How Long Can "Small And Beautiful" Keep PEAK Ahead In Overseas Market

Spain opened stores and sponsored Serbia, the runner up team in the Basketball World Cup, to let local sports brand Pike showed his face again. Compared with the semi annual reports of six listed sports brands, such as Li Ning and Anta, reporters from Beijing Business Daily found that although PEAK, the most junior, did not have an advantage in scale, its profit growth was in the forefront. In the view of the industry, PEAK has found a development road different from other sports brands by sponsoring events.

　　 overseas market lead

The day before the birth of the first FIBA Basketball World Cup champion, PEAK Spain's flagship store was officially opened in Madrid. This sports brand, which is not the first line in China, has been exposed repeatedly abroad. In addition to Parker, Battier and other famous NBA stars, Peak also sponsored foreign events and teams rarely seen by Chinese brands, such as the Iraqi football team, Ivory Coast and Cameroon national men's basketball team.

Different from other brand sponsorship, PEAK hopes that the sales link will follow up immediately after the sponsorship. The opening of PEAK's Spanish flagship store is also due to the Serbian team sponsored by the Spanish Basketball World Cup reaching the final.

As an official sponsor of the American Championships, PEAK has found agents in Ecuador, Venezuela and other countries, signed brand agency agreements, and started to promote and sell PEAK brand clothes, shoes and sports accessories in the above countries.

Up to now, PEAK has exported to more than 80 countries and regions worldwide, and has more than 40 dealers and more than 200 distribution outlets overseas. In the first half of the year, PEAK's overseas market revenue reached 290 million yuan, up 68% year on year, making it the largest domestic sports brand in terms of overseas revenue.

Unique vision in selecting stars

The impact of signing stars on the brand is self-evident. The most well-known thing is that Tony Parker of the Spurs switched from Nike to PEAK in 2013. It is reported that Parker's annual contract value is 2.6 million to 4 million dollars, at least twice as much as his previous contract value at Nike. So far, PEAK's number of NBA signed players has reached 17, becoming the third largest player equipment sponsor in the NBA.

In the opinion of sports industry insiders, compared with other domestic sports brands, Peak signed with Parker "very cost-effective", not only the price is not high, but also Parker has won the championship in succession, Peak The brand's exposure and reputation have also risen all the way, even being called "Peak's Law of Winning the Championship" by fans.

Every summer, the "NBA Star Tour in China" is an annual activity for domestic sports brands. It is obviously an incentive for domestic consumption to make the star as the brand platform. The time for brands to promote star style sneakers is when the ball stars leave.

Liu Xiang, deputy director of PEAK Sports Brand Management Center, introduced to the reporter of Beijing Business Daily that the advantage of star products is that they can quickly enter the market and enter the consumer's vision, and the brand can use the star's influence to drive sales. It is reported that in the domestic market, Parker sneakers have also repeatedly replenished nearly 100000 pairs, and Battier series has reached the eighth generation.

Market to be expanded

PEAK's performance report for the first half of the year showed that as of June 30, the company's turnover had increased by 10.1% to 1.291 billion yuan; Net profit increased by 34.6% year-on-year to 121 million yuan. Although overseas revenue increased by 68% to 260 million yuan year on year, more than 80% of the revenue share is still in China. In the eyes of insiders, Li Ning's overseas expansion has failed, and PEAK has just started. However, both of them did not get rid of the dilemma of "export to domestic sales" when developing overseas.

"If the event will be broadcast in China, the enterprise will actively sponsor it, otherwise, the enterprise will not be interested." It is believed that Chinese sports brands have long catered to the broadcast and audience rating. In addition to PEAK's sponsorship of Serbia and Li Ning's sponsorship of Finland, all other brands are absent from this Basketball World Cup.

There are also views that although PEAK has determined the idea of globalization, the cost of overseas market opening up by sponsorship is too high, and market development is somewhat disconnected from sponsorship. "Although it has taken the step of opening up the European market as early as two years ago, its business scope is still limited to France, Germany and a few other countries. Even in Barcelona, where the trade industry is developed, if it is far away from the stadium, it is difficult for people to find its trace again."