The sporting goods industry is facing a crisis of general decline in performance. The latest performances of Anta and Xtep show that orders for enterprises will slow down next year, and Li Ning's net profit in the first half of this year also fell by nearly 50% year-on-year.
However, the 2011 mid-term financial report released by the sports brand Peak shows that its turnover and gross profit have increased by 24.7% and 32.0% respectively compared with the same period of last year.
On August 24th, Xu Jingnan, chairman of Peak Sporting Goods Co., Ltd. ("Pick"), said in an interview with this reporter that Peak's performance was better than his peers because he focused and if Peake went like some of his colleagues. To do real estate, maybe it is difficult for him to escape the fate of falling performance.
The Outperform Reporter in the first half of the year: The latest reports of Anta, Xtep, and Li Ning all show that their orders and growth have slowed down significantly. What does Peak rely on to support growth above its peers?
Xu Jingnan: Peak's growth mainly depends on three aspects: First, our single-store sales are increasing. In the first half of the year, our single-store business area increased by 18.4% over the same period of last year, and the single-store turnover also rose by more than 10%; The speed at which we opened new stores is still very strong. In the first half of the year, we opened 395 new stores, completed half of the annual target, and new store sales also brought growth. Third, with the deepening and upgrading of brand marketing, internationalization The Peak brand has become more deeply rooted in people's hearts, which gives Peak's products a premium.
Reporter: The slow growth of other sporting goods companies means that this industry's winter is coming?
Xu Jingnan: I do not think that the sporting goods industry has entered the winter. It is still a sunrise industry. The slowdown in the growth of the sporting goods industry has two main reasons: one is because of high inflation, people are more cautious in spending; the other is this year is the off-season for sports marketing, there is no Olympics, there is no such big competition as the World Cup, Therefore, the performance of the entire industry is relatively stable, or slightly lower than in previous years, which is a normal market performance.
The increase in raw material prices since last year, especially the rise in cotton prices, has forced sports brands to raise prices, which will test the affordability of some brands. Brand height, visibility is not enough, may be more affected, and some rising brands, such as Peak, can be a good digest of this premium, so that consumers are pleased to accept this fact.
Reported surge in overseas sales Reporter: How much does Peak sell in the domestic and foreign markets?
Xu Jingnan: At present, Peak's products have been sold to more than 70 countries and regions in five continents including Europe, America, Africa, Asia, and Oceania. In the first half of 2011, Peak's overseas sales increased by 20.2% year-on-year, which already accounted for 10.3% of Peak's total sales revenue. Our strategic goal is to influence the global market through the US market.
From the moment we entered Europe and the NBA, we have positioned ourselves as an international sports brand. We have done a lot for this. From sponsoring the top basketball all-star game in Europe to joining the world's best basketball league NBA, signing international players with international influence such as Kidd and Battier, we have taken a step-by-step approach and left Peak in the international market.
In June of this year, Peak internationalized its marketing again. It was officially upgraded from a FIBA ​​Asia Partner to a Global Strategic Partner. This means that it includes the World Basketball Championship, the World Youth Basketball Championship, and the Olympic Basketball. Projects, such as gold, contain considerable resources. So far, in the basketball field, Peak has occupied two top resources, NBA and FIBA.
Reporter: Did Peak's conflict with Nike and Addi's sports giants intensify in the process of globalization?
Xu Jingnan: For example, we could only pick some Nike and Adi players to cooperate with. We have now begun to compete with them for the top stars. Whether it is the all-star player Kidd or the young rookie, we have enough. The strength and brand appeal to compete with opponents. Moreover, we have been looking for the next Yao Ming, the next Kobe Bryant, to compete with them on the starting line.
Pick’s subsidiary in the United States is a landmark step for Picco to enter the international market. We plan to open stores in the United States in the second half of the year. With the full distribution of goods in the US market, Peak's international market penetration rate will further increase, and international revenue is expected to increase further. The Peak American R&D Center, which has already been put into use, will provide Peak’s offensive to the international market with designs and products that fit the needs of the local market.
