China's Running Shoes Become Net Red. PEAK's State Is Extremely Explosive.

What is the number of shoes made in China?

In the minds of many players, the answer is that there are no names on domestic shoes. At present, the biggest popularity of the second hand shoe trading platform in China is ten blocks. The most common keywords are "Yeezy", "Air Jordan", "Nike" and "Adidas". You can not find any Chinese brand.

But now, a domestic brand is trying to turn it over with technology.

At the end of December last year, PEAK launched a technology called "polar" mid sole (core part of running shoes) technology. The running shoes that were equipped with this technology not only sold well, but also aroused heated discussion in social media.

"Homemade shoes have been pressed by Adi Nike too much. It's hard to get a better technology this year. It's not just a Shanzhai." A 36 year old krypton player told the fans. The main sports shoes he bought were Adidas and Nike, but he was not satisfied with them. "The first point is that the vamp and the support are not enough to run, only when they are wearing casual shoes. The second point is that the design is a bit ugly." But at a competitive price and "softer and more elastic feet than Adidas boost", he still bought a pair.

What's more, Xu Zhihua, the PEAK CEO who has 2 million 810 thousand fans, seemed to value the fans' opinions very much on micro-blog. After seeing everyone's Tucao, he soon had a very plus version. You can hardly imagine that Adidas or Nike's CEO will be so soft.

In half a year, PEAK has launched eight running shoes in succession. In April, the 1 polar version of Tmall released 30 thousand in the 3 days. When the price of 1899 yuan YEEZY Boost 350V2 "Triple White" was launched on the Chinese market last year, the official website and Tmall flagship store sold 30 thousand pairs in 3 minutes, compared with PEAK's heat, which is still much worse, but this figure is enough to make PEAK's ambition big.

PEAK is definitely a dark horse, but how did this "accident" happen?

Black technology is competitiveness.

PEAK pulled out of the HKEx in November 2016 and has been developing at a low profile in recent years.

According to previous earnings reports, PEAK's operating income in the first half of 2016 was 1 billion 298 million yuan, while in the same year, the top three of the domestic sports brands were Anta 16 billion 692 million yuan, Lining 8 billion 15 million yuan and XTEP 5 billion 397 million yuan. By the end of last year, Anta's annual business income was 24 billion 100 million yuan, ranking the top of the Chinese sports brand. Lining, who was second, broke through the 10 billion mark. PEAK and industry leaders took the lead.

In the face of market competition, PEAK has been seeking transformation and focusing on technology. "Sports products can be divided into design driven, resource driven, technology driven and cost-effective drivers," Cai Weijian, head of PEAK innovation and technology products, said. The strength of drivers determines the amount of sales, and PEAK's focus is technology driven.

Technology is not a mere saying. It usually amounts to a huge amount of technology input. After setting up R & D centers in Losangeles, Beijing, Xiamen and Quanzhou, PEAK set up a new material innovation center in Xi'an in April this year, with the initial investment of 15 million yuan. According to the data, in 2017, the company invested 120 million yuan in technology research and development, and its cumulative growth in 5 years was over 71%.

According to the official, the research and development took 32 months. This is an adaptive technology bottom, which can realize adaptive vibration and resilience according to the different movement state of the wearer.

For sports shoes, midsole technology is as important as "heart". Foreign sports brands have their own technology, such as NIKE's React technology and Zoom technology, Adidas's Boost, Asics's Guidesole technology, and so on, have brought rapid development to their business. According to the statistics of StockX, a famous American shoe resale website, from 2017 to the end of 2018, all sports shoes sold on its platform, Boost technology running shoes accounted for 48.9% of the total sales. This technology also pushed Adidas's share of the American running shoes market from 2% in 2013 to 9% at the end of 2018.

Over the past few years, PEAK has mainly relied on low price to get the market. The crowd is the three or four line city 18-22 year old student party, or the middle-aged group over 35 years old, lacking the core consumer group of 22-35 years old.

PEAK's extreme listing is helping brands to become younger. PEAK CEO Xu Zhihua introduced, according to Tmall data, the top ten cities in the state of extreme sales are basically below the second tier cities, the first is Shanghai, the second is Beijing, third is Guangzhou, and the consumer group is 18-24 years old.

