PEAK Chairman Xu Jingnan: Seize The International Opportunities And Achieve International Brands

< p > PEAK sports chairman Xu Jingnan is a middle Minnan man with a middle face and a face. He likes to drink tea while he is thinking. He wears a T-shirt made by his company. His regular sports are not the golf game popular among entrepreneurs nowadays, but his swimming, and his admiration for South Fujian's famous saying that "love is hard to win," and feels that business should account for a large proportion of life. If there is no reception arrangement, he will come to work on time every day.

< /p >

The office building and the factory area of the P PEAK building are also plain. They are not like the companies that are almost as famous as Nike and Adidas in the mainland.

If it weren't for the ubiquitous NBA stars, it would hardly be able to see much difference from the surrounding factories. On the first floor, there was a small Buddhist hall used by Mrs. Xu Jingnan to participate in Zen. It had Quanzhou characteristics and the religious culture prevailed.

Xu Jingnan's office is located in the top floor, divided into three rooms, in the middle is his own office, on the left is a set of fitness equipment and national customs display, the right teahouse is mainly used to entertain guests or as a small conference room.

< /p >

Less than P, 30 years ago, when he pulled a scooter and earned only 2 yuan a trip, he had longed to create his own business.

After accumulating the start-up capital, Xu Jingnan invested in more than 10 enterprises: steam truck, packaging plant, dragging < a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > factory, wooden box factory, machine brick factory, building material factory and so on.

In 1988, because of the withdrawal of Nike processing factory from Quanzhou, he recruited a group of people left behind by Nike factory and began to build their own sports brand.

< /p >

< p > Xu Jingnan never concealed that he was born in a scooter business. After creating his own brand, he never concealed his ambition to create an international brand in front of people.

He first put forward this vision in 1991, when his factory also called "Feng Deng" brand, just ready to rename the official sponsorship of the "August 1" men's basketball team, annual sales of only one million yuan.

In 2005, the internationally unknown PEAK signed its first contract with the NBA rockets. In 2007, it replaced Lining as the official market partner of NBA. Now, with the international first-line brands, they can compete for top player resources.

The course of his pioneering work is like PEAK's theme word "fighting spirit changes unknown".

< /p >

< p > now PEAK has become the third largest partner of Nike players and Adidas players in the NBA players. The number of contract players has reached 15 during the current contract period. It has also formed a strategic partnership with 4 teams such as Miami heat and Houston rockets.

It also cooperates with the FIBA, the international women's Tennis Federation (WTA) and the Stankovic cup intercontinental basketball tournament.

At present, it has opened 200 stores in more than 70 overseas countries and regions.

In the understanding of PEAK, the definition of internationalization should be from the comprehensive internationalization of brand, capital and market.

The Hsu family feels that the threshold of internationalization is not far behind, and can only be caught in the vicious competition of homogenization.

< /p >

< p > {page_break} < /p >

After P became the official partner of NBA in 2007, PEAK was on the fast track. In 2009, Hongkong's "a href=" http://sjfzxm.com/news/index_cj.asp "listed" /a "completed the strategic layout of internationalization, and the turnover increased from 3 billion 90 million in 2009 to 4 billion 650 million in 2011.

< /p >

< p > by the impact of the overall economic environment, China's sporting goods industry has been troubled by excessive inventory since last year, but Xu Jingnan and his son Xu Zhihua began to plan for the upcoming market recession trend: cash in the winter, enhance R & D, slow down capacity expansion and expand overseas markets.

< /p >

< p > for example, in order to prepare for more intense market competition in the future, PEAK's R & D design fees in 2011 increased to 1% of the total business volume of the year (0.5% in 2010).

In the 3 months from the end of 2011 to the beginning of this year, two flagship stores were opened in the United States. In the first half of 2012, the proportion of PEAK's overseas sales accounted for 12.2% of the total turnover (9.9% in 2011).

It is also the Chinese sports brand sponsoring the most national teams at this year's London Olympic Games. Its 7 national teams have won 19 medals.

< /p >

< p > then invited seven new NBA stars such as NBA new Miami champion Battier Shane Battier and Houston Rockets star Patrick Paterson (PatrickPatterson) to tour in China. In the summer of last summer, at least 6 sports brands joined hands with NBA signing star to open the China line, but this year, most of the activities in China except PEAK were reduced.

