Peak eager to get more space through the capital market is still waiting patiently
As the most successful professional basketball league in the world, the NBA can keep its fans' heat on the season after the season ends. July 18, NBA promotion basketball hoop Beijing Station Carnival activities, NBA team 76 star player Iguodala dunk show Beijing fans had enough eye addiction. But let them passionate, it is a team composed of many NBA stars arrived in Beijing.
However, compared to fans, this team, including last season's Yao Ming teammates Rockets players Ron Artest, Mutombo and just won the NBA championship Vujacic team, a domestic garment enterprises have more expectations.
This enterprise is Jinjiang sports brand Peak. Data show that the current Olympic basketball shoes in the share, is already the first Chinese market, even more than Nike and Adidas. The star composed team's performance in China, it is the company sponsors basketball, signed a number of celebrity endorsements derivative products.
A background for the company to acquire more than a basketball resource is: A few years ago, many Chinese sports brands began turning to the mass leisure market with a view to gaining more market space. And Pick is the opportunity to become the official partner of NBA market in China.
In fact, it seems many competitors, betting basketball is not a good choice. Another well-known domestic sports brand executives have said that basketball shoes on the technical requirements are very high, the current domestic brands in this area is difficult to go beyond Nike and Adidas; Li Ning, Shiwei, chief market official believes that the cost of joining R & D and promotion costs, Basketball shoes, the profit margin is not the best, so Li Ning chose badminton as their future core products.
However, Pick showed great enthusiasm for basketball. According to data provided by the company, from the sponsorship of the Greek basketball team in 2004, the Olympic cap used in obtaining international basketball resources and star endorsement has invested about 30 million US dollars. "We do not have any escape route, basketball is our greatest advantage, can not give up." Xu Zhihua, general manager of the company said.
Peak hope NBA players signed can give the company higher profit margins. Cui Yaguang, manager of the company's creative design center, and his team's mission are to design a series of footwear products for signed basketball stars. At present, the endorsement by Liu Yudong "God of War" series has come to 14 generations, Yao Ming teammate Battier endorsement series also launched three generations. May this year, the Kidd generation basketball shoes launched the highest price of 639 yuan, which is close to Nike and Adidas prices. In addition, such as Artest NBA celebrity endorsements will also be launched.
Analysts believe that Peak can re-enter the consumer's vision, largely rely on its deep cooperation with the NBA and focus on basketball, a significant increase in brand awareness and product sales.
In the past three years, Pick's sales once again return to a high-speed growth track, always maintain more than 80% growth, an increase of more than the same period of Li Ning and Anta, "the number of Peak stores in southern China from less than 2004 40 have grown to more than 400 today. "
But Pick in terms of size and competitors still have a big gap. According to the data provided by the company, Pick in 2008 sales revenue is more than 10 billion, while Li Ning last year's revenue of 6.69 billion, Anta last year's revenue of 4.63 billion. This can not but let Pick seek new impetus in the development of the highway.
In fact, the rapid development of Peak in recent years has been the concern of PE. August 2007, Sequoia Capital had invested Peak Group, 7.8% stake. In 2008, Peak introduced the investment of private equity funds such as CCB International and Shenzhen Innovation Investment.
At the third round of funding conference on April 22 this year, Xu Zhihua said that in order to maintain sustained growth, the new financing will not only expand the sales network, but also increase the types of products and gradually involve running, women and soccer Other sports market. Peak since last year began large-scale access to first-tier cities, there are currently 20 stores in Beijing. "After financing, the funds are mainly used for brand building and channel construction. There will be 1,000 newly opened specialty stores this year. The international financial crisis will be a good opportunity for us to enter the first-tier cities from the second and third tier cities. The accepted financing will be enough to support our future Years of development, "Xu Zhihua said," Pick in basketball shoes market share in China by nearly 10% higher than Nike, then Pick will be running and outdoor sporting goods market moderate expansion this year plans to set up a global R & D center in the United States. "
The financing, the company received Sequoia Capital, CCB International and Legend Capital, the three private equity firms nearly 60 million U.S. dollars in the third round of investment.
Although venture capital provides ample funds for the company, but Pick obviously need more capital to complete the brand and channel blood growth.
In Xu Zhihua view, the sports industry has entered the stage of the scale of victory, listing and financing to get Peak get rid of chasing soldiers. It is understood that from the beginning of 2005, Pick's turnover average annual growth of 70% to 80%, while in 2008 the company's turnover growth more nearly doubled. According to industry survey shows that since 2007, Peak basketball shoes market share has reached China.
The pace of domestic expansion in no way inferior to Peak. In 2008, Li Ning revenue 6.69 billion yuan, an increase of 53.8%; Anta turnover 4.63 billion yuan, an increase of 54.8%; China's trend of sales of 2.32 billion yuan, an increase of 94.2%; special step income 2.87 billion yuan, up 110%.
In the capital market, Pick's pace is less than rivals. Anta, Xtep, Hongxing Erke has long been listed on the HKEx Exchange. Recent news that Credit Suisse and Merrill Lynch have been appointed responsible for the 361-degree listing plan. In response, Xu Zhihua said the above financing is Peak before the last round of financing, the company has been the Hong Kong Stock Exchange qualification certification, ready to start the IPO.
However, due to the continued downturn in international capital markets, as early as in 2007 to declare the IPO intention Peak has so far failed to meet its wish. Although some time ago, the capital market is getting warmer, but there are market participants that are not the best time to market. "Specific timetable for listing, to wait for our new board meeting after the decision, we will not change the decision to go public overseas," Xu Zhihua said. Peak eager to get more space for display is still waiting patiently.