AOKANG Helps Cage Enter The Chinese Market

Often buy Gym shoes Consumers may be familiar with brands like Nike and Adidas. Skech is second only to Nike's second largest footwear brand in the US market. It owns more than 3000 shoes, but its recognition in China is very small, but today its market positioning is located in China.

The "S" logo will become more frequent in Chinese street shops, shopping malls and shopping centers. Because the Zhejiang AOKANG shoe Limited by Share Ltd announced in August 5th that it signed a strategic cooperation framework agreement with Guangzhou Kai Jie Commercial Co., Ltd. The latter is the distributor of Cage brand in mainland China.

According to the plan, AOKANG There will be about 1000 Skech brand stores in China in the next five years.

Skech didn't enter China very early. In 2007, he signed a cooperation agreement with Hong Kong listed companies's Luenthai Enterprises Ltd group, and formally established a joint venture, which means that the Cage brand entered China formally in the same year. But the speed of expansion was very fast. By the end of 2008, Skech had 91 stores in China. As of October 2012, Cage had 170 retail outlets. By the end of last year, this figure has increased to 750.

It is interesting that at present, more than 70% of Cage's stores opened in 2012 and later. Why did it begin to expand in 2012? The reason for that is that the sporting goods market experienced a decline after the "golden ten years", and the inventory and storage of the whole industry had been dispersed. The decline of the industry provided a rare space for Cage's entry. Nike and Adidas have opened factory shops to clean up their stocks and enter three or four tier cities. The second tier market is actually in an unattended neutral period, and the entry level is relatively low. In addition, Cage's products are partial to leisure. In fact, the background of sports products being abandoned by the market is the rise of leisure fashion products.

Unlike other countries and regions in the world, the 750 brands in China are covered by direct brands and agents, while Cage's other stores are brand owned.

An Orient Securities analyst pointed out that AOKANG has a very strong advantage in the two or three line franchised store, and this is also true. Cage The market that we need to focus on in the future. Skech currently has a second-line shopping center and department stores. In addition, the two companies will carry out all-round cooperation in brand resources, taking into account Cage's current domestic sales growth, plus 400-800 yuan price positioning. "We have reasons to be optimistic about the future development of Cage stores in the future, which is expected to become a new profit growth point for AOKANG." The analyst said.