31St Degree Performance Falls Behind, But Still Needs To Tell A Good Brand Story.

The stock price is flicker and its performance is weak. Once the advertising brand "more than one love" and the well-known domestic sports brand 361 degrees seems to have entered the "cold winter". From the performance point of view, compared with Anta, Lining, XTEP, 361 degrees has been "left behind". The industry believes that the next 361 degrees also need to make breakthroughs in marketing and channels, and tell a good brand story.

361 degree growth sluggish

The reason why the 361 degree is widely concerned is that the stock price has been flashing. In November 14th, after the opening of the Hong Kong stock market, the stock price of 361 degrees dropped sharply, plunging 38.13% to HK $0.99 / share, a record low.

The previous day, 361 degrees had announced that KPMG CPA has resigned as a company auditor. The board of directors decided to appoint Dahua Ma Shi Yun certified public accountants Co., Ltd. as the new auditor of the company since November 13th of this year.

An insider, who declined to be named, told reporters that the flash of the stock price reflected some pessimism in the capital market.

In fact, the market panic is not without reason.

It is reported that 361 degrees early compared with Anta, Lining and XTEP, is one of the four major sports brands in China. However, from the earnings data, 361 degrees has seen signs of "falling behind". In the 2015-2018 year, the 361 - year revenue grew by 14.1%, 12.6%, 2.7%, and 0.6% respectively. In contrast, Anta, Lining and XTEP last year's revenues were HK $24 billion 100 million, HK $10 billion 511 million and HK $6 billion 383 million, up 44.4%, 18.5% and 25% respectively.

At the same time, 361 degree is also constantly closing shop. Last year, the number of main brand stores was 5539, but by the end of 2012, the number of stores was 8082. Obviously, the number of brand stores decreased by 2543 in six years.

As of November 22nd this year, the market value of 361 degrees was HK $2 billion 957 million, while the market capitalization of Anta, Lining and XTEP were HK $202 billion 96 million, HK $59 billion 273 million and HK $10 billion 376 million respectively.

Cheng Weixiong, general manager of textile and clothing brand management and Shanghai Liang Qi Brand Management Co., Ltd., said that Anta, Lining and XTEP stand out in the sports market, sports and leisure sports market, and their gross revenue and gross profit have increased significantly. In contrast, 361 degrees in the adult clothing market and children's wear market has no leading edge.

Can basketball market boost its performance by 361 degrees?

The 361 degree "left behind" performance is changing and remodeling the brand. In June 18th this year, 361 degrees officially released the brand remodeling plan on the occasion of the 10th anniversary listing. 361 degrees in the interim report, the company will be positioned in the "mass professional sports brand", and announced the launch of the "basketball into the community" project, in the next three years to achieve the layout of the 1000 basketball court goals.

In November 11th this year, 361 degrees officially announced the signing of Cranbek Maccan, a basketball player who played basketball in the Chinese Professional Basketball League, and took the position of 361 degree basketball spokesperson. It is worth mentioning that this is not only the 361 time signing the Chinese Professional Basketball League player for the first time, but it also means that 361 degree has taken the first step in the brand remodeling plan. 361, we hope that through the deep ploughing of the basketball market, we will shift the brand consumption main force from the middle and low end market to a second tier city.

In addition, on the 14-15 th of November this year, Ding Huihuang, chairman of the 361 degree group, increased their holdings of 361 degrees 528 thousand shares and 1 million shares at HK $1.3304 and HK $1.3326 respectively, with a total value of HK $2 million 35 thousand and 100. Some media believe that the increase of shares pass 361 degrees to stabilize the capital market, and continue to rebuild the brand's determination.

Liu Liang, a clothing industry expert, told the China Commercial Daily reporter that a clear positioning of 361 degrees is beneficial to the brand. However, judging from the current basketball market structure, international sports brands such as Nike, Adidas, Puma and so on are all trying to seize the basketball market of China. The domestic sports brands such as Anta, Lining and so on are also marching towards the high-end basketball market. Under such a background, 361 degrees apart from creating excellent products, they need to make breakthroughs in marketing and channels, tell good brand stories, and let more consumers discover the brand value of 361 degrees.