Why Did XTEP Change LOW?

According to the world clothing shoes and hats net, at the beginning of 2018, the people eating melon were busy.

The entertainment business has not yet been finished. "27 year old Ali programmers are dating.

The rejected news raised another upsurge of public opinion.

A Hangzhou guy and a blind girl met for dinner. When he returned home in the evening, the girl refused him on WeChat. The reason for his refusal was "27 years old wearing XTEP to date". This really made the boy feel confused and asked "what's wrong with the XTEP shoes?"

Ali official micro-blog subsequently confirmed that the rejected guy was a Alibaba R & D Engineer.

And XTEP micro-blog also "aggrieved" to launch micro-blog topic. I will wear XTEP. Will you refuse me?

Blind men wearing XTEP refused to expose the embarrassment of domestic sports brands.

XTEP, a brand called "non ordinary feeling" after 80's and 90's students, why did it enter "

Despise the chain "bottom", is labeled "LOW" image, affix "only students will wear" label?

Why did XTEP change LOW?

XTEP was founded in 2002 and listed on the main board of Hongkong stock exchange in 2008.

From a new brand to a listed company, XTEP only spent 6 years.

For the 80's and 90's, "XTEP, a non ordinary feeling" and Nicholas Tse, a popular star of the year, had gone all the way through the streets and alleys.

In July 2016, Nicholas Tse, who endorsed for 15 years for XTEP, invested 22 million 500 thousand Hong Kong dollars and became a shareholder of XTEP, becoming a shareholder of XTEP.

XTEP's 2017 semi annual report shows that as of June 30, 2017, XTEP has about 6500 stores nationwide, covering 31 provinces and autonomous regions.

But online business is increasing its influence on the brand.

Business already accounts for 20% of group revenue.

Although XTEP is often labeled "town youth" behind "LOW", according to XTEP official website data, there are still a large number of XTEP stores in the first tier cities of Beijing, Guangzhou and Shenzhen.

Among them, the number of 135 stores in Beijing far exceeds that of 72 of XTEP's strongholds in Quanzhou.

Moreover, Chaoyang District, which is often regarded as a large number of Chaozhou people, has the largest number of XTEP stores in 21, almost as many as 26 stores in Xiamen.

Haidian District, which owns "cosmos Wudaokou", also owns 16 XTEP stores.

Interestingly, although map software can still search for XTEP stores in Shanghai, XTEP stores have not found any store information in Shanghai.

It is worth mentioning that since 2015, XTEP, which started with entertainment stars, has announced that it wants to "return to professional sports from fashion movement". But in its vigorous development of e-commerce business, Tmall XTEP official flagship store has the highest sales volume of shoes. It is still a casual shoe which can not be called "professional". Its monthly sales volume reaches 4640, far exceeding 1120 of Nike's official flagship store.

If this is the data from 2007, it can be said that XTEP may recover in the Internet field, but at the moment when Internet traffic reaches the top, it can only be said that the future of XTEP will be more and more difficult.

Although XTEP still carries out the strategy of celebrity spokesperson, after Nicholas Tse, Nicholas Tse, Jolin, Willber Pan, Twins, Han Geng and then signed the "nine hundred million girls dream" Lin renewal and Dior China ambassador Zhao Liying.

But XTEP's semi annual report shows that XTEP's net profit has dropped to HK $310 million in the first half of 2017, which is nearly 40% lower than that of HK $508 million in early 2008.

Ups and downs of "Jinjiang system"

XTEP was born in Fujian, the most developed sport shoe industry in China.

In the 80s of last century, in the tide of reform and opening up, Fujian Province, which was adjacent to Taiwan, depended on its convenient geographical location and abundant and cheap labor resources to become the destination of Taiwan's shoemaking industry.

Jinjiang and Putian are the beneficiaries of this pfer of industry.

Putian has chosen another way out of "fake shoes" than Jinjiang, which calls out the world to wear shoes.

This population of only 2 million of the county-level cities, in the past 30 years of development time, nurtured many famous brands such as Anta (founder He Mu), 31st degree (founder Ding Jiantong), XTEP (founder Ding Shuibo), and del Hui (founder Ding Mingliang) and so on, and were jointly named "China Shoes Capital" by 4 institutions such as China leather and footwear industry research institute.

In 2005, Jinjiang brand Hongxing Erke was listed in Singapore. In 2007 and 2008, Anta and XTEP landed on the Hong Kong stock exchange. 2009 was successful in entering the NASDAQ. Subsequently, many well-known brands such as alligator, PEAK, 361 degree and so on gathered together to enter the capital market. Jinjiang shoe enterprises entered the peak period, and had more than 40 listed companies, and over 1/3 of the population lived around the shoemaking industry chain.

Before and after 2008, the prosperity of the capital market and the Beijing Olympic Games brought the unprecedented development prospect of sports commodities. All brands ignored the demand and opened a large number of shops in the prosperous areas and shopping centers throughout the country.

