAK did not choose to boost sales growth in the central Taiwan advertising bombardment like other peers. However, sponsoring all kinds of top international competitions is obviously a more expensive game with sincerity.

Until now, PEAK is the only domestic brand in Losangeles to set up a standing group to follow up with NBA cooperation. This small team of more than 10 people cost millions of yuan each year, and its content is diverse: product design, communication with players, product supply and market expansion team.

They have established contacts with all the top players in the United States. PEAK hopes to find the next Yao Ming and Kobe in close tracking of NBA is no secret.

Since 2005, Houston signed many years' Sponsorship rights with the Rockets of the US $4 million in 2005. PEAK has spent tens of millions of dollars on sponsorship and advertising endorsements of P and all kinds of top international basketball competitions.

Although sales were sluggish in 2013, PEAK continued the strategy of top basketball stars endorsing, signing the NBA best international player, Toni Parke, who was the champion of the NBA3 championship, the 5 all star player and the most valuable player (MVP) contender of the season.

In order to sign a contract with PEAK, Parke gave up his cooperation with Nike. The media reported that PEAK offered him two times the amount of endorsement.

however, the sales surge started from the 2008 Olympic Games, to the top of the whole industry inventory in 2012, and its performance plummeted. The sports brands at home and abroad experienced the peak from the peak of the industry to the low level of the industry in the past 5 years.

Xu Zhihua believes that the past 10 years are the golden age of Chinese sports brands. All brands rely on the growth of single store growth to achieve scale growth.

Our mode is basically "brand + wholesale": the management standards, retail standards and brand standards are assigned to distributors, and the gap between the executive power of the distributors and their management capabilities has not been paid much attention.

With the saturation of the market and the sinking of the international first-line brand, the past mode of the domestic sports brand is facing a severe test.

In addition, when brand influence is strong enough in the past, sports brand design and fashion defects are easy to be ignored by consumers. But now it is more necessary for enterprises to deeply understand and satisfy consumers' demand for integration of fashion and sports.

Xu Zhihua began to optimize the order mode and distribution network in 2012, improve the management level of retail outlets, and strengthen the management capacity of channels and inventory.

For example, he adjusted the earlier form of responsible order to the order pattern of on-demand production.

If the distributor expects to sell 1 million pieces of clothing within six months, 700 thousand orders can be placed first, and the remaining 300 thousand will be made later according to market conditions.

Moreover, Xu Zhihua believes that even if we want to clear inventory at present, we need to maintain the brand and the strategy of star endorsement.

Even if this year's sales environment is not good enough, PEAK's NBA Star China trip can still achieve good results, and every place can often boost local store's single quarter sales by 30%.

And this year, PEAK's star basketball shoes have been awarded 400 thousand double patches, worth more than 100 million yuan, showing signs of a rebound in the footwear industry.

In terms of P stores, PEAK also took the initiative to contract last year. The number of retail outlets decreased from 7806 at the end of 2011 to 6483 at the end of 2012, equivalent to 3 outlets per day.

Last year, PEAK abolished the agents at the provincial level and increased more distributors. The total number of distributors of PEAK increased from 50 at the end of 2011 to 59 at the end of 2012. It was reported that some stores in the region had been restored to the sales level by the end of 2011.

PEAK inventory dropped from 5 billion 300 million yuan in the middle of last year (up to June 30, 2012) to 390 million yuan in December 31, 2012, down 26.9%.

PEAK has also become the first sporting goods industry to drop substantially.

but Xu Zhihua is pessimistic about the current hot business mode.

He has talked with many traditional business executives, who believe that a reasonable electricity supplier should be a supplement to the traditional offline channels instead of destroying the traditional retail business by destroying the traditional retail industry.

Many traditional enterprises can only regard electricity providers as sewage drains, even if they sell hundreds of millions of annual sales, they may also be operating at a profit or loss. He believes that this is not a healthy ecosystem.

In his view, the mainstream of e-commerce in the future should be C2B, which is determined by consumers' individual needs, multi varieties, small batch, quick response and platform cooperation.

Xu Jingnan P had a long talk with Xu Zhihua when he graduated and talked about the development prospects of the domestic sports brands and the pformation obstacles faced by the enterprises from the wholesale to the retail era.

