Interview with CEO: It is planned to integrate global resources to deepen the domestic market

Peak Sporting Goods Co., Ltd. was listed on the Hong Kong Stock Exchange on the 29th. Chief Executive Officer and Executive Director Xu Zhihua said in an interview with NetEase after the close that the primary goal of the Peak listing is not to finance, but to obtain a higher platform. , promote the company's consistent international strategy.

Use Global Resources to Make China Market

"This listing helps Peak achieve a higher platform and marks Peak's initial capital internationalization. In the next step, the company will continue to promote talent internationalization and R&D internationalization," Xu Zhihua emphasized in an exclusive interview with NetEase. As part of Peak’s internationalization strategy, Peak plans to hire international talent to open up foreign markets and plans to set up R&D centers for sports shoes and sportswear in the United States and Italy.

"The traditional thinking is to separate the Chinese market from the international market and use China's resources as the Chinese market, and Peak's strategy is to use global resources to serve the Chinese market. To this end, Peak and the international strategy started in 2005 and hopes to gradually The internationalization of the brand, the internationalization of capital, the internationalization of talents, the internationalization of research and development, and the internationalization of the market are finally realized.” Xu Zhihua made the above statement when explaining the company’s strategy to NetEase.

Xu Zhihua further explained the original intention of the company's internationalization strategy at the subsequent media exchange: “In 2004, Fujian’s 47 sports brands all invested in 5 sets of CCTV advertisements. Homogenous strategies and fierce competition forced Peak to have to Think differentiating ways of breaking through."

Xu Zhihua stated that Peak’s differentiation is reflected in two aspects: First, taking the specialization line, insisting on using sports athletes as brand endorsements, and using professional brand images to drive the popular leisure market; and second, promoting the internationalization of brands and sponsoring among domestic brands. International basketball events, use of international basketball star endorsement.

Xu Zhihua said that the use of international resources to enhance the brand is not only limited but also low in cost; through the cooperation with international events such as the NBA, Peak has initially achieved the internationalization of the brand.

Use the Chinese market to accumulate international competitiveness

Although Xu Zhihua emphasized Peak’s internationalization strategy, he said that the market is focused on China: “Peak has already been exploring the international market, and international sales have accounted for 10% of the total. It belongs to the top companies in the domestic sports brand, but I’m not We hope to convey the impression that Peak does not attach importance to the domestic market. The Chinese market has a fast growth rate and great potential. Peak will concentrate its resources on exploring the domestic market for a long time."

Xu Zhihua understands the difficulty in opening up the global market. “Market internationalization is the ultimate goal of Peak, but it is not the time to send force. Layout in the global market requires a lot of funds and effort to do channels and brands, only through the Chinese market. To be strong and accumulate strength, Peak will have the capital to compete in the international market."

Hong Kong stock market underestimates the potential of sports goods in the Mainland

Peak's share price dropped on the first day of listing. Xu Zhihua said that the short-term performance of stock prices did not reflect the value of the company. Hong Kong investors underestimated the development potential of the sports goods market in the mainland.

Xu Zhihua believes that the consumption of sports brands in the Chinese market is just beginning. With the change of people's lifestyle, the demand for sporting goods will grow rapidly, which will bring tremendous opportunities to the industry. "Sporting goods are mature industries in Western countries, but in the Chinese mainland is a sunrise industry. This industry is now in the stage from the Spring and Autumn period to the Warring States period, the market is concentrated in the hands of a few brands, the future industry, the top 7-8 brands will have Great opportunity. I believe that in a few years China will have a billion-dollar sports brand."

“As an emerging industry, the average price-earnings ratio of Hong Kong's sports goods sector is lower than the overall level of Hong Kong stocks. This is not normal. Hong Kong investors do not realize that the mainland is below the potential of the supply market,” said Xu Zhihua, the company will strengthen in the future. Communicating with investors.

Financial crisis favors China sports brand development

Xu Zhihua said that this financial crisis is actually beneficial to the development of sports brands in China.

After the crisis, consumers' habits have changed a lot. They demand lower prices, and China sports brands have a very clear price/performance advantage.

Xu Zhihua said that market sales are validating this kind of judgment. “We can easily observe that Chinese brand sales are rising this year and foreign brands are falling.”

New business adheres to the professional route

Peak is one of the few sports brands in China that sticks to the specialization route. Xu Zhihua said that the company’s newly expanded business areas will still stick to the professional path.

According to the plan, after the listing of the company, Peak plans to expand its business to include tennis, football and running.

"In the development of new business, Peak will adhere to the path of specialization and internationalization. We will invite the world's best athletes in these fields to endorse the brand and use the professional brand image to drive the popular leisure market." Xu Zhiqiang is receiving an exclusive interview. Time to NetEase Finance to do the above outlook.

Socialization of capital family management

Since Peak's core executives all belong to the Hsu family, and the shares are also mainly held by the family, the topic of family formation has attracted much attention.

Xu Zhiqiang stated that prior to the entry of the Sequoia Fund, Peak had implemented the strategy of “socializing family management”. Except that the board of directors is a family member, other business department directors are professional managers.

"Football enterprises in Fujian are basically the structure of this family boss who leads professional managers. Under this structure, companies can concentrate resources, make decisions quickly, and make it easier to seize opportunities in such a rapidly developing and changing market as China." . Xu Zhihua claimed that this structure was actually approved by investors.

However, Xu Zhihua also stated that as the company is gradually on the right track, the company is gradually increasing its authority over professional managers.