China's KAPA opened 507 stores in the first half of the year

China Mobile today released its first-half performance report. The company achieved operating income of 1.868 billion yuan, a year-on-year increase of 33.5%; net profit of 722 million yuan, an increase of 9.9% year-on-year.

According to China Dynamics, KAPPA branded China business is still strong. In the first half of the year, sales reached 1.674 billion yuan, accounting for 89.6% of the group's total sales. Gross profit margin was 64.1%, maintaining industry leadership. The KAPPA brand stores had a net increase of 507 in the first half of the year, with a total of 3,315 at present.
In the first half of the year, China Mobile obtained government subsidies of RMB 22.01 million. In the same period last year, it received subsidies of 11.4 million yuan.

The average selling price of KAPPA's garments in the first half of the year was RMB 126, which was an increase of 4.1% year-on-year, and total sales of 9.78 million pieces, a year-on-year increase of 28.2%. The average selling price of footwear was 170 yuan, down 3.4% year-on-year, and a total of 1.7 million pairs were sold, a year-on-year increase of 26.9%.

China Dongxiang’s China segment was mainly engaged in the wholesale Kappa branded products. In the first half of the year, it achieved sales revenue of 1.678 billion yuan, up 24.9% year-on-year. Accounted for 89.8% of the company's total revenue.

The Japan branch sold sports-related products in Japan under the Kappa and Phenix brands, and achieved sales revenue of 190 million yuan, accounting for 10.2% of the company's total revenue. On May 1, 2008, China Dongxiang completed the acquisition of a 91% stake in Phenix in Japan. Phenix's two main brands are ski and outdoor sportswear brands Phenix and football, sports and golf apparel brands Kappa.

Clothing is the main product of Kappa brand in China. Its sales accounted for 73.4% of total brand sales, and the proportion of footwear and accessories was 21.9% and 4.7% respectively.

In 2006, China Mobile acquired the full rights of the Italian brand KAPPA, Mainland China and Macau, with the help of Morgan Stanley, and turned it into an owner from the Kappa franchise.

Related reports: KAPPA's brand success

Mr. Qin Dazhong is the chief executive officer and executive director of China Dongxiang Group and is primarily responsible for the group's overall strategic planning and management of the Group's business. Mr. Qin joined Beijing Trend as general manager since October 2002 and has more than 10 years of experience in operating sportswear companies. From 1997 to 2002, he held various positions in Beijing Li Ning Sports Goods Co., Ltd., responsible for its corporate planning, international business, and financial monitoring.

Packaging, using the minimum advertising investment for maximum publicity. Fifth, extremely light asset operation, light-loaded. The trend is to position the Kappa brand in sports fashion, and one of the characteristics of fashion is that the changes in consumer demand and fluctuations are far greater and faster than the traditional sporting goods industry, which is doomed to be impossible to use sporting goods in production. set. The trend adopts a non-retailing, non-production operating mode, and has achieved great results in efficient inventory management, shortening the cycle of accounts receivable and effective cost control. Regarding the direction of the Group’s future development, Mr. Qin Dazhong stated that under the business philosophy of a single brand internationalization and regional brand diversification, the company will continue to expand its sales network, strengthen its marketing and promotion strategies, enhance internal operating efficiency, and stabilize its multi-brand strategy. The Japanese market has developed steadily. Trend Group will build the best sports brand management team in China under the guidance of the values ​​of self-confidence, pragmatism and innovation. Based on the diversified brand culture, the company will provide sportswear consumers with more choices and greater value.

Trend Group was developed as a stand-alone unit of the Li-Ning Group since 2002. In 2005, due to business development needs, the Li Ning Group was spun off and successfully listed in Hong Kong on October 10, 2007.

The existing brands of the Group are: KAPPA's rights to exercise rights in China and Japan, PHENIX, INHABITANT and XNIX. Among them, KAPPA has created a “myth” of brand marketing with a rapid growth of 200 times in 6 years in the Chinese market.

Mr. Qin Dazhong briefly introduced KAPPA's brand success experience.

Packaging, using the minimum advertising investment for maximum publicity. Fifth, extremely light asset operation, light-loaded. The trend is to position the Kappa brand in sports fashion, and one of the characteristics of fashion is that the changes in consumer demand and fluctuations are far greater and faster than the traditional sporting goods industry, which is doomed to be impossible to use sporting goods in production. set. The trend adopts a non-retailing, non-production operating mode, and has achieved great results in efficient inventory management, shortening the cycle of accounts receivable and effective cost control. Regarding the direction of the Group’s future development, Mr. Qin Dazhong stated that under the business philosophy of a single brand internationalization and regional brand diversification, the company will continue to expand its sales network, strengthen its marketing and promotion strategies, enhance internal operating efficiency, and stabilize its multi-brand strategy. The Japanese market has developed steadily. Trend Group will build the best sports brand management team in China under the guidance of the values ​​of self-confidence, pragmatism and innovation. Based on the diversified brand culture, the company will provide sportswear consumers with more choices and greater value.

