Sloth bear sports
The dazzling lighting and ubiquitous sense of technology constitute the first press conference for 2XU to enter the Chinese market. On November 2nd, the Australian brand of the main compression suit was unveiled in Shanghai. Different series of compression pants are installed in a glass cabinet. The digital and technical descriptions on the glass wall show the performance indicators of the product.
This is the style of 2XU. If you buy one of their compression pants, you will also receive a yellow packaging carton, the back of the text is marked with the characteristics of this product, what is good for the human body.
Go to China!
In 2005, former professional triathlete Jamie Hunt and his partner founded 2XU in Melbourne, Australia, “2 Times Youâ€, which means “improving human performanceâ€. After 12 years of establishment, 2XU finally chose to enter China.
“We spent a year looking for a partner, planning for six months, and the first physical store will open in the second quarter of next year,†said 2XU Global President Paul Higgins in an exclusive interview with Rilakkuma Sports.
2XU showcases different product lines.
This is a prudent choice.
Higgins has been waiting for the Chinese sports market to become more mature and more subdivided, so that the sports crowd will generate more demand for more professional compression clothing. Higgins' first trip to China was to watch the Beijing Olympic Games in 2008. In the past 10 years, he has come to China nearly 30 times and witnessed the drastic changes in the market. “I think if we come over 10 years ago, our user group may only have national team players. The most engaged sport in China is table tennis. But now, there are more and more gyms in China, and many junior sports enthusiasts have become more The ranks," Higgins said. The number of potential user groups is a prerequisite for 2XU fancy.
On the other hand, in order to complete the global expansion, 2XU must win the fast-growing market in China. 2XU competitors SKINS and CEP have already begun to deploy in China. Investors have also given pressure and push in this regard. In 2013, L Catterton Asia, a subsidiary of the LVMH Group, invested US$75 million to become a major shareholder of 2XU. “LVMH told us in 2015 that we must talk about China. Then 2XU began to investigate the market,†Higgins said. It takes 3 years for 2XU to prepare before entering a new market.
2XU founder Jamie Hunt, global president Paul Higgins, China president Li Shujun, L Catterton Asia Greater China leader Huang Wei, Zhongzhe Mushang founder Yu Yong
GXG, the Chinese menswear retailer with LVMH Holdings, became a 2XU partner in China, and Li Shujun, who was responsible for GXG e-commerce, became the president of 2XU China. Because in 2010, “Double 11†led GXG Taobao store to break through the performance of 10 million yuan, Li Shujun was called “Million Sisterâ€, and since then she has served as the general manager of Tmall apparel.
Li Shujun and GXG parent company Zhongzhe Mushang established Ningbo Mushang Maxi Brand Management Co., Ltd., together with 2XU Hong Kong Company 2XU HK LIMITED, to form 2XU Tuxun Sporting Goods (Ningbo) Co., Ltd. registered in the Mainland. At present, Li Shujun leads a team of 33 people and has placed the Chinese company headquarters in Hangzhou.
"Detonate" high-end sports people
With the compression suit as the core category, the function of the compression suit makes the 2XU aimed at three major sports, namely running and iron three, high-intensity comprehensive training and group sports. A high-performance product with an average price of nearly one hundred dollars means that only professional athletes and advanced sports enthusiasts are the target users of 2XU.
“We have very professional athletes, national and state team members who are willing to do anything to improve performance. This group is only 1%, but it is very important,†Higgins said.
There is no doubt that athletes and professional teams are the core customers of 2XU. According to the data provided by 2XU, even among the 30 NBA teams, 29 have purchased 2XU.
"James and Curry are all paying for our products," Higgins said. "Most brands will spend a lot of money on marketing in the early stages. We are totally different. We didn't even spend a penny on marketing. In 2012, 2XU also became the official compression product supplier for the US Navy Seals.
At the beginning of its establishment, 2XU did not allocate resources to the market and marketing, but invested more funds in research and development, including fabric development, product design and testing. Higgins said that from 2005 to 2009, 2XU has been working on the development of PWX fabrics – a material that focuses on light weight and strength of compression, while the development of 2XU accounts for almost half of the cost, reaching millions of dollars. The increase in research and development costs to ensure product quality, and ultimately the product repurchase rate.
This result also greatly reduces the return rate of 2XU. "Most of the company's return rate is 1.5% - 2%, we are 0.17%. Everyone says it's great, because people who return goods can rarely save money, but in fact we spend a lot of money on testing," Higgins said. . Although the unit price of a hundred dollars is not low, the low return rate helps the product to accumulate a word of mouth effect.