Reporter: What efforts need to be made by sporting goods companies from manufacturing in China to creation in China?
Xu Jingnan: From manufacturing to creation, in the final analysis, it is the grasp of the international trend. Through these years of exploration in the field of NBA and international basketball, Peak has undergone changes in the subtle changes.
In the first half of this year, Peak has doubled the company's R&D design costs to 1% of the company's total sales. Currently, Peak has four R&D studios in Beijing, Guangzhou, Quanzhou and Los Angeles. These studios employed a total of about 250 research and design professionals.
Retaining cash to prevent risks Reporter: At present, there are still some uncertainties in the global economic situation. Everyone is afraid that the economic crisis will come again. Some manufacturing companies have already cut production or shut down, and how is the current cash flow at Peak?
Xu Jingnan: From the middle report, you can see that we hold 2.6 billion in cash, and we have a cash advance of 130 million yuan in the first half of the year. It can be said that our development is very good. Peak’s board of directors believes that in the face of uncertain market factors, holding sufficient cash will help the company respond to sudden changes in the market and make timely and effective responses.
Reporter: What is Peak's plan for the layout of the market in the second half of the year and 2012?
Xu Jingnan: I think that as the Chinese government increases its control over inflation, China's mass consumer market will further improve, which will be conducive to the overall improvement of the sporting goods industry.
Peak's increase in order amount in the third quarter of 2011, the fourth quarter and the first quarter of 2012 all exceeded 20%. In order to ensure stable product supply, in the second half of 2011, Peak will also invest approximately RMB 8,000 million in plans for the continued construction of two production bases in Hui'an County, Fujian Province and Shanggao County, Jiangxi Province. In addition, the construction plan for the production base in Heze, Shandong Province has also been put on the agenda. The plan is expected to reach a total investment of 1 billion yuan.
With the completion and production of these factories, our product line will be more abundant and product categories will be more complete, which will enhance our competitiveness in various market segments and countries.
However, the 2011 mid-term financial report released by the sports brand Peak shows that its turnover and gross profit have increased by 24.7% and 32.0% respectively compared with the same period of last year.
On August 24th, Xu Jingnan, chairman of Peak Sporting Goods Co., Ltd. ("Pick"), said in an interview with this reporter that Peak's performance was better than his peers because he focused and if Peake went like some of his colleagues. To do real estate, maybe it is difficult for him to escape the fate of falling performance.
The Outperform Reporter in the first half of the year: The latest reports of Anta, Xtep, and Li Ning all show that their orders and growth have slowed down significantly. What does Peak rely on to support growth above its peers?
Xu Jingnan: Peak's growth mainly depends on three aspects: First, our single-store sales are increasing. In the first half of the year, our single-store business area increased by 18.4% over the same period of last year, and the single-store turnover also rose by more than 10%; The speed at which we opened new stores is still very strong. In the first half of the year, we opened 395 new stores, completed half of the annual target, and new store sales also brought growth. Third, with the deepening and upgrading of brand marketing, internationalization The Peak brand has become more deeply rooted in people's hearts, which gives Peak's products a premium.
Reporter: The slow growth of other sporting goods companies means that this industry's winter is coming?
Xu Jingnan: I do not think that the sporting goods industry has entered the winter. It is still a sunrise industry. The slowdown in the growth of the sporting goods industry has two main reasons: one is because of high inflation, people are more cautious in spending; the other is this year is the off-season for sports marketing, there is no Olympics, there is no such big competition as the World Cup, Therefore, the performance of the entire industry is relatively stable, or slightly lower than in previous years, which is a normal market performance.
The increase in raw material prices since last year, especially the rise in cotton prices, has forced sports brands to raise prices, which will test the affordability of some brands. Brand height, visibility is not enough, may be more affected, and some rising brands, such as Peak, can be a good digest of this premium, so that consumers are pleased to accept this fact.
