XTEP'S Gorgeous Turn In Shoe Companies

When Nicholas Tse, XTEP's image spokesperson, turned into a superstar from the beginning, XTEP also completed its magnificent turn.

It is no longer the "brand" of the two or three line city, and the store has added more popular elements.

It no longer only produces sports shoes, but also includes sportswear, accessories and children's clothing.

Over the past three years, XTEP's total revenue increased from 300 million yuan to 480 million yuan to 1 billion 360 million yuan in 2007, with a compound annual growth rate of 114.2%.

According to its sponsor, UBS expects XTEP to soon become a sports brand worth HK $10 billion.

When Disney and Colin brand were incorporated into XTEP's operation network, XTEP's channels covered all provinces and municipalities in China.

This is due to its distributor system. By March 31, 2008, XTEP's distribution directly operated or managed by third party stores over 5000.

As advertised, XTEP has grown like a "flying sensation".

After BELLE and Anta go to IPO, XTEP is also about to finish its Longmen leap.

In May 21st, XTEP offered a public offering of HK $3 billion 100 million at the Hongkong stock exchange.

Ding Shuibo, chairman and chief executive officer of XTEP, is planning his big plan: XTEP will become an international brand and will definitely set up a distribution shop in Hongkong in the future.

"24% of the proceeds will be used to buy brands, with outdoor sports brands and children's shoes as targets, regardless of international or local brands."

We are no stranger to such a development model. Previously, similar listed companies already had Lining and Anta.

The difference between them is only product positioning - Lining and Anta take the competitive sports route, XTEP expresses sports in a fashionable way.

Hongkong investors said Anta had a clear advantage over XTEP in its valuation.

Maybe the future is bright, but the challenge is reality.

Morgan, an anonymous member of XTEP's listed sponsor, told the Chinese entrepreneur that when XTEP listings, XTEP's most critical question is its ability to control distribution networks.

Although the distribution network is extensive, XTEP relies heavily on the third party distributors and retailers, and its control capability is very limited.

Last year, sales from distributors accounted for 93.3% of total sales.

Once the distributor changes, it will seriously affect XTEP's operation.