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China'S Trend Will "Upgrade" Multi Brand Strategy To Expand Phenix Brand In China

2019/6/21 10:44:00 30

Kappa

China's plan to upgrade brand Strategy. In June 19th, China made clear for the first time in its report that it is actively expanding the business development of Phenix brand in China, and even overseas sales mainly based on European market. Phenix is China's international ski top brand, which was launched in 2008. It has been developing for some time in the Japanese market. In the eyes of the industry, this time, China is planning to introduce Phenix to China. On the one hand, China's "ice and snow" market is gradually emerging. On the other hand, because of the recovery of China's Kappa, new growth engines are needed. China expects Phenix to become a new growth point, which is not easy to achieve in the short term and full of challenges. At the same time, this multi brand strategy is not only the only way for China's trend, but also some choices.

"Deploy troops" to enter the Chinese market

In June 19th, Kappa parent company China released the 2018/2019 annual report. In addition to the disclosure of earnings data, China made clear for the first time in its report that it is actively expanding the business development of Phenix brand in China and overseas sales based on the European market. In the 2017 earnings report, Chen Yihong, chairman of China trend board, only mentioned that China's trend will also focus on ice and snow development opportunities and tap the white gold of the Winter Olympic Games.

At the same time, China's trend also outlined the outline of its development in the Chinese market for Phenix. China's trend said in the report that the group will use management's rich experience in sportswear industry and combine financial resources to seek and explore opportunities to operate more international brands in China and / or regional markets. Phenix China will continue to deploy in full channel development, member services and brand marketing, so as to prepare for the Beijing Winter Olympic Games and further enhance brand awareness.

In 2008, China moved to acquire Phenix brand. Previously, Phenix has been developing for some time in the Japanese market. In an interview last year, Sun Jianjun, President of Japan's Phenix company and general manager of China Phenix, talked about the development of Phenix in the global market: "in the last three years, the overall growth rate of Phenix brand in the Japanese market has been over 30%. In 2018, though the earthquake hit, the growth rate of the same brand was still over 20%. As far as outdoor sporting goods are concerned, Phenix market share continues to be the first in the Japanese ski apparel market segment. In the European market in Italy, Austria and Norway, Phenix has always been the top three in the high-end ski market. "

The outstanding performance of the "ice and snow market" abroad has made Phenix want to get a bigger slice of the Chinese market. "This is also an opportunity to see the rapid development of China's ice and snow industry and the Winter Olympics." China's trend is frankly stated in the announcement. In March 2019, the general office of the CPC Central Committee and the general office of the State Council issued the "opinions on vigorously developing ice and snow sports with the opportunity of the Winter Olympic Games in Beijing in 2022", pointing out that we should speed up the development of ice and snow fitness and leisure industry, promote the deep integration of ice and snow industry and related industries, and innovate the development of ice snow equipment manufacturing industry.

For China's "ice and snow cake", Sun Jianjun said last year that at present, Phenix has reached 22 stores and stores in China, and it is expected that by the end of 2018, it will expand to 40, with Phenix positioning and more high-end shops. For professional outdoor channels, leading customers and market access will be selected. For example, 5 most influential stores will appear in Sanfo outdoor stores this year.

In an interview with Beijing business daily, Sanfo outdoor said that Sanfo outdoors is a distributor of Phenix accurately. At present, 4 shops have been negotiated, 2 of which are skiing shops. The cooperation is mainly based on winter ski wear. It is expected that the Phenix products will be launched in the snow season this year.

It is reported that Phenix, as the international ski top brand, was founded in 1952. Phenix is characterized by its functionality and fashion Sexual integration, and has been advocating the "function + fashion" leading COMFORTSTYLING mode, through layering, not only can achieve the purpose of regulating body temperature, but also shows the Phenix brand's "comfort" and "fashion" combined with the modeling style.

China will vigorously expand the Phenix market in China. Spin Cheng Weixiong, general manager of clothing management expert and Shanghai Liang Qi Brand Management Co., Ltd., said that China's trend is actually to use the "Winter Olympics" opportunity to boost its performance, but it is too late now. This also reflects the main brand Kappa of China's trend from another dimension. Its development has not yet recovered to the level of the previous brilliant period. China's trend needs new impetus to stimulate growth.

Ups and downs run back

In addition to the trend of China, the introduction of Phenix into the Chinese market has attracted much attention. In the disclosed earnings report, the financial year of China's trend has been changed to March 31st in December 31st. Therefore, the 2018/2019 annual report of China's trend is the fifteen month financial report from March 31st January 1, 2018 -2019.

