"State" Sales Break 1 Billion PEAK Revitalization Is Expected?

After years of hard work, PEAK has finally seen the opportunity to catch up with its rivals. In recent days, PEAK announced on the official WeChat public address that in December 5th, it was about to be the 1st anniversary day of technology release. PEAK CEO Xu Zhihua will broadcast live at PEAK Tmall's flagship store, announce the achievement and data of "state pole" 1st anniversary, and accept consumers' "Tucao".

In fact, in the past year, the "state pole" series has repeatedly refreshed the sales records of PEAK brand during the "6. 18" and "double 11" periods, and made PEAK further develop its target of ten billion "billion" in the past ten years. Although in the planning of PEAK, the "polar" series is expected to become the first big product to break through 1 billion yuan, but in the eyes of consumers, PEAK has not yet got rid of the impression of high performance price ratio. At the same time, at present, the proportion of the "state pole" series is too high in the total sales volume, and it has yet to find its own position in specialization, so it still takes a long way to go to become a new fulcrum for PEAK to revive the plan.

　　 Large single product strategy

With the idea of basketball and running as the core, PEAK officially released the first product in the end of 2018, using the technology of "state extreme", which is "polar 1", priced at 499 yuan.

What is "state extreme"? Public information shows that in 2016, PEAK began to try to apply adaptive material P4U to soles. This material is a polymer smart material: it can perceive environmental forces and make corresponding adjustments. It is soft in normal condition. Once subjected to severe impact, it will harden quickly and digest external force. After the disappearance of external force, the material will return to soft. PEAK hopes that Adidas will also become a disruptive technology in the field of sports shoes as Adidas launched the mid bottom shock mitigation technology that year, and more products will be launched based on this.

In the year after the release of "state pole", the "state pole" series also did not fail to meet expectations. Following the "6 / 18" year, China promoted the single day growth of 4300% over the same period, and PEAK set a record of 703% growth in Tmall's "double 11" year on year.

According to PEAK's previous forecast, in 2019, "polar" products will achieve 2 million double sales, with an annual output value of about 1 billion yuan, becoming the most popular product of the brand.

Cheng Weixiong, general manager of textile and clothing brand management and Shanghai Liang Qi Brand Management Co., Ltd., believes that the proportion of basketball and running products in PEAK business is not small. The listing of "state extreme" will also boost PEAK's sales volume and let PEAK gain a sigh of relief in its growth. Today, PEAK has transformed from a single sporting goods company to a sports industry group. However, it is still open to question whether the "extreme future" will be able to get much help in the development of PEAK.

On the "state of extreme" more detailed data and planning content, Beijing Business Daily reporter contacted PEAK responsible person for an interview, but as of press release, the other side did not reply.

　　 Platform test

According to the plan, the application of "state pole" technology will extend on the other product lines of the brand, and the technology platform of "state pole" is beginning to emerge.

Following the launch of the first pair of "pole" basketball shoes "Parke seven generation", PEAK took the same way as the "super 1" running shoes, and launched the advanced version of "state pole" basketball shoes. Statistics show that the sales of the top two basketball shoes, "Parke seven generation" and "flash", are only 12 million 123 thousand yuan and 6 million 998 thousand yuan respectively.

As an important part of the "basketball strategy", PEAK has once again become the exclusive equipment sponsor of the WCBA League. In the 2019-2020 season, PEAK customised and customized 61 kinds of sports equipment and accessories for the WCBA technology, with more than 25 thousand pieces. PEAK hopes to sponsor WCBA to narrow the distance from Chinese consumers and display PEAK's "polar" products to more basketball fans.

However, in Cheng Weixiong's view, PEAK sports shoes equipped with "state pole" adaptive technology, in addition to technological innovation, its close to the people price and high performance price ratio have also become an important factor for consumers to rush. "PEAK will" platform "platform, is undoubtedly inspired by Adidas boost technology, multi line product development, but this will also be tested by specialization. Cheng Weixiong said.

Reporters visited the market and found that at present, "state pole" series products have already formed a certain consumption group in running and basketball, but in other fields, because of lack of sufficient sports scenes and support from related propaganda, few people are interested.

It is noteworthy that, according to the data released by PEAK, after this year's "double 11" PEAK sales reached 110 million yuan, the "state pole" series of products has accounted for 80.47% of PEAK's overall sales. In the industry view, the overgeneralization of the "extreme" application will eventually become PEAK short board, without professional support, and the "extreme" application scenario will also shrink.

Cheng Weixiong said that at present, the application of Adidas boost technology accounts for only 50% of its total sales, while the "state pole" series has exceeded 80% of PEAK's total sales, which is enough to see PEAK's dependence on "state pole". This is undoubtedly a bet.

　　 Challenging the "three hundred goals"

For PEAK, the goal is far more than just a series of products sold for 1 billion yuan. According to the ten year "three hundred goals" put forward by PEAK in 2012, the brand was revitalization, that is, PEAK trademark was registered in 100 countries in ten years, PEAK products entered 100 countries and regions, and sales revenue reached 10 billion yuan. Today, PEAK's first two goals have been achieved, but the target of 10 billion yuan is still quite different.

In 2016, according to the last interim report before the delisting of PEAK shares, as of July 30, 2016, the company's revenue was 1 billion 298 million yuan, down 6% compared to the same period last year. Gross profit was 494 million yuan, down 5.6% compared to the same period last year; net profit attributable to shareholders was 169 million yuan, down 3.8% from the same period last year.

Now, after three years of delisting of Hong Kong stocks, PEAK's performance has not improved. For PEAK's recent performance and the "three hundred target" landing problem, Beijing Business Daily reporter interviewed PEAK responsible person, but as of press release, did not receive a reply.

An industry insider close to PEAK has revealed that PEAK's performance has not yet been reversed in the past three years. In 2018, it had less than 3 billion yuan in revenue and a distance from the billion target.

In addition, Beijing Business Daily reporter noted that although the "sports pole" series of sports shoes sales increased rapidly, but in the eyes of consumers PEAK has not yet got rid of the impression of high performance price ratio. In the big business platform, PEAK's "state pole" series of sports shoes are being promoted by sales. In "double 11", the final price of the "state" sports shoes priced at 469 yuan is only 299 yuan.

At the same time, under the main line of PEAK, consumers generally say that PEAK sports shoes have entered the 400 yuan range of the main market on the price tag, but the actual transaction price is often less than 300 yuan, which also reflects PEAK's lack of confidence in the brand.

It is reported that in order to enhance the brand, PEAK also launched a joint name, through deep tillage subdivision of the market, the main consumer from the low-end market to a second tier cities. "PEAK has mainly focused on the basketball market. Running and outdoors is still a new field for PEAK. It needs to know and experience some time." Insiders said.

With the help of "extreme state" technology, PEAK has achieved a certain brand and sales promotion. However, PEAK is still constrained by the lack of innovation in research and development. Apart from its advantages in the basketball market, it must break through in other sports scene segmentation. Cheng Weixiong believes that the "extreme state" allows PEAK to open up a diversified sports market. But in the face of new fields, PEAK brand has lost its original competitiveness. PEAK's challenge to 10 billion yuan target has certain challenges.