Chinese sportswear maker 361 Degrees International Limited (361 Degrees for short) wants to enter the young consumer market, especially in China's frontier markets. In China, a sport that has been gaining momentum, the company has adopted the slogan "Love Once More" when sponsoring sports teams and events. "Brand building is a top priority because everything depends on it," said Ding Wu, 361-degree president, a member of the founding family. "We're investing heavily to sponsor professional-quality events like the Asian Games, Is also sponsoring grassroots activities to increase our brand awareness. "In addition to the global giants Nike and Adidas, 361 degrees and its major competitors Anta, Li Ning, Pick and Xtep, and said China's" top five "Hong Kong-listed sporting goods manufacturing Business, each with more than 7,000 retail stores, and products are divided into footwear and apparel. 361 Degrees is the third largest of the "Big Five" companies, this year it once again with good results boarded the Forbes Asia Best SME list; in the year ended June 30, the company net Profit rose 30% to 1.2 billion yuan ($ 185 million), while revenue rose 26% to 5.5 billion yuan ($ 845 million). After the 361-degree announcement, the stock price rose 15%, although its price-earnings ratio is still lagging behind its competitors (361 degrees attributed it to lack of analysts to follow the stock). In northern China, the 361-degree expansion is relatively smooth with relatively low competition and 40% of its stores are in northern cities. According to the management of the company, its market share continues to grow. The company is also vigorously promoting the western China market, adding 200 to the nation's 7,700 stores. Even more admirable is that 361 degrees in the face of such a good performance achieved in adversity. In contrast, Li Ning and China Dongxiang (a smaller competitor, another small replicator) recently issued profit warnings, causing the above five major sports companies stock plunge. In a paper submitted to the Hong Kong Stock Exchange, China Orient said: "During the rapid expansion period from 2004 to 2008, the sportswear market grew at a staggering 30%, even at 45% during the peak period. After this period, it has now dropped to 10% to 15%. "Ding Wu, now 45, is optimistic about the future of the market as well as his family. In the 1980s, his father-in-law, Ding Jian Tong, opened the first shoe factory in Jinjiang City, Fujian Province. Now that Ding Jiantong has been in his 70s and has long retired, his two sons and son-in-law have broadened their horizons to build a new enterprise, which is now 361 degrees. The two sons are still active in the management of the company: Ding Huihuang, 44, is chairman of 361 Degrees International Limited and his younger brother Ding Hui Rong is 38 and serves as a managing director. Each holds 18% of the company's shares, and their two 45-year-old siblings hold 18.75% of the shares and handle media and investor affairs. According to a recent report by China Daily, nearly half of China's shoe makers are from Fujian. Jinjiang City, the population of only 3 million, but the city gathered thousands of family-run sporting goods company. After China's reform and opening up in 1978, local shoe factories sprung up. The 90s of last century, Jinjiang shoe sales in the domestic market so that they become Nike, Adidas and Puma, and other internationally renowned brand foundries. In 2002, 10 million U.S. dollars were borrowed from relatives and the second generation of the Ding family started a new company. The company's brand was created later, and they originally wanted to name it Bieke, but General Motors has already registered the Chinese translation for its Buick line of cars and they had to give up. In 2004, the 361 degree brand was born. Do not worry, this is a long game. 361 degrees into the less competitive runway. Adidas, Nike and Li Ning are located in the high-end market, most of the products sold in major cities such as Beijing, Shanghai and Guangzhou. In contrast, 361 degrees and 72% of stores are in "third- and fourth-tier" cities such as Jinan (6.7 million) and Zhengzhou (7.5 million). In terms of product design and quality, Ding Wu said: "Obviously there is still a big gap between domestic brands and international brands, but the gap is narrowing." The immediate competitor of 361 degrees is Anta, which also comes from Jinjiang. However, Anta began to enter the high-end market by acquiring the trademark rights and business of the Italian brand Fila. But 361 Degrees does not participate in the high-end market, the company focused on saving the cost of the market, by selling stock to distributors, distributors distribute products to retailers around to maintain their own low expenses. This allows 361 degrees to focus on brand management and new product development. The company recently introduced a new sub-brand "Shang" targeting the age group of 18 to 25, who like fashion trends. Last year, 361 degrees to enhance their children's clothing brand, making it the company's total revenue of 4.4%. By cynically treating children as "little emperors", this is one of the outcomes of the one-child policy in China that 361 degrees may rapidly cross the threshold of small and medium-sized enterprises.
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