Kappa Ah Kappa! No Money Left.

When the media was busy rummaging for Anta, many people ignored the news: in December 4th, China's trend leader Qin Dazhong announced his resignation from the company's chief operating officer, and resigned as executive director and executive committee member.

The trend of China may not be many people.

But when it comes to "

"Or" back to back ", you should be familiar with it.

Kappa, a nearly 100 year old sports brand, was born in Italy, and was exclusively represented by Lining in 2002. In 2005, China's trend was separated from Lining's operation independently, and became a Kappa brand owner through acquisition. LOGO, back to back, was once popular.

But Italians can't imagine that the Ultimate Nirvana of Kappa is in China.

According to the ring shoe net, China's trend from a peak to the annual revenue of more than 4 billion yuan of large companies, down to now probably only about 1 billion yuan.

In the early days when Kappa entered China, the whole market was still in the age of traditional professional sportswear, and Kappa successfully molded into a sports brand with the concept of fashion movement.

Its unconventional product completely subverts the traditional product structure, and its performance is strikingly red.

"Kappa is the first to bring sports and sports.

Combined with the fashion color.

At that time, the emergence of a differentiated image did find a blue ocean for Kappa.

Sun Yibing, a color expert in fashion design department, said in an interview earlier this year.

At that time, China's cooperation with Karen Mok and other stars made Kappa the first choice for sexy, fashionable and sports color products.

Even during the financial crisis, sales of Kappa's "home" China still reached 3 billion 300 million yuan, with a gross profit margin of 62% and a net profit of 40%.

In the past 2009-2010 years, its net profit has exceeded 1 billion 400 million yuan. Such high growth and high profits are unimaginable for domestic sporting goods companies.

Can not play the "light asset mode"

It didn't last long, but the Kappa myth ended abruptly in 2011.

According to the annual report, due to inventory repurchase, inventory impairment and other factors, the total number of Kappa brand stores in 2012 continued to shrink.

As of June 30, 2013, sales in the first half of the year amounted to 563 million yuan, a decrease of 32.3%.

"China's sporting goods industry is experiencing the most serious downgrading cycle in the industry."

Even Lining, founder of Lining group, has faced many industrial pressures in public.

China moves vigorously to implement the light asset model. The company has only a few hundred employees at a time. When the wind is running smoothly, it makes the company's expenses lower and its profits remain at a higher level. But when the industry is in trouble, Kappa, who once indulged in the extreme asset model, suddenly realized that the mode could not play anymore.

Anta and other Fujian sports brands pursue a vertical integration mode. In addition to brand operation, they invest a lot of resources to build factories and control channels. When the industry downturn occurs, they have stronger bargaining power with the channel traders, and they are more flexible. But China's trend is too light assets, even though the strategy of change is right, it is not so hard to carry out.

。

No money left.

Despite the sharp decline in sales in recent years, China's trend is not short of money.

"Turn around the financial statements, and now there's money left. Billions of cash is lying there."

The Qin Dazhong just resigned yesterday.

According to the ring tennis shoes network to observe the major sports brand reports in the year, as of June 30th this year, China's trend of handheld cash and bank financial products totaled about 4 billion 650 million yuan.

As a result, the Chinese trend is to invest in areas other than the main sports industry when sales decline.

In September 2011, China invested $100 million by its subsidiaries to subscribe for the right partnership of Yunfeng e-commerce Fund Limited, which is set up to invest in e-commerce group Alibaba limited.

Investment in Yunfeng fund has been very profitable. By the end of June 30th this year, China's investment has reached 298 million yuan, or about 1 billion 830 million yuan, far exceeding its main business.

Independent market watchdog Ma Gang commented that in fact, if China moves more capital into sales channels,

The performance will not be as emotional as it is today.

Prior to that, Qin Dazhong had given up the position of chief executive of Chinese trend, replaced by sang Lelin, former president of Greater China in Adidas. In less than a year, the company did not improve. Sandrine resigned and Qin Dazhong became chief operating officer.

Foreigners can not save Li Ning Co, foreigners can not save China's trend.

To a certain extent, this shows that the decline of Kappa may not be counted on Qin Dazhong.

Moreover, he has "retired" and left China completely. The position is replaced by Chen Chen, Chen Yihong's daughter.

"Whether you really leave or not, we really hope."

Be your new friend. "

This is a speech by Kappa2014, Chen Chen, manager of China's trend marketing department.

But there is only one problem with Kappa's choice in main business and sideline. Who is Kappa's real friend?