Kappa Takes The Lead In Embracing The 100 Billion Trend Market.

Whoever can take the hearts of young people will occupy the present and the future.

For young people, fashion is the most important cultural symbol.

Looking back over the past two years, whether street basketball or hip-hop music, the most inaccessible topic in personality and publicity oriented young people is the trend.

The new consumer demand led by young people is gradually upgrading, with minority cultural attributes.

It is the trend symbol of young people expressing themselves. Young people are increasingly pursuing the sense of belonging and emotional resonance brought by the trend of the circle.

As the trend culture continues to pass through various forms of entertainment, sports, music, film and television, and art, it gradually comes from underground to our life, which brings the trend of consumption and changes the way of life of young people.

In China, the target consumers of the most consuming second tier cities are the trend.

The main gold players are walking in such a tidal gathering place like Sanlitun. The young people who begin to see their eyes are fond of casual clothes such as sweaters, bell bottoms and so on. They leave "dirty braids" on their heads and branded their totem tattoos on their arms. Facing the pressure of the pace of life, different lifestyles with different personalities become the way for Chinese young people to manifest their individuality.

In fact, in this upsurge, many brands have already sniffed this trend and started to act.

Such as hoodies, sweaters, sports pants and sports shoes, such as basketball, skateboards and other equipment products, have entered the fashion wardrobe wardrobe, through the star effect to promote consumers to take out their wallets, to pay for the fashion supplies.

Opening the best new product list of Tmall in 2018, many of the products of the trend gene are among them, such as Kappa, Adidas, Vans and so on.

It has been estimated by investment banks that the volume of commercial volume in the Chinese tidal market is expected to reach 500 billion yuan. This shows the gap between China's current market and the international market, and also demonstrates the trend of the trend in this era.

In such a scale of 100 billion scale, there is tremendous opportunity for change and upgrading.

In this great tide, in this promising market, a company that fits itself with the trend is at the forefront of the times. Kappa aims at the opportunity to break into the subdivision of the trend movement and take the lead in upgrading the trend.

We have noticed that Kappa, one of the most powerful Logo lists in the 2018 circles of the world, comes from the global fashion trend data platform Lyst. Prada and Supreme, Louis Vuitton and other luxury brands are also included in this list.

According to the world clothing and shoe net, in fact, since the end of 2017, Kappa, which has its own trend gene, has launched a "three year reform" plan, which has been upgraded from product design model, digital operation and younger marketing matrix. It has passed on the Kappa's "individuality and publicity" values to more young people.

Standing in front of the door of the era, let us take a look at the trend of Kappa's attack and experience the leap of the tide of the times.

Kappa, a passionate advocate, aims to identify consumers and make specific circles.

Since the "three years of reform" was put forward in late 2017, Kappa has entered the trend of reform in the past 2018. With the brand attitude of "individuality and publicity", they have been engaging in cross-border cooperation with entertainment, music and art to attract young consumers.

In the past year, Kappa has launched cooperative products with many famous designers such as Kurashi Kazuki and Gosha Rubchinskiy. Relying on the rich product line, it constantly sharpens the brand image of the trend movement, and constantly communicates with the young trend consumers through the personalized story and cultural attribute story behind the product, so that it can return to the trend of consumers.

In addition, Kappa has also made full use of the KOL effect to tie up the "collusion" series of products, which further deepen the recognition of young consumers' trend genes in Kappa.

For example, signing Korean artiste Quan Zhilong as spokesperson for brand centenary, short term endorsement with VAVA and other rap partners, all through the detonation flow, successfully gathered fans, media and potential consumers' attention to Kappa.

In addition, in October 2018, Tmall's "double 11" preheating stage, Kappa also participated in the Tmall Fashion Festival, using Kappa sharp cargo series and BANDA new series of runway, successfully occupy the trend of young people's eyeballs.

Such a series of attempts, we can see from the results of earnings.

China's interim results show that the company's revenue during the period was 772 million yuan, up 14.4% from 675 million yuan in the same period last year, and gross profit was 451 million yuan, up 9.2% from the 413 million yuan a year earlier in 2018.

And the third quarter earnings report and the fourth quarter announcement, have achieved a good double-digit growth.

With such capital performance, the market performance of Kappa products is outstanding.

Behind the success of its products, it also provides a springboard for upgrading young marketing.

Chen Chen, executive director and joint CEO of China trend, said that after investigation and analysis, they found that more young consumers were moving from buying a single sports product with certain functions to buying products that represented their ideology, lifestyle and personalization. The story behind their products and their attitude towards life were the main factors for their purchase.

Therefore, Kappa will spare no effort to seize the market opportunities under the new era of consumption, and face the new generation of consumers, leading the trend of consumption upgrading and pformation.

In the interview, the Chinese trend CEO Zhang Zhiyong told reporters that the core consumers of Kappa were 18-35 years old, surrounded by them, and Kappa started the upgrading of the younger marketing matrix. They were communicating with the current target consumers in four aspects: fashion media, cultural marketing, business new retail and trend culture / star cooperation.

In Zhang Zhiyong's view, Kappa has its own DNA. The core asset of this brand is its individuality and publicity. Now, aiming at such a detailed field of the trend movement, the brand accumulation of the tidal current elements on this asset can get a unique brand image.

Indeed, as a leader in the trend culture, Kappa has made great breakthroughs in the field of brand cross-border and joint name in recent years. This choice can integrate two unrelated consumer groups, expand the base of consumer groups, and bring about business breakthroughs.

Such market feedback is finally reflected in the earnings report.

