Abstract: in the precise positioning of the product. "We don't do 299 of our customers. That's the customer of Anta and Lining. But you want to find an international brand in 399, 499, you come to me. But I won't go down to 299. That's someone else's customer. " Chen Weili said:
In March 25th, Cage's first brand experience shop in China opened in Chunxi Road, the largest business circle in Chengdu. Although the store is on a branch, you can notice the brand Logo from a long distance.
Photography: Dong Zhifei
The shop has an area of 1300 square meters, divided into four regions, and the style is incompatible. To say shop decoration level, it is far worse than Nike and Adidas. In the black and white fashion area and the candy - colored children's area, you have an illusion of entering a different shop.
Nevertheless, CEO Chen Weili of Cage, China, Hongkong and Southeast Asia and Korea limited still feel that this is the best way to show their strength to the southwest market. He is very happy about the layout here: because the space is big enough, the sneakers can be fully displayed, extending from a display board of ordinary shop to four.
Skech China, which has entered a rapid growth in 2014, is now able to contribute nearly 1/4 of the global sales to the world. In 2016, Cage sold 6 billion 500 million yuan in mainland China, an increase of 89% over the same period last year, and the same store sales increased by 25%, almost 8 times the same store growth in the world.
Chen Weili, who has a Cantonese style Mandarin, can skillfully and taboo report a series of business figures: "6 billion 500 million is our retail sales, and our company's revenue is 3 billion. Our net profit is about 1 billion 500 million (mid double-digit), which is what I can say... There are 150 stores, with an average of about 400000 per store. "90% of our shops are profitable," he stressed. Skech has 2260 stores in China now!
Skech Tan (Willie Tan), chief executive officer of Skech China, Hongkong and South East Asia and South Korea Ltd.
In the United States, Cage's sales in 2016 were $3 billion 560 million, an increase of 13% and a net profit of $243 million, an increase of 5%. This has passed its most glorious time - its annual sales growth has grown by more than 30% in the first three years.
In May 2015, Skechers accounted for 5% of the US sports shoe market, second only to Nike. However, this trend did not last long, because Skech's performance declined due to the deceitful advertising and the decline of American sports brand channel. At present, it expects the growth of US domestic wholesale sales in 2017 will stagnate.
Cage's conservatism is reflected in its dividend dividend. Management is very resistant to this, so much so that the company's accounts have too much cash (more than $719 million). Analysts warn that Cage is now underutilized because of his assets, so the market value is undervalued and may become a bid.
Figure Go Walk fourth generation for walking shoes
Chen Weili hopes the number of its new stores will reach 1000 this year. He said the state of the company is "rapid development". Before the end of 2018, there will be more than 4000 shops in Cage's China.
To maintain this growth, Chen Weili believes that his success is built on the precise positioning of the product. "We don't do 299 of our customers. That's the customer of Anta and Lining. But you want to find an international brand in 399, 499, you come to me. But I won't go down to 299. That's someone else's customer. "
Chen Weili thinks, "Anta Lining above, Nike ADI below" market vacuum belt is the best space for Cage. Skech sales two best of the series, D lites and Go Walk shoes' panda pair of walking shoes the price, not more than 700 yuan; after a series of price between 279~599 yuan. As a whole, the price of Cage's shoes is mainly between 399 and 699, the highest price is 1249 yuan (more than one thousand yuan of shoes, only 4).
This is indeed a more subtle price space. Not only to avoid the many competitors, but also to meet some of the pursuit of cost-effective consumers -- such as students or just to participate in the work of young people, there are some elderly people, they do not want to spend to buy a pair of shoes Yiliangqianduo sneakers, but may not love too popular, Lining localization of Anta brand.
In fact, if you look at Cage's product line, you'll find that there are two features different from most of the same price or lower priced sports brands. One is that the female product line is obviously more; and the second is that it is also a new and very fast company from the overall number.
Skechers. If you can't put one like it -- is seen as tainted fast positioning and competitor to launch a variety of long products. Skech's design headquarters in California, United States, will launch more than 3000 shoes per year, more than ten thousand SKU (inventory units).
Skech is friendly enough for women, and in the Chengdu franchised store, women and display space are generally much more than men. When the man is still most of the sports brand's main, Cage China has more than 65% of its income from female sales, sales of only 35% compared to men.
This may be related to the performance positioning of Cage's product. Unlike Adidas, Nike and other brands in sports specialties, Cage emphasized "comfort", "health" and "make everyone happy." They join on comfort memory foam in the shoes, and put the consumer description into a mild movement for example to record their steps in WeChat's people, the elderly and follow (Sport wind) trend of young people, which also happens to be the female users relatively small amount of exercise with the shoe demand.
"Everyone has a model of everyone. Our shoes have technology and function. We are the first to take very light shoes to China...
In the United States, according to the analysis of NPD Group analyst Matt Powell Skechers, most of the growth has come from walking shoes and casual shoes. "Walking is relatively quiet for years, and they (Skechers) rekindled the demand." This is indeed a field that companies like Nike don't pay much attention to.
But now, Cage will not take the initiative to use older users as their own propaganda point, they are desperate to close to young people.
Skech, vice president of China market and store development department, told reporters that in recent three years, its marketing expenses in China increased at a rate of 30% per year. In 2017, it is estimated that it will cost 200 million yuan in advertising and marketing in 2017. Last September, they asked EXO to be a spokesperson. The purpose of all this is to attract the youngest generation of consumers.
At the moment, Chen Weili feels that Cage's time in the three or four line city is ripe: "the income has improved over the past two years. The government's plan is to let people go back (from the three or four line city). " At the moment, he says, the expansion of 1000 stores in a year is actually "controlled".
This depends on the promotion of the dealers. Skech has more than 20 dealers all over the country. The amount of relatively large, including AOKANG and BELLE baosheng. The latter two, although they have their own shoes brand, are also involved in sporting goods retail. AOKANG will open stores for Cage and BELLE, and Baosheng is mainly through their own collection of sports goods retail - YYsports and Tao Bo sports city.
Skech will hardly take too much risk in this process. Three years ago, they entered the low - line city market prematurely and opened more than 100 stores, with little performance.
The only problem now seems to be the brand itself. Chen Weili believes that "Skechers" is not a friendly name, and many consumers can't read the word Skechers. But on the outer walls of the Chengdu flagship store, the three words "Cage" never appeared - it also had to emphasize that it was from the United States.
(as requested by interviewees, Chen Jiabao and Zhou Yu are the pseudonyms)
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