Kappa What Is The Market Prospect Of "From The New"?

< p > Kappa, which has been exploring the past two years, has been trying to start from the "brand + retail" mode. But looking around, Nike and Adidas are constantly exploring the low level cities in China. The domestic a href= "http://www.91se91.com/news/index_c.asp" > sports goods brand < /a > is also keen to reform and get rid of the wholesale mode. Can the native brand Kappa with foreign origin be full of fighting power like its "fighting family"?

< p > < strong > market loss < /strong > < /p >

"P", located near the capital gymnasium, is the first sports city in Beijing, "a href=" http://www.91se91.com/news/index_c.asp "sports brand" /a "distribution and retailer Mai Sheng Yue He group. Its brand has been adjusted for more than a year.

Reporters found that the original Kappa brand near the cash register has been replaced by NEW BALANCE, while Kappa has been adjusted to the corner of the store, and the area is also compressed a lot.

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< p > in fact, Kappa is the "bio brand" of Jin Lang sports.

The Kappa parent company has a 22.05% stake in China sports company.

But the market "new pet" NEW BALANCE has replaced Kappa's position.

Mai Sheng Yue told reporters that it also owns 7 sports outdoor brands including NEW BALANCE and Kappa, a href= "http://www.91se91.com/news/index_c.asp" > agent "/a". There is no intimate distinction, but sports city has its own profit consideration, and there will be some adjustments to the layout of the sales place.

According to its introduction, Kappa currently has 115 retail outlets in Beijing.

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The total revenue of China's P trend increased from 1 billion 711 million yuan in 2007 to 4 billion 262 million yuan in 2010, and then began a rapid decline phase with a public sports brand. In 2013, its annual revenue was 1 billion 414 million yuan, down 20.2% from the same period last year. It is the lowest in history, and it is also the smallest market in the six major Hong Kong listed sports brands.

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< p > < strong > concentrated channel < /strong > /p >

Last year's annual report shows that the retail stores in China decreased by 826, compared with that in 2012, and only 1183 stores were the least retail outlets in the six largest listed sporting goods companies in P.

"On the face of it, the industry has gone through the stages of inventory and closing, and the performance has declined to varying degrees."

In the chairman's report, Chen Yihong, founder of Kappa, analyzed, "at a deeper level, there are a series of more complex and thorny" new "problems, such as the great changes in the layout of the channel, the scramble for competition in the market competition, the upgrading of consumer tastes and habits, and so on.

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< p > in fact, Chen Yihong publicly pointed out two years ago that the whole industry is facing the difficulties of "brand + wholesale" mode.

Kappa has also become the first batch of sports brands pformed from wholesale to retail.

Data show that the number of self owned stores in Kappa 1183 stores is 271, accounting for 22.99%, while the proportion of self business sales has reached 18.7%.

Before that, Kappa had been pursuing "light assets".

There are neither direct stores nor processing plants.

After realizing the problem, Kappa quickly incorporated more than 200 stores into self run stores.

On the other hand, China has more than 4 billion 600 million yuan in cash on its books, which is more than most of its peers last year.

With the support of huge amounts of money, Kappa's channel exploration is more promising.

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< p > Chen Yihong said that it will evolve from a single distribution system to a mixed mode of "self retailing + distribution + franchising".

In 2012, China opened its first retail subsidiary in Hunan. In the past year, China has copied the mode of retail subsidiaries in 7 cities across the country. In Chen Yihong's view, "this is a key step from the strategic level".

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< p > < strong > Product handicap < /strong > /p >

< p > however, it is not so important for the front-line salesmen to be regarded as a strategic channel by Chinese management.

Mai Sheng Yue said that Kappa does not lack channels, and Mai Sheng Yue has retail distribution in many cities throughout the country.

Compared with channels, the problem of products is more serious.

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< p > sports brand going deep into the retail terminal will have a better understanding of the needs of the market and consumers, and the brand and products will be more and more differentiated.

Lining focused on professional sports, focusing on basketball, running and other core categories, launched the "Wade road" sneakers and Lining arc three generation running shoes and other main products; Anta was concentrating on the development of mass sports brand, and last year it invited NBA star to speak for its 399 national basketball shoes.

China's trend is reaffirmed in last year's earnings report that we should continue to adhere to the style of sports and fashion, but the product that carries the brand image is not strong enough.

Reporters observed that the family fighting series that they pushed in last year did not give prominence to many retail outlets.

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< p > the above retail personage told reporters that the Kappa positioning movement is fashionable, but the product features are not very obvious and are in the process of change. It is an attempt to launch combat pants from 2012 Kappa to the present combat family.

"When the product is still changing, considering risks, it will slow down the speed of expansion, and even consciously withdraw from some mainstream business circles."

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