Returning To "Collusion" Shows Kappa'S Second Spring.

According to the world clothing and shoe net, China trend released its interim results in August 16th.

China's half year revenue reached 466 million yuan, an increase of 0.4% over the same period last year.

This weak increase was 1916 years in Italy.

It's not easy.

After nearly 5 years of downturn, the Kappa style has been mutated, and various cross-border cooperation has been used to grasp the trend of sports and fashion. This has also brought a few real possibilities to its recovery.

On the occasion of the 100th anniversary establishment of the brand, Kappa invited Mr. Zhi long to endorse the company's flagship brand.

In 80s, Kappa incorporated the "collusion" into the product.

In sponsoring the US track and field team, the "collusion" has reached its peak.

Returning to "collusion" seems to have seen Kappa's second spring.

The most appealing action is the joint name with Russian designer Gosha Rubchinskiy.

On the occasion of street culture, both sides' joint exploits the fashion circle and opened the Kappa's revival movement.

After tasting the sweetness, Kappa and Opening Ceremony jointly launched a single product such as coats and sweater. In the fashion week of Paris, they released the "A.FOUR LABS meets POSH ISOLATION for KAPPA" project, and released a series of cooperation in New York fashion week and Losangeles designer.

Street, retro, overnight, Kappa seems to have found itself again.

A series of data on interim results also released several positive signals.

As of the end of June, the total number of Kappa stores in China reached 1639, of which 548 were self owned shops, so self retail business accounted for 50.6% of China's kappa business, an increase of 3.4 percentage points over the same period last year.

In addition, Kappa has also extended the advantages of e-commerce channels.

In 2009, the Kappa Taobao store opened. In November 11th of that year, the sales volume of Kappa Taobao store reached 4 million 30 thousand yuan, which created a single day sales record of Chinese sporting goods online sales.

In the first half of this year, Kappa's China electricity supplier income also increased by 25% over the same period last year.

Another promising growth point comes from children's clothing.

In 2016, the trend took over Kappa children.

As of the end of June, Kappa children reached 328 stores in China, a net increase of 66 over the end of last year, and revenue of 42 million yuan, an increase of 27.3% over the same period last year, accounting for 8.1% of China's Kappa revenue.

The gross profit margin of children's clothing also increased by 1.2 percentage points.

But for today's trend, Kappa is still in danger.

The first is gross margin.

Although the gross profit margin of the group increased slightly, the gross profit margin of Kappa in China decreased by 2 percentage points to 64.6% over the same period, of which the gross profit margin of clothing dropped the most from 70.5% to 68%.

Second, the group's 626 million yuan annual revenue decreased by 3.7% compared with the same period last year, mainly because of the sharp decline in Japan's regional performance. In the past six months, Kappa's revenue in Japan has fallen by 22.7% over the past six months, and it is currently only 68 million yuan.

If we calculate the store effect and calculate the child business, kappa's half year sales in China will be around 310 thousand yuan, while Fila's data will reach about 2 million 300 thousand yuan, almost 8 times that of kappa.

The trend of many brands is also not smooth.

"Our group is committed to becoming the best multi brand sports apparel company in China.

Kappa brand is the first brand of the group. With the strong position and network established by Kappa brand, it has laid a solid foundation for the promotion of the multi brand strategy of the group. "This is the vision of brand combination that has been put forward for many years.

The ski brand Phenix, which was acquired in 2008, is the second largest brand besides Kappa.

But in the first half of this year, Phenix's sales in Japan dropped by 28.6%, to 40 million yuan.

In 2011, when Kappa crashed at a high speed, it also hoped to use Phenix to make up for this loss.

In those days, Phenix brand outdoor and skiing products officially entered the Chinese market. By the end of the year, Phenix has opened 18 stores in China, but Phenix's Chinese performance has never appeared alone in its earnings report.

In addition, it also has a snowboard brand X-NIX and extreme sports brand inhabitant.

In 2010, the trend of Kappa's sister brand Robe Di Kappa (RDK) was introduced to China to develop high-end sports fashion, but from 2016, RDK also disappeared in the trend of earnings.

X-NIX and inhabitant are almost invisible.

On the move, it will take the 2022 Winter Olympic Games as an opportunity to introduce Phenix into the domestic high-end ski resorts in the future, attracting the attention of ski enthusiasts through the combination of snowfield and exclusive stores.

But in any case, for nearly ten years on the multi - brand road, there was no expected success, and Kappa could not enjoy the bonus of other brand expansion.

Looking back at Anta's Fila, it is not only a major growth point for the group, but also helps Anta to open up the high-end market and raise the gross interest rate.

"Kappa China revenue calendar" is like roller coaster twists and turns.

Since its first entry into the Chinese market in 2002, Kappa has been popular for a long time, leading the trend of sports and fashion in China.

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Kappa experienced a long downturn after the peak of 2010.

When a lot of sports brands in the market appeared in dark tones, Chen Yihong boldly decided to start the R & D team in Korea.

Kappa, with its bright colors and version, has swept the market quickly.

From 2004 to 2007, the average annual compound growth rate of Kappa was over 80%.

2010 is the peak of Kappa, and the annual revenue of 3 billion 633 million yuan is not much different from that of XTEP, PEAK and PEAK. The latter three are in the early stage.

But it is a time of bubble expansion.

At the end of that year, Kappa stores in China were as high as 3751. In a 500 meter commercial street in Heilongjiang County, many Kappa stores were too lazy to get off. Even the remote construction farms had seen Kappa outlets.

At that time, Puma was the only more than 1000 store in China, because its agent Hongkong Taigu laid down the channel step by step.

Kappa, who was under the control of the trend, had long been involved in the melee of sporting goods and channels at that time.

In the stage of Lining and Jinjiang brands rushing headlong into the herd, Kappa is also playing games with other brands in terms of number and market share.

In fact, Kappa is a brand with relatively high positioning and a strong personality.

Once a low price promotion is launched, consumers will not pay for individuality.

When the "back to back" T-shirt is full of streets, Kappa also loses its own advantages.

In addition, the overall weakness of China's sporting goods industry has led to the inevitable weakening of Kappa in its ambiguous position.

At one point, consumers thought it was "soil to be dregs" and "Dad would wear it".

Although Kappa has reversed consumer stereotypes through a series of joint cooperation, it is still a formidable challenge for Kappa to return to its peak.

At present, the volume of Kappa is almost the same as that of ten years ago, and the market environment and competition pattern are already changing.

The sporting goods industry has entered a relatively mature stage of development. Shuffling will become a trend in the future.

The brand of big size and strong strength can further consolidate its own advantages. Anta has firmly occupied the position of the first sports brand in China in the past 5 years, and has made a difference with the pursuers.

When the market structure is clearer, smaller brands will be more difficult to increase market share.

Secondly, the positioning of Kappa's sports fashion is not clear.

All kinds of joint cooperation are not as large as Adidas and Puma, and the trend of competing for buying has not appeared in China.

In other words, Kappa's fashion and street culture attributes still need to be strengthened, and the brand promotion method needs more thought to strengthen its own sports fashion positioning.

More importantly, for Chen Yihong, Kappa is not all of him. The entrepreneurial mentality more than 10 years ago is no longer there.

From the age of Lining to the departure from Lining, Chen Yihong took the brand with her hand.

At present, investment is a more important business.

In the first half of this year, the net profit of the trend investment was 514 million yuan, an increase of 17.6% over the same period last year. The investment business almost supported the group's net profit, and its contribution rate reached 95.9%.

This is also the main reason for the stock price soared by 8.44% on the day when the interim results were released.

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