361 Degrees, What Challenges Anta And Lining?

Zhenjiang village, Chen Di, Jinjiang, Fujian.

In the factory, young workers lined up at the side of the sports shoes production line, and their hands continued for a moment.

Every year, about about ten million pairs of sneakers are shipped from here to all parts of the country.

More than 80 kilometers away from here, the 31st degree headquarters building in Huli District, Xiamen, resembles an open book, and employees wear red work clothes to shuttle between the lattices. That is their robe for the double 11, which symbolizes red hot.

Here are competitors from the same Jinjiang faction - XTEP, PEAK,

The headquarters is only eight or nine kilometers away.

The predecessor of the 31st degree can be traced back to a manual workshop in 1983, producing only 5 pairs of shoes per day.

Over the past 30 years, it has experienced the awakening of brand awareness, the baptism of the capital market and the shuffling of the industry cycle, and finally entered the top three of China's sports brand.

Compared with Anta's big gamble leap,

The key word for growth is "steady".

Now, standing on the starting line of the new retail business, the 360 degree is betting on the overriding hope to overtake this bend.

A redemption of

The posture of an enterprise through crisis shows its true colors.

That's how it is.

After the 2008 Beijing Olympic Games, the sporting goods industry ushered in a golden age of vigorous development.

At that time, the mainstream manufacturers were wholesale sales, through market driven market demand, spawned huge consumer enthusiasm, production side thriving, sales terminal unimpeded, it seems that as long as the shop can make money.

But before and after 2011, this mode was not played, and a large number of products were unmarketable, which broke out the stock crisis.

At that time, Lining, the leader of the domestic sports brand, lost three consecutive years of losses from 2011. The executive led by Anta Ding Shizhong visited 500 prefecture level cities for two years, and the two digit growth rate was resumed in 2014.

It is also inevitable that landslides will encounter landslides.

From 2012 to 2013, its revenues and profits declined for two consecutive years.

The battalion fell to 3 billion 583 million in 2013, and net profit also dropped to 80%, the lowest 211 million in history.

The children's clothing business opened in 2009 has become a warm color in the cold winter.

Data show that the revenue of 360 children's clothing in 2012 has reached 370 million yuan, accounting for 7.5% of the total revenue. Although the volume is small, it has brought a valuable cash flow.

Unlike Anta and Lining's pformation from distribution mode to retail mode, 360 did not change wholesale sales mode, but decided to install ePOS (electronic sale point system) in thousands of retail terminals directly connected to the central server located in Xiamen headquarters, which can real-time monitor sales data for inventory management.

In order to help 31 exclusive dealers to alleviate the inventory crisis, the supply chain system was rebuilt at 31st level; on the one hand, the orders which had not yet been produced were cancelled, the products were cut down, and the distribution of high profit and best selling products was concentrated. On the other hand, wholesale discounts were also pferred from 58% to 65%, giving maximum profits and providing hundreds of thousands of dollars for the upper shelf allowance.

According to the world clothing and shoe net, in the middle of April 2014, orders for the 31st order winter order increased for the first time in two years.

With this as a symbol, we can get out of the crisis.

By 2017, it exceeded XTEP by 5 billion 158 million of its revenue and was among the top three of the Chinese sports brand after Anta and Lining.

In the first half of 2018, revenue reached 3 billion 17 million yuan, up 7.8% over the same period in 2017.

"Never make mistakes."

In 1983, a small village in Jinjiang, Fujian, farmer Ding Jiantong collected 2000 yuan, built a shoemaking workshop in her living room, and produced 5 pairs of shoes every day. This is the predecessor of the 31st degree and the pioneer of Jinjiang sports brand.

In 1990, Lining, the prince of gymnastics, founded the sports brand of the same name and won the sponsorship of the Chinese delegation of the Beijing Asian Games.

Jinjiang people suffer from the meager profits of OEM. Lining's success made them see the strength of the brand. Not long after, the brands such as "del Hui" and "Anta" appeared one after another. By the year 2000, hundreds of brands were born in Jinjiang.

Ding Jiantong registered the trademark of Buick in 1994 and was asked to change it in the same name as Buick.

By the end of 2003, Ding's great son-in-law, Ding Wu, renamed the brand "361 degrees".

Starting from this point, Ding Wu led the 31st degree to the modern enterprise road.

In just a few years, the system pformation has been completed at 31st, and it has been upgraded comprehensively in the aspects of logistics, capital flow, technology research and development, and industrial chain optimization.

At the same time, 360 degrees are running across the country in the speed of opening 3 stores a day.

In just three years, by March 2009, the number of stores under the line reached 5900, ranking the top five in China's sports brand.

In 2009, 360 degrees hit the listing bell at the HKEx and became the third Jinjiang shoe company to list in Hong Kong after Anta and XTEP.

After listing, Ding Wu, who was born in 1965, served as president of 31st degree, and promoted the construction of professional managers.

He has held many top management teams to study in Colleges and universities. I also studied at Guanghua School of Management, Peking University, and received a master's degree in business administration.

Now, all sectors of the board are implemented by general manager system, budget management and full authorization.

Ding Wu rarely interviewed. He was a self disciplined and serious leader.

For example, get up at 6 in the morning, go out for sports at 6:30, arrive at the company on time 9, and sleep at 11:30 o'clock in the evening.

This is also reflected in company management.

So far, all the links such as design, production, brand operation and so on have been seized in the 31st degree. In the past more than 10 years, 31 exclusive distributors have not been replaced.

When a reporter asked, did he make a big mistake?

"All teams make decisions together, refer to professional research data, and make decisions at last."

He said, "maybe a little slower, but never made mistakes."

