Analysis: How Did The Expansion Of Overseas Markets Take The Road Of Internationalization?

The term "Besieged City" is used to describe the country.

The consumer market is just right, but the international brands want to kill them and take the Greater China as their most important market. Local enterprises are unwilling to stick to this land. They want to go out.

This big domestic brand originated in Jinjiang, Fujian. Last year it tasted good in overseas market development.

According to the 2016 earnings report, the sales volume of overseas business increased to RMB 80 million 700 thousand yuan, up 80.54% compared to the same period last year.

Among them, overseas line products Sensation series running shoes are popular in the North American market. They have been listed in the US authoritative monthly runners' world Runners world, and overseas businesses are helping to enhance brand influence.

Liu Wenting, director of media and digital marketing, said: "361, it is the Arabia number, which is the common language in the world. Therefore, in the brand symbol, we can guarantee that in the process of globalization, there is no resistance to brand identification."

Public information shows that Huafeng shoe factory, which grew up in Jinjiang's family workshop in 1983, is the earliest predecessor of the 31st degree.

Since then, the shoe factory has been renamed as "all things happy". In the early stage, it imported equipment from Taiwan to produce tourist shoes, and later began to produce sports shoes, which once occupied a place in the Chinese market.

Until 2003, the company changed its name to 31st degree in the market, and soon after that, the brand became one of the top three domestic sports shoes.

In June 2009, 31st degree was successfully listed in Hongkong.

As of last December 31st, the group had 6357 shops throughout the country.

Among them, running shoes and children's clothing products are the main growth points of this brand.

In the words of 31st degree, domestic business has laid the foundation for international development.

In 2014,

Its entry into the overseas market is the functional high-end running product.

The choice of running products for overseas expansion stems from two considerations: firstly, running products are the first category and core growth point of the brand strategy. This is the internal reason; and from the external factors, the global hot runner is still running, and the running consumer market has great demand.

In the past two years, with the advantage of cost performance and the design and development of overseas product lines, Sensation series running shoes have received a good response in North America, and the output of running products has achieved initial success.

Sensation series running shoes

Obviously, a pair of running shoes is not enough to "impress" the global market.

The all-around internationalization strategy behind the brand includes the deployment of overseas branches and sales networks, mergers and acquisitions of overseas brands, design and research team formation and marketing promotion.

According to the data provided by the company, as of last December 31st, 360 degrees had 1017, 264, 67 and 20 sales outlets in Brazil, the United States, Europe and Taiwan respectively, and covered Europe, Germany, France, Austria, Switzerland and other countries in Europe.

Meanwhile, at the end of last year, the layout of the three major overseas branches, including the United States, Brazil and Europe, will be completed at 31st. It will directly manage the business of the three major regions, and other regions will open up the market in the form of distributors.

The acquisition of Nordic outdoor brand OneWay in 2013 is another move in the 360 global strategy.

This Nordic brand is mainly used for outdoor sports products such as skiing, cycling, mountaineering and so on. Although it is still unfamiliar to domestic consumers, the brand has wide popularity in the Nordic winter outdoor sports market, and has mature experience in product development and other aspects.

According to the explanation of 31st degree, there are two reasons for acquiring OneWay. First, we should make up for the product line lacking in brand, and then understand the operation mode of international brand.

It is worth noting that with the opening of the Winter Olympic cycle in Beijing, the domestic ski outdoor market is expected to usher in a boom in the future. The brand of OneWay and 360 will undoubtedly benefit.

Due to the existence of cultural differences, the cognition and demand of products in overseas markets have their particularity. The introduction of overseas designer resources has become one of the essential conditions for the expansion of local brands.

The 31st degree overseas product R & D and design team is mainly stationed in the Taiwan design center, responsible for product R & D and focusing on runners in the international line. There is no shortage of former designers from Nike, Adidas, Arthur and Puma.

Emphasis on R & D is the means to enhance the competitiveness of products in essence by sports brands. As to whether these overseas designers can bring improvement, Liu Wenting responded, "overseas team design, and engineering, he may be ahead of domestic designers, have more professional knowledge, and provide better input for our running shoes products and other products, especially engineering and fitting performance."

For example, the design of the Sensation two generation running shoes is lighter, including the back of the shoe and the tongue, which are adjusted in terms of engineering and structure to improve comfort. This is an important factor in running shoes.

In addition, brand designers continue to develop functions such as shock mitigation, functional perspiration and thermal insulation.

After the product development and sales channels, the marketing level action is equally indispensable.

During the Olympic Games in Rio, 360 degrees as official support providers provided clothing for volunteers, technicians, medical staff and event service personnel.

This move helped brands enter the South American market. The number of stores in Brazil increased by more than 100% from the end of 2015, reaching 1017 at the end of 2016.

In addition, the company has become a partner of Guangzhou Asian Games, Ping Pong Super League, Shenzhen Universiade and Inchon Asian Games.

Outside evaluation, high-density participation in large-scale events brand activities, so that it can match the first tier Lining and Anta.

It is the official clothing supplier of Rio Olympic Games.

A series of international layout is all over the surface, but there is no shortage of 331 degrees.

The brand helps overseas designers to overcome the difference of regional consumption demand, but it still takes time for the product to be recognized, and there are still some difficulties in the targeted marketing input and the pace and speed of expansion.

At the same time, the current 360 degree overseas line products focus on the development of materials, and the bright scientific and technological achievements are lacking. From R & D to income, it takes time to pform.

It is noteworthy that, thanks to the big wave of sports industry, the revenue growth of 331% last year increased by 12.6% to 5 billion 23 million, but the net profit attributable to parent company fell by 22.2%, which worries many investors.

Obviously, solving the problem of "internal suffering" is also a problem that needs to be paid attention to in the process of accelerating overseas expansion.

In fact, not only is the 31st degree, but many domestic sporting goods giants are concentrating on overseas markets, and the internationalization consciousness is universally recognized by the industry.

Among them, PEAK's overseas business has the largest market share. In the first half of 2016, its overseas market revenue accounted for 22.8% of the total turnover. The brand established in the United States has more than ten PEAK players signed by NBA, and sponsored the first Spanish Basketball World Cup. This basketball strategy has made PEAK succeed in brand export.

In addition, Anta, a local giant brand, accelerated the internationalization process by buying Italy brand FIE and outdoor brand brand.

NBA hawks star Howard is PEAK spokesman.

Facing a crowd of sports

One of the reasons for gambling in overseas markets is that the domestic sporting goods market has been saturated and there is little room for market growth.

In view of this, the sports industry is supported by policies, sports consumption demand is obvious, and the development of domestic market will not be worried.

In the near future, the 360 degree internationalization strategy will continue to promote brand development in emerging markets such as the Middle East and Southeast Asia.

Its short-term goal is that overseas business revenue will account for 10% of total revenue in the next five years.

Although sales of overseas business increased by 80.54% last year, it accounted for only 1.6% of total sales.

Zhang Qingceng, the founder of the key road sports consulting company, pointed out that the internationalization of channels and the internationalization of the brand are very difficult. "To achieve the internationalization of the channel, the sales of its overseas markets should be above 20%."

Obviously, the internationalization process is still in the exploratory stage.

For more information, please pay attention to the world clothing shoe and hat net information report.