For $270 Million To Buy XTEP, Maybe It'S Not Just About Running Shoes.

Recently, according to a number of Korean media reports, sports brand XTEP is about to conclude an agreement with E-LandWorld, a Korean apparel retailer, to buy K-Swiss, the US sports brand of the group, at a price of 270 million US dollars.

Industry experts analysis, from the current point of view, the brand influence of guise Wei in the domestic market is relatively small, and there may be room for growth in the future.

XTEP has been committed to the market of running shoes. The acquisition of the comprehensive sports brand, gestapi, is intended to get involved in other sporting goods markets, so as to diversify risks and achieve stable profits.

Is it a potential stock?

It is reported that it is a listed company in Van Nath, California, USA, and it has been established for more than 40 years.

The company launched the world's first full leather tennis shoes K-Swiss "Classic" in 1966.

At present, its business involves running, fitness, triathlon, tennis and other comprehensive sports areas and casual wear.

Since 2008, he has suffered a long loss.

In the doldrums of performance, in January 2013, guise Wei announced that it had accepted the takeover of the clothing and love group, with a paction price of about $170 million.

According to the paction, the clothing and love group owns 100% of guise Wei.

But in recent years, the debt ratio of the clothing and love group has been rising year after year. In order to improve its financial structure, it began selling assets.

As early as 2017, the clothing and love group had sought to sell the gestapi on the basis of the company's structural adjustment, when the offer was about 200 billion won.

Until January this year, substantial progress was made in the sale plan.

Media reports said that the clothing and love group was negotiating with a Chinese company on the sale of Gestapo.

Now it seems that this Chinese enterprise is XTEP.

It is worth mentioning that within two years, the paction price has risen from 200 billion to 300 billion won.

As of press release, XTEP has not yet commented on this.

Experts from the China clothing association said that GE Wei is not well known in China at present, and its position is relatively vague. There may be room for growth in the future.

If XTEP takes over the brand, first of all, we need to combine the current situation of the domestic sporting goods market, make clear the brand positioning, and then adjust it in many ways.

It is foreseeable that XTEP's investment will not be small.

Multi brand strategy can diversify risks

It is understood that in addition to running shoes, it also manages sportswear and other items.

In Tmall's flagship store, the proportion of sportswear products is about 70%.

Compared with XTEP's previously running shoe brand, St. John's, he is more inclined to be in the field of comprehensive sports.

The above-mentioned experts believe that the purpose of XTEP's acquisition may be to diversify its brands so as to gain multiple profits and diversify brand risks.

There is no denying the fact that the competition in the running shoes market is becoming increasingly fierce.

Adidas, Nike and other international giants continue to introduce high-tech running shoes, while reducing the price of running shoes, which also allows consumers of three or four tier cities in China to have more choices.

Because of this, the domestic sports brand has gradually lost its price advantage.

And Arthur, new brun, MIZUNO and other professional shoes brand is constantly marathon and other professional events, so that more products directly to the target population.

The experts also said that the competition in the market for running shoes made XTEP realize that it is important to firmly position the main brand's running shoes, but the multi brand strategy pays more attention to the multiple benefits and risks scattered by multi brands.

If the business pressure of running shoes is aggravated, XTEP can also make profits from other brands.

CIC's relevant industry analysts believe that XTEP's profit from other brands is beyond reproach. "Of course, all of this is based on XTEP's ability to make it become second fie."

He said, "there are many lessons to be learned from the success of Fiat.

For example, the brand's product design is more fashionable, the flattening management of sales links, and the choice of suitable spokesmen for marketing promotion, all of which can provide some experience for XTEP. "

But he also said that in business practices, it seems that there is no way to "eat fresh all over the world". If we copy the model of Fei Le, I am afraid that consumers will not buy it. After all, the trend of sports fashion is changing too fast and what the next draught is. This is a test of XTEP's top managers' grasp of the trend.