PEAK Seeks International Development Based On Domestic Market

Yesterday, PEAK CEO Xu Zhihua said in an interview that the Chinese market is still the main market of PEAK, and this year the company will seek international market on this basis.

PEAK's R & D center and sales team in Losangeles have been established. At the same time, about 1000 new stores will be opened in the country this year, accelerating the entry into the domestic primary market. In addition, our reporter learned that PEAK, which has always adopted the mode of distributor agent channel, will consider the trial run at the end of the year.

　　 Raise profits without fear of Lining and XTEP

Wang Rong, a joint securities analyst, pointed out that despite the shadow of the financial crisis, how to increase the profitability of the sales volume is still a major task for many garment enterprises.

On the 17-20 day of May, PEAK (01968.HK) held 2010-2011 years of new winter and spring ordering meeting. Xu Zhihua told reporters that the order for the first three seasons of the group will increase by 30% compared with the same period last year, of which third orders will increase 10%. From the current situation of the winter and spring order meeting, the order growth will still maintain two figures, and gross profit margin is expected to increase by one percentage point this year. Cai Jiahao, chief financial officer of PEAK, said that the company plans to add 100 new NBA stores, and now has 16 stores. Its average selling price is 30% higher than that of other companies.

With regard to the declining trend of clothing profitability, Xu Zhihua believes that the profit margin of dealers has declined, but the level of profits has improved, and the overall level of the company is still on the rise. At the same time, Xu Zhihua also said that in the domestic sportswear brand, PEAK ranked behind Lining and XTEP. In the face of strong domestic rivals and overseas sports giants such as ADI and Nike, he thought competition was inevitable, and indicated that PEAK's basketball brand positioning is accurate, which is the biggest advantage compared to the competitors.

Reporters learned that XTEP currently has about 6200 stores in the country. At present, the company plans to increase the proportion of proprietary stores to shorten the intermediate links and reduce costs. The exact message that PEAK, which relies entirely on regional dealer channels, will consider testing the water outlets at the end of the year, but Xu Zhihua did not admit in the interview. The sales target increased by 35% in 2010. The company's management expects that the industry scale will increase by 20% in the year to 2010, while PEAK's sales will increase by 35%. The company's management revealed that the same store sales increased from 17% in the third quarter of 2009 to 18% in 2009 Fourth.

　 Overseas expansion and Nike contend

The marriage with the international team has made PEAK taste the sweetness. Through sponsoring NBA players and PEAK to transform from Jinjiang to the global perspective, the company plans to expand the US retail market this year.

Xu Zhihua said that PEAK will open about 1000 new stores nationwide this year, accelerating the entry into the domestic primary market and competing with foreign brands such as Nike. At present, PEAK has more than 6500 stores in the country, most of which are located in two or three line cities. PEAK chairman Xu Jingnan revealed that within 5 years, PEAK's sales plan reached more than 10 billion yuan. Xu Zhihua's sales channel expansion strategy also includes overseas markets. He said PEAK's sales branch and product research and development center in Losangeles are located in Losangeles, becoming the few sporting goods companies in the Nike base camp. Previously, PEAK has established 3 R & D centers in Beijing, Guangzhou, Quanzhou and other cities. Xu said, at present, the company is negotiating with several large retailers in the United States, and is expected to open in the United States in the second half of this year. Previously, Li Ning Co set up its first store in Portland.