Slow and slow

Zheng Mingqi, general manager of the 360 degree operation business center, admitted that in the electricity supplier, the 360 degree is relatively slow.

Like many clothing brands, for a long time, the electricity supplier is only a channel to clean up inventory.

In 2016, the company purchased the original company responsible for operating its e-commerce business, adjusted its distribution mode to self operation, took over the electricity business in person, and accounted for 7.7% of total revenue in 2017 and 10.9% in 2018.

But from the number of fans in the flagship Tmall flagship store, there are only 5 million fans in the 31st degree, no fans of Anta, tens of millions of fans of Lining, and 6 million fans of XTEP.

Zheng Mingqi said that 360 degree hopes to achieve "bend overtaking" through new retail sales.

In his view, there are about 30000000 members in the 31st degree, and the future competition is the precise operation of the online and offline members.

The number of stores under the 31st line has dropped from more than 8000 in the peak to more than 5600 now, and over 70% is located in three and below cities.

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In the first half of 2018, 31st degree cooperation with Tmall intelligent store project to achieve "payment as a member" soon spread to more than 3000 stores nationwide, and became the first business to break through millions of members of Tmall intelligent stores.

Zheng Mingqi believes that the line is alive and emotional, and "intelligent shopping guide" can strengthen the communication between the brand and users.

Nowadays, in order to recruit members, after a lot of shopping guides, they go to nearby schools and shopping malls and continue to work overtime.

Motivation comes from the promotion of income, which has gone through 3000 monthly and is now easily over 10000.

According to Zheng Mingqi, as early as in 2012, the 31st degree has cleared the interest mechanism under the online and offline businesses, and achieved online delivery and offline delivery.

At present, the proportion of stores under the 31st line is up to 50%.

Most of the direct brand stores are still puzzled by online and offline conflicts of interest, and they are also obstacles to new retail sales.

There are more than 5600 stores under the 31st line, all of which are dealers and retailers authorized by distributors.

"Which brand of new retail businesses in different industries is controlled by both online and offline?" Zheng Mingqi also manages the channel and e-commerce business under the 31st degree line, and knows the pros and cons of the two.

The store's own business, the sharing of goods across the channel, and the online and offline industry are also the key breakthroughs of Tmall's new retail business.

In 2018, Tmall invested tens of millions in 11, 331, and more than 2000 smart stores.

Zheng Mingqi revealed that the cost of terminal activities was relatively low, but more than half of the participating intelligent stores had achieved more than 50% growth. "This is rarely seen in the past 618 or double 11."

How to capture young consumers?

In December 26th, the 360 degree joint New York tidal brand Staple Design released the new M1 degree RO series, which was sold on Tmall at the same time, priced at 899 yuan, and was soon snapped up.

Staple Design has many fans in the NBA star. In 2005, it launched the joint venture "Dunk SB" with Nike, which is still the "shoe of God" in the shoe collection world.

Not long ago, PEAK also released a "state pole" series, known as "adaptive" properties that can be adjusted according to the state of motion.

In the 2018 Jakarta Asian Games' "dress door" incident, Sun Yang's personal endorsement of 360 degrees, and the Chinese delegation's official sponsor Anta's "secret war", is still fresh in memory.

Jinjiang shoe enterprises 30 years, OEM era sales volume, brand era advertising, expansion of the era of speed.

Now, who is the product that is unique enough to sponsor high level events?

Behind the high investment is the efforts to enhance the brand.

From the point of view of revenue, the Chinese sports brand seems to have set the whole picture: the frequent acquisition of Anta, the largest international brand, has exceeded 3 times the revenue of 360 degrees; the comeback of Lining is relying on the "national card" craze to move towards the billion gate; in 2017, XTEP has just surpassed XTEP in a weak revenue advantage and ranks among the top three of the Chinese sports brand.

However, the fact that "Hangzhou boys are rejected in XTEP shoes" is no doubt poking their common pain.

Anta's strategy is to buy, buy, buy and buy high-end sports brands such as FILA and DESCENTE. The parent company is also going to be trapped in its income. Lining concentrates on the promotion of the main brand image. In February 2017, Lining and Tmall cooperate to bring the series of traditional Chinese culture to the New York fashion week and become the "Chao" brand from China and become the Sneaker's favorite.

The choice of "360 degrees" is rather "curve saving the country".

It opened up an international line, first recognized by small batch products in mature European and American markets, and then moved to China.

Zheng Mingqi said: "from the perspective of product technology, we have little difference from international brands."

However, it is not only the technology but also the brand value added to consumers.

In 2014, we invited the former Taiwan Baocheng International Group "war" Lin Ping Huang to operate the international line business.

Baocheng group is the largest sports shoe manufacturer in the world. Nike and Adidas are their customers, which is equivalent to the "Foxconn" in the sports shoes industry. While Lin Ping Huang has the reputation of "the godfather of Taiwan sports shoes".

The 31st international line product shows the ambition to challenge the international brand. The R & D team led by Lin Binghuang aims at the first-line brand in appearance and function design, and the series of products launched are frequently selected in the international media evaluation list.

According to the 2018 China Daily, 360 international business contributed 1.5% to the group's revenue and is expected to turn into a profit in the short term.

In order to build brand spirit among young consumers, the company has gone all the way to enter the field of electronic competition.

In 2018, the QG Club of the mainland electric competition team reached the 31st degree level to develop a joint footwear suit.

Now, from the international line to the joint fund, the products that broke the previous impression have been launched on a small scale in the 31st Tmall flagship store, and the results are beginning to show.

But how to make consumers accept the high price is still a big challenge.

The brand promotion competition has already started, and competition is still fierce. Only the winner can win the next ten years.

More interesting reports, please pay attention to the world clothing shoes and hats net.