The blind expansion of the industry made the industry lament, "in 2011, the shoes made in Jinjiang had not been sold for ten years."

At the same time, the development of electronic commerce also makes the flow advantage of large shopping malls and shopping centers gradually faded away.

What is even more embarrassing is that international brands such as Nike, Adidas, Andemar and so on have also begun to seize the domestic market in a big way.

With the intensification of market competition, the serious homogenization of commodities and the low brand value of appeal, a large number of "Jinjiang Department" brands have gradually lost the favor of the market since 2012.

Coupled with the huge inventory brought by excessive vertical expansion in previous years, many Jinjiang shoe companies have to go bankrupt and liquidate.

Del Hui is one of the more typical cases.

Because of Jay Chou's "on the way", del Hui ranks from the unknown to the second-line brand of Jinjiang department.

In 2007, del Hui launched the Hong Kong stock listing plan, but suffered financial turmoil eventually.

Subsequently, del Hui submitted the IPO application to the SFC to seek listing on A shares.

After a long wait, del Hui submitted an application for suspension of IPO review in July 2014.

In the past 8 years, del Hui spent a lot of money on the way of listing, which made del Hui bear tremendous pressure, and finally suffered the impact of market changes. The company owed 636 million yuan, and its factories, land and warehouses were all mortgaged.

There is no coincidence.

In August 2017, the first Chinese fast moving consumer goods producer, Xi long, who was a member of NASDAQ, was also publicly declared a bankruptcy reorganization process by the Jinjiang court because of its debt problem.

As early as in 2014, the alligator, who was listed in Singapore, was also traced to the loss of the boss.

The once famous Jinjiang model began to be questioned.

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The survival of the fittest is the normal market, and the "Jinjiang Department" is being tuckled, and there is a big reason for it is "Shanzhai".

The contents of Shanzhai include not only design and color matching, but also trademarks and brand names.

Take Tmall XTEP official flagship store's highest selling sports shoes as an example, from the shape to the matching color is exactly the same as Adidas's Clover series "green tail" series, and XTEP's shoes also directly write the name of "green tail white shoes".

The name of the Jinjiang brand ADI king and the triangle LOGO are very similar to Adidas. When the hottest time, Adi Wang billboards even entered the NBA and Spanish League a league matches.

However, after 5 years of litigation involving Adidas, the Chinese trademark and LOGO of Adi Wang were finally pferred to Adidas without compensation.

Jordan sports, which was also born in Jinjiang, has gone through a long lawsuit of infringement because of the Chinese name of Michael Jordan, the legendary star of NBA.

Recover the "non general sense"?

Under the background of consumption upgrading, nowadays young consumers are more inclined to high value added international brand sports products.

Despite the fact that XTEP has pformed into a sports fashion brand dominated by running and fashion, many times sponsored events such as the Xiamen International Marathon, Chongqing International Marathon and so on. The spokesmen also added sprinter Xie Zhenye and former European Footballer Andre Schyevchyenko.

However, in terms of brand upgrading, it is not good enough. It is still a second-line brand in the eyes of consumers.

From the perspective of brand development, XTEP should focus on deepening the brand value.

Whether it is sponsoring marathon or signing sports stars, it is still expanding the running shoes and sports peripheral areas vertically.

Nike and Adidas are already making the brand breadth.

By launching joint sports shoes with tide cards and stars, Nike's Air Jordan series and Adidas's yeezy series are not only hard to find shoes, but also have become part of the players' investment products.

Meanwhile, Nike's nike+ mobile apps and wearable devices extend the brand from sports to music, technology and other fields.

From the perspective of brand upgrading, XTEP can learn the domestic sports brand "boss" Anta.

Anta was founded in 1994 and listed on the main board of Hongkong in 2007. Since 2013, Anta has surpassed Lining as the leader of the industry.

Up to now, Anta has a total market value of HK $103 billion 356 million (about 85 billion 40 million yuan), and Nike, ADI, Andemar joined the world's four largest sporting goods company.

In 2009, Anta acquired the trademark rights and franchises of Italy sports brand FILA from BELLE international, and developed a multi brand strategy.

At present, Anta owns more than 9000 own brands from its stores, and more than 800 FILA brand stores. Among them, FILA is mainly located in a second tier city while Anta stores are mostly in two or three tier cities.

Public information shows that as of the first half of 2017, FILA's revenue share has reached 20% of Anta group.

Also targeted by Anta, there will be PUMA that will soon be removed from the group.

Although PUMA did not show enough competitiveness after being taken over by Kai Yun group, as an old high-end sports brand, it still has great significance for Anta, which urgently needs to enrich its brand product line and upgrade its brand.

For XTEP, a homemade brand, PUMA is also a springboard for brand upgrading. XTEP can "cut off" Anta, and purchase PUMA is a good choice.

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