Nearly 53 Million Yuan Signed Jeremy Lin. XTEP, Who Is A Focus On Running, Will Play Basketball In The Next Three Years.

In August 9th, XTEP International Holdings Limited, the local fashion and sporting goods company (hereinafter referred to as "XTEP international") signed a well-known Asian basketball player Jeremy Lin in Guangzhou. This also marked XTEP's entry into the basketball field. Another source said that the two sides signed a contract for three years, with an average annual endorsement fee of up to $2 million 500 thousand (about 52 million 933 thousand and 500 yuan - the first textile net note).


Here is a view that XTEP signed Jeremy Lin, also means that it formally entered the field of basketball, this time is released "basketball Product Co creation plan", aims to create a product in the form of creating a truly meet the needs of consumers basketball products.


Speaking of why he chose to cooperate with Jeremy Lin, chairman and CEO Ding Shuibo of the board of directors of XTEP group said: confidence, persistence, conviction, dream, firmly believe in the dream of the heart, firmly underfoot Road, never give up and go upstream, this is the conjunction between Jeremy Lin and XTEP at spirit level, and is also one of the important reasons for promoting cooperation.


According to the "basketball Product Co creation plan" released by XTEP international, the company will create a basketball product that truly meets the needs of consumers in the form of product co creation. At the same time, XTEP International hopes to cooperate with professional basketball players to better polish the professional performance of products, combine professional with the masses, so as to consolidate the foundation of product co creation.


In the field of basketball, XTEP hopes to get out of its own differentiation route. Unlike the current mainstream basketball brands only focus on the form of sports performance, the future XTEP basketball will gather professional, campus, charitable, fashion and other dimensions to develop XTEP's unique basketball image.


According to the insiders, most sports brands are different from fashion brands. Most of them have a history of more than a hundred years. Almost all of these brands can survive through history, which shows that the leading position of the industry is very stable. Throughout the development of every brand, sports stars often play a role in promoting consumption. (Lululemon because sports attribute does not sign sports stars), and because professional star resources are limited and brand signing is usually a long-term contract of more than 4 years, leading sports stars are formed under the monopoly of Mingxing resources.


Since 2015, XTEP has transformed from a fashion sports brand into a sports fashion brand, focusing on mass sports. According to the Jingdong and Nelson studies, running has become one of the most popular sports in China because of the small size and simple and easy to finish. XTEP focuses on the field of running, unlike other sporting goods brands such as Anta, inviting basketball and football stars to endorse the company. XTEP has chosen several running runners to speak and focus on running.


Unlike other sporting goods brands that sponsor sports events and sports teams, XTEP uses "entertainment marketing" to attract younger generation of consumers. In 2018, XTEP sponsored the high popularity entertainment program "rap in China" and launched the "street life" series, which has a great response in the younger generation. On the choice of stars, XTEP has been keeping pace with the times in order to better interact with young consumers from the past twins, Willber Pan, Nicholas Tse to the now hot Tian Jing, lohua seven, Lin update.


According to public information, XTEP international was established in 2001 and listed in Hongkong in June 2008. It is one of the top three local sporting goods brands in China. XTEP brand is mainly aimed at the mass market, and has won the favor of consumers with high cost performance. Products include shoes, clothing, accessories and other fields. The company pays special attention to professional running and makes the best brand of Chinese runners. It has won the sponsorship of China's most marathon sports brand for four consecutive years and is unique in the industry.


From the product point of view, at present, XTEP international mainly produces three categories of shoes, clothing, decorative products. In 2018, three kinds of products accounted for 61.5%, 36.4% and 2.1% respectively. In addition, the company focuses on two major functional sports products and life products. Among them, functional sports products take running as the core, and footwear products are divided into three categories: racing, fast running and easy running. Clothing products are divided into six major categories: cool dry and ice releasing, which continuously improve their technological content in function. The products of life are mainly based on international sports and leisure style. Through the Ming Ming endorsement and the third party intellectual property cooperation, various products aiming at the younger generation are continuously introduced. From the point of view of channels, most of the company's revenues in 2018 still come from offline channels.


In 2015, XTEP international transformed from the fashion sports brand into the sports fashion brand, and implemented the "3+" three year transformation strategy, that is, "product +", "sports +" and "Internet +", from brand, channel, R & D and other aspects of reform, the current reform has been fruitful, and revenue and profit growth has been rapid in 2018. In the next three years, the company will continue to innovate in four aspects: brand positioning and product innovation, new retail experience and full channel, retail management and big data analysis, and agent operation management.


In 2018, XTEP launched 8 running shoes technology, 2 special running shoes, and 6 major apparel technology platforms. The speed of research and development is comparable to that of leading Anta. It distinguishes Anta from basketball and tennis. XTEP has established the only running research center in China. The research center was led by more than 40 international scientists and engineers, using international standard research methods. At present, XTEP has introduced three types of running shoes for professional athletes, ordinary runners and entry-level runners, such as race running, power running, and comfortable running, which can meet the needs of all kinds of consumers. Through cooperation with leading fiber materials developers such as 3M, Dow Chemical, and Weida, XTEP will continue to focus on developing new patent technologies to enhance shoe technology.


Guotai Junan Securities analyst Hao Shuai believes that XTEP international experienced three years of reform in the past, the marginal improvement appears, and in 2018 revenue and earnings have resumed growth. From the perspective of products, technology research and development around core runner products, combined with world-renowned suppliers, form a complete functional system. In the field of publicity, sponsoring many marathon events, enhancing the relationship between brand and running, and developing entertainment marketing to keep close to young consumers; in addition, through flat channel reform, reduce dealer level, accurately grasp sales data and channel inventory; online, also make full use of big data reasonably guide shop, in 2018, the number of channels reached 6230, net shops 230, for the first time in six years to resume positive growth. Online O2O mode helps stock sharing, pushing electricity supplier sales to a new high with a 20% revenue share.


In Hao Shuai's view, XTEP international, as a famous local sports brand, focuses on the field of running and forms its own core advantages. In the first three years, the effect of reform is obvious, and the turning point of performance is coming. The net profit attributable to the parent company in the next 2019-2021 years will reach 793 million yuan, 941 million yuan and 1 billion 103 million yuan respectively, representing an increase of 20.7%, 18.8% and 17.2% respectively.