Channel Change Is Imperative For PEAK.

Case

For a company like PEAK, in the current market environment, life is not easy.

Data show: PEAK's revenue in 2011 was 4 billion 650 million yuan, ranking seventh in the whole industry, and ranked fifth in local enterprises.

There were giants squeezing, followed by small and medium-sized brands.

For these two problems,

But told reporters that his response is to initiate changes in channels.

"Refinement" into keywords

According to Liu Xiang, deputy director of PEAK's public relations department, in 2012, PEAK will lower its growth forecast to below 20%, and the key word of channel change is "refinement".

Taking into account the channel turbulence caused by Lining's strategy of "big fish eating small fish".

The measures to increase the number of dealers are relatively mild.

By the end of 2010, PEAK had 45 distributors in the whole country, with an average of no more than 2 in each province.

By the end of 2011, it had increased to 50.

"Now, tight money, dealers lending difficulties, tight capital turnover, unable to expand the scale.

Therefore, we hope that in order for every distributor to do a thorough job in the area under control, we can only let the dealers with poor performance make some areas and allow new dealers to come in.

In addition to quantity, PEAK also considers changing the positioning of distributors.

"The distributors with strong financial support can open more direct outlets, reduce the entry of small and medium-sized franchisees, and thus pform themselves into retailers."

Xu Zhihua said that the first advantage of doing so is to reduce the intermediate links. In addition to reducing the value-added tax, PEAK can also make the company closer to the first-line market and react more quickly to the market changes.

"They are stronger than small franchisees and have the ability to expand their stores to better locations, and also enhance the efficiency of single store sales."

Even so, PEAK cautiously adjusted its 2012 sales forecast, which is expected to grow below 20%.

"We will not have extra positions this year. How much production will be produced will not be the same as the original. You decide 100, and I will produce 120 for you.

This will reduce the inventory pressure of dealers, and large-scale discount sales will damage the image after all.

Liu Xiang said.

Taking into account the channel turbulence caused by Lining's strategy of "big fish eating small fish", PEAK's measures to increase the number of dealers are relatively mild.

Continue to fight for sports resources

Faced with the aggressive expansion of small and medium-sized brands, Xu Zhihua said: "price war will not last long."

In the high quality store competition, besides price,

And sales volume is also an important bargaining chip.

"The brand is good, the sales volume is big, has the cognition in the market, the dealer in the striving for the storefront negotiations certainly is a powerful side, spends less.

And small businesses can not rely on brands, they can only rely on spending money.

Liu Xiang said, good brand - good channel resources - sales growth fast - continue to enhance the brand, is a virtuous circle.

"Our strategy is to enhance the brand, increase international input and publicity, enhance the appeal, so that it is easier for dealers to do things."

All along, in front of the sporting goods enterprises in Jinjiang, the problem is how to enhance the taste and quality of the brand.

The brand of the Jinjiang Department started from the two or three line city, and the difficulty of developing the brand to the high end was very large. The entrepreneurs of Jinjiang enterprises mostly came from "grass roots" and did not have much resources in sports circles.

Seeing that the price of domestic sports resources is getting higher and higher, Xu Zhihua is in a depressed mood.

At that time, the European All-Star basketball match was held in Cyprus. PEAK had a good relationship with the European Association of blue in Cyprus. It paid $5000 worth of equipment and PEAK became an all star basketball sponsor.

He found that high-quality resources are not only available in China.

After thinking, Xu Zhihua first aimed at the US NBA, he had found an intermediary, and had been cheated a lot of money.

In 2006, PEAK successfully signed Sean Battier, and became the official partner of NBA in 2007. The brand has stable resources.

In 2011, on the basis of lowering sales expectations, PEAK did not reduce investment in brand and sports resources. In NBA, the number of contract stars has reached 16.

In the same year, PEAK officially upgraded to a global partner from the FIBA's Asia Pacific partners.

In 2012, PEAK became the 6 sponsor of the Olympic Games delegation, including New Zealand, Slovenia, Serbia, Iraq, Cyprus and so on.

With regard to these selective cooperation, Xu Zhihua said that they did not ask for too much price, which was much easier than sponsoring the Chinese delegation.

In these countries, PEAK has local dealers, apparently sponsoring the delegations of these countries, in order to promote the purpose of local sales.