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He Ruibo: XTEP Spancends The Second Giants Of The Li Ningcheng Industry

2014/2/11 15:43:00 351

it is reported that He Ruibo, chief financial officer of XTEP, said that XTEP's business has gone beyond the "a href=" //www.sjfzxm.com/news/list.aspx "Classid=101112107107" > Lining < /a > to become the second leading companies in the industry, and is confident that it will start the recovery with the first leading Anta (02020-HK) in the industry. At present, XTEP's discount rate in retail channels has been reduced from 30 percent off to 20 percent off, and its stock has dropped to 5 months. It is estimated that the first half of this year will be further reduced to less than 5 months. 
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Up to the end of June 2013, XTEP had 7435 retail outlets in China at P. He Ruibo said that the number of shops will not be cut this year, but the proportion of the north south part will be slightly adjusted. He expects the same store sales to resume growth in the first quarter of this year, but the overall revenue will decline in the first half of the year, but business performance in the second half of this year is expected to bottom out, revenue will start to pick up, and overall business will begin to recover in 2015. However, at the end of last year, a number of mainland sporting goods stocks were looking forward to recovery. 
 > a href= "//www.sjfzxm.com/news/list.aspx Classid=101112107105" > ho Rui Bo < /a > believes that the mainland sporting goods market will be completed until the end of this year, and it is expected that the sales of the mainland will turn to rise in the fourth quarter of this year, but there will still be negative growth throughout the year. 
 He Ruibo said that the rectification of the sporting goods industry in the mainland is going on, and the industry consolidation will benefit XTEP. The company will attack the northern part of the north, including the northeast, which is occupied by Lining, because Lining has already closed many loss shops on the ground, so that the company can take advantage of it. At the same time, it can also dig corners in product design to Lining and 03818-HK. 
 the company is mainly engaged in the design, development, manufacture and marketing of sporting goods (including footwear, clothing and accessories), and has sponsored the Standard Chartered Marathon for third consecutive years. He Ruibo refers to a sponsorship contract that has won the next 3 years this year. 
 cross boundary marketing, beheading two or three lines /p >
 He Ruibo said that XTEP's position has always been the brand of fashion sports. Its emphasis is on the concept of "entertainment marketing", with the premise of entertainment and sports. We will sponsor events and international events, such as the National Games and the World Expo; second, entertainment and fashion can not be separated from sports. XTEP has been promoting the running market from the end of last year. We feel that running is a challenge for ourselves. There is no space, time and age restriction. This market is very large, and XTEP shoes have a history of 20 years. This will be promoted as the core, such as sponsoring juvenile marathon and Xi'an marathon. Third, in terms of advertising, the ratings of Hunan satellite TV are the highest, so XTEP will concentrate on putting resources here, naming sponsorship "day to day" and other programs, and also including the TV programs of Southeast China's pop music list. "We have three directions in the promotion of time division, the first is the large scale. In He Ruibo's view, even across the board of cross-border marketing, XTEP's direction in sponsorship and advertising is also very clear, not "wave" investment. 
 "most of our products are priced between 100 yuan and 300 yuan RMB. The target market is mostly concentrated in < a href=" //www.sjfzxm.com/news/list.aspx Classid=101112107108 > "young consumer group < /a >, and most of them have this consumption ability, so it is very important to highlight brand positioning." He Ruibo believes that in the face of strong competitors such as Nike, Adidas and Lining, XTEP is very difficult to apply the past sports brand marketing mode, so take another road, from the preferences of the target consumer groups to cut, for example, young people like to listen to music, watching entertainment programs, so XTEP has made some popular celebrity endorsements. "Even looking at us, LOGO is a contrasting" X ", which is a very important image positioning. In his view, the positioning of XTEP's fashionable sports brand has caught the mentality of young people very well. 
In the geographical selection of market share, XTEP also avoided competition in the first tier cities, but chose China's developing provinces such as central China. P It is reported that most of the retail market of the first tier cities is close to the saturation point of the sports goods industry, while the two or three tier cities are subject to the economic growth brought about by the continuous urbanization in China, and the growth rate of their consumption capacity has steadily increased. According to the National Bureau of statistics, the growth rate of GNP in China's two or three tier cities in recent years has been consistently higher than that in the first tier cities such as Beijing, Shanghai and Shenzhen. Especially the growth rate of over 13% of Hunan, Hubei and Anhui provinces has become the leader of the national economic growth. The rapid economic development has driven the spanfer of capital and labor to the two or three tier cities, and consumer demand has increased rapidly, thus creating greater market space. XTEP has also chosen to take the lead in the two or three line market. 
 according to the 2009 financial report, XTEP's revenue in 2009 was 3 billion 545 million 300 thousand yuan, an increase of 23.7% over last year, gross profit margin increased by 2 percentage points to 39.1%, and net profit margin increased 0.6 percentage points to 18.3%. 
 when it comes to how to balance the relationship between investment and income of brand promotion, He Ruibo laughs, "many investors will ask this question." He Ruibo admits that it is difficult to decide which advertisement the product's revenue comes from. But XTEP has a set of strategies in putting advertisements into practice. First, do market research to determine which media information the target consumers will tend to; then do target budgets. Too much investment will affect profit margins. Too little investment will affect future earnings. The percentage of advertising revenue before XTEP will be a single digit, and after the launch, the advertising budget plan has reached 12% of the total revenue. "Being the exclusive sponsor of the Bermingham football team and becoming the principal partner of the volunteers in World Expo, Shanghai, is the best proof of XTEP's brand effectiveness." 
 although in the field of "fashionable sports", China's light assets < a href= "//www.sjfzxm.com/news/list.aspx Classid=101112107101" > operation mode < /a > has been a great success, but XTEP still insists on the "vertical integration" mode. He Ruibo believes that every company has its own background. XTEP chairman Ding Shuibo has 20 years of experience in the industry. She used to be a OEM manufacturer and help some European companies to make OEM processing, so XTEP has the technology and plant like precipitation. XTEP itself has production capacity, so there is no need to give up the production line. The cost of manufacturing itself is certainly cheaper than outsourcing. In addition, this production capacity has great advantages in the face of market growth, and does not cost much in the supply chain. He Ruibo is very optimistic about XTEP's vertical integration mode, that is, not entirely 100% of its own production, but a certain production capacity can withstand the unknown crisis.