PEAK CEO: Helps The Next Yao Ming &Nbsp; To Enhance Chinese Basketball.

Beijing time August 2nd evening, 2011

Question: we have more activities in PEAK, there is a more obvious change, brand strategy has changed, international brands extend to the two or three tier cities, how to deal with it?

Xu Zhihua: for us, the important thing is to be good at ourselves and to make a solid foundation. We will continue to stick to our strategy and we will continue to play an important role in the international market.

Question: I also went to the market to see, in the past few years, there is a basketball theme store.

What do you think of this problem?

Xu Zhihua: we have opened to 50 stores, and the progress is not as fast as expected. The important reason is that our team is initially biased towards product understanding. We are readjusting the direction of the product and doing the internal work well.

Our original intention is to provide professional services to our consumers, because our integrated stores are difficult to provide consumers with deep services. We hope to achieve them through the theme store.

The theme store's style is more basketball and more professional.

Question: the two question is: first, whether to become bigger or to be specialized, PEAK has a lot of popularity in basketball. After that, it is still developing in football.

Xu Zhihua: it is an interactive process. There is no specific, no foundation, no big, no conversation. This is an interactive process. In the process, don't forget to do solid work.

For PEAK, our current strategy is internationalization strategy. Specifically, we can see how our specialization is understood. We are not shouting slogans. Our strategy is to hope that our products can be used routinely. Now all the matches are wearing PEAK products, breaking the voice that Chinese brands can not support. So many people choose PEAK to wear, the key is that they perform well, and our players are not injured because of our products.

The key problem of our specialization is the professional team and professional process support. We have built up the team through the efforts over the past few years. From design to technology, to production, production is the existing system. There are also some dedicated teams, including our players, who can compete with many big world brands.

But one thing is not enough. We can not find that we have not done enough. We are trying to do something about it. Now we are trying to do that. By training young players and stars, we are continuing to increase investment in this field. After Yao Ming, what is the Chinese basketball doing? We are doing a job. Sun Houfeng is also training in the United States. We do something like this. I hope that the efforts of PEAK in China can play a role in helping the domestic players and promote the promotion of Chinese basketball.

Question: Lining's question of pollution, is it true or false? It needs moral blood. What do you think of this problem?

Xu Zhihua: you can pay attention to our social responsibility report. This is not a requirement of any government department. It is only our own voluntariness. We hope that the public can supervise our enterprises and raise our level.

Environmental problems, you can pay attention to our reports. We have done many things. We need to demonstrate the environmental problems. Let me give a simple example. Our factory, of course, has industrial zones and living areas. Our industry is low energy consumption on the first aspect of water pollution. We also have domestic sewage. In order to improve the discharge standard of sewage, we have also invested hundreds of thousands of pformation.

We have made efforts in this regard through demonstration.

Of course, there are definitely some imperfections. I dare not say that we are perfect, but please believe that we are working hard and we are constantly improving.

We hope that through our efforts, through our improvement, we can bring benefits to the industry.

Question: what is the difference between internationalization now and the internationalization of PEAK before?

Xu Zhihua: our brand is divided into three steps. Our first step is brand internationalization. The effect of the internationalization of this brand, such as the United States, we have been working with Battier for 2006 years. Basically, we have not sold a pair of shoes. In the past few years, a pair of shoes has not been sold. Since last year, we have begun to enter the market. We have done a lot of work through the establishment of R & D companies and teams through the Hongkong capital market. Now we have started selling in the US. Of course, sales are just starting now. In the first store in the United States, we opened in October and we opened three stores in Losangeles.

To expand the scale, we hope that products, product development, logistics, manufacturing and marketing should be supported by corresponding systems.

From 06 years to now, we are doing this kind of thing, we can not see such a thing.

The second step is the internationalization of talent, sales structure and organization process.

The third step is the real sales stage. We are now in the stage of second steps to third stages of development.

Question: at the beginning of this year, many manufacturing enterprises had problems of rising costs. How much did our cost increase? Will they pass on to products?

Xu Zhihua: there is a certain increase in price and double-digit growth. You may be concerned about this information. The biggest reason is the increase in wages and raw materials, resulting in increased cost. Of course, this price increase is the whole industry.

For PEAK, it may be from the perspective of the whole industry, I do not think it is a bad thing, because these price increases speed up the industry's shuffling, so that the concentration of the industry is further strengthened, PEAK as a leading brand, I believe that in the process of concentration, we will share some benefits.

Question: I saw some specialty stores in Beijing, such as Anta sporting goods store. We have fewer categories. Will we conduct category development?

Xu Zhihua: in fact, we have a very complete category. There are three departments in basketball. We are not only basketball, but also tennis, football and running. But at the present stage, we concentrate on basketball and extend to running and football. The reason is that in the past, we did not have much resources. From the marketing point of view, we concentrated our strength.

