How Much Money Has Been Earned? 8 Years Ago, The Value Of Sales Reached 4 Billion 200 Million. What Happened To Kappa?

In August 15th,

The parent company's China trend (03818, HK) released the 6 month interim results as of June 30, 2018, operating income of 772 million yuan, an increase of 14.4% compared with the same period last year. The net profit of shareholders belonging to the listed company was 481 million yuan, down 10.3% from the previous year.

You know, in 2010, Kappa's sales in China exceeded 4 billion yuan a year.

But now,

The opportunity to brush up on the Internet is often asked: why is nobody wearing Kappa now?

Sell more, but earn less.

Public information shows that China is an international sportswear brand enterprise, mainly engaged in brand development, design and sales of sports related clothing, footwear and accessories business in mainland China, Macao and overseas Japan, and investment activities in mainland China and overseas.

In August 15th, China announced its semi annual report in 2018. As mentioned above, the company's revenue growth is relatively large, but its net profit has declined to some extent.

In terms of segment performance, Kappa brand marketing is the main source of revenue for domestic divisions. The total sales volume in the first half of 2018 was 569 million yuan, an increase of 55 million yuan over the same period last year.

Japanese branch also has a certain degree of growth, mainly operating Phenix and Kappa brand. Semi annual report shows that Japanese branch sales volume is 123 million yuan, an increase of 15 million yuan compared with the previous year. The company believes that the increase in revenue is mainly due to product optimization and reduced returns.

However, the net profit of clothing sales in the domestic sector is 74 million 829 thousand yuan, while the Japanese apparel sales net profit is 18 million 994 thousand yuan.

In recent years, China has been adjusting its terminal retail outlets for its flagship brand Kappa.

The company said in its 2017 annual report that it will adhere to the "brand + retail" business philosophy and continue to optimize the retail network distribution, enhance the efficiency of the store, and examine the branch network and make adjustments through the brand led business model.

As of the end of 2017, China's total number of Kappa brand shops was 1487, a 76 decrease compared with the end of 2016, while the number of Kappa brands decreased to 1439 in the first half of 2018.

The independent critic of shoes and clothing, Ma Gang pair.

The reporter said:

"Brand recovery needs not only external force but also internal driving force of the company itself. Shoes and clothing brands need to invest for a long time to cultivate and establish emotional bonds with consumers."

Compared with the difficulty in clothing management, China's trend seems to be very satisfied with its investment performance.

The semi annual report showed that China's Trend Investment Division earned 490 million yuan of revenue (552 million yuan a year), of which 412 million yuan was derived from the fair value change of financial assets.

China's trend indicated that as of June 30, 2018, the company's investment net assets amounted to 9 billion 137 million yuan, an increase of 5.7% over the end of 2017.

The market value of Alibaba stock held by the company has increased further, and the ant ant suit of investment has announced the completion of the new round of financing, with a marked increase in valuation.

Review: 8 years ago, the peak of revenue reached 4 billion 200 million.

Everyone will not be strangers to this "back to back" logo.

Kappa, the Italy brand famous for its tidal current, was once the leader of the sports brand, and the equipment that countless people wanted to have.

In February 2002, Li Ning Co won the exclusive trademark rights of Kappa brand in mainland China and Macao, and invested in the establishment of Beijing Trend Sports Development Co., Ltd. (Beijing trend for the precursor of China).

Chen Yihong, who had worked in the Li Ning Co for more than 10 years, served as chairman of Beijing trend.

In 2005, Chen Yihong acquired a 80% stake in Li Ning Co in Beijing.

In 2009, the Kappa Taobao store opened. In November 11th of that year, the store's single day sales amounted to 4 million 30 thousand yuan, creating a single day sales record of Chinese sporting goods online sales.

In 2010, Kappa reached 3751 stores in China.

It also brought China's revenue to nearly $4 billion 200 million.

According to the analysis of lazy bear sports, in fact, Kappa is a brand with relatively high positioning and main character, but once consumers do low price promotion in order to occupy the market, consumers will not pay for individuality.

When the "back to back" T-shirt is full of streets, Kappa also loses its own advantages.

In addition, after several years in 2010, China

As a result of the overall weakness, Kappa has gone to the inevitable decline in vague positioning.

For a time, consumers thought it was "dirt to be dregs" and "Dad would wear it".

In addition, the daily economic news reporter noted that in 2012 and 2013, Kappa ended its cooperation with Baosheng international and BELLE international, leading to serious damage to its channels. About 800 stores were mastered before the two.

With the decline in sales, more dealers chose to abandon Kappa in the following days.

Brand premium has declined and channel control capability is weak. This is why we see fewer people wearing Kappa in recent years.