The financial report shows that in 20 19, Xtep Group's total revenue reached 865,438+83 million yuan, a year-on-year increase of 28%; The gross profit margin was 43.4%, down 0.9% year-on-year; The operating profit was 65.438+0.234 billion yuan, a year-on-year increase of 654.38+0.8%; The profit attributable to ordinary shareholders was 728 million yuan, a year-on-year increase of 65.438+065.438+0%, higher than the market expectation of 702 million yuan; The basic earnings per share is RMB 30.72, with an annual dividend of HK$ 20 per share, with a dividend payout ratio of 60%.
The main financial data of Xtep 20 19 are basically improving, and the total annual revenue exceeded 8 billion yuan for the first time.
What is Xtep's "secret book" for increasing income?
-Move 1- the key to revenue growth
In the financial report, Xtep attributed the substantial increase in revenue to three aspects-strong sales of clothing products, 465 million yuan of fashion sports brands acquired by 20 19, and rapid growth of e-commerce channels by more than 20%.
Clothing category becomes the "main engine" of growth.
In 20 19, the sales of footwear still accounted for the largest proportion, accounting for 56.8% of Xtep's annual sales, but it has dropped by 4.7 percentage points compared with 6 1.5% in 20 18. Clothing category sales accounted for 40.9%, up 4.5 percentage points from 36.4% in 20 18. Accessories sales accounted for 2.3%, slightly higher than the previous year's 2. 1%.
Clothing category not only led the three categories with a sales growth rate of 43.7%, but also increased its gross profit margin by 1.3 percentage points year-on-year to 43.9%. In contrast, in 20 19, the growth rate of footwear sales was only 18.6%, and the gross profit margin decreased by 2.4 percentage points to 43.2%.
It can be seen that clothing has become one of the most important driving forces for Xtep Group's sales growth. ?
On the other hand, as the official partner of "China Marathon" recognized by China Athletics Association and the title sponsor of "Xtep Penguin Run" sponsored by Tencent Sports, Xtep sponsored 53 domestic and international marathons and running events in 20 19, and became the sporting goods sponsor with the most events in China Marathon for the fifth consecutive year, with the total number of sponsors exceeding 800,000. ?
In addition to sponsoring road races on a large scale, Xtep not only signed Jeremy Lin, a famous Asian basketball player, as Xtep brand spokesperson in 20 19, but also became a popular TV program in Chinese mainland. It is the official clothing sponsor of the second season of Street Dance. ?
With the sponsorship of marathon and running events, the endorsement of stars and key opinion leaders and other "three-pronged" entertainment marketing, Xtep has also achieved strong sales growth on the sales side.
The multi-brand strategy has achieved remarkable results.
In the past few years, Xtep has taken various measures to transform its business. Xtep strategy divides sports products into three categories: mass sports, professional sports and fashion sports. As the driving force of steady growth, the main brand has made a special effort to benchmark international sports brands and provide cost-effective products for the mass market. The joint venture with Wolverine will provide high-end sports products for high-level athletes. Gaishiwei and paladin provide sports and leisure products that mainly appeal to the younger generation. It is these two brands that contributed 465 million yuan in revenue to Xtep in 20 19, but their positive benefits are not limited to this.
On the one hand, the acquisition of other brands is conducive to Xtep's brand image update; On the other hand, all brands can generate synergy, especially Xtep's powerful sales network in Chinese mainland and its supply chain covering procurement, design, research and development, production and marketing, and enjoy economies of scale. At that time, Anta rebuilt its brand image by acquiring Phila Greater China.
According to market experience, the acquired brands often need a period of running-in to give full play to brand benefits. Although the revenue contribution of 465 million yuan is not large in Xtep's total revenue, it is enough to show that Xtep's multi-brand strategy has begun to show results. Xtep specifically mentioned in the financial report that the Group is working out a five-year development plan for Gasway and paladin, including brand positioning, products and marketing strategies, aiming at giving full play to their potential and accelerating business growth.
E-commerce channels have grown steadily.
In addition, it is worth noting that among several major operating turnover indicators, Xtep Group achieved good development in 20 19.
