At the right time, last night, Xtep announced the fifth five-year plan of the group in the future (referred to as the "Fifth Five-Year Plan"). By 2025, Xtep's main brand will achieve revenue of 20 billion yuan, with a compound annual growth rate of 23%; The new brand revenue totaled 4 billion yuan.
From the positioning of "mass consumption market expansion", because the product unit price is not high, it also has certain brand power; Products have a sense of design and good quality; The channel layout has always been dominated by third-and fourth-tier cities, and Xtep invisibly fits this new consumption gap.
The five-year plan is improving and the policies are favorable. Has the time of Xtep come? This paper attempts to interpret Xtep's "Fifth Five-Year Plan" and analyze Xtep's future growth space and core competitiveness.
According to Xtep's "Fifth Five-Year Plan", Xtep is building a main brand oriented to "sports+fashion", that is, professional sports and sports fashion two-wheel drive, corresponding to the mass sports market and the national tide market respectively. As a sports brand that has been established for 20 years and sank in third-and fourth-tier cities, this is a redefinition of the brand. Then, in the case that Anta, Li Ning and other major brands firmly occupy the top spot, what opportunities does Xtep have in the mass sports market? Can the concept of national tide bring new growth space for Xtep?
Sports brands must have sports genes. Xtep's sports gene mainly lies in running.
Combined with the policy and related survey results, running is still one of the most competitive areas for sports brands in the next few years.
According to the National Fitness Plan (202 1-2025) recently released by the State Council, by 2025, the total scale of the national sports industry will reach 5 trillion yuan, and the proportion of people who regularly participate in physical exercise will reach 38.5%. It is clearly pointed out in the plan that the measures to be implemented will include increasing the supply of national fitness venues and facilities; Extensively carry out national fitness activities; Stimulate the vitality of sports social organizations (including running).
At the same time, Shanghai's latest "2020 National Fitness Report" shows that running ranks second among the physical exercise programs that people often participate in, and the proportion of respondents who choose "running" is as high as 43.3%. Among the respondents aged 65,438+09-49, running is the most frequently participated physical exercise program.
Correspondingly, for sports industry companies, the running equipment market is also an attractive big cake. Taking running shoes as an example, according to the calculation data of iResearch and soochow securities, the total scale of core runners and mass runners in China reached 400 million as early as 20 19, and the market scale of running shoes reached about175 billion yuan in 2020.
Faced with such a Red Sea market, domestic sports brands including Anta, Li Ning, Xtep and 36 1 degree have made great efforts, such as the launch of Li Ning? Running shoes series, Anta launched running shoes series, etc. But in this vertical field, Xtep seems to have built a deeper moat, which has both product strength and cost performance.
This is first reflected in the recognition of Xtep running shoes by elite marathoners. Among the top nine men in the 202 1 Xuzhou Marathon, seven are wearing Xtep 160X PRO running shoes, and the other two are wearing Nike running shoes.
Elite marathon runners' recognition of Xtep comes from product strength. Take Xtep 160X 1.0 running shoes as an example. According to the research report of Guotai Junan, Xtep running shoes have scored more than 95 points in the evaluation of RUNNER'S WORLD, a world-class professional evaluation organization.
On the other hand, among similar racing running shoes, Xtep's ultimate cost performance has also attracted many fans. Guotai Junan research report shows that Xtep, Nike and Li Ning are the most common brands worn by elite athletes considering the running shoes worn by China Marathon in recent years. Among them, the average price of professional racing running shoes of Nike and Li Ning is about 2000 yuan, while the highest price of Xtep 160X series with similar performance is only about 1000 yuan.
Behind the product strength is Xtep's R&D investment for many years. As early as 20 15, Xtep established the Sports Science Laboratory. According to reports, the laboratory covers scientific research equipment such as 3D foot scanner, infrared high-speed motion capture system and mechanical analysis system. It is the first exclusive R&D center in China sports industry that specializes in testing, designing and developing shoes for running.
