In May 2005, when Kappa’s parent company in Italy, Bassinet, suffered from cash shortage, China Donating took the opportunity hen bought out the ownership of Kappa brand and owned all rights to Kappa in the PRE and Macaw. At the time it was described as a classical case that distributors takeover the brand in reverse. Now, after six year’s growth, China Donating (Group) Co. , Ltd. Is a leading international sportswear brand enterprise in China and Kappa has grown into the third biggest sportswear brand in China. The group is primarily engaged in the design, development, marketing and wholesaling of branded sportswear in China.
In 2008, it enriched its regional brand portfolio and extended product types, using multi-branding strategy. In order to know more about the company’s performance and financial situation, the company’s position in the industry and market needs to be evaluated and assessed first. The Figure-I is bout share prices of China Donating in April 19, Figure-I 2013 KEMP cup 24-Hour Business Challenge 1. 2 The PRE sportswear industry and market macroscopic analysis With rapid development of Chinese economy and rising living standard of Chinese people, the PRE sportswear market has expanded quickly in the recently years.
Many other factors such as the popularity of sports among people have contributed to this too. Since 2006, the Pro’s sportswear market has experienced double-digit increment and it is sill supposed to have huge potential for growth. However, several special events have taken place, which has huge influences on the sportswear market. As the European debt crisis continued to intensify and the US economy continued to sluggish, it imposed a great negative impact on the global economy. In addition, the Asian market also experienced moderated growth and China has slowed down its economic growth pace without exception.
Facing such shock to the macro-economy, he industry and the market also were confronted with intensifying competition. The slowdown in demand and industry growth, as well as overproduction resulting from the over-optimistic expectations on sportswear market previously, lead to the excessive inventory to companies such as Lining and ANTA, resulting in slowdown of many retail stores with unsatisfactory profitability. This depression can be proven by the decreasing data such as net sales, gross profit, stock price, declared dividends, 1. Analysis on the Group’s strengths in the competitive industry Facing such halogens in macro-environment and sportswear industry, China Donating has remained several competitive strengths to cope with the crisis and retain its own position and share in the industry and market. 1. 3. 1 Advantages of products Kappa, originated in Italy in the sass, is a well-known sportswear brand all over the world, which would bring existing market recognition and goodwill carried by Kappa brand to the Group.
Distinct product positioning & Diversified brand portfolio strategy It is well-positioned at the forefront of sportswear fashion, targeting consumers aged teen 18 and 35, conveying an active, fashionable and youthful image. In order to have an effective market segment and better adapt to the demand of the target 3 consumers, the Group make diversified brand portfolio, including Kappa products, Robe Did Kappa Business and Phoenix Business.
The portfolio divides consumers in different age groups such as Kappa Kids, divides consumers in different gender such as Miss Kappa and also divides the requirements for the products such as Arch Tech for releasing pressure while exercise and Aqua Grip for quick dry in rainy days. Innovative design capabilities in the industry The Group also remains innovative design capabilities and adapt to ever-changing market trends with excellent designers and creative design. . 3. 2 Advantages of experienced management team The Group has recruit a lot of experienced elites in management who have many years of experience and their prior knowledge and experience can help the company successfully manage the brand and build up strong supply chain network. 1. 3. 3 Effective marketing strategy Also the Group adopted a marketing and promotion strategy uniting “sport” and fashion”, which is correspondent with the product market position.
