Kappa Plummeted About 3000000000! Now We Are Dying Away Step By Step.

Do you remember "back to back"?

For many young people nowadays, this is a strange brand.

But for many 80 or 90 years, kappa has been a memory that can not be erased in youth. It has led the trend of an era.

Because of its unique logo design, kappa is also known as "back to back" in China.

As the originator of Chinese sports fashion brands, kappa entered China and defeated many domestic brands such as Anta and Lining, becoming the first sports brand in China.

In 2010, kappa scored 4 billion 200 million of its sales success in China, nearly 4000 stores under the line, and was also named "the best company with the best growth prospects".

But according to the sales performance released by Kappa China in 2018, the kappa sales have dropped to 1 billion 170 million today, compared with the peak of 10 years ago, annual sales have dropped by about 3000000000.

The origin of the cause, once let Nike, ADI's fear of China's first sports brand kappa is now gradually "disappear".

One

Kappa was first born in Italy in 1916. It has always been a sports brand, and has sponsored some football teams in Serie A, but in general, its influence abroad is not large.

In 2002, kappa was introduced into the Chinese market as a trend sport brand.

As for the market at that time, Nike, ADI and so on were basically the traditional movement style, and kappa's sudden trend of movement and the distinctive features of logo and bright colors and bold colors were also attracted great attention and love from young people.

In 2005, Li Ning Co bought the ownership and permanent management rights of kappa brand in China, so kappa turned to become a local brand in China.

What really made kappa ignite the Chinese market is the 2008 Beijing Olympic Games.

In 2008, Beijing successfully hosted the Olympic Games. On this high tide of Olympic Games, kappa began to publicize its brand and create a miracle that can not be duplicated.

How powerful is kappa in its prime?

Dealers then circulated a phrase called "to earn money, sell kappa"!

Because only dealers can get 15% of profits. So how high is the market demand of kappa at that time?

Two

Kappa is so successful that it can not be separated from one person -- Chen Yihong!

Chen Yihong used to be the general manager and CEO of Lining, Beijing. It is the company's "two masters" and shares in the company are second only to the Lining family.

But in 2001, Li Ning Co made a structural reform.

Chen Yihong, who was reformed, needed to be directly responsible to the whole board of directors of Lining sports.

Therefore, Chen Yihong has been deeply concerned about the restructuring.

In 2002, Li Ning Co signed a contract with Italy KAPPA company (back to back brand) and established Beijing Trend Sports Development Co., Ltd. as the general agent of KAPPA in China.

Chen Yihong also saw the opportunity to get rid of the board again, so he handed out the Lining brand team and went to Beijing as chairman of the Sports Development Co., Ltd.

But the price is Chen Yihong must give up all Li Ning Co stake.

The bold Chen Yihong decided to go all the way.

In 2005, Chen Yihong withdrew from Lining's board of directors and invested in 80% of Beijing's trend, officially divorced from Li Ning Co.

After getting the right to run the company, Chen Yihong launched a crazy plan to go to Hong Kong stocks.

At the same time, Chen Yihong also encountered the biggest opportunity, that is, he could spend 300 million to buy kappa's permanent rights in mainland China and Macao, but the premise is to ensure that the company's net profit in one year will reach 180 million.

Chen Yihong did not hesitate to sign the gambling agreement.

But knowing that the net profit of the company was less than 40 million at the time, how could it achieve 5 times growth in one year?

But what's amazing is that Chen Yihong did it!

In 2006, Chen Yihong handed over a 306 million profit after tax, an increase of 705% over the same period.

In 2007, China's success was listed in Hong Kong stocks, and its market value reached 29 billion 870 million.

Therefore, Chen Yihong became the richest man in the Hurun clothing industry, and his body surpassed Lining 10 billion.

Three

Earlier, we said that the reason why kappa can seize the Olympic bonus and expand rapidly depends on kappa's strategy of light asset strategy, that is, giving products to agents to buy, so that agents can earn more money.