Based on the upgrading of the younger matrix, Kappa has also upgraded the store location to create a close to young consumer habit and further upgraded the store's trend image.

{page_break}

Chen Chen, executive director and co president of China trend, revealed that in 2018, Kappa pformed about 18% shops and found that there was a double digit growth in the same store after the upgrading of the shop image.

Through the upgrading of store image, consumers' desire for purchase and their entry rate have greatly improved.

Let's go where the young people go.

Besides, channels are also crucial.

Zhang Zhiyong said.

So how does Kappa upgrade its channels? Let's take a look at the digital changes of Kappa in the mid-term of "three years of reform".

Three years of reform plan, Kappa hopes to boost brand growth by young consumers.

At the end of 2017, Kappa put forward the "three year reform" plan.

After more than a year's multi-dimensional upgrading, the brand is still being precipitated and accumulated, and it is entering the fast train force.

The reform plan focuses on all aspects of channels, operations and marketing, and the core of the more important reform is "digital upgrading".

In terms of digital reform, the digital operation centered on consumers, especially young consumers, has become an important part of Kappa digital logic.

Digital thinking and improving operational efficiency are also a trend in the retail industry.

From the digitization of members, commodities, stores and shopping guides, we can see the consumption behavior of target consumers, and then analyze the trend of the trend market.

Through the digital operation mode, Kappa hopes to make the operation system more pparent, enhance efficiency, and continuously develop and deepen synergy.

At the same time, response and flexibility at any time can also respond to changes in consumer demand in real time, which is conducive to the rapid adjustment and implementation of all aspects of operation.

The core of Kappa digital upgrading is "quasi direct battalion".

The so-called "direct battalion" refers to the cancellation of the traditional "order meeting" form by Kappa. The inventory pressure will be borne by the brand, and the distributor will only be responsible for the operation cost of the terminal.

Through the establishment of cloud storage in the major regions, the inventory management of goods in the region should be managed and managed, and the stores in the region should be linked up in series to achieve a batch of goods satisfying multiple stores under the line, so as to achieve the goal of "quasi direct operation".

Kappa gradually reduces the response time of supply chain from product production to terminal through the "direct battalion", so as to better adjust the product structure against the market reaction and ensure that consumers' needs are on the right track in real time.

The industry has a view that inventory is the "root of all evil" in the retail industry.

The birth of "direct battalion", Kappa not only reduces the probability of backlog, reduces the cost of brand and dealer, but also has stronger control and market reaction speed for its own products, so as to achieve mutual benefit and win win.

After such a series of upgrading, Kappa has changed dramatically in 2018.

Its financial report shows the determination of China's trend. From the 3 quarter of 2018, the retail channel is better than expected performance. These adjustments and reforms have been effective.

Kappa also said that since the goal of clear reform, after a long period of adjustment, the brand is excellent and excellent, and at the same time constantly looking for new partners, developing new customers, so that business can be carried out in a round.

In October 2018, this round of customer reform and channel reform of Kappa has been completed, and the three year reform plan has officially entered the second stage.

It is reported that this year, Kappa will continue to cooperate with new channels in the operation of commodities.

After the completion of customer development, Kappa must also undertake the flow of commodities because the brand already controls all products.

All cargo reform is the biggest task of the Kappa team this year. For this reason, the brand has invested a lot of manpower, hoping to achieve results as soon as possible.

The number of people who get the number gets the world. This Kappa digital upgrade is particularly important for the young people who are the core target consumers.

Zhang Zhiyong also said that the core of the Kappa digital operation mode lies in the consumption analysis, rapid response, and channel expansion and optimization of young consumer groups. They hope to achieve the upgrading of the business model of young people's fashion.

In fact, both the younger strategy, the full channel strategy and digital upgrading, and the upgrading and upgrading of the concept store are all aimed at attracting young consumers who are becoming more and more popular nowadays.

In the explosive growth of Chao card consumption, Kappa has seized the tide of this era in the "three years of reform".

At the INNERSECT trend exhibition in late 2018, Kappa made its debut with Kurashi Kazuki's KAPPA x A.FOUR LABS x SHAUNAT. (P.A.M.) FW 18 heavy joint products, which is full of sincerity.

In the future, Kappa hopes to use a more vivid and close form to truly understand consumers' demands and make Kappa a brand that represents the lifestyle and values of young people, so that brands and products can truly be loved by core consumers.

In Zhang Zhiyong's view, Kappa's niche advantages can help them smooth through the three years of change. Their expectation is that this year will be effective, and next year they will enter the real stage of development.

In his view, cross-border is no longer a novelty, and the full implementation of its strategy and brand advantage will be the way for Kappa to find a draught and seek breakthroughs.

"Kappa should be the leader and pioneer of the trend. We should use our individuality, publicity spirit and tonality to attract generations of young people."

Facing the challenges of the future, Zhang Zhiyong appears confident.

Indeed, in the face of China's booming trend, Kappa used its own brand of flu to advance the layout and reform. In the face of specific consumer circles, it tried to tell its own brand story and attract young people with the trend culture. From the perspective of the increasingly changing brand image of the earnings report, Kappa has delivered a satisfactory mid term pcript in the three years of reform campaign.

In this era of fashion, the big brands are competing against each other, aiming at young consumer groups, hoping to tell a brand new brand story.

In this new battlefield, Kappa has taken the lead in the industry card position, driving a fast track of reform and development, and hundreds of millions of young people in the market and hundreds of millions of them will be the potential for their embrace of the new wave of the new era.

More interesting reports, please pay attention to the world clothing shoes and hats net.