Feng Xiaokai: The Anchoring Effect Of 361 Degrees Has Not Played Any Role.

In March 15th, 31st degree released the 2018 performance report, with a revenue of 5 billion 187 million yuan during the period, representing an increase of 29 million 250 thousand yuan over the same period in 2017, with a growth rate of only 5.67%.

In the same period, Anta's revenue grew by 24 billion 100 million, 44.4%, and XTEP group's revenue increased by 6 billion 380 million yuan, an increase of 25%.

In 2017, the four major sports brands were still in the third place, and the gap between fourth and fourth was not big. This year, they were striding forward and the revenue was third RMB.

The author thinks that 31st degree is a strong anchor effect, but this effect has not played any role.

361 degrees walking on one leg, electricity supplier still losing money.

The 361 group owns 361 degree main brand, 361 degree children's wear and ONE WAY brand, aiming at the domestic mass market, children's sports and high-end outdoor sports market respectively.

In 2018, relying on the main brand 361 degrees, the proportion of revenue was as high as 82.7%.

The sales growth of children's wear business is 14.7%, and the contribution ratio of the group is 15.7%.

ONE WAY and other brands and other revenue accounted for less than 2%.

However, the development of the 361 degree brand of the main brand is not in line with the group's expectations. The increase in children's clothing is limited. The growth of children's wear is 14.7%, which is inconsistent with the development speed of the overall children's wear market.

Looking at Anta FILA in 2018, we know that revenue is more than 10 billion, and the growth rate is 80%. This is the main engine of Anta group's growth.

It depends on the main brand, but it doesn't work.

In addition, the performance of e-commerce is poor. Adidas's revenue growth in 2018 was mainly due to the electricity supplier channels. In 2018, direct sales revenue increased by 36%, reaching more than 2 billion euros, while the 360 degree e-commerce sector lost substantially this year.

The report shows that the Commission and other service charges to the electronic business platform are up to 120 million yuan, up 40% from 8590 last year.

The expenditure on other e-commerce increased from 48 million 200 thousand yuan last year to 57 million 800 thousand yuan.

Overseas businesses are famous for their lack of profits.

In order to enhance the main brand, 331 degrees began to increase investment in the international channels. Although the products of the international line enjoy a high reputation overseas, especially in Brazil and the United States, many of the awards for running shoes have been won internationally, but the international sales line of 331 degrees is in the worst hit area.

According to the 31st degree financial report, in 2018, the sales volume of overseas sales reached 93 million 300 thousand yuan, an increase of 4.5% over the same period in 2017.

At first glance, it is good, nearly one hundred million of sales, but 360 degrees in the United States, Brazil and Europe have 1131, 1446, 619 sales outlets respectively.

Not only that, but also in the Middle East, South America, Southeast Asia and other countries and regions with distributors.

More than 3000 stores, and distributors, so many channels, only contribute to group 93 million 300 thousand, no loss is unreasonable.

361. Last year's retail business was bad.

According to another set of data, footwear sales in 2018 were 2 billion 212 million and 22 million 600 thousand.

Clothing revenue 1 billion 999 million, 28 million 30 thousand.

Children's clothing sales 816 million, 12 million 20 thousand, the amount increased 14.7% over the same period last year, the number increased by 12.8%.

The unit price of footwear is about 100 yuan, and the total amount dropped by 4.1% over the same period last year, down 9.4% from the same period last year.

The clothing price is about 70 yuan, the amount increased by 0.6% over the same period last year, and the number dropped by 7% over the same period last year.

Excluding cost pricing and other factors, the brand usually only raises the tag price, which is rarely reduced. There is almost no change in the purchase discount of the franchised stores. Unless more than 50% of the customers increase the purchase level, the reduction of the purchase discount can affect the 4 points.

Therefore, we judged that even if the sports market was good last year, but the sales volume of self sale was more than that of last year, and the activities were more widely promoted, and the price was not high.

Is 361 degrees "middle class not buying, Millennial don't see"?

According to European information consulting firm, by the year 2020, China's middle class will reach 700 million under the strong driving force of the economy. According to the Boston consulting company, the consumption of young people is increasing at an average annual rate of 11% from 2016 to 2021.

By 2021, the consumption of the younger generation will account for 69% of the total consumption.

The new middle class, the young consumer group is the current trend, 31st time ago has publicly said: "20% of the middle class consumers account for 70% of the total retail sales. In the face of the new market situation, finding young people and middle class consumers will be the focus of brand development at 361 degrees."

This shows that there is a lack of strategy for "middle class" and "Youth".

"Anchoring effect"

Those who have read the book of "priceless" must know that the book has nothing to do with the price and cost. It is a psychological battle. I agree with it very much.

I am impressed by the anchoring effect mentioned in the book.

In short, anchoring is a point that can affect the price you know is high or low.

When it comes to price, it has always been a key indicator for retailers and consumers to think. When you go shopping to pick a product, you will not consciously cross the contrast, so the price should have a ratio.

360 degrees is definitely a single brand with anchoring basis.

For example, the sale of domestic shoes last year was 100 yuan, while the price of international shoes was over 100 dollars. Is the 361 degree domestic shoe expensive or cheaper?

Under normal circumstances, consumers with 360 degrees should think that 100 yuan is cheaper. After all, 361 degrees have set up anchor points, that is, international shoes will be sold to eight hundred or nine hundred.

But the actual situation is that domestic consumers think that 100 yuan is expensive, and 360 degrees can only rely on sales promotion for sale, so the "anchoring effect" has failed, or has not played a powerful role at all.

And Adidas is very successful, such as Adidas's annual joint name, especially the Yeezy series, the single price is more than 2000 yuan, the highest price has been broken $10000, I think this is to develop a high "anchor point" for consumers, so that consumers think that Adidas's other products are cost-effective.

How much revenue can Yeezy contribute to Adidas?

The answer is less than 1 billion 500 million dollars, and 1 billion 500 million dollars is the market valuation of Yeezy in 2018. The valuation must be higher than the actual sales.

And ADI's annual retail sales are $24 billion 800 million.

The use of high priced joint funds not only creates explosive funds, but also drives sales of mass market products to achieve growth.

summary

So, 360 degree is a brand with "anchor point". First, it focuses on the main brand, and the main brand has two pricing strategies: the international line and the domestic line.

The international line is priced high and the domestic line is priced low, but the domestic line only left a cheap impression on consumers, resulting in a decline in sales and sales in 2018.

We should pay attention to the 31st degree of the middle class in China, but the high quality international line has made great efforts abroad. It has become a heavy loss place, while the domestic market has lost the middle class market.

Fortunately, this problem has been discovered this year, but it is not clear how it will return.

In short, the 31st degree of anchorage effect has never played its role.

China garment circle: no permission to reprint without permission.