At the other end of the professional athletes, it is an entry-level sports enthusiast. "They don't try hard to get fit. Maybe they can do a little yoga, Pilates. I want sportswear to be comfortable and beautiful. There are already thousands of brands here. They are, so this is not our crowd," Higgins said.
The largest number is the group of people moving between the two – they often engage in high-intensity training and are the best in the group. In Higgins' view, this group wants to wear good-looking sportswear and hopes that the product will improve its athletic performance. “For example, in the United States, there are 85 million people in this group, including those who are engaged in team sports, taking part in CrossFit and Soul Cycle courses. They are exercising four times a week. This is a huge market. Maybe 10 years ago, this group is also the most Just 20%," Higgins said.
Compared with professional athletes, 2XU products will help the improvement of advanced sports enthusiasts. “Ordinary people go skiing, maybe it’s a holiday for a week, but in the second and third days, the legs are sour, because they don’t train enough, and they need 2XU more help than professional athletes,†Higgins cites.
2XU has many celebrity clients.
At the channel level, 2XU currently has more than 5,000 retail outlets in 75 countries and territories, including 49 full-price stores.
In addition to the mature US market, 2XU also values ​​the emerging Northeast Asian markets including China, Japan and Korea. “Northeast Asia is the most exciting thing for us. We just opened a store in Tokyo and we have a joint venture in Korea.â€
2XU has established design centers in Tokyo, Seoul and Hangzhou, respectively, and has provided specialized products for these markets. In the past 12 months, the 2XU Asian market has grown at a rate of 51%, making it the fastest growing region for 2XU.
But even between China and Japan, there are huge differences in the market. “Japanese consumers run a lot and like baseball. It is already a mature sports market. In China, many people are just beginning to engage in sports, people at all levels, cycling, marathons, and having fun and socializing,†said Higgins, Sports. Differences in ideas and habits have also led to different needs for both products, but this difference is shrinking. “In 2009, I would say that Japanese people care about quality very much. Chinese people like to show off very good looking brands. But now, Chinese consumers are paying for quality, paying more attention to their own experience, product experience, sports experience, in At the same time, it also needs products that are really good for themselves,†Higgins said.
Blue Ocean in the era of sports upgrade
As Higgins said, sports upgrades are the prerequisite for 2XU to gain market and expand.
As more and more junior sports enthusiasts begin to transform into avid high-end crowds, higher demands are placed on product performance. Although the Chinese sports population has grown rapidly in the past decade, it is undeniable that the consumer population of high-end compression garments is still a minority.
Li Shujun understands this gap. She believes that the gap between the domestic and international sports industry has reached 20 years, and even a difference of ten years from Japan and South Korea. “Foreign countries are skiing, watering, and camping on weekends, but China is still running and exercising in large quantities today, and the relative cost is relatively low,†Li Shujun said. “But you can buy a set of ski equipment and diving equipment. Expensive, this requires material to lay the foundation, and it takes time and spiritual input. When the small gym is blooming everywhere, it shows that the level of Chinese sports is still very general and very basic."
On the one hand, the all-category brand market integrating shoes and clothing is almost saturated. Nike and Adidas have become difficult to shake the world. The domestic market has also begun to show Anta's leading edge and Li Ning's efforts to catch up. From this perspective, the mass sports market is the undisputed Red Sea. Nike launched a lot of products of about 200 yuan in the "double 11".
On the other hand, when sports and consumption are constantly upgrading, segmentation has become the trend of the times, and people have put forward more requirements for a single product category. This is why a large number of high-end segment brands have been deployed in the Chinese market in the past 1 or 2 years, such as Lululemon, which started from yoga pants, Di Sant, which is mainly skiing and cycling, plus outdoor brand Arc'teryx and cross-country brand Salomon. Domestic brands such as the Little Triangle, Muscle Dog, Monster Guardians, and Balance School have emerged, targeting pan-outdoors, fitness, and women's sports.
When she is more interested in the future potential, China has only a quarter of Europe and the United States in terms of per capita sports consumption. According to Euromonitor's research, in 2016, China's per capita spending on sporting goods was US$18.04, while in most developed countries it was more than US$100, and in the US it reached more than US$300.