In terms of expenditure, Xtep's R&D expenditure rate continues to rise, from 2.3% in 20 15 to 2.7% in 2020. Compared with Li Ning and Anta, its R&D expense ratio is higher.
The number of patents is an important indicator that directly reflects the achievements of R&D investment. According to Tianyancha's information, as of July this year, among several major sports brands in China, Xtep's patents are second only to Anta, accounting for 1093.
In the future, Xtep will have a certain first-Mover advantage in the market competition in the fields of running shoes, clothing and equipment, and it is expected that Xtep will still maintain its leading position in the industry.
In addition to running shoes, clothing and equipment products, Xtep is also building a running ecosystem. In 2007, Xtep began to comprehensively lay out the running field. In 20 12, Xtep established the "Tepao Family", which is one of the largest and most active brand running groups in China. It tries to build a running ecosystem by providing new product promotion, training, competitions and other running services through special runners with about 65,438+0,000 members at present.
In addition, according to the "Fifth Five-Year Plan", in the future, Xtep will deeply cultivate the major brands in the mass market, in addition to focusing on running to drive the market, it will further expand its business in the fields of basketball, outdoor and comprehensive training, and raise the product price to more than 1,000 yuan, or it will provide Xtep with new revenue growth space.
"National Tide" is undoubtedly one of the hottest topics among consumer brands in recent two years. According to the report "Baidu 202 1 guochao proudly searches for big data", the search popularity of guochao has increased by 528% in the past ten years.
In the "Fifth Five-Year Plan", Xtep also clearly expressed its ambition in the field of fashion sports, and the national tide is naturally an important starting point for Xtep to play sports fashion.
In fact, as early as 20 19, Xtep brought a variety of trendy products with bright colors and bold designs to "London Fashion Week".
Xtep has been moving frequently in the national tide recently. In May this year, Xtep and Shaolin jointly cooperated with Tmall Super Brand Day, held a large-scale fashion show in Shaolin, and launched a brand new high-end brand XDNA. Subsequently, Dilraba, a popular flower, signed a contract to become a brand-new spokesperson.
The data shows that the post-90 s and post-00 s have become the main increments of national consumption. According to the plan, Xtep will expand the national fashion market through cross-border joint name and innovative design, which is an important way to please young people at present.
It is worth noting that the children's business after Xtep reorganization will also become an important driving force for the development of its fashion movement. At present, the main target group of Xtep children's business is the generation after 00, which is the main increment of national consumption, which is conducive to the generation after 00 to build their minds and enhance brand awareness. When the group grows up after 00, Xtep is expected to harvest a group of loyal consumers with economic strength.
From the public data, Xtep children's business has grown significantly. As of June 30th, 20021,Xtep Children had about 1000 retail stores in Chinese mainland. During the 20021June/August shopping festival, Xtep children's online sales increased 150% year on year.
According to the "Fifth Five-Year Plan", Xtep's children's business needs to contribute 3.5 billion yuan, and the compound annual growth rate needs to reach 37%, which is higher than 2 1% of Xtep's adult business, which shows that Xtep attaches importance to children's business.
The main brand is the foundation of Xtep's growth in the next five years, and channel upgrading will become an important means for the main brand to achieve growth.
In terms of offline channels, according to the plan, "urban attack, shopping center preemption" and "digital operation" are the key words of this round of channel upgrade.
Specific to the number of stores and the monthly opening efficiency, Xtep predicts that by 2025, the annual net number of Xtep adult stores will reach more than 1.5 million, and the monthly opening efficiency will reach 250,000; The number of Xtep children's stores will reach 1 0,000, and the efficiency of monthly stores will reach10.5 million.
In terms of store layout, Xtep will deploy trendy stores in the first-and second-tier markets, doubling the number of stores. The first fashion store will open in the fourth quarter of this year. It is estimated that by 2025, there will be 300 trendy shops and 300 running shops. In third-and fourth-tier cities, Xtep will increase the density of stores in some areas and further stabilize the market share through channel structure optimization measures such as expanding area and optimizing retail space.
