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Attention: The Rise And Decline Of Jinjiang Footwear And Clothing Brand In The Past 30 Years

2022/12/21 15:56:00 205

Jinjiang Footwear

In the 30-year history of the rise and decline of Jinjiang footwear and clothing brands, how many enterprises have risen, and how many enterprises have stalled in competition, falling from the position of the former shoe king of Jinjiang and becoming an ordinary enterprise or relying on feelings to "survive"?

Peak Sports is also a brand that is gradually declining in this torrent of competition.

In 1997, PEAK's valuation reached 200 million yuan, becoming the shoe king of Jinjiang at that time. But now PEAK's market position has declined to the second or even the third echelon, and it has not yet reached the goal of 10 billion revenue. After the privatization of Hong Kong shares, the plan to return to A-share listing has been far away.

Can such a PEAK return to the "first tier"?

   one Capital and market "Double" forgetting

Speaking of PEAK, what is still fresh in my memory is its advertising slogan that is popular all over the streets.

"I can, there is infinite possibility" "Everyone has another me" "Low tide, it doesn't matter, it's my preparation for the peak" "Failure, it doesn't matter, it's my reason for success"

Yes, PEAK was such an inspirational brand. In 1991, he took the lead in cooperating with the "August 1st Men's Basketball Team", and was the first to sign "God of War" Liu Yudong as the brand spokesperson; After that, NBA stars continued to "marry" to become the leading sports brand in China. In 1997, PEAK's valuation reached nearly 200 million yuan, becoming the shoe king of Jinjiang at that time, and it landed at the Hong Kong Stock Exchange in 2009.

But now PEAK is quietly forgotten by the market.

In the consumer market, PEAK's voice is getting smaller and smaller. Since the privatization and delisting in 2016, PEAK has not publicly disclosed complete financial data, but it can be seen from the disappearance of PEAK stores on the street.

According to the public data of PEAK, in 2012, PEAK closed 4 offline stores on average every day. In 2011, PEAK opened 8.1% of its stores at a much slower pace than 16% in 2010. In 2012, PEAK closed 1323 stores. Up to now, it is difficult to find PEAK stores in the first and second tier cities, especially in the second and third tier cities.

In addition, according to the newly released Top 15 of Domestic Sneakers Brands in 2021 on the iMedia Gold List, Anta, Tebu and Li Ning ranked top three, while PEAK ranked only fifth with a comprehensive score of 80.8.

On the sales volume of Taobao and JD e-commerce platforms, the number of fans of PEAK Tmall's official flagship store reached 7.03 million, and the sales volume of the most popular winter sports running shoes reached only 9000+. Anta, Li Ning and Special Walk all have more than 10 million fans, and the three brands have passed the threshold of "10 billion club" revenue.

In the secondary market, PEAK's move to return to the A-share secondary listing was also silent.

Due to the unsatisfactory performance, the stock price has remained depressed since the listing, which has affected the performance. PEAK completed privatization and delisting from Hong Kong shares in 2016. Then in February 2017, it was reported that PEAK would return to A-share listing, and the "Return to A-share Development Forum" was also held.

In 2021, it was also reported that PEAK would conduct an IPO in A-share in 2022, and complete a strategic financing of $300 million in September of the same year, led by China Resources National Survey Xiamen Consumer Fund and followed by CCB Trust. The popularity of PEAK's listing reached the top. At that time, many media reported that "PEAK will return to A-share market, ushering in value revaluation." "PEAK will catch up with Anta Li Ning."

Now 2022 has entered the end of the year. Six years after privatization and delisting, PEAK seems to be still on the same track. The plan to return to A-share has been lagging behind.

   two Want to re Be remembered

Although PEAK has been forgotten by the market, it is trying to change, hoping to be remembered by consumers and return to the first tier.

   The first is strategic innovation. After privatization, PEAK tried to expand the market segment through multi brand strategy, gradually upgrading from a single sports equipment brand to a sports industry group and becoming a sports technology enterprise.