The first is to seize the crisis of the original Italian brand owners, use the international capital market's attention to China, and shake up the financial predators like Morgan Stanley to complete the purchase of the Kappa brand's regional lifetime use rights. Being completely owned by the brand area not only completely avoids the risk of being recovered by the brand owner after the brand has matured, but also has sufficient autonomy and flexibility in market operation and brand management. Kappa, an internationally renowned brand, also greatly reduces the risk. The brand's risk of failure is truly multiple.

Second, do not do professional sports, specializing in sports fashion. Although the move purchased Kappa, but the strength and resources compared with Adidas, Nike, such a first-line brand is still a big gap, positive and hard to fight them, the result is certainly head-breaking. Therefore, identifying the Blue Ocean in the market and positioning the brand accurately have become an urgent task. In the Chinese market, they did not follow Kappa's appeal in Europe, but instead positioned it as a fashion sports brand. Stripping out the low-value-added part of the product to the target consumer, designing fashionable sportswear to gain consumers' sense of identity. In this way, not only the professional sporting goods market that meets the cross-border giants and the short-to-big army has been avoided, but also new cakes have been cut out in the market, creating a precedent for sportswear fashion.

Third, the construction of sales channels and the consolidation of relationships with distributors. The KAPPA brand has only 43 distributors nationwide, which is far less than the number of dealers of Adidas and Nike. Mr. Qin Dazhong introduced the reason is that he believes that the competition brought by multiple dealers will directly lose their profits, so that the profitability of customers will be affected, and frequent discounts caused by competition will also damage the value of the brand. In January 2009, Dongxiang Group became a minority shareholder of several of its major distributors. In this way, the two parties established a closer cooperation relationship and strengthened their influence on distributors. Only doing business that you are familiar with, restricting channels but not managing channels is also one of the operational magic weapons.

Mr. Qin Dazhong is the chief executive officer and executive director of China Dongxiang Group and is primarily responsible for the group's overall strategic planning and management of the Group's business. Mr. Qin joined Beijing Trend as general manager since October 2002 and has more than 10 years of experience in operating sportswear companies. From 1997 to 2002, he held various positions in Beijing Li Ning Sports Goods Co., Ltd., responsible for its corporate planning, international business, and financial monitoring. Trend Group was developed as a stand-alone unit of the Li-Ning Group since 2002. In 2005, due to business development needs, the Li Ning Group was spun off and successfully listed in Hong Kong on October 10, 2007. The existing brands of the Group are: KAPPA's rights to exercise rights in China and Japan, PHENIX, INHABITANT and XNIX. Among them, KAPPA has created a “myth” of brand marketing with a rapid growth of 200 times in 6 years in the Chinese market. Mr. Qin Dazhong briefly introduced KAPPA's brand success experience. The first is to seize the crisis of the original Italian brand owners, use the international capital market's attention to China, and shake up the financial predators like Morgan Stanley to complete the purchase of the Kappa brand's regional lifetime use rights. Being completely owned by the brand area not only completely avoids the risk of being recovered by the brand owner after the brand has matured, but also has sufficient autonomy and flexibility in market operation and brand management. Kappa, an internationally renowned brand, also greatly reduces the risk. The brand's risk of failure is truly multiple. Second, do not do professional sports, specializing in sports fashion. Although we bought Kappa, we have strength and resources and Adidas, resistance

Fourth, the promotion of sports fashion. As in the unique position of the brand positioning, the trend in the brand building is also taking a different approach. In order to truly convey the brand connotation of Kappa's “Fashion+Sports”, the trend is to vigorously promote entertainment marketing while maintaining sports sponsorship. For example, in collaboration with PepsiCo, Pepsi KAPPA cans were packaged to achieve maximum publicity with minimal advertising investment.

Fifth, extremely light asset operation, light-loaded. The trend is to position the Kappa brand in sports fashion, and one of the characteristics of fashion is that the changes in consumer demand and fluctuations are far greater and faster than the traditional sporting goods industry, which is doomed to be impossible to use sporting goods in production. set. The trend adopts a non-retailing, non-production operating mode, and has achieved great results in efficient inventory management, shortening the cycle of accounts receivable and effective cost control.

Regarding the direction of the Group’s future development, Mr. Qin Dazhong stated that under the business philosophy of a single brand internationalization and regional brand diversification, the company will continue to expand its sales network, strengthen its marketing and promotion strategies, enhance internal operating efficiency, and stabilize its multi-brand strategy. The Japanese market has developed steadily. Trend Group will build the best sports brand management team in China under the guidance of the values ​​of self-confidence, pragmatism and innovation. Based on the diversified brand culture, the company will provide sportswear consumers with more choices and greater value.