With IP Marketing, "Broken Circle", 31St Degree Tries To Return To The First Camp.

Recently, Chinese boxing player Xu Can fired 1562 punches, such as heavy rain, on the California boxing ring of the United States, not only successfully defending the world champion, but also winning the glory of the backers. Although Lining and XTEP, who had been on the market side by side, were lagging behind in terms of market value, obviously. However, this year, the 31st international line running shoes were popular in Europe and America.

Although the performance has been growing steadily, the domestic brands such as Anta, Lining and XTEP are facing fierce competition in the same city. How can we cope with the challenge and return to the first camp of the domestic brand in the track of the athletic shoes and clothing, which is a huge growth space?

Once the head enterprise

It was founded in 2003 and won the title of "China famous brand" soon. In 2006, it became a live partner of CCTV sports event for 2007-2008 years, and was also awarded "2005-2006 Forbes China potential enterprise 100".

With the spring breeze of Beijing Olympic Games, the sports brand enterprises in China welcomed the golden period of development in 2008 -2012. In the whole country, the 31st degree has increased its advertising investment and added stores, and its market value has exceeded 10 billion Hong Kong dollars.

By 2012, the whole industry of domestic sports apparel began to tighten up. Public information shows that only in the first half of 2012, the total inventory value of more than 40 listed clothing enterprises including Anta, Lining, 31st degree and XTEP's four brands was as high as 48 billion 300 million yuan. This year, the revenue of 31st degree has started to decline, and its annual revenue is about 4 billion 951 million yuan, down 11.10% from 2011.

In 2015, the industry began to pick up. The semi annual report showed that in the first half of 2019, the revenue of 31st degree was 3 billion 240 million yuan, an increase of 7.3% over the same period last year, and the profit of equity holders should be 367 million yuan, an increase of 9.7% compared with the same period last year. Earnings per share were 17.8 yuan, an increase of 9.9% over the same period last year, and the net interest rate rose to 11.3%. Related performance is obviously better than the same period last year.

But in November 14th, 31st degree due to the resignation of KPMG auditor on the previous day, the stock price crashed 38.13%. After more than half a month's repair, the company's share price has returned to its upward trajectory, indicating that the previous slump is just a magnification of market sentiment, and investors are optimistic about the company's prospects.

Guo Yuan Securities pointed out in the research report that the revenue growth of new products is not the most important in the initial stage. If it can reverse the consumer's impression of the brand, especially the young group, it will bring the function of drainage. At the same time, the transformation rate can be improved through marketing and other means, which will bring long-term brand image improvement and greater profit growth in the future.

Marketing broken circle with IP

How to attract young consumer groups and enhance the product premium capability is an important issue before us. To this end, we explored a path of IP joint marketing integration.

In June 24, 2019, more than ten million fans waited in front of computers and mobile phones, waiting for the opening hours. At ten o'clock a.m., the shelves were sold out in less than a second. This is not the rush to buy tickets for the star concert, but the sale of the joint version of the tattoo.

It is a success story with the Japanese science fiction animation IP Gundam. The choice to reach this joint target is the first step in the joint marketing of the 31st degree IP: precisely targeting the target audience. Up to IP, the younger generation as a companion, has a strong attraction for young consumer groups. The group of fans is exactly the target audience of 360 degrees.

In the marketing mode, the marketing resources are concentrated in the preheating stage, and a limited gift box reservation mechanism is set up to stimulate the hot topic with the pre-sale information, and promote the drainage of resources with the online Tmall platform.

And online, the company built a flash shop and launched the product to the Solestage and other trend shops in Sanlitun. It spread the topic from the core fans circle to the trend and sports circles.

In order to make IP more effective, the language of IP was transformed into a design language by 331 degrees, and the classics were restored in product design. At the same time, focusing on the needs of the audience, designing a variety of products with different functions, including sportswear and sports shoes.

The joint product's sincerity design and the multi touch transmission force at the same time, finally contributed to the sales explosion. According to statistics, up to a series of Limited gift boxes before the official sale, 64744 people have been booked, one second after sale. The total sales volume exceeded 11 million 60 thousand yuan and 75393 sales on the 3 day. On the Internet, the "tap water" content of fans and trends has become an excellent word of mouth effect, which has spread and infiltrated brand information in different circles, and enhanced the brand identity of young consumer groups.

The recent 360 degree joint action has been frequent and has launched many "IP". Zheng Yexin, general manager of the brand management center, said: "the core of marketing is the product, and ultimately the product itself becomes a story. It resonates with high quality story products and young consumers, this era." Therefore, it is the secret of building up the brand to make the product a media of communication.

A new way to break the track

In June 18th this year, 31st degree released the brand remolding plan on the occasion of listing 10th anniversary. 31st degree will carry out the "basketball into the community" project, and we should achieve the goal of 1000 basketball courts in the next three years.

It hopes to shift the main consumption from the middle and low end market to a second tier city through deep tillage basketball. In November 11th, he signed a contract with Cranbek Maccan, a basketball player of the Xinjiang men's basketball club.

The layout of the basketball market has its strategic necessity, but compared with the "Red Sea" market such as deep ploughing basketball, the 31st degree hopes to find another way in the field of subdivision.

In January 2019, 31st degree and Chinese boxer Xu Canda became sponsorship cooperation. This is an adventure bet, after all, boxing is still a minority movement in China. Before Xu can, only Zou Shiming had won a endorsement contract for sports brand.

Facts have proved that the unique vision has made 360 degrees a big winner. In the next ten months, Xu Chan won the world boxing champion gold belt for three times, creating three new records of Chinese professional boxing.

In the process, not only won the ultra-high exposure rate and brand reputation, but also more strategically, it quickly grabbed a comprehensive training product track with multiple consumption scale and gradual release of consumption potential.

"Now everyone is playing the running and basketball market. These 360 degrees are also being done, but there is no absolute advantage. In the field of boxing, we hope to use Xu Can's quality resources to make the comprehensive training class a representative of the image of the 31st degree. 361 degree brand management center general manager Zheng Yexin said.

Prior to that, Ding Huihuang, chairman of the 31st degree group, increased 528 thousand shares and 1 million shares respectively, amounting to HK $2 million 35 thousand and 100. Some people in the industry believe that the increase in shares has passed the resolution of stabilizing the capital market and rebuilding the brand continuously.

Determination is reflected in investment. The 2018 annual report shows that in the face of adversity, the expenditure on R & D has not been reduced, but has been greatly improved. In 2018, R & D expenditure amounted to 215 million yuan, accounting for 4.1% of the annual revenue, compared with 173 million yuan in 2017, accounting for 3.4% of revenue. The R & D expenditure is more than that of Anta sports and XTEP international.

In the future, how to make breakthroughs in marketing and channels, tell a good brand story, and let more consumers discover brand value is the key to return to the first camp of the domestic sports brand.