Reported surge in overseas sales Reporter: How much does Peak sell in the domestic and foreign markets?
Xu Jingnan: At present, Peak's products have been sold to more than 70 countries and regions in five continents including Europe, America, Africa, Asia, and Oceania. In the first half of 2011, Peak's overseas sales increased by 20.2% year-on-year, which already accounted for 10.3% of Peak's total sales revenue. Our strategic goal is to influence the global market through the US market.
From the moment we entered Europe and the NBA, we have positioned ourselves as an international sports brand. We have done a lot for this. From sponsoring the top basketball all-star game in Europe to joining the world's best basketball league NBA, signing international players with international influence such as Kidd and Battier, we have taken a step-by-step approach and left Peak in the international market.
In June of this year, Peak internationalized its marketing again. It was officially upgraded from a FIBA ​​Asia Partner to a Global Strategic Partner. This means that it includes the World Basketball Championship, the World Youth Basketball Championship, and the Olympic Basketball. Projects, such as gold, contain considerable resources. So far, in the basketball field, Peak has occupied two top resources, NBA and FIBA.
Reporter: Did Peak's conflict with Nike and Addi's sports giants intensify in the process of globalization?
Xu Jingnan: For example, we could only pick some Nike and Adi players to cooperate with. We have now begun to compete with them for the top stars. Whether it is the all-star player Kidd or the young rookie, we have enough. The strength and brand appeal to compete with opponents. Moreover, we have been looking for the next Yao Ming, the next Kobe Bryant, to compete with them on the starting line.
Pick’s subsidiary in the United States is a landmark step for Picco to enter the international market. We plan to open stores in the United States in the second half of the year. With the full distribution of goods in the US market, Peak's international market penetration rate will further increase, and international revenue is expected to increase further. The Peak American R&D Center, which has already been put into use, will provide Peak’s offensive to the international market with designs and products that fit the needs of the local market.
Reporter: What efforts need to be made by sporting goods companies from manufacturing in China to creation in China?
Xu Jingnan: From manufacturing to creation, in the final analysis, it is the grasp of the international trend. Through these years of exploration in the field of NBA and international basketball, Peak has undergone changes in the subtle changes.
In the first half of this year, Peak has doubled the company's R&D design costs to 1% of the company's total sales. Currently, Peak has four R&D studios in Beijing, Guangzhou, Quanzhou and Los Angeles. These studios employed a total of about 250 research and design professionals.
Retaining cash to prevent risks Reporter: At present, there are still some uncertainties in the global economic situation. Everyone is afraid that the economic crisis will come again. Some manufacturing companies have already cut production or shut down, and how is the current cash flow at Peak?
Xu Jingnan: From the middle report, you can see that we hold 2.6 billion in cash, and we have a cash advance of 130 million yuan in the first half of the year. It can be said that our development is very good. Peak’s board of directors believes that in the face of uncertain market factors, holding sufficient cash will help the company respond to sudden changes in the market and make timely and effective responses.
Reporter: What is Peak's plan for the layout of the market in the second half of the year and 2012?
Xu Jingnan: I think that as the Chinese government increases its control over inflation, China's mass consumer market will further improve, which will be conducive to the overall improvement of the sporting goods industry.
Peak's increase in order amount in the third quarter of 2011, the fourth quarter and the first quarter of 2012 all exceeded 20%. In order to ensure stable product supply, in the second half of 2011, Peak will also invest approximately RMB 8,000 million in plans for the continued construction of two production bases in Hui'an County, Fujian Province and Shanggao County, Jiangxi Province. In addition, the construction plan for the production base in Heze, Shandong Province has also been put on the agenda. The plan is expected to reach a total investment of 1 billion yuan.
With the completion and production of these factories, our product line will be more abundant and product categories will be more complete, which will enhance our competitiveness in various market segments and countries.
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