PEAK's Way To Expand The US Market

The road of internationalization started in 2005. At this time, most Chinese sports enterprises in the Jinjiang department were not famous.

PEAK development

The path began with cooperation with NBA. In 2005, PEAK began sponsoring Houston rockets and TOYOTA center, then signed Battier and rockets, and took NBA's China strategic partner in one fell swoop.

So far, PEAK has signed 18 players and 3 NBA teams.

But at that time, PEAK did not set up a branch in the United States.

Since then, the process of PEAK's listing in Hongkong was affected by the financial crisis. PEAK's US branch was not formally established until March 2010.

The fact proves that PEAK's understanding of the US market is better because of its earlier "Pathfinder", and the responsibilities and market pertinence of us branches are also more clear.

"The US branch has three functions," Su Jia, general manager of PEAK branch, told reporters.

1. Responsible for sales in the US and North America.

Two, set up R & D center to lay the foundation for R & D of the company.

Three, the service of signing players.

However, the US market is not the biggest overseas market for PEAK. The reason is obvious, because PEAK's products are more focused on basketball, while Nike occupies 90% of the US basketball market share, and the remaining 10% still have.

Reebok and other powers are struggling.

The United States is still a highly developed country in all walks of life.

This is quite different from the situation that China is full of emerging market opportunities, so it will have strong resistance to any foreign enterprise and brand.

But there is also competition in the Chinese market. In terms of China's market share and brand, PEAK's performance is not excellent. They also predict that fierce competition in the Chinese market will lead to a decline in profits and market space.

Therefore, for PEAK, expanding as early as possible and developing into foreign markets is a way to share risks.

At home, PEAK's biggest competitors are Lining, Anta and 361. Among these companies, the most successful and largest overseas strategy is Lining.

In fact, Lining's overseas strategy was earlier than that of PEAK, but because of Lining's own reasons, it has almost disappeared in the US market, which gave PEAK a good chance.

"Our goal is to develop the US market to drive the global market.

Because we judge that the effect of the global market driven by the US market is similar to that of the domestic market which starts Beijing and Shanghai to drive the whole domestic market, and the US's guiding and driving role in other countries and regions will be more obvious.

Said Su Jia.

Unlike most of the domestic sales from physical stores, although PEAK also has physical stores, network sales and franchisee channels are the mainstream of sales.

This is closely related to the development of the US network and the concentration of channels.

In China, competition is bound to be a price war. In the United States, however, this situation does not exist.

PEAK is pricing its products by referring to Nike and Adidas's products of the same quality and technology content, PEAK's price will be lower than 20%.

It is understood that the products sold by PEAK American branch are all from China. Although there are factors such as the backflow of American manufacturing industry, the rising cost of Chinese labor and the promotion of logistics costs, PEAK will not consider setting up factories in the United States.

"The main reason is that footwear processing is a labor-intensive industry, and the industry is very important. If only a factory is built alone, there is no guarantee that it will be matched."

Said Su Jia.

Although he has lived in the United States for several years, the biggest pressure of Su Jia comes from cultural differences.

In doing the same thing, the values of Americans and Chinese are totally different.

Su Jia has taken an image analogy. One question is that Chinese and American practices are completely different. For example, from 1 to 3, the Chinese will first sit there and figure out how to go from 1 to 3, while American habits of thinking must be 1, 2 and 3.

They believe that if we do not pass the 2 figure this time, we will have to make up for the return. By that time, the waste of time and labor costs will be greater.