< /p >

< p > but PEAK still faced great challenges from the second half of last year to the first half of this year.

Performance growth slowed, compared with the whole year in 2010, the annual turnover increased by 9.4% to 4 billion 650 million yuan in 2011, and net profit fell 5.4% to 780 million yuan.

In the first half of 2012, turnover decreased by 28.5% to 1 billion 610 million yuan, and net profit also decreased by 43% to 240 million yuan.

But Xu Jingnan feels that PEAK has not been able to keep up with the trend now because of the impact of the economic environment, but PEAK's brand spirit and customer positioning are all right. At present, it needs to accumulate strength for the winter, continue to enhance the global brand, optimize the channels, enhance the R & D capability of new products and expand production capacity moderately.

< /p >

On the day of the P interview, he glanced at the PEAK sports stock price curve on the computer and laughed with a laugh. "Today our stock price has dropped to 1.3 yuan, and we have 1.11 yuan in cash on hand, and now the market rate is 0.58 times that of the book value. What is the capital market thinking?" < /p >

< p > but then he talked about his recent TV series "breaking through the East". He thought that people who do great things always have to go through many difficulties.

Xu Jingnan said frankly that the economic structural pformation he had experienced since the end of 2011 was the biggest challenge for the company so far compared to the three economic crises he had experienced.

< /p >

< p > he thinks this is different from the financial crisis in 1997.

The financial crisis of that time, PEAK's market demand is still strong, the need to focus on solving the problem of financial difficulties and channel pformation problems; and this winter's cash has been well stocked, channels and business models have been formed, need to solve the competition is intense, resulting in product surplus, poor economy and domestic demand at the same time, the two problems.

< /p >

< p > Xu Jingnan recalled that in 1997 PEAK was in a period of rapid growth of market demand, and the demand for capital was very large.

The sudden arrival of the financial crisis made PEAK passive.

At that time, in order to turn from the big shopping mall to the sales model of the exclusive stores, every adjustment of a regional branch agency would lose 2 million yuan in that year. At that time, the profit of PEAK was only about 5000000 yuan a year, so it could only be adjusted slowly. Until 2002, PEAK completed the comprehensive reform of the channel, which was two years longer than the three years expected.

< /p >

During this period, in order to support the overall situation, Xu Jingnan helped Xu Zhihua, who had just graduated from University, and Xu Zhihua, the youngest son who had not yet graduated from University, to help him in 2000.

Xu Zhihua started from the sales base in Beijing. It took 5 years to locate and recognize the market of China's sporting goods. When PEAK's annual sales volume reached 300 million yuan, in the winter, he still took delivery of goods in the streets and alleys of Beijing in a golden minibus, and built up the sales network of PEAK Beijing bit by bit.

< /p >

< p > is also the promotion of < a href= "http://sjfzxm.com/news/index_c.asp" > Xu Zhihua < /a >, which has made PEAK cooperate with NBA since 2005.

In 2004, PEAK sponsored the Uzbekistan, Greece and other national basketball teams to become the European basketball top league equipment sponsor, and worked with FIBA strategy.

When I wanted to sign a contract with the NBA rockets, Xu Zhihua couldn't find a reliable middleman, so he bought his own ticket to go to the local place to stay. Finally, he met the general manager of the Rockets by Battier, and gradually began to establish cooperation.

< /p >

< p > {page_break} < /p >

< p > in the first year, Xu Zhihua met seven or eight vice presidents of NBA, so that each of them could understand PEAK's product characteristics, PEAK's pursuit and dreams.

And for NBA to build its own professional custom design team from scratch, the very professional shoe sole soles die, a set of costs up to 30 thousand to 50 thousand dollars.

< /p >

"P" although NBA is an expensive game, but the final result is good, PEAK replaced Lining in 2007 to become the official partner of NBA China, so far, 15 NBA players have been wearing PEAK shoes.

The average price of the sneakers sold in PEAK stores in the US is about $80, which is close to the local price of Nike and Adidas.

