Xtep Entertainment Star Effect Sticks to Sports Life

Can have a pair of Nike or Adidas sports shoes, I am afraid is living in the city's "80", the common dream of the students. Today, Xtep, Anta and 361 Degrees provide children with more affordable and beautiful Chinese products.

On September 22, Ding Shuibo announced that the top five happy girls became Xtep brand spokespersons. At the same time, Xtep and Tiancheng Media Co., Ltd. signed a long-term cooperation letter of intent. This means that after the special step of opening cooperation with Huayi Brothers in February of this year, it has also made a major blow in brand marketing... At the press conference, Securities Daily had the opportunity to interview Ding Shuibo, the president of Xtep.

Special steps to take advantage of the capital market to stabilize second-tier cities

Nine years ago, Ding Shuibo was also dubbed “the king of foreign sales” for being a 100% foreign trade OEM. After 9 years, the total number of Xtep branded retail stores reached 5,405, and this number increased by 349 compared to the beginning of this year. . Along the way, Ding Shuibo, the leader of Xtep, is today a typical interpretation of China’s private economy transformation.

Ding Shuibo told reporters, “We were still doing 100% foreign trade business 9 years ago. Last year, Xtep’s exports accounted for only about 8% of the total, and it’s not even enough for 1% of exports in the first half of the year. The reason is simple. 9 years ago, Chinese consumers considered prices more than brands, but with the improvement of people's living standards, brand awareness has been deeply rooted in people's hearts, and Xtep seized this market.” After gradually integrating into the second-tier cities in China, Xtepeng It is the successful use of the capital market to help it grow bigger and stronger. This reporter learned that from 2007 to 2008, Carlyle Capital injected two special steps, holding 9.5% of Xtep shares. In 2008, Xtep International officially landed on the Hong Kong Stock Exchange. "According to our agreement, Carlyle will no longer invest in other clothing brands. Moreover, in the near future, they may also increase their holdings of Xtep shares." Ding Shuibo said.

Jinjiang accounts for 70% of the sporting goods market

Adidas expressed its lofty aspirations to attack Chinese second-tier cities a few years ago. One of the reasons why this strategy has not been achieved so far is the successful interpretation of a group of private sports brands including Jinbao, including Xtep. "Highland Battle."

Ding Shuibo told reporters that “Jinjiang’s sports brands have a 70% share of the Chinese market, and currently there are about 2000-3000 companies in the industry. It is no exaggeration to say that in addition to international brands, Jinjiang is the sporting goods market. Today, Jinjiang's enterprises have the ability to operate brands, and will actively use the capital market to help development. This also illustrates the huge market from another angle and can accommodate the development of so many enterprises."

Special steps to find brand new channels

Facing 88 years of history, Adidas, founded in 1921 and founded in 1963, has a 46-year-old Nike brand. It was only nine years after the launch of the Xtep brand. In addition to relatively low prices and domestic brands that can cater to the consumer's support for the psychological advantages of domestic goods, Xtep is not even qualified to compete with internationally-renowned brands. If you want to develop, you must find a way out. "A pair of shoes 800-900 yuan, for the majority of Chinese people still can not afford, Xtep brand positioning is aimed at this most massive group, to provide them with the most expensive and fashionable sports concept." Ding Shuibo said . As a result, Xtep’s rapid expansion of 5405 branded retail stores in second-tier cities has a theoretical basis from management. Ding Shuibo once said emphatically: "Our goal is to be the world's No. 1 sports brand. Xtep will always maintain the sports brand line and adhere to the product concept of sports life."

The market's cognition and influence on the brand is the source of life for sportswear companies and it is Ding Shuibo’s “home”. Being able to spread their sports concepts and expand brand influence through well-known sports events such as NBA, football leagues and tennis leagues is a dream for all sporting goods companies. Ding Shuibo is no exception. However, in this way, there is another cruel reality in front of it. According to the Xtep Brand Center, Nike, Adidas, Reebok and other international brands have already laid out well-known sports events, including even small leagues that are still in their infancy. This has caused domestic brands like Xtep to find breakthroughs in sports events very difficult.

"Contemporary young people like sports and they also like music and have their own idols." Ding Shuibo said. It is under the guidance of this sentence that Xtep has found another way to expand its influence. Since 2001, Nicholas Tse, Pan Yubai, Jolin Tsai, and TWINS have become spokespersons and have made significant contributions to the special steps to seize China's second-tier cities. "In the brand, spokesperson effect, the introduction of a variety of factors such as strategic cooperation, then the special step of the fire shoes created a sales of 1.2 million pairs of miracles." Ding Shuibo is quite proud of that. There is no doubt that Xtep's tactics have succeeded and he has tasted the sweetness in the fierce market competition. Therefore, today Ding Shuibo has held hands with Tiancheng Media and signed the “Fast Girl” top five as an endorsement, which is in line with his brand philosophy of sports life.

In terms of brand marketing, Ding Shuibo successfully avoided “thorns” and broke the monopoly pattern of large enterprises, creating a relaxed situation for his own development. Behind this success is the advantage of being backed by the world's largest Chinese market to give national brands "bone in."