Inventory turnover days decreased from 80 days in the previous year to 77 days, average collection period decreased from 105 days to 96 days, accounts payable decreased from 98 days to 88 days, and overall working capital turnover days decreased from 87 days to 85 days. These big data are maintained at a good level in the industry.
In terms of e-commerce, under the background that domestic and foreign sports retail brands are gradually developing digital channels, Xtep's e-commerce revenue accounted for more than 20% of the group's revenue in 20 19, which was more than1600 million yuan, which was at a high level among domestic sports brands.
In view of the impact of the current epidemic situation in COVID-19, Xtep also mentioned in the financial report that "sales will be actively transferred to the e-commerce platform and various cost control measures will be implemented to reduce the impact of the epidemic situation". It can be seen that in 2020, e-commerce channels will play a more important role in Xtep's business.
-Move 2.-Deeply cultivate mass sports?
The data shows that in Xtep Group's revenue, mass sports brands account for the highest proportion, reaching 94.2%.
This is due to Xtep's long-term deep cultivation of the mass sports market. In the past few years, Xtep has chosen marathon events with a large number of participants and good brand exposure for long-term sponsorship. Xtep said in the financial report that Xtep became the sports brand that sponsored the China Marathon for the fifth consecutive year on 20 19, with 52 events, including 36 marathons, 10 Xtep Penguin Race and 4 college road races, with a total participation of more than 800,000, thus establishing contact with the target consumer groups.
Basketball is one of the most popular and fastest-growing sports in China. It is estimated that there are 300 million people participating in this sport in China. In view of this track, Xtep also made efforts from both product and marketing to create a series of "Youyun IV" basketball shoes, and signed basketball player Jeremy Lin as the brand spokesperson. It is reported that the two sides signed a contract for three years, and the average annual endorsement fee is as high as 2.5 million US dollars. Xtep said in the financial report that the move is aimed at consolidating its professional sports brand image among the younger generation in Chinese mainland and enhancing brand awareness.
In addition, the reasons for the considerable income of mass sports include the universality of terminal layout. In 20 19, Xtep added 149 stores. Up to 20 19 12 3 1, Xtep has 6,379 brand stores in Chinese mainland and overseas.
In the second half of 20 19, Xtep launched the e-commerce business restructuring plan to integrate its supply chain operation and offline business and improve efficiency. This prompted Xtep e-commerce channel to achieve a rapid growth of more than 20% at 20 19, which is considered to be a major reason for Xtep's substantial increase in revenue. Because the e-commerce channel has a strong marginal effect, we can expect to achieve further growth in 2020.
-Move 3-"Retail Revolution+Technological Innovation" Combination Boxing
In order to reduce the impact of the epidemic, Xtep Sports Plus was launched in more than 4,000 stores during the epidemic, which accelerated the retail revolution and transformed a number of scientific research achievements that broke through the technical ceiling of the industry into the latest products to meet the demand rebound brought by compensatory and delayed demand in the sporting goods industry after the epidemic.
More than 4,000 stores have launched Xtep Sports Plus, and Xtep retail will usher in a revolutionary breakthrough.
In the face of the epidemic, Xtep actively accelerated the transformation of cloud sales and found an opportunity for retail to achieve a revolutionary breakthrough in the crisis.
An online applet named "Xtep Sports+"has been launched in more than 4,000 stores across Xtep, and the clerk has become the "anchor" of cross-border live broadcast with goods. Xtep Sports+is the cloud store of the terminal store. Terminal shopping guide is transformed into cloud store customer service on small program. You can also continue to serve the mature customer base accumulated offline through a series of online sales methods such as live delivery, realize zero-contact shopping in the same city, maintain continuous connection with customers, and revitalize people, fields and goods resources in a special period.
By Xtep Sports+building a store-specific live broadcast platform, stores can increase the stickiness between brand stores and customers in this special period and maintain private domain traffic well. It is reported that during the epidemic, Xtep arranged more than 100 Xtep sports+small program use training, which better empowered sales guides and improved the on-site distribution ability of shop assistants. Sales transformation directly generates income for shop assistants, so that enthusiasm is mobilized and a positive cycle is formed. According to Sun Jiehui, the manager of Xtep brand Century Building, through the live broadcast of the goods by the clerk, more than a dozen pairs of shoes were sold in just a few minutes, which is much higher than the conversion rate of offline stores.