At that time, Xu Zhida, Shenzhen HUAWEI and Offer of National School of Administration, entered PEAK under this kind of inspiration.

and Xu Zhihua's younger brother Xu Zhida entered PEAK earlier. When he was in Huaqiao University, he needed to open up the clothing category when he was in Huaqiao University. But PEAK had no experience in the clothing industry at that time. Xu Zhida, who just entered university, began to use the weekend time to run around and find a garment processing factory to talk about cooperation.

On the one hand is the imminent clothing project preparation work. On the other hand, it is necessary to study hard and study hard. After considering many times, Xu Zhida, who has been sent to university from primary school, decided to drop out of school to assist his father.

After 4 years, he achieved the output value of PEAK's clothing industry. At present, PEAK's clothing sales account for about 50% of the company's revenue.

In Xu Zhihua's words, "he is a born businessman" (Xu Zhida).

Xu Jingnan once expressed his love for his sons in the interview, saying that they gave up a lot for the company. But the enterprises of PEAK scale have to shoulder thousands of families' future. They must dissolve their responsibilities into motive force, and drive him and his two children to work hard to make PEAK a hundred years old shop.

Only when we really appreciate the hardships of our fathers' generation, can the second generation really cherish everything in front of us.

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In order to explore the direction of the development of electronic commerce, Xu Zhihua became an investor in the form of an angel investor in the past year. He made a subscription to the website of "love fixing customers", which was customized on the website of personal wave shoes last. P

The other shareholders of this website are his friends who studied in the Yangtze River Business School in 2009-2010 years.

This website integrates all links from design, raw material procurement, production, customization, sales, logistics and after sales.

The longest 7 days can be shipped, and the price of the single product starts from 200 yuan.

Xu Zhihua thinks that large scale mass production is the fixed operation mode of footwear industry, but self centred consumption should be the trend of the future. Only by truly complying with this demand can we create a new industrial mode.

The biggest predicament of traditional retail industry is high inventory and low turnover. Even if the concept of fast fashion is prevailing, inventory turnover rate is also limited, the biggest advantage of customization mode is zero inventory, and electronic commerce omitted the cumbersome distribution link.

These are regarded as the key points by Xu Zhihua.

However, how to create and inspire the public to meet the customization needs will be faced with some difficulties.

He hopes to find a way to break PEAK's electricity supplier from the specimen.

the development direction of PEAK's official website is to create a service platform for members, and at the same time, it can interact with the stores with the collection of member information.

"We will do e-commerce, but not the common pattern now.

Differentiated products, services, and younger fashion brands are likely to try. "

Besides P, Xu Jingnan and Xu Zhihua both believe that the biggest opportunity for the future is in the global market.

Among them, the market share of international second-line sports brands under economic pressure has gradually shrunk, providing a replacement opportunity for Chinese sports brands, such as the decline of UMBRO, Puma and Reebok. Their market share has been gradually eroded by mainland sports brands.

The sales volume of PEAK P Middle East market has increased more than 80% for many years. It is the first sports brand in Iraq, but its market potential has not yet been fully realized.

In 2012, when PEAK opened two flagship stores in the United States, it entered the Canadian market again this year. PEAK has registered PEAK brand in 180 countries around the world.

PEAK's 2012 annual report released in March 11, 2013 showed that PEAK's international sales volume reached 388 million yuan, accounting for 13.4% of its total turnover, which was significantly higher than last year's (9.9%).

This is the 3 consecutive year that PEAK's overseas revenue has increased.

< a href= > http://www.91se91.com/pioneer/ > Xu Jing Nan < /a > has always been thinking of creating an international brand and a century old shop.

But Xu Zhihua believes that the future of PEAK will not be limited to the manufacture of clothing shoes and hats. It has to update itself according to the changes of the times. Maybe in the future PEAK will be pformed into a health management company or a sports service company to provide one-stop sports and health solutions for the public.

He feels that the road of pformation like IBM is worth learning from traditional manufacturing enterprises like PEAK.

Xu Zhihua admitted that he and his father were two generations, so there would be differences in the way of management.

For example, father as the first generation of entrepreneurs is more passionate and courageous, and believes in experience and pragmatism.

He accepted the education of the Yangtze River Business School, a more international company management system. He was good at finding trends. He liked to measure the ratio of input to output by pushing the market back.

