He Ruibo: Cross-Border Marketing, Beachline Two Or Three Lines

< p > in the office building of Ruian center in Wanchai, Hongkong, He Ruibo, executive director of XTEP International Holdings Limited, CFO and company secretary, explains XTEP's capital operation and diversified investment promotion and income balance.

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< p > < strong > cross boundary marketing, beheading two or three lines < /strong > /p >

In January 2010, XTEP became the first Chinese sports brand sponsor to appear in the Premier League, one of the top professional football leagues in the world, and has written a historic page for Chinese sports brand. P

Besides the sports world, XTEP's brand spokesperson is also very entertaining, such as Nicholas Tse, Willber Pan and Jolin.

XTEP's "cross-border marketing" offensive is like its slogan - "flying general" feeling, it is a bit "not ordinary".

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< p > He Ruibo said that XTEP's position has always been the brand of fashion sports. Its emphasis is on the concept of "entertainment marketing", with the premise of entertainment and sports.

XTEP is also a part of sports. XTEP has been promoting the running market since the end of last year. We feel that running is a challenge for ourselves. There is no space, time and age limit. This market is very large. XTEP has been doing a target= "_blank" href= "//www.sjfzxm.com/" > shoes < /a > for 20 years. This will be promoted as the core, such as sponsoring the juvenile marathon and Xi'an marathon. Third, in advertising, market monitoring, the ratings of TV stations are the highest, so XTEP will concentrate on putting resources here, naming sponsorship "day to day" and other programs. Besides, it also includes the TV programs such as Southeast China's pop music list. "We have three directions in the promotion of time. The first is the large-scale events and international events. We will sponsor such events as the National Games and this World Expo; second

In He Ruibo's view, even across the board of cross-border marketing, XTEP's direction in sponsorship and advertising is also very clear, not "wave" investment.

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< p > "most of our products are priced between 100 yuan and 300 yuan RMB, and the target market is mostly concentrated on young consumer groups, and most of them have this spending power. At this time, prominent brand positioning is crucial."

He Ruibo believes that in the face of strong competitors such as Nike, Adidas and Lining, it is difficult for XTEP to make use of its previous sports brand < a href= "//www.sjfzxm.com/news/index_c.asp" > marketing /a mode, so we should take another road to cut from the happiness of target consumer groups. For example, young people like to listen to music and watch entertainment programs, so XTEP has made some famous endorsements.

"Even looking at us, LOGO is a contrasting" X ", which is a very important image positioning.

In his view, the positioning of XTEP's fashionable sports brand has caught the mentality of young people very well.

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In the geographical selection of market share, XTEP also avoided competition in the first tier cities, but chose China's developing provinces such as central China. P

It is reported that most of the retail market of the first tier cities is close to the saturation point of the sports goods industry, while the two or three tier cities are subject to the economic growth brought about by the continuous urbanization in China, and the growth rate of their consumption capacity has steadily increased.

According to the National Bureau of statistics, the growth rate of GNP in China's two or three tier cities in recent years has been consistently higher than that in the first tier cities such as Beijing, Shanghai and Shenzhen. Especially the growth rate of over 13% of Hunan, Hubei and Anhui provinces has become the leader of the national economic growth.

The rapid economic development has driven the pfer of capital and labor to the two or three tier cities, and consumer demand has increased rapidly, thus creating greater market space. XTEP has also chosen to take the lead in the two or three line market.

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< p > according to the 2009 financial report, XTEP's revenue in 2009 was 3 billion 545 million 300 thousand yuan, an increase of 23.7% over last year, gross profit margin increased by 2 percentage points to 39.1%, and net profit margin increased 0.6 percentage points to 18.3%.

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< p > when it comes to how to balance the relationship between investment and income of brand promotion, He Ruibo laughs, "many investors will ask this question."

He Ruibo admits that it is difficult to decide which advertisement the product's revenue comes from.

But XTEP has a set of strategies in putting advertisements into practice. First, do market research to determine which media information the target consumers will tend to; then do target budgets. Too much investment will affect profit margins. Too little investment will affect future earnings. The percentage of advertising revenue before XTEP will be a single digit, and after the launch, the advertising budget plan has reached 12% of the total revenue.

"Being the exclusive sponsor of the Bermingham football team and becoming the principal partner of the volunteers in World Expo, Shanghai, is the best proof of XTEP's brand effectiveness."

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< p > despite the great success of China's light asset operation mode in the field of "fashionable sports", XTEP still insists on the "vertical integration" mode.

He Ruibo believes that every company has its own background. XTEP chairman Ding Shuibo has 20 years of experience in the industry. She used to be a OEM manufacturer and help some European companies to make OEM processing, so XTEP has the technology and plant like precipitation.

XTEP itself has production capacity, so there is no need to give up the production line. The cost of manufacturing itself is certainly cheaper than outsourcing.

In addition, this production capacity has great advantages in the face of market growth, and does not cost much in the supply chain.

He Ruibo is very optimistic about XTEP's vertical integration mode, that is, not entirely 100% of its own production, but a certain production capacity can withstand the unknown crisis.

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< IR > < p > < strong > IR under difficult IPO > /p >

< p > from Heng An to Anta and then to XTEP, the Jinjiang plate of Hongkong stock market is known far and wide.

In June 3, 2008, XTEP landed on the main board of the Hong Kong stock exchange. Although the first day of listing suffered a small embarrassment from breaking the issue price, in the atmosphere of Beijing Olympic Games, XTEP's listing still attracted enough eyeballs in sports and consumers.

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Prior to joining XTEP in 2007, He Ruibo had already enjoyed two successful IPO successes in CFO's career life, so he was very familiar with the operation of Hongkong's capital market.

After studying and working in the UK for some time, He Ruibo returned to Hongkong in 1994 and served as an audit manager in the Ernst & Young. In the 10 years after that, he served as a finance major in the new world group, Founder Digital and Gulf holdings, and participated in the backdoor listing of Founder Digital and IPO of the Bay holding company in Hongkong.

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In 2000, he began to work in the mainland and joined the founder group of Peking University, just in time to catch up with the two subsidiary companies of Hongkong to plan to go public in P.

This valuable experience of running in makes He Ruibo realize for the first time that there are many differences between the management of mainland enterprises and the operation of Hongkong and western enterprises.

Starting in 2005, He Ruibo, who is more and more adapted to the mainland's corporate culture, has joined the Gulf holding company with the largest market share in the field of fire fighting equipment in China, and has spent two years helping Gulf holdings to list in Hongkong.

In 2007, through the recommendation of friends, He Ruibo came into contact with XTEP, who is actively preparing for listing in Hong Kong.

He Ruibo, who has rich experience in investment and financing, has been interested in this industry rapidly.

In He Ruibo's view, China's future retail industry is able to share the best industry in its gold growth cycle, while sports a target= "_blank" href= "//www.sjfzxm.com/" > clothing "/a" products are also healthy, customers are large, and the public price can also be withdrawn and purchased.

At the same time, He Ruibo very much agreed with XTEP's fashion movement position, so he decided to join XTEP immediately and take over the preparations for the listing.

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