Compared with traditional terminal stores and online e-commerce, Xtep Sports+and other terminal cloud stores have better performance in sales turnover rate. It is understood that "Xtep Sports+"makes the highest conversion rate of the store reach 16%, and the highest online sales in a single day exceeds 8 million yuan. In addition to Xtep Sports+,Xtep also opened Xtep Micro Mall to develop online distribution business. Xtep Micro Mall can accept Xtep business partners without a threshold, and everyone can open a store with one-click delivery, which has aroused the enthusiastic participation of Xtep employees and even supplier partners. Online micro-sales run well, and the sales of terminal cloud stores continue to grow, which has become the killer of Xtep to deal with the impact of the epidemic, and also gives Xtep online sales a certain differentiated advantage.
A number of technologies broke the ceiling of the industry, and Xtep listed new products loaded with black technology.
While accelerating the promotion of retail capabilities, Xtep's latest products will also bring surprises to consumers. It is understood that Xtep brand 2020Q2 series new products will be put on the market one after another from April. Among these new products, the skin-friendly project to be launched in April 15 and the polylactic acid project to be launched in June 1 are highly anticipated by the market.
Among them, the launch of skin-friendly products can be called a landmark move to rewrite the textile and garment industry. For a long time, it is difficult to quantify "what kind of products can be called skin-friendly?" There has been a lack of relevant judgment standards in the industry. Xtep reached a cooperation with China Textile Industry Research Institute in May 20 18, and formulated the enterprise standard "Testing and Evaluation of Fabric Skin-friendly Property", which changed this situation. Now the enterprise standard has been approved, and the method for judging the skin-friendly performance of fabrics has also applied for a patent. Domestic enterprises or individuals finally have a concrete basis for judging skin-friendly fabrics.
Xtep, as the "first person to eat crabs" in the industry, took the lead in launching skin-friendly products. It is understood that this series of products triggered a strong response as soon as they came out. At Xtep 2020Q2 quarterly order fair held in September last year, the order volume of this project reached 4.33 million pieces, and the order amount exceeded 650 million yuan, of which the order amount of polar ice silk alone exceeded 400 million yuan.
The trench coat products loaded with another new technology of Xtep, polylactic acid, will also be launched on June 1, bringing consumers a brand-new experience. Polylactic acid (PLA) is a new biodegradable material. Besides being biodegradable, products made of PLA also have good physical properties, such as softness, skin-friendliness, antibacterial, odorless, breathable and flame retardant. However, due to its high temperature resistance, the quality control in the process of fabric dyeing and finishing is a great technical difficulty, which is also the key to the delay in applying it to products in the clothing industry.
Seeing that plastic removal is the general trend that meets the requirements of environmental protection, Xtep officially launched the research and development of polylactic acid project in June 20 19, and cooperated with world-class suppliers in the field of knitting, finally overcoming this technical difficulty and realizing mass production.
In fact, the continuous breakthrough of many technical ceilings benefited from Xtep's long-term emphasis on innovation and R&D. In 20 19, Xtep Group invested more than 200 million in R&D. It is Xtep's mission and pursuit to enhance consumers' product experience with continuous technological innovation.
It is understood that in addition to two new products to be released soon, Xtep has jointly invested with China Textile Industry Research Institute to build a brand-new controllable environment and climate chamber, and increased the research and development of hot products. In the future, every down product of Xtep will have a clear wearing guide, and its label clearly tells consumers what kind of temperature environment this down jacket is suitable for wearing.
"For example, the consumer is in Guangzhou and will go to Harbin in June 5438+ 10. If they buy a down jacket, they will worry about whether it is warm enough in Harbin. In fact, this is the consumer's concern about the wearing scene, which deserves our deep thinking. " Huang Wei, director of Xtep Innovation R&D Center, said that Xtep 2020Q4 down jacket will solve this pain point well and lead the industry again.
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The consumption environment in 2020 has changed a lot compared with last year. How to tap the potential of each brand and solve the problem of demand rebound caused by compensation and delay in the sporting goods industry after the epidemic, enterprises need to fully combine their own brand strategies, "seek opportunities in times of crisis" and explore a unique set of cultivation "cheats".