First, at the end of 2018, PEAK launched a new high-tech adaptive midsole - PEAK "State Pole". With a sense of science and technology, the new products of the Toppole series, which are light and comfortable to wear, have won great popularity among consumers. According to the data released by PEAK, so far, the cumulative sales of Toppole series products have exceeded 20 million pairs, contributing more than 4 billion yuan.

The unexpected success also made PEAK choose a new development route of "sports technology brand", and the product line is constantly moving towards the middle and high-end market. At the PEAK 125 Future Sports Science and Technology Conference the year before last, President Xu Zhihua announced that "PEAK's brand positioning was updated to be a sports science and technology company, and the two keys for PEAK to win the future were Poseidon Technology and 3D printing."

At present, PEAK has established five innovation research and development centers around the world, and has developed a series of independent innovative new technology products, such as light elastic technology, bio based surging technology, and exploding technology, in addition to the extremely intelligent adaptive technology series. At the same time, PEAK also holds the "12.5 Future Science and Technology Conference" every year. At last year's science and technology conference, PEAK brought two new technologies: "bio based surging" and "explosive surging".

   Secondly, in terms of marketing, PEAK worked harder to get closer to the young people's market. It invited Wu Lei, a popular star, to speak for it. Meanwhile, CEO Xu Zhihua came off the scene to bring goods, bringing more popularity to the brand.

In 2020, Xu Zhihua officially settled in Douyin, and then carried out live broadcast and goods delivery on Tmall platform. According to the data of Tmall, Xu Zhihua sold a brand new model 2.0 with a price of 5000 double hangers of 569 yuan within 27 minutes of the launch of Tmall's live broadcast debut, and the sales exceeded 5 million yuan within one hour of live broadcast.

Now on platforms such as Tiaoyin Tmall, Xu Zhihua has been affectionately called "Brother Hua" by users and fans. In August 2022, PEAK also held a 2022 PEAK Fan Festival called "Brother Hua and His Friends".

As we all know, the president of the sports brand took the goods on the live broadcast in person, which is not a new thing. Both Hongxingerke Wu Rongzhao and Tebu Ding Shuibo took the goods on the live broadcast, but Xu Zhihua is the most diligent president in the circle. According to "Mantis Observation", Xu Zhihua has released 111 short video works of dithering since he settled in.

Not only the effect brought by the president's live broadcast of goods, but also the fan effect brought by stars. In September 2021, PEAK signed the first domestic star spokesman, Wu Lei. Xu Zhihua said, "Working hand in hand with Mr. Wu Lei, who has both sports genes and can lead the trend, will help to deliver PEAK's new product concept of" technology+fashion "to more young consumers."

   Finally, in terms of channels, PEAK is actively embracing e-commerce, vigorously developing offline channels, and tapping the potential of the first and second tier markets to move towards the middle and high-end.

Since 2018, Xu Zhihua has embarked on PEAK's internal in-depth reform, one of which is to fully embrace e-commerce. Subsequently, the big sale of the series of products of the State Pole boosted the continuous growth of PEAK's online channel revenue. In 2019, PEAK's online sales growth more than tripled. Recently, PEAK has also signed an RPA with Shadow Knife to optimize its own inefficient processes, improve the efficiency of e-commerce customer service and operation, and thus bring customers a better shopping experience.

As for offline channels, Xu Zhihua said, "Vigorously develop offline channels, which is the core link of the opportunities they missed several times before. The focus is to strengthen the management ability of direct retail and improve the distribution system." For example, for young consumers in tier one and tier two cities, PEAK launched PEAK stores with a stronger sense of technology and trendy flu, At the same time, we also set up special stores in third and fourth tier cities. The plan is to open 500-800 Taiji stores in the first and second tier cities, and to open "Pike comprehensive stores" in the third and fourth tier cities, with the goal of about 5000 stores.

It can be seen that the whole company of PEAK is changing around the word of science and technology, from brand, marketing, product research and development to a more Internet, cutting-edge technology development path. Just behind the transformation efforts, can PEAK regain its lost market position and sales volume?

   three But lost Time?

The opportunity is for those who are prepared. At the same time, it is easy to throw people away. Cherries are red and plantains are green.