Data show that in the 15 months ended March 31, 2019, China's sales volume reached 2 billion 144 million yuan, an increase of 15.4% compared with the 15 month earnings figures in the same period last year, and the company's equity holders should make a profit of 866 million yuan, down 27.2% over the same period last year.

The announcement shows that during the period, China's trend gross margin declined from 60.1% to 58.9%, mainly due to the impact of one-off clearance of second-hand goods and the decrease in terminal retail discounts. The total cost of distribution and administrative expenses increased to 1 billion 337 million yuan, accounting for 62.4% of the total sales volume of the group. Net interest rate fell from 64% to 40.4%.

Looking back on the trend of China's development in recent years, its performance has experienced ups and downs. In 2007, China was listed on the market. Kappa, after having capital, has opened up a road of rapid development. In 2008, China's revenue rose 94.17% to 3 billion 322 million yuan, and the profit attributable to shareholders also increased by 86.45% to 1 billion 368 million yuan over the same period. In 2010, China's trend reached its peak, operating income reached 4 billion 262 million yuan, and the profit attributable to shareholders reached 1 billion 464 million yuan.

However, in 2011, the number of Kappa stores fell sharply from 4000 stores in 2010 to 1502 now, plus backlog of inventory backlogs, and channel business gradually withdrawing. Kappa's profits also shrank sharply. In one year alone, Kappa's revenue declined to 2 billion 742 million yuan, and the profit attributable to shareholders was only 102 million yuan.

As of March 31, 2019, the total number of group Kappa brands increased by 15 compared with the end of 2017, of which Kappa brand stores increased by 70, and Kappa children's stores decreased by 55. In the first quarter of 2019, the distribution network still covered all the major provincial capitals and other major cities and towns in China.

"Kappa"

For China's performance, Yang Dayun, a fashion industry investor and excellent Italian CEO, said that the performance of China's main business in recent years was indeed unsatisfactory. It was caused by many reasons: first, the peak growth period of the main pillar brand Kappa has passed; in addition, Kappa was the first brand in China to do "fashion movement", and in music, Popular After the cooperation, brand development has reached its peak, just as it is today's FILA. However, a brand with such a high popularity has a flaw - its life cycle is short. When consumers start not to accept their big LOGO, crash colors, etc. Trend Kappa is bound to face a significant decline in the market. This has also prompted China's trend to find new starting points to cater to the market.

In fact, Kappa also noticed the problem mentioned by Yang Da Yun. In recent years, China's trend has been promoting the spanformation of Kappa and recovering the related rights and interests of Kappa from Lining. In 2017, the trend of China decided to focus on brand development, focused on mining channels, and launched the development strategy of "brand + product" and "brand + retail". In mid 2018, when China released its performance report, it further pointed out that China's trend will be in three stages of brand operation in the second half of the year. The first thing we mentioned is "seize the right channel", followed by "vigorously reforming products, integrating into brand DNA", and third, "building long-term brand equity".

In this report, China's trend indicates that the launch of the franchise and direct operation mode in 2019 has also ensured the supply of products while promoting the net growth of the number of stores. In terms of brand promotion, we continue to implement the integrated marketing promotion strategy under the online and offline coverage, cross border cooperation with well-known designers and IP, and actively participate in the major international trend events to enhance brand image.

China also said that the group is committed to becoming the best multi brand sports apparel company in China. Kappa brand is the first brand of the group. With the strong position and network established by Kappa brand, it has laid a solid foundation for the promotion of the multi brand strategy of the group.

Cheng Weixiong suggested that although the trend of China has the development of capital to many brands, too much brand matrix will disperse the Chinese trend and revitalize the brilliant energy. Although Anta, Lining, XTEP and others all have many brand matrices, the premise is based on the steady development of the main brand. Today, Kappa has not yet been fully rejuvenated. It has cooperated with MIZUNO early and introduced Phenix to China. It has great challenges to China's trend of control and multi brand operation capability.

For the specific development plan of China's future development, the Beijing Commercial Daily reporter contacted China's trend for an interview, but as of press release, the other side did not reply.

However, in this announcement, the Chinese trend points out that the Kappa brand spirit will continue in the future, grasp the good opportunity of the sports industry, keep abreast of the latest market trend, make rational use of resources, upgrade and innovate the brand promotion and promotion channels, and create greater value. In addition, as a listed company, China will continue to use the global perspective to see the relationship between assets and capital, and seek the right time and leverage to better integrate capital and sports.

Source: Beijing Commercial Daily Author: Qian Yu Bai Yang

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