Kappa Online Sales Rose 40% In The First Quarter, But Physical Retail Growth Was Stagnant.

In April 12th, the Kappa parent company released the first quarter operation in 2019. In the first quarter of 2019, the trend of China's Kappa brand store (excluding Kappa children's clothing business and Japanese business) increased year by year in the retail sales of the entire platform.

Among them, offline business is flat compared with the same period last year, and the electricity business has increased by 35% to 45%.

On the same store sales situation, the Chinese trend pointed out in the announcement that the Kappa brand stores (excluding Kappa children's clothing business and Japanese business) that had been put into operation at the beginning of the same quarter last year were calculated. In the first quarter of 2019, the same store sales of the whole platform decreased year by year.

Among them, the offline business has achieved a high single digit decline, and the electricity business has increased by 35% to 45%.

As of March 31, 2019, the number of Kappa brand shops in China was 1207 (excluding Kappa children's clothing business and Japanese business), compared with a year-end year-end increase of 27.

It is noteworthy that, for China's recent sports business in China, management pointed out that China's Kappa brand business is in pition. In the first quarter of 2019, thanks to continuous product improvement and effective marketing strategy, online business growth was obvious, and consumers continued to be younger.

Although the overall performance of the offline industry has not yet achieved its goal, the retail performance of shopping centers is obviously better than that of department stores from the channel level. Therefore, the group will continue to develop strategies in accordance with established channels to increase the proportion of retail outlets in shopping centers.

In addition, from the perspective of product category, shoe products have been out of the trough after a year of reform, which has increased by nearly 50% over the same period of the previous year.

As of the first quarter of 2019, customer adjustments related to the first step of channel reform have been completed. The self management system and the direct business customers account for over 90% of the total business of the company. Next, the group will actively promote the retail end system of the direct customers to connect with the company's ERP system, so as to provide accurate information for the next rapid mobilization of the products.

At the same time, the two new national logistics distribution centers will be completed in the next quarter, providing a guarantee for the rapid flow of products, and the full circulation of products will soon start.

In the future, we will focus more on product reform based on target consumers and inject key impetus to brand growth.