31St Degree Now Closes 2500 Shops! Why Has Left Behind?

I don't know when the handsome men and women around us are no longer chasing Anta and 361 degrees. The brand of sports shoes on their feet has changed one after another, but they never change the fanaticism of eight or nine years ago.

It is said that in sports shoes brand, there is an unwritten scorn chain, wearing Nike ADI, despising Lining, Anta, wearing Lining Anta, despising XTEP wearing 361 degrees...

Nowadays, it is not important to despise scorn. The important thing is that quality brands are ready to go on and on, but the slow brands are hard to catch up with.

After losing money for 3 consecutive years, Lining came to a national revolution. He hired high-end designers to design new models. After several fashion weeks in New York and Paris, he returned to the sight of people.

Anta has also stepped up its international line, buying foreign brands such as Felix and the original bird, and bringing fresh blood to Anta's design.

Looking back at 361 degrees, it was left behind.

From the above market value data, the current market value of 361 degrees is HK $2 billion 915 million, XTEP is equivalent to 4.2 361 degrees, Lining is equivalent to 14.5 361 degrees, Anta is 50.1 361 degrees, and 361 degree market value peak period near market value 16 billion 100 million HK dollars.

Share prices also sit on the slide, starting in October 2017, steadily declining.

August 1, 2019 interception of 361 degrees share price monthly K line

Worse than stock prices, what is even more frightening is that 361 degree shoes are not available, and there are more than 2500 outlets under the line.

Why did the former Jinjiang giant, one of the four giants of the domestic movement, fall so far?

01, heavy brand remodeling, but ignoring the needs of young users.

For most sports brand stores, inventory is always a difficult problem.

Most sports brands will choose a large number of promotions through the "factory store" direct selling method to reduce inventory. But in the eyes of consumers, this is undoubtedly smashing signboards.

361 degrees in dealing with inventory problems, also lack strategic vision, failed to keep pace with young people, resulting in inventory accumulation, performance decline.

Immediately after the second half of 2018, the brand remolding plan was launched. It smashed 14 stars and 500 million advertising fees in an attempt to reshape the brand image, trying to let 361 degrees bid farewell to the local flavor of the three or four line cities and throw them into the front line as soon as possible.

However, the 361 point money has not hit the right place. Until now, nearly 361 of the stores with more than 65% of the 361 degrees are located in cities below three lines. Only 8.9% of the users are located in the first tier cities.

The only thing that can be noted is the strength of 361 degrees in running shoes abroad.

In recent years, 361 degrees has won many international awards in the design of running shoes, and has won the good reputation of consumers. However, the growth of this small area has made a very limited contribution to the whole world. In 2018 alone, the overseas market accounted for only 1.8% of the total revenue.

However, after the recognition of foreign running shoes by users, it has not been magnified quickly. Only by designing to boost consumption, but ignoring the transformation of young users' real needs, expensive prices can only discourage more young people.

In contrast, why did Lining and Anta transform themselves into beautiful and comfortable users?

Lining's excellent money in New York and Paris was also built by Lining at a high price from designers invited internationally. However, the "walking show" also did not rise because of their popularity.

Anta is taking another road. I don't have a high-end brand, so I'll buy it. The acquisition of overseas brands, which makes up for the shortcomings of traditional brands, also gives Anta the right to speak in the high-end market.

02 super large electricity supplier traffic entrance, but was "super dump".

The second mistake of the 361 degree offense is another deviation from the online strategic adjustment.

As early as 2017, the overall development of Anta's electricity business was more than 60%. In recent years, Lining's online flagship "China Lining Fashion Week" business is increasing.

While the major brands are rushing to the electricity supplier, what are they doing 361 degrees?

He used the traffic entrance that he could promote his brand as a "super dump". After the inventory crisis, many retail stores with 361 degrees of storage and offline retail sales were sold online.

Originally thought that ingeniously solved the problem of inventory, but doing so is nothing more than blocking the online traffic entrance. Some young people who like online shopping, with the idea of 361 degrees, will be connected with the tail cargo with stereotypes. As time passes, users will not give a good reputation.

Then, when other brands were playing on the Internet, 361 degrees of urgency began to increase investment in the electronic business platform. In 2018, 361 degrees was only a commission to pay for the electronic business platform, up to 120 million yuan, and it also arranged more than 3000 "Tmall intelligent stores" with Tmall.

However, these measures also cool the hearts of customers again because of the suspected "brush list" and other misconduct. When waiting for 361 degrees to recover, the leader has left it far behind.

In the fast developing market economy, under the electricity supplier mode, slow action is undoubtedly the biggest mistake.

03, we should focus on big event marketing, but lose sight of it and stay away from the masses.

The electricity supplier bonus has not been able to keep up with it, trying to return to the national vision and get rid of the 361 degree of the local flavor temperament, and began to make a lot of efforts in marketing.

At the 2018 Asian Games in Jakarta, Sun Yang, the spokesman for 361 degree, did not follow the cooperation terms of Anta and the Chinese national team. He took the Anta sportswear on the stage to receive the award. Instead, he chose his own endorsement of 361 degrees, which caused great controversy in the industry.

Once the incident happened, 361 degrees went up. But behind the topic, it does not bring too much traffic and benefits to the brand, because now people's consumption has shifted from high cost performance to consumption upgrading.

Today, more than 80% of users want to buy a pair of shoes and a sportswear. The first factor is not whether the brand sponsors the Convention, but whether the brand's own product content has touched me.

For example, when we did retail sales before, it was what the brand sells and what users bought; now it is consumer oriented retail, what is the consumer's need and what brand design produces.

Therefore, even if we have been tracking major national competitions and trying to enhance the heat through the international media, we have never thought that this is a step away from a larger part of the consumer groups.

The fall of the brand may be just a while, but it is enough to reflect some strategic problems. How to capture the hearts of young people again and win back the status of the old sports factory need more thinking.

In the past two months, 361 degree has also been playing brand crossover, combined with traversing rocket TVC, released a 361 x CF joint product, presumably looking for new market breakthroughs in many ways.

Written in the end

No matter what brand or industry, the most fatal thing is to stay away from users and do not understand users. Only by focusing on consumers and making products that are beyond expectations can they make the brand bigger and stronger.

While thinking about brand development, we expect more domestic brands to take a firm step in the international market, create new consumption, stimulate the economy and lead the trend.