In addition to PEAK's extreme running shoes, PEAK has also developed several 3D print shoes. Although the price of 3D printed shoes with a price of 1399 yuan and a discount of 839 yuan is very few on Tmall, it is more like a brand behavior to convey PEAK's pursuit of technology.

　　 Online sales and marketing are more popular.

Although the innovation of products and technology is fundamental, PEAK is extremely popular and can not do without marketing assists.

The PEAK has very different marketing strategies and different ways: one is to abandon CCTV, such as traditional channels, choose the platform such as jitter, B station, micro-blog, Xiao Hong and other consumers, and two is to discard the past star spokesperson's route, choose the KOL and V with high trust and interact with consumers, even CEO Xu Zhihua herself.

Jitter, B station, micro-blog and other platforms have brought a good marketing effect to PEAK, and the number of viewing and comment volume of KOL is quite impressive. In the case of Z's shoes, the evaluation of B station is taken as an example. One of his assessment States has a PLUS of 15 minutes, with a video volume of 328 thousand and a 51 thousand commentary.

In addition to the B station, there are many up players who focus on PEAK, and there are a lot of videos on the shaking. At the same time, jitter can also take the goods directly, resulting in instant consumption transformation. Some consumers say that they only bought them in the comment area.

PEAK attaches great importance to this way of video marketing, which is co operating with people, and calls it "user co creation". The active crowd of platforms such as jitter, B station and micro-blog is exactly what PEAK wants to hit, and they are just those people who are willing to participate and express themselves. In fact, this is not a new way of playing. In the early years, millet emphasized the "user participation design", but there were not many practitioners in the field of domestic sports brand.

Another interesting marketing strategy is to print user reviews on the outside of the shoe box. PEAK will face these reviews and repeat products according to them. Officials say that PEAK 1.0PLUS is the result of constant upgrading. It has been adjusted and improved according to consumers' problems such as "not enough torsional resistance", "not enough soles" and "shoe socks are not good enough".

PEAK has also done a lot of joint marketing, and launched a joint venture with lazy bear sports, Ali tower, Korean fashion week and Tmall. On the one hand, this joint name is to get the other's customers, and it is also a borrowing and borrowing resource. The recent joint venture between UNIQLO and KAWS has proved its effectiveness again.

It is worth mentioning that the choice of sales channels is also a great help for PEAK's extreme sales. The deep cooperation with Tmall has brought a lot of advantages to PEAK, such as the support of Ali's IP resources, and the future PEAK will cooperate with ALI fish in the joint name of "black man 4".

It also took a lot of thought to make PEAK solid color on Tmall super single product. Xu Zhihua told 36 krypton that Tmall's super single product resources are not readily available to the brand. This premium advertising site is also very picky about commodities, depending on whether it really drives sales growth.

In the end of May, the 1.0plus sale was very natural. PEAK chose exclusive cooperation with millet and sold it in a crowd raising way. Xu Zhihua mentioned that this transformation platform, PEAK hopes to reach a strategic level cooperation with millet, this is just the beginning, PEAK is looking at the tonality of millet products, and wants to expand the customer group, attracting the group of millet customers.

However, from the data point of view, the sale price of millet is lower than that of Tmall, though dozens of blocks are lower than that of Tmall, but it has not created the hot sales on Tmall, which is closely related to the scale and location of the platform traffic. Shoes and clothing have long been the dominant category of Tmall, while millet products are still on the way to expand products and establish user awareness.

To some extent, the hot selling of PEAK is also borrowed from the trend of "national tide". In PEAK Tmall official flagship store comment area and fans' message area, we can find that an important attitude of consumers to buy PEAK is to support domestic products. After 95 or even 00, young people are no longer so enamored of international brands, and confidence in local brands is being rebuilt. PEAK has seized this opportunity.

But in terms of products and services, PEAK is far from being impeccable. Many consumers are commenting on the problem of late Tucao receiving, lack of good-looking design, wrinkle of sole, and insufficient rollover to prevent rollover. 36 krypton players interviewed also said that PEAK's midfield technology is really good, but there are also problems of vamp and lack of support.

PEAK's supply chain, capacity, design and technology need to be perfected. The transformation is not so easy. In order to truly rely on science and technology to gain a foothold, PEAK still has a long way to go.