After the listing, we have the ability, but we will not weaken the positioning of basketball. Basketball is always our gene. As to why there are so many varieties in Beijing, the reason is that Beijing started from the beginning, and we began to open in Paris and Beijing market. Before Beijing basically did not see our store, now we can see some shops, but the shops are not big enough, the location is small and partial, because we have just entered the city, the market, shopping malls are hard to give you a large area.

We will continue to increase investment in Beijing, but this will definitely require a process. There is no way to open a shop of 300 or 500 like some other places. It will be good to open a 30 or 50 square shop in Beijing shopping mall.

Q: what will happen to the company and industry in the first half of this year? What will happen in the second half of the year? Xu Zhihua: this year, influenced by macroeconomic policy, the uncertainties in the second half of this year are bigger. We are also watching.

After May and June, I tend to be conservative, but not pessimistic. Now I feel that macro policy is beginning to affect the consumption of entities.

The situation in the second half is not good enough to judge.

Question: I am a reporter for the twenty-first Century economic report. The annual marketing cost of PEAK is relatively high. NBA accounts for a larger proportion in our marketing expenses. If NBA stops, which part will we pass on to?

Xu Zhihua: our marketing expenses are only middle level, not high. In this part, the total cost of the sponsorship is 30% - 40%, and the NBA is suspended. As the main sponsor of NBA, we do not want them to stop. But we firmly believe that the NBA tournament will not end because of the suspension. Our attitude will continue to support. Although it may be turbulent, we will share this difficulty with him. We will continue to do well and go deep into it and build a platform for Chinese young players and NBA.

Lok Fu and Mcgee also showed prominence. Although we did not win the championship, we would not put the treasure on someone, and we should focus on some groups.

We believe that NBA can overcome this difficulty. Second, NBA's suspension does not mean that Chinese basketball lovers do not play basketball, do not watch basketball, of course, will cause a short time of concern, in fact, stop, everyone's attention is very high, finally will not really stop, no one knows.

Historical experience has lasted for more than two months, and no one has suffered losses. From our attitude as PEAK's main sponsor, we will continue to invest in basketball and keep PEAK and basketball in a deep and realistic way. We will not change our long-term strategy because of short-term events.

Of course, apart from working with NBA, we also have partners with FIBA and Asia. The world's top two basketball matches, PEAK hopes to further cooperate with them and become their TOP sponsors. We will not change strategies because of Yao Ming's retirement. Because we hope to promote basketball, we will invest more money to help the next Yao Ming. We will do more of this work. Maybe through our efforts, we can produce another Yao Ming, which is also the social responsibility of our enterprises.

Question: basketball theme shop, there is a direction of adjustment, the adjustment is in what areas to adjust, what kind of expectations do we want to achieve after adjustment?

Xu Zhihua: at the very beginning, the theme store is the basketball business department, and also has to pay attention to the business. They naturally build the product structure, special professional shop, its sales, the team that is just beginning to face, and also sell some leisure and fashion products. This positioning is different from our original intention. We have made adjustments. We are not only selling, but also the feeling of brand.

Originally, the business unit was independent accounting, and now it is not independent.

It is still an experimental stage.

Q: do we have a big increase in orders and a decrease in raw materials? Do we have any influence on our future performance? Xu Zhihua: our mode is to open orders, the price is six months ahead, and the price reflects the raw materials for half a year.

As the price goes up, our gross profit margin will increase.

Question: how big is the basketball theme store?

Xu Zhihua: first, business is an independent business. The second is to improve the brand's professional positioning from the perspective of brand perception.

At present, it is the experimental stage. At present, no index has been approved.

Especially in the direction of team and product, still groping.

At the very beginning, we did give the index. Once the index was given, the team was under pressure. Then we wanted to think about things in the East. I think we should try to find out the direction after that, and then we will lock in and give us what we should give.

Question: how can we publicize our official website? Xu Zhihua: we will increase the publicity of our official website, and we can not do anything by ourselves.

At present, e-commerce depends on price war. It is of no value to long-term brand development. Next, we will adjust our e-commerce strategy to become our marketing brand.

Question: does Sina micro-blog have pictures of you and your children? Will you develop children's wear? Xu Zhihua: there are no children's clothes that have children's own shops now.

Question: this press conference, I feel the two significant differences, not only the stars, and the introduction of stars, and social responsibility, independent construction, listing this year, two years listed in the past, what is the biggest change of PEAK?

Xu Zhihua: of course, the system is more standardized, and many things need to be carefully considered.

Second, I think, because of the listing, the funds we provide, but the pressure is also great.

When we were not listed, our competitors had no influence on us. Listing, the fluctuations of our competitors seemed to be our problem. It took a lot of time to explain, and we would spend more time on this.

Team building is becoming more and more important.

Host: our visit is over.