Father regards work as the greatest pleasure in life. He will stay in the company for 365 days a year without entertainment. He will even return to the company to deal with affairs on the first day of the year.

And he prefers to come home from work to accompany his wife and two daughters. Even now he is busy, he is unwilling to give up his hobbies, such as playing tennis as often as possible.

but in the general direction of the enterprise, the three sons and fathers never differ. Even if there are different opinions, the sons will not contradict father in face of the company, but then they will close the door and discuss again.

For the current situation of father's operation and overall situation, the two situations of the two brothers in charge of management are also very perfect. Father's pragmatism and sons' sensitivity to new things can be organically combined.

Because there are three fathers and sons who seldom meet in the company, and they even have a meeting at home.

on the future inheritance of enterprises, Xu Zhihua admitted that he did not think too much.

Like his father, he was concerned about how he could make his business better.

He is more inclined to provide children with a healthy and healthy learning environment in the future, not interfering with her hobbies so that she can develop freely, and the elders only need to give proper care in peacetime.

He did not necessarily cultivate his children as a successor. If they had the ability to be interested in succession, that would be a good thing; if not, the business could also be handed over to professional managers after the operation was mature.

he thought he and his brother were a good example of stocking.

Xu Zhihua said his father had been very busy during his growing up and never interfered with his or his brother's learning orientation, including university volunteer.

But he did well from small to big.

The middle school entrance examination was ranked first among liberal arts students in Quanzhou seven, but it was only second of the total results because of failing sports performance. This stimulated him to take sport as his first interest.

He was chairman of the student union in high school, and became the first non normal student in Quanzhou seven. After being admitted to the school of electronic information of Sichuan University, he became the two student union president.

in the rumor, he is good at playing killing games. When he was young, he was a "Alice friend" who loved mountaineering and photography. When he was in University in Sichuan, he used the vacation time to climb more than 20 snow mountains around Sichuan and hiked up over 6000 meters of Four Girls Mountain on foot.

Perhaps this experience has sharpened his character of not reaching his goal.

For example, in 2005, when he was in the middle of NBA, he went to Losangeles to go to work in Losangeles. He met Battier, a Chinese journalist, and met Houston's general manager.

Then he met with seven or eight vice presidents of NBA in a year to promote PEAK, and also built his own professional custom design team for NBA from scratch. The cost of a set of professional soles for shoe soles was as high as 3 yuan to 50 thousand dollars, and finally beat other international brand rivals, and began a long-term cooperation with NBA.

< < a href= > http://www.91se91.com/news/index_c.asp > > PEAK < /a > on the road of creating an international brand, without changing its original intention, Xu Jingnan even said that "even if we fall on the road of internationalization, we will never regret it".

But its promotion still seems to focus on the idea of spreading anyone's success through sports, but in modern China, this approach is becoming increasingly difficult because Chinese parents are focusing their attention on examinations instead of sports.

In contrast, the fast fashion brands that have eaten the sports brand and even some Taobao brands have pformed the content into a focus on fashion and lifestyle. The way of promotion will also focus more on interactive social media event marketing, so as to win the recognition of "after 90" and "00 after".

but PEAK's focus and adhered to the long-term interest style, making it difficult for them to be influenced by some popular theories in different periods, such as low price orientation, diversification, multi brand, mergers and acquisitions, etc.

Because of its traditional culture and moral and emotional support, this family management team is more likely to play its centripetal force and toughness than the professional manager system.

there is a peculiar sculpture in the Hai Jiao Museum in Quanzhou: a Buddhist monk, a Taoist auspicious cloud, with a Christian angel's wings and a cross with the orthodox symbol. The dome is a decorative pattern of Hinduism.

From the ancient times to the present, the whole of Quanzhou has a sense of being almost stubborn on the one hand. On the other hand, it is very tolerant of external things.

This is very similar to the traditional and modern PEAK's feeling: keeping the most persistent beliefs as the coordinates, and therefore have the courage to accept and try new trends in the outgoing development.

but Quanzhou's < a href= "http://www.91se91.com/news/index_c.asp" > sports brand < /a > almost all in the same time period from opening shops, making brands to listing and internationalizing. When confronted with the current pformation difficulties, can they once again break through with the traditional values of "love to fight"?