XTEP Successfully Pformed From Fashion Sports Products To Professional Sports Products.

Because of the weakness of the previous market, many groups have begun their own pformation. Recently, XTEP group said that it has successfully pformed from fashion sports products to specialized sports products.

The International (4.3, -0.15, -3.26%) began to pform in 2014. When Chairman and chief executive Ding Shuibo accepted an interview with Hongkong's "finance club", XTEP introduced from the past focus on fashion sports products to professional sports products, with remarkable results and reflected in the 2015 performance.

In 2015, XTEP's revenue increased by 10.8% to 4 billion 777 million 600 thousand yuan, but its profit increased by 30.3% to 622 million 600 thousand yuan, mainly due to increased sales of functional professional sporting goods with higher gross margin.

Past

Sports products account for 60% to 70% of the total revenue. Since 2014, the proportion of professional sports products has increased to 55%.

In line with the pformation, the group increased its advertising power in 2015 and increased its share to 14.7%. This year it will drop to 11-13%.

He believes that even though promotional spending has slowed down this year, the publicity benefits of last year are expected to continue to be reflected in the current and next two years.

XTEP continues to actively promote professional sports business. The new XTEP football products that will be available in the third quarter of 2016 are expected to contribute to revenue growth. In the fourth quarter of 2016, XTEP will introduce XTEP outdoor products, focusing on waterproof materials and technology to enhance thermal insulation. The group also works with 3M to apply lightweight and thermal materials to outdoor footwear products, providing higher comfort for winter consumers.

XTEP has launched running shoes with chips, which can measure the physical fitness of the customers, record the running roadmap, and make the running posture correct.

XTEP also has

It allows consumers to interact and set up a special running club to provide rest, training and communication places for members.