After privatization and delisting, PEAK did launch a series of transformation actions to recover its declining position and sales volume. However, time never waits for slow walkers. In the era of consumption upgrading and e-commerce, PEAK, which was slow in e-commerce transformation and brand upgrading, was gradually forgotten by the market and became the "former shoe king of Jinjiang".

On closer inspection, On the one hand, PEAK's e-commerce transformation is slow, and the live broadcast has not stepped on the hot spots.

As mentioned above, PEAK began to actively embrace e-commerce in 2018, but as we all know, 2012 is the window period for e-commerce development. In recent years, during the period of live broadcast e-commerce outlets, PEAK really worked hard to carry goods for live broadcast, but it was not as lucky as Hongxing Erke to be favored by consumers.

In 2021, Hon Sing Erke "went out of the circle" due to donation, which led to "wild consumption" of consumers in its live broadcast room. Later, Hon Sing Erke frequently went out of the circle by virtue of "donation" series of actions. However, compared with such a hot spot that is extremely easy to disappear, the public welfare brand image and good products that Hongxingerke has been practicing behind are the reasons why it can be recognized by the public.

Moreover, Hongxingerke has strong overseas competitiveness. In 2005, Hongxingerke was listed in Singapore, becoming the first Chinese sports brand listed overseas. According to the data on its official website, Hongxingerke currently has more than 7000 stores around the world, and its products are sold in Europe, Southeast Asia, the Middle East and other countries and regions. Its product channels reach more than 40 countries at home and abroad, and it has successfully captured trademark exclusive rights in more than 100 countries.

In fact, PEAK's competitiveness in overseas markets is also increasing, but only one hot event is "out of the circle". The company disclosed that in recent years, PEAK's overseas sales revenue accounted for more than 20% of the total sales. In August this year, Saudi Arabia ranked first among overseas sales countries of PEAK. However, nowadays consumers prefer to recommend consumption or even impulse consumption. Peak's strength in overseas markets should be seen by the market, and its brand should be seen by the market first.

on the other hand, The most fatal point is the imbalance of channel expansion strategy.

Xu Zhihua once said in an interview with the media that, "From PEAK's point of view, our weakness lies in the channel. At the beginning, it was the channel for department stores, then the channel for wholesale markets, then the channel for specialty stores, and then the channel for online and offline synchronization. Each of the four channel changes is a rebirth and an experience for us A painful process. "

According to the meaning of this paragraph, PEAK has made corresponding countermeasures for each channel change, but it has failed repeatedly, and the final outcome is not satisfactory, but the essence is that PEAK has failed repeatedly.

Like the industry overcapacity around 2012, players have entered the adjustment period. During this period, including PEAK, the performance of Li Ning, Tebu, Hung Sing Erke and other companies declined significantly. However, some took the lead in sorting out their own retail channels and going out of the industry adjustment period.

Anta is one of them. It controlled 80% of offline stores before 2012 by means of self operation or equity investment. The absolute control allowed Anta to control production and marketing and quickly walk out of the industry adjustment period. On the other hand, PEAK and other brands are trapped in the soaring operating costs caused by excessive dependence on the dealer system or the disorderly expansion of stores in the early stage, resulting in a crisis of cash flow overload during overcapacity.

Looking back at seven wolves, nine muwang, 361 °, noble bird and other major Jinjiang footwear and clothing brands, too many brands missed the best development period due to the slow online transformation or disorderly expansion, resulting in a steep decline in subsequent development.

However, in the endless stream of light, there will still be enterprises that can rise again. Whether Anta, the world's second largest sports brand, counterattacked, or Hongxingerke, the newly rising sports brand, or even the special step to reach the threshold of 10 billion revenue last year, are all examples for PEAK and other sports brands to refer to.

However, for PEAK now, it is still in a "little brother" stage of starting afresh, and it needs to rely on its performance to exchange for a listing opportunity. Xu Zhihua once said, "At present, we are 'little brothers'. Before going public, we still need to improve our internal skills and lay a solid foundation for our work."

Although the time to market is uncertain, Peak may also encounter its own "hot spot" and be remembered by the capital and market again under the promotion of active transformation and new product technology innovation.

  

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