The Result Is No Longer Brilliant, But How Much Time Does Kappa Have?

Recently, the Kappa parent company China has released its 2018/2019 annual report. In addition to the disclosure of earnings data, China's trend for the first time clearly stated in the report that it is actively expanding the development of ski brand Feinikesi (PHENIX) in China. According to the China Commercial Daily reporter, the performance of China's pillar brand Kappa has recovered slightly, but has yet to return to its peak.

Ski brand Feinikesi will boost business growth

The 2018/2019 annual report released by China trend shows that Feinikesi will continue to deploy in all aspects of channel development, member services and brand marketing, so as to prepare for the Beijing Winter Olympic Games.

According to the reporter, Feinikesi was founded in 1952 and was bought by China in 2008. Feinikesi has been developing in the Japanese market for some time. Feinikesi, President of Japan's Sun Jianjun company, said that in the Japanese ski clothing market, Feinikesi's market share remained the first. In the European market, Feinikesi has always been the top three in the high-end ski market.

In addition to the good performance of the brand itself, China's trend indicates that Feinikesi has also seen the rapid development of China's ice and snow industry and the opportunity of the Beijing Winter Olympic Games.

The relevant experts of the China Association of cultural, educational and sporting goods said that the ice and snow industry has been greatly supported by the state. Feinikesi will take this opportunity to develop and there will be great room for growth. However, other outdoor brands are also fighting for this market. China's trend needs to strengthen Feinikesi's brand awareness.

Kappa performance has not yet reached its peak.

As the pillar brand of China's trend, Kappa's performance in recent years has seen ups and downs. In 2007, China's trend was on the market, and Kappa opened the road of rapid development. In 2010, China's performance reached its peak and its operating income reached 4 billion 262 million yuan. However, by 2011, the number of Kappa stores was sharply reduced from around 4000 in 2010 to 1502 now, and with the backlog of backlogs and the gradual withdrawal of channels, the profits of Kappa also shrank sharply. In just one year, Kappa's sales fell to 2 billion 742 million yuan. According to the data disclosed by China's trend, although the sales of Kappa have improved, it is only 1 billion 527 million yuan, and there is still a certain distance from the peak period.

The experts said that Kappa was a pioneer in the field of sports and fashion, but did not continue to tap the market fully, leading to other sports brands coming from behind. He admits that Kappa has not done enough in brand promotion.

The experts believe that there are certain problems in the positioning of China's current trend. "Many sports brands have a clear positioning, some brands focus on the sports and fashion market, and some brands focus on the running shoes market. As far as its performance is concerned, China should focus on one area. He said.

"Of course, China's trend can also be considered as a comprehensive sports brand, but it needs to consider whether there is synergy among different brands, and at the same time test the operational capability of China's trend very much. The experts said.