In terms of store structure, Xtep plans to increase the proportion of stores in shopping centers (Shang Chao+Ole+trendy) to 38% by 2025, while the proportion of independent stores (street shops+running shops) will be 62%.
It is worth noting that unlike most other well-known sports brands, Xtep does not intend to be too "radical" in DTC strategy.
DTC faces consumers directly, and aims to guide manufacturers' design, production, product selection and marketing in a reverse direction, centering on consumers' needs. Brands including Anta and Adidas are vigorously developing DTC strategy. Among them, in 2020, Anta officially launched a comprehensive DTC mode transformation, and launched a mixed business model in China 1 1, involving 3,500 stores, of which about 60% were directly operated by Anta, and about 40% were operated by franchisees according to Anta's new operating standards.
In contrast, according to Ding, Chairman of Xtep's Board of Directors, Xtep attaches great importance to DTC, but it will not take back its agents' direct operation in the short term, and will provide them with training in this way.
Following the agency model may enable Xtep to develop its business at lower cost and risk. After all, the large-scale DTC transformation based on the agent model will help to increase revenue and create profits in the long run, but it may be difficult to avoid additional costs in the short term, and the operation and management of stores will also increase. For example, in the third quarter of last year, in order to transform to DTC mode, Anta spent as much as 2 billion yuan to acquire 1 1 dealers.
Online is more like the main battlefield of Xtep force DTC. Statistics from the National Bureau of Statistics show that the proportion of online retail sales of physical goods has increased year by year, and it has increased to 24.9% in 2020. When e-commerce has become an indispensable channel for national consumption, Xtep also intends to carry out omni-channel layout online, including increasing the layout and investment of social e-commerce, new product investment, top product creation, IP marketing and so on.
Online and offline omni-channel upgrades are closely related to the expansion of members. According to the plan, Xtep main brand members will exceed 65 million in 2025.
In addition to the development of main brands, the market is generally concerned about Xtep's multi-brand operation, which is a bigger growth space in the future.
In 20 19, Xtep acquired the operation rights of sports fashion brands Gaishiwei and paladin, as well as professional running and outdoor brands Sokoni and Maile in Greater China. At this point, Xtep has formed a brand matrix covering mass sports, professional sports and fashion sports.
In June this year, Gao Xian invested HK$ 654.38+0 billion in Xtep, of which about HK$ 500 million was used to develop the global business of "Gaishiwei" and "Paladin" brands. As of June 30th, 20021,Gaishiwei has 44 self-operated stores in the Asia-Pacific region. Gaishiwei's first self-operated store in Chinese mainland is expected to open in early 2022. On the other hand, paladin focuses on optimizing the retail network in China and improving the efficiency of stores. By June 30th, 20021,paladin had 57 self-operated stores in Asia Pacific and 3 in Europe, 25 of which were located in China.
For Suokangni and Maile, by 2025, Xtep plans to increase the number of stores in Suokangni to about 200, with an average store area of more than 45%, and the ratio between offline and online is 60:40.
In the future, Maile will become an important driving force for Xtep outdoor sports business growth. Outdoor sports is a market with great growth potential in China sports industry. The research report of Industrial Securities shows that the retail scale of China's outdoor sports market is about 25 billion yuan, and the per capita consumption of 20 yuan is less than 20%. The development of outdoor sports in China is still in the primary stage. In countries with more developed outdoor sports, it has entered a stage of high penetration, such as the United States, where the outdoor participation rate reaches 50% and the per capita consumption of 430 yuan.
Low permeability means higher growth space. Therefore, major domestic sports brands have laid out this market by acquiring foreign brands. For example, Anta acquired outdoor sports brands such as Disante, Kelon, Archaeopteryx and Solomon. However, at present, the outdoor sports market in China has not formed a brand monopoly, including Xtep, Anta, Li Ning and other brands all standing on the same starting line, and Xtep has also obtained the qualification through Maile.
What reference:
Guotai Junan Xtep International: maverick, non-stop; Soochow securities Xtep International: The light of running shoes will make Guochao brand base, and multi-brand and multi-category operation in the future.
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