Why Did XTEP Do So Much Without Adding Children'S Clothing?

In the ranks of children dressed in sportswear, as a relatively old brand of sports, XTEP and Anta, Lining and 361 degrees together form the first tier of local sports brands, but in recent years, they have not had any major moves in the field of children's wear.

Marathon race

In recent years, XTEP has been doing a lot of action. Since 2015, XTEP has invested heavily in marketing to promote brand pformation. In the past 4 years, XTEP has sponsored 132 marathons and running events.

Data show that: in 2018, the consumption of China's marathon reached 17 billion 800 million, and the annual total consumption of events led to 28 billion 800 million, and the total annual industrial expenditure reached 74 billion 600 million, representing an increase of 7% over the previous year.

China's marathon industry is still growing significantly, and XTEP, a local brand, is accelerating its steady running business.

XTEP and 361 degrees are constantly being overweight in the marathon.

Overweight sports shoes, matching FILA

Recently, XTEP announced that the company's wholly-owned subsidiary Xtep Global Limited intends to receive E-land FootwearUSA from the South Korean E-land group for $260 million (about 17.5 billion yuan).

The target group has three main brands "K-Swiss" (Gai Shiwei), "Palladium" and "Supra" and two sub brands "PLDM" and "KR3W".

The paction is paid in cash and is expected to be completed in July 2019.

Korean clothes and love group has a famous children's clothing brand PAWIN PAW (Bao Yingbao).

At the same time, XTEP announced the acquisition, saying that FILA would be the target of K-Swiss, hoping to make K-Swiss a strategic new pivot for Anta.

When Anta bought FILA, FILA's position was exactly the same as that of K-Swiss: similarly, it had a heavy history of development, the same as foreign brands, and also experienced losses.

After being Anta's pocket, FILA successfully metamorphosis, which may give XTEP great imagination.

For XTEP, who has just made three years of pcript, it is also full of challenges for the future. At the same time, there are also challenges behind such a fall. Whether K-Swiss can succeed or not is unknown.

In 2016 and 2017, XTEP made a major reorganization of the children's Department, integrating the resources of XTEP children and XTEP adult departments, including operation management, brand promotion, new product development, material procurement and production, retail management system and retail network, in order to find new profit growth points.

However, in the 2017 annual report and the first half of 2018, XTEP children were still labeled with little contribution to overall performance.

XTEP has made such efforts, but not focusing on children's clothing.

When sports clothes are all overweight children's clothing, XTEP is still "unmoved". Why?

The way of children's clothing expansion of sports apparel "three giants"

Anta

As the leader of local sports brand, in 2008, Anta began to layout children's clothing market, and its children's brand "Anta children" was founded.

In 2008, Anta acquired BELLE's sports brand FILA and launched its FILAKIDS brand in 2015.

As of June 2017, there were about 2100 independent children's clothing stores in Anta.

361 degrees

361 degrees also launched the children's wear market in 2010 and operated by the independent business department.

Of course, children's clothing business has also brought positive feedback to 361 degrees in the overall performance improvement.

In the first half of 2018, sales of children's clothing at 361 degrees increased by 9.2%, and the proportion of total sales increased to 13.8%. Children's wear has become a major advantage of 361 degrees in the sports apparel industry.

Lining

In 2016, Lining brand redesigned the original children's clothing "Lining KIDS", set up an independent children's wear department, and launched a brand new "Lining YOUNG".

It was officially launched in January 1, 2018.

According to Lining's first half of 2018, the sales point of Lining increased by 168 at the end of last quarter. In the first half of 2018, the net sales increased by 458, while Lining's YOUNG increased by 458.

In contrast to Anta, Lining and 361 - three giants, XTEP children showed a cautious attitude when they landed on the children's clothing market in succession.

XTEP injured by children's clothing

In 2011, XTEP formally launched children's clothing; in 2012, Xiamen XTEP children's Articles Co., Ltd. was established.

According to the annual report released by XTEP, in 2013, XTEP sold XTEP children products in about 300 retail outlets.

Benefiting from the good development of children's clothing business, XTEP's income from other products increased by 114.9% in those days. In 2014, the sales point of XTEP children increased to 500; in 2015, the sales of children's clothing in XTEP expanded rapidly, and the total number of shops reached 600.

In 2016, the children's Department of XTEP encountered Waterloo, and a large scale of sales point was abolished, and 350 sales outlets were closed. This is also a reflection of the low performance and poor development of XTEP in the children's market.

At the same time, in 2017, XTEP began to put forward in the earnings report that XTEP's children's department made little contribution to the overall performance and would cautiously expand the children's department.

In the history of XTEP's children's clothing development, children's clothing business has not brought high profits to the company, or even lowered the overall performance of the company.

But there is still no closure of children's clothing business. It is obvious that XTEP is still optimistic about children's wear. It just lacks an opportunity and lacks the gene for developing children's clothing, so it is still groping for it.