"After China's per capita GDP exceeds 20,000 US dollars, there will be a large number of people going to dive, ski, and surf. At that time, the market needs more sub-brands, and our pioneers have an absolute advantage." Li Shujun said that she hopes 2XU is able to become a market pioneer through advance layout, thus capturing the opportunity after the rise of the market.
"The whole of China today lacks upgraded service brands, upgraded apparel brands, and upgrades of any type of brand. If you stand in the perspective of sports upgrades, there is still a lot of blue ocean space," Li Shujun said.
Along with this upgrade, consumers' acceptance of high prices has also increased. Like most foreign brands, the price of 2XU is not low. Take the compression pants as an example. The price ranges from 349 yuan to 1399 yuan, and the average price is 499 yuan. Li Shujun believes that 2XU wins at a high cost performance.
2XU is to become the industry leader in the field of compression garments.
In the subdivision of compression garments, 2XU is pursuing the growth of a long stream of water. "I think 2XU will definitely be a hit, but it is not the kind of large-scale sales that everyone thinks. I don't want a short-lived net red." It is to make it a high-profile brand in China from a low profile."
The challenge of 2XU is that when this niche market has not yet fully erupted, the user population is only a small amount. Li Shujun is not worried about this matter. "I feel that 8 million of the 200 million middle class can be satisfied with the purchase of our products. The first phase is slowly coming, don't worry." She plans to sell in the Chinese market in the next three years. 140,000 compression pants and 50 stores in 30 cities. One of her bases is "Finding China's Best Sports City" by CBN, which lists the 30 cities of China Sports. In the first year, 2XU's goal is to open 10 physical stores in Beijing, Shanghai, Shenzhen, Hangzhou and other cities. In addition to direct sales stores, 2XU will also seek to work with agents.
In terms of expansion speed, lululemon, which has been in China for nearly a year, is a reference. Currently, the Canadian brand has opened eight physical stores in Shanghai, Beijing, Chengdu and Guangzhou, all of which are direct-operated.
Another big challenge for 2XU is marketing resources. "There are many events and activities that are basically monopolized by big brands," Li Shujun said. 2XU will have three marketing methods in China: to do flash shops in the CBD complex; to sponsor the third-class professional competitions; to organize 2XU training camps and compression runs, to establish hundreds of running groups throughout the country, and fitness groups Do tour cooperation. However, at present, 2XU does not have the intention to sign a spokesperson, but will use the net red to create a fan economy.
In order to cover more consumer groups and scenes, 2XU also released a leisure sports series for the Chinese market, accounting for 20% of all products. “Fashion is a way of life. I may have to work during the day and do some business cooperation, but like last night, I started to exercise with my boss when I took off my coat. I will let myself exercise and add business style.†Li Shujun pointed out Refers to his own dress, a long black vest on the outside of the black 2XU POLO shirt.
The 2XU leisure sports series was unveiled at the press conference.
However, she also said that the current compressed series of products will be purchased from the Australian headquarters. "It will only be considered when the sales volume in China reaches a certain scale (produced in China), but the non-compressed part will be considered for design and production in China."
Behind sports upgrades, consumer upgrades, and sports and leisure, “new retail†is a topic that retail brands can't hide. “GXG’s financial report includes sales (retail amount) and offline sales (offline sales). We are very surprised at what is offline sales. Later we found out that this is the retail we understand. The world has changed a lot.†Higgins lamented. Although Higgins has not heard of this concept before, he believes that 2XU has already tried “new retail†in Australia and the United States. “Consumers place orders online, and can pick up and return in the store, which is to open up online and offline.â€
The so-called retail winter is not fully integrated online and offline. "It turns out that the channel is the traditional era of the king, then the Internet +, now it is communion, and the brand that can lead after the communion is the boss." Li Shujun said.
However, the first step for 2XU to enter China is still on the line. In September, the 2XU Tmall shop went live. Although for this year's "Double Eleven", Li Shujun said that "there is no strategy in the first year, and I have not set a goal for myself."
But in the end, "Double Eleven" gave Li Shujun an optimistic signal: 2XU Tmall flagship store had a conversion rate of 96.8% for the first hour of the day, and the traffic was 4 times daily, but the 6-hour performance was 120 for daily full-time performance. Times. This is a good start for 2XU.
Editor in charge: Wang Zhen
Adult Warm Beanie,Reflective Adult Winter Hat,Adult Safety Ski Hat,Adult Reflective Yarn Hat
Jingjiang Pingdong Import&Export Co.,Ltd , https://www.jjpdsocks.com