< /p >

< p > gradually straighten out the track of PEAK's market internationalization, meanwhile, the marketing express is also speeding up accordingly.

PEAK did not choose to boost sales growth in the central Taiwan advertising bombardment like other peers. Instead, it signed a lot of top level players to seize more international sports resources, thereby enhancing the international reputation of the "made in China" brand, and finally turning the influence into thousands of PEAK terminal sales outlets.

< /p >

< p > for example, the annual NBA Star China trip has a great effect on the strengthening of a href= "http://sjfzxm.com/news/index_c.asp" > PEAK < /a > brand, when PEAK arranged the Xiangfan Railway Station in Hubei Province, directly pulling up the sales growth of 30%.

Shoes for NBA stars have also been sought after. For example, shoes named by Battier, PEAK has launched the 6 generation of products, with a single sales exceeding twenty thousand pairs, each product can generate tens of millions of yuan sales.

< /p >

< p > PEAK now has a team of 6 people who live with NBA teams all year round, looking for fresh faces and potential players.

It is no secret that PEAK hopes to find the next Yao Ming and Kobe.

In the past, PEAK could only pick some Nike players and Adi players who could not see them. Now they are competing with top players.

In the United States, PEAK has formed more than ten people's NBA project team. Its work is diverse: product design, communication with players, product supply and market development team.

They have established contacts with all the top players in the United States.

< /p >

< p > Xu Jingnan feels that the current economic adjustment will continue for a period of time. The decline in foreign trade has led to the lack of domestic demand, and the lessons learned in the 2008 will not be able to rescue the market again. For enterprises, it is necessary to store the cash flow that is better than the winter before dealing with the external environment crisis.

Secondly, there is still room for improvement in China's sporting goods market. However, the leaders of the industry have lost their way in pursuit of scale in the past few years. The price war, though having short-term results, has affected consumer confidence, and many people have turned to foreign brands.

It takes time to rebuild the consumer's confidence in terms of quality and brand.

< /p >

< p > {page_break} < /p >

< p > PEAK's priorities this year include channel optimization, overseas market development and further upgrading of brand names.

The most important aspect of channel is to maintain the gross profit margin of dealers by closing down small and inefficient stores. It is estimated that PEAK stores will be reduced from more than 7000 to 6500 at the end of this year.

In the overseas market, with the promotion of PEAK brand internationalization strategy, more and more consumers in countries and regions can use PEAK products.

It is estimated that this year's London Olympic Games has sponsored 7 small and medium-sized national teams to win 19 medals, and will also help PEAK deepen its overseas market.

< /p >

< p > Xu Jingnan feels that this year's year-on-year decline has become a trend, but it can make adjustments to PEAK's structure. He expects the decline to be controlled at around 20%.

Next year, we can stabilize the downward trend and realize the preparations for pformation in five years.

"In 5 years, PEAK trademark has been registered in 100 countries, and has been extended to 100 countries and regions, striving for international sales revenue to reach 10 billion yuan in 10 years."

At present, PEAK has more than 200 stores in more than 80 countries and regions around the world.

< /p >

< p > "brand is a kind of spirit in the final analysis."

Xu Jingnan felt that many of his peers had gone a long way, but in the process of expanding their scale, they forgot why they started. But since its establishment, PEAK has been relying on the spirit of "creating an international brand".

Having experienced the hard landing of the national economy in the early 90s, the financial turmoil of 1997, the financial tsunami of 2008 and even the long economic structural pformation, Xu Jingnan has been enthusiastic and thinking about how to make "PEAK" a truly international brand.

He never changed the direction of his efforts, even though the process was going on.

< /p >

< p > now Xu Jingnan is responsible for the strategic direction of the group and the coordination of the management team. The eldest son Xu Zhihua is responsible for the construction and marketing of the company as the CEO of the company. Xu Zhida, the youngest son, is responsible for product development and production distribution.

In 23 years, PEAK has achieved Trademark Internationalization, brand internationalization and capital internationalization.

Xu Jingnan hopes to use the next ten years to internationalize the market.

"If I can't make it in my lifetime, I hope I can make it happen next."

Xu Jingnan said, "even if we fall on the road of internationalization, we will never regret it."

< /p >