It is precisely because of the adoption of this agent mode that kappa can expand rapidly to 4000 stores online, but this mode also becomes the foreshadowing of the failure of kappa in the future.

After 2011, with the gradual disappearance of the Olympic bonus, the whole sports market began to decline significantly, and kappa failed to do anything about it.

In addition to the sharp decline in performance, its usual mode of agency has also become the biggest criticism.

In China, there is a popular saying, "trees fall and scatter!"

What is the agent looking at?

Of course, make money!

That's why dealers said they need to earn money and sell kappa.

But as the market goes down, agents are not profitable, and naturally they will quit.

At this time, it is useless to let the headquarters rearrange any strategy, because none of them is a direct store, and the agents are all running away. Who will carry out your strategic policy?

What if we don't listen to headquarters?

There is no way to lose money. Then dealers will come up with a bad trick - selling fake goods!

Therefore, since 2011, the kappa fake market has started to rampant, and quickly devoured the brand value of kappa.

Finally, the market is eaten up.

Kappa also gradually disappeared in everyone's vision!

Four

Speaking of which, let's look at another Chinese brand, Hai Lan's home.

For Hai Lan's home, all Chinese people are not strangers. "Once a year, two times the home of Hai Lan, every time there is a new harvest, the man's Wardrobe" has become a familiar advertisement.

But no one can imagine that this "man's Wardrobe" can create 19 billion revenue a year!

According to the 2018 report of Hai Lan's home, its total revenue amounted to 19 billion yuan, and nearly 6000 stores were opened in all parts of the country. We must know that McDonald's is only more than 2700 in China.

Even more incredible, like kappa, Hai Lan's stores are almost all used in the agency mode.

Not only that, not long ago, even the Internet gangster Ma Huateng took a fancy to this fat meat and hit 10 billion to invest in Hai Lan's home.

So the question arises: Why are kappa and Hai Lan's homes using proxy models, but the results are quite different?

There are only two reasons for this: details!

Let's take a look at what Hai Lan's home does.

Like the kappa, Hai Lan's home does not have its own designer, and all clothes are sought by suppliers.

But the details lie in the fact that there is no problem of backlog of goods at Hai Lan's home, because Hai Lan's home uses the "credit" mode, and the goods are sold to give suppliers money, which completely solves the problem of production cost and backlog.

In the agent mode, like kappa, Hai Lan's home also adopts the investment mode and adopts the full agent sales mode.

But the details lie in the fact that Hai Lan's home is closely related to management power, and agents only pay no money.

That is to say, if you want to open a Hai Lan home, you only need to pay 2 million of the agency fee, and everything else is not needed. Wait for the dividends to collect money. All the management will be managed by Hai Lan's home. Although you are an agent, it is not allowed to put a Fortune Cat in the store.

This is why Hai Lan's home uses agency mode, and the key factor of brand value is not discounted.

Not long ago, not only did Tencent take 2 billion 500 million of the home of Hai Lan, but also invested 10 billion of Heilan Home in Hai Lan's home.

Today, Hai Lan, a local brand, is using its strength to surpass the H&M, Zara and UNIQLO's fast selling clothing industry.

But kappa, who was once comparable to Nike and Adi, disappeared in a flash.

When we sigh that the world is changing too fast, we must say that the competition in the world is more intense.

This is why we often say "shopping malls are like battlefields".

This sentence is absolute truth no matter what era it is. In the competitive environment of the industry, there are only a few people who can reach the top to share the victory.

In this process, there is bound to be a large number of horses falling down and becoming the cornerstone of this industry.

There are people outside the world.

In this adversaries everywhere, even if you have been very successful, you still have enemies, that is, you yourself, a little careless, you will be defeated by yourself.

So it's not the last sentence. In the future, you and I are both children.

Only by mastering the most advanced knowledge at any time can we stand taller, see farther and keep ourselves in an invincible position at any time.