Continue to enhance the core competitiveness of the main brand and children’s clothing brand.
Xinhua News Agency, Chengdu, March 18 (Ji Yanhao), together with Anta and Tebu, a local sports brand born in Jinjiang, was 361 Degrees. Yesterday (17th), the report card of 2019 was first submitted, with revenue, both net profits have increased.
For 361 Degrees, 2019 is a year to witness the success or failure of brand upgrading. Judging from the annual report, its brand reconstruction plan has achieved initial results. According to the report, as of December 31, 2019, the annual income of 361 Degrees was 5.632 billion yuan, compared with 5.187 billion yuan in the same period last year. In 2019, the net profit was 0.432 billion yuan, compared with 0.304 billion yuan in the same period last year, and the net profit rose by as much.
Brand reshaping has achieved initial results
in this year, 361 Degrees have made frequent efforts in brand reshaping and marketing, trying to reshape the brand image through cross-border cooperation, commercial sponsorship, Star endorsement and other aspects.
Since 2019, 361 Degrees has launched joint-name products with many well-known IP addresses, such as Gundam, Pepsi, Minions, etc.; Signed up with well-known athletes such as Aron Gordon and cranbaike Macan; sponsored Chengdu double heritage marathon, cross the fire line CFPL and other events.
361 Degree active marketing not only brings better market response, but also objectively drives the average wholesale price of 361 footwear and clothing. According to the financial report, the average wholesale prices of 361-degree footwear and clothing increased by and respectively, and the 361-Degree Brand reconstruction plan achieved initial results.
The wholesale price has risen sharply, which means 361 Degrees are trying to get rid of the image of the middle and low end in the past.
Data show that in 2019, about of the stores under the 361-degree brand were located in China’s third-tier and lower-tier cities, and of the stores were located in China’s first-tier and second-tier cities. However, this figure was 74% and 26% in 2018 and 73.5% and 26.5% in 2017. The proportion of stores in first-tier and second-tier cities gradually declined year by year. In terms of the total number, there were 5519 stores in 361 Degrees in 2019, which was not much different from the 5539 stores in 2018.
For 361 Degrees, which has previously expressed the expectation that the main consumer will shift from the middle and low-end market to the first and second-tier cities, the decline in the proportion of big city stores to some extent indicates that there are still some challenges in the 361-degree transition to the high-end market.
In response, 361 Degrees said in the annual report that distributors and authorized retailers will be encouraged in the future. While closing smaller stores and streamlining retail stores, open larger-scale stores in shopping malls, department stores and other places.
△361 degrees and Gundam launched a joint gift box. Photo source: 361 Degrees Official microblog
children’s clothing will become the future Driver
as the core business of 361 Degrees, footwear and clothing have always occupied an important position in 361 sales system.
The annual report shows that the sales proportion of 361-degree footwear and clothing declined slightly in 2019, down 8.1% and 22.7% respectively. The total sales of clothing fell from more than 28 million pieces in 2018 to more than 21.6 million pieces. 361 Degrees Group attributed the decline in sales to the launch of new series of products and the strategic reduction of production.
In terms of sales proportion, the proportion of 361degree footwear sales to total revenue in 2019 was reduced from 42.7% in 2018 to 42.4%, and clothing sales were reduced from 38.5% to 36.6% annually, however, related business revenue increased by 7.9 percent and 3.0 percent year-on-year.
What is surprising in the main business is the rapid rise of 361-degree children’s clothing business. According to the financial report, 361 Degrees of children’s clothing contributed as much as 17.7 dollars to 361 group’s turnover, with a total business volume of nearly 1 billion yuan (0.999 billion). Compared with 0.816 billion in 2018, the growth rate reached 22.4 percent.
The main source of the growth of children’s clothing business is the increase in sales volume. According to the data, the number of 361-degree children’s clothing sold in 2019 was more than 14.67 million pieces. For comparison, the number of pieces sold in 2018 was more than 12.02 million. In 2018, 361 Degrees of children’s clothing business also maintained a median growth value. Judging from the performance in recent years, 361-degree children’s clothing has become the trend of 361-Degree Brand’s Sunrise sector in the future.
In the summary of 361-degree senior management, it also adds green eyes to children’s clothing business. However, different from the 361-degree core brand, the main driving force of 361-degree children’s clothing business growth is clothing products, not footwear products.
In terms of e-commerce business, 361 Degrees of continuous investment also achieved gains in 2019. According to the financial report, e-commerce sales revenue increased by year-on-year, reaching 0.916 billion yuan, accounting for about of the group’s total revenue. 361 Degrees believe that the e-commerce business with most of the group’s rights and interests will continue to contribute to 361 Degrees and maintain an upward trend.
△361 degrees substitute factory. Under the
epidemic situation issued by Xinhua News Agency, 361 Degrees will usher in opportunities
in 2018. Among several domestic sporting goods companies listed in Hong Kong stocks, 361 Degrees is the only enterprise that disclosed overseas revenue figures. In 2019, in terms of overseas market expansion, 361 Degrees made a big breakthrough, and its share in the international market increased.
Compared with 2018, the international income of 361 Degrees in 2019 increased by more than 40%, and the total income came to more than 0.131 billion yuan (2018: 93.3 million yuan), accounting for 2.3% of the group’s total income (2018: 1.8%).
The annual report reveals that 361 Degrees has already owned 1459, 5225, 827 and 75 sales outlets selling 361 Degrees of international line products in Brazil, the United States, Europe and Taiwan. In 2019, 361 Degrees also successfully opened up new markets such as Morocco, Kyrgyzstan, Philippines and Australia.
361 Degrees Group continues to be optimistic about the international market and has set up wholly-owned subsidiaries in the United States, Brazil and Europe. 361 Degrees indicates that it will continue to explore and expand to overseas countries and regions with growth potential.
In 2019, 361 Degrees reduced the cost investment in advertising and research and development. According to the financial report, the proportion of 361-degree advertising and publicity expenditure in total revenue decreased from in 2018 to 9%, and the proportion of R & D cost in total revenue decreased from 4.1% to 3.8%.
361 Degrees said that some long-term advertising contracts were controlled and terminated last year, instead signing overseas athletes and sponsoring marathon events, thus reducing some costs. Although the proportion of R & D of 361 Degrees has declined slightly, it still ranks first among several major domestic sports brands. More reasonable cost control may be one of the reasons why the net profit of 361 degrees this year’s financial report has risen by more than 40%.
Under the influence of the epidemic, the sportswear and sneakers market in 2020 will face even more bitter competition. Facing the large price reduction promotion of international big brands such as Nike and Adidas, whether 361 degrees can hold the sinking market and even open up the high-end market, which may also become the opportunity of the brand.
In the annual report, 361 Degrees said that although the demand for sports consumption in China is under pressure in the short term due to the impact of the new coronavirus epidemic, in the long run, the demand for people to participate in physical exercise is expected to increase after the epidemic subsides, the long-term trend of the sports industry has not changed. The company will adhere to the brand positioning of mass sports, concentrate on developing 361 Degree core brands, and continuously enhance the core competitiveness of main brands and children’s wear brands.