Kappa Veteran Quit Strategy Is In Swing.

Veteran departure

In December 4th last year, China trend (Group) Co., Ltd. (Kappa's parent company in China, hereinafter referred to as "China trend") announced that Mr. Qin Dazhong, Chief Executive Officer (COO), executive director and executive committee member, resigned.

Beginning in 2002 when Kappa entered China for the first time, Chen Yihong and Qin Dazhong respectively served as the chairman and general manager of Beijing Trend Sports Development Co., Ltd. (China's predecessor).

Then in 2006, Chen Yihong announced that the brand ownership and permanent management rights of Kappa in Greater China would be bought at a price of about 30000000 US dollars.

After the initial acquisition, the enviable brilliance and the rapid decline, Chen and Qin have been called the golden partners of China's trend in the industry.

For the resignation of Qin Dazhong, Chen Yihong said: "as one of the founders of China's trend, Mr. Qin Dazhong has played an important role in the history of group creation, pformation, acquisition, financing and listing, and made great contributions."

Qin Dazhong also said that he had to spend more time on personal affairs and had to leave the team that had struggled for 12 years.

From the moment when Chen Yihong bought out the brand ownership and permanent management rights of Kappa Greater China in 2006, the brand that had encountered difficulties in Italy's local market began to shine brilliantly in China.

Now it seems that the Kappa Basic Net group's cash flow condition is not good enough to rush out, so it is quite appropriate to complete the acquisition at that time.

But at that time, China did not have so much money, so the $about 30000000 financing from Morgan Stanley only led to the completion of the acquisition, on the premise of the bet agreement with the company.

Public information shows that two data were betting at that time, one is that the company's profit in 2006 should not be less than 180 million yuan, and the other is that the profit in 2008 should not be less than 350 million yuan.

If the performance is not up to standard, the majority shareholder will pfer 20% of the shares to the company. If the performance exceeds expectations, the majority shareholder will receive 1% of the shares pferred by the company.

The final result is that China will win in the future.

In 2006, it realized a profit of 330 million yuan and a profit of 1 billion 310 million yuan in 2008.

All this stems from the reorientation of China's trend towards Kappa and the integration of fashionable elements into sports brands.

Chen Yihong was also called the "godfather of sports fashion".

Yes

Kappa also changed the marketing mode of traditional sports brand.

Looking at the chronicle of China's trend, it will be found that in the first few years, Kappa chose more entertainment business rather than professional sports events.

From sponsorship of singer concerts, presenters to cinema festivals, Kappa tries to lead the trend by integrating elements of these popular fronts.

From the later data, it is not difficult to see that the trend of China's betting fashion at that time is the right way to choose to travel outside the traditional sports brand.

Not only did it win the bet agreement with Molo, but also completed the listing in less than two years.

From the later data, it is not difficult to see that the trend of China's betting fashion at that time is the right way to choose to travel outside the traditional sports brand.

Not only did it win the bet agreement with Molo, but also completed the listing in less than two years.

Over the past 2006-2008 years, China's annual sales revenue has achieved a compound growth of 96.7%, and net profit has increased by 111.3%.

By 2010, China had reached its peak, with annual sales of 4 billion 260 million yuan and profit of 1 billion 740 million yuan.

Like sudden growth, the downturn has also been extraordinarily fast.

In 2011, the brilliance of Kappa was halted, and the annual sales revenue was down by more than 60%, and the profit was only 99 million yuan.

In 2013, its annual revenue was 1 billion 414 million yuan, down 20.2% from the same period last year, the lowest in history.

Looking back at the current Kappa, compared with the scenery, the product has not been significantly innovating, but the price is in line with Nike and Adidas, which makes consumers unable to buy it.

"Many brands create a differentiated position, but the key is to make your brand have a long competitive edge, and the brand needs to be changed in due course."

Angel evaluation.

The problem with Kappa is that it has not continued to expand after gaining market share, but has been constantly nibbling away its territory by its competitors.

Therefore, for Kappa, we must continue to expand horizontally after we have identified the brand positioning. At the same time, we must also consider the functional attributes, make breakthroughs in sports professionalism, and look for cross-border breakthroughs.

In addition, Kappa can be said to be the least sport flavour brand, but in those days, China's trend was probably the best company to "make 42 calls".

When other sporting goods companies spend a lot of money on sponsoring international stars and international sports teams, Kappa chooses to sell sports rather than professional sports events.

From sponsorship of singer concerts, presenters to cinema festivals, Kappa tries to lead the trend by integrating elements of these popular fronts.

The core competitiveness of sports brand should be sports elements and sports spirit, and this spirit and value will eventually extend to professional products. Kappa has not done so.