Keeping Up With Anta XTEP Can Play A Big Basketball Market?

Less than half a month, XTEP moves frequently and hits the basketball market in a high-profile way. In August 9th, XTEP signed Jeremy Lin, announced the march into the basketball field, and released the "basketball Product Co creation plan". In August 18th, XTEP held a 6 day Chinese trip for Jeremy Lin. In August 20th, the Jeremy Lin fans set the box for the first time. It needs to be pointed out that not long ago, Anta had a good performance report from the basketball department. In the view of the industry, XTEP's move also followed Anta's meaning, hoping to find a new business fulcrum by basketball. In fact, this is not XTEP's first "eyed" Anta: in May of this year, XTEP made a stand when it bought K-Swiss, hoping to build a new strategic fulcrum of K-Swiss, a professional tennis high-end brand, FILA. Some analysts say that although basketball market has some imagination, competition is also fierce. Under the encroachment of sports giants at home and abroad, it is not easy to play basketball market. At the same time, after the marathon heat broke out, the Anta model has been constantly replicated. For XTEP, who has a significant difference in body size, it may not be a military strategy.

Incoming basketball

In August 9th, XTEP held a press conference in Guangzhou to announce the signing of NBA Asian basketball player Jeremy Lin Jeremy Lin, which marks XTEP's entry into the basketball field. It is reported that the two sides signed a contract for three years, with an average annual endorsement fee of up to $2 million 500 thousand, or about 52 million 933 thousand and 500 yuan.

For this cooperation with Jeremy Lin, chairman and CEO Ding Shuibo of the board of directors of XTEP group, said: "self-confidence, persistence, conviction, dream, firmly believe in the dream of the heart, firmly underfoot the road, never give up and go upstream, this is the correspondence between Jeremy Lin and XTEP at the spiritual level, and also one of the important reasons for promoting cooperation." After that, XTEP will continue to create a very personal color XTEP Yun Yun 4 exclusive color for Jeremy Lin, and released the first generation of personal signature shoes in 2020.

Since August 18th, XTEP has also held a 6 day trip to Jeremy Lin for Beijing. In both Xiamen and the mainland, China has participated in the creation of sneakers together with fans. In addition, XTEP opened the Tmall fans day Beijing Railway Station in August 20th, while fans in Xiamen could go to XTEP XTEP's designated store in Xiamen to buy a series of basketball shoes or spend 599 yuan to get tickets for the Jeremy Lin fans meeting.

It is noteworthy that XTEP, who first entered the basketball market, also released the "basketball Product Co creation plan" on the same day, hoping to maintain close interaction with consumers and create a basketball product that truly meets the needs of consumers in the form of product co creation. At the same time, XTEP hopes to cooperate with professional basketball players to better polish the professional performance of products, combine professional with the masses to consolidate the foundation of product co creation.

In the textile and clothing management experts, Shanghai Liang habitat Brand Management Co., Ltd. General Manager Cheng Weixiong looks: "basketball category in the proportion of Anta and Lining business proportion is not small, Anta XTEP signed Lining, Jeremy Lin is bound to hope that with the help of basketball star traffic import basketball category sales increase. Basketball is relatively popular in the domestic market. As a comprehensive sports brand, it is necessary to face the basketball scene market. Especially, Anta also gains a lot in basketball category.

On the "basketball Product Co creation plan" more detailed content, Beijing Business Daily reporter contacted XTEP to interview, but as of press time, the other side did not reply.

Follow suit repeatedly

Founded in 2002, XTEP was known to consumers in the early days with "non general feeling" advertisements. The XTEP entered the basketball field, and also hoped that with the help of "Lin Craziness", Jeremy Lin would achieve "extraordinary excellence".

Insiders said that XTEP's move is quite different from Anta's efforts to develop basketball. Recalling the development of Anta in recent years, since last year launched the internal structural adjustment, at present, the basketball department has led the basketball, comprehensive training, running, sports and life four independent business units.

Data show that in 2018, Anta launched the NASA theme series basketball products jointly with the United States Department of space. In less than two hours, it had robbed 10000 pairs of basketball shoes with limited sales. In addition, Anta ranked first in the Chinese market with 4 million pairs of basketball shoes. This year, Anta KT is also expected to exceed 1 million pairs of sales of basketball shoes.

"In addition to the rapid development of Anta in the field of basketball and the international market, Nike, Adidas and others all have a symbolic development in a certain field." Yang Dayun, a fashion industry investor and excellent Italian CEO, pointed out that as a sports brand, XTEP has no representative products in the professional field to reflect professionalism, but Anta has done better in this respect. XTEP is also aware of this, so it has entered the basketball league to stimulate future growth.

Coincidentally, this is not the first time XTEP has "emulated" Anta, Anta's FILA has helped to increase its performance significantly. XTEP has also launched a "buy and sell" model.

Prior to this, Anta's acquisition of FILA helped its performance grow dramatically. After completing the acquisition of amamin sports this year, it jumped to the top three of the global sports brand. By the end of August 16th, Anta's market value was HK $158 billion 698 million and XTEP's market value was HK $13 billion 399 million. Although XTEP has become the top three of the domestic sports brand, its market value is less than Anta's 1/10. So after seeing Anta's growth path, XTEP also bought Saucony San Kang Ni, Merrell Mai Le, K-Swiss gestus, Palladium Paladin and Supra brand this year.

XTEP also said in a notice: "XTEP has always wanted to expand from a single Brand Company to a multi brand portfolio, and continue to explore and assess a number of potential M & A opportunities."

Relieve the state of Zhao by besieging the state of Wei

"Sports scene is also further shuffling, resources in further focus, for XTEP, no progress is to retreat, in addition to the strong pressure of international brands, local brands have Anta, Lining already has a considerable amount of big boss, the second stop, after the Fujian group two or three group army's sports brand catch up, XTEP in the old three lakes position risk unlimited." Cheng Weixiong said.

XTEP has also seen broad market prospects. Statistics show that basketball has become the first sport in China. Among the two typical groups of young people under 20 years old and 25-35 years old adults, the number of netizens who feed around the best basketball players is 52% and 40% respectively, ranking the first among all sports.

In addition to XTEP in the force basketball market, Nike, CONVERSE, Anta, and 360 degrees are all in the field of overweight basketball. Matthew Jung, vice president and general manager of CONVERSE Asia, recently said in an interview: "in basketball, CONVERSE used to be the first person. CONVERSE has helped promote the basketball culture in history. Of course, the importance of basketball to CONVERSE itself is not obvious. We can even say that basketball history itself is also the history of CONVERSE.

360 degrees also launched the reshaping brand strategy, hoping that through the deep ploughing of the basketball market, the main force of consumption will shift from the middle and low end market to a second tier city.

"Every brand has increased the basketball market, which means that the battle will become more intense. However, XTEP has mainly focused on marathon and running shoes. Basketball is a brand new field for XTEP, and it needs to be recognized and precipitated." Insiders said.

In Cheng Weixiong's view, XTEP has been working hard in the running market in recent years. XTEP's own growth and performance also benefited from the high popularity and reputation brought by the blowout of the local marathon. Before the change, XTEP's leisure sports style became the sports Brand Company of today's sports function appeal.

"In fact, running in the market segmentation is not only beneficial to XTEP, but also squeezing into many domestic and foreign brands in the running market. The competition situation is further aggravating. In addition to continuing to strengthen its weak advantage in the running market, XTEP must break through in other sports scene segmentation. It is also a strategy to protect the competitive edge of its own superior categories and save the country from the competition. Cheng Weixiong further pointed out.