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Chinese sports brands seek global play

China Daily | Updated: 2019-03-18 09:51
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A screenshot of Wu Lei's jerseys sold on JD. [Photo/JD.com]

Ke said his factory in Quanzhou used to make jerseys and hoodies for Kappa, Umbro, Fila, and Kelme. However, the razor-thin profits of the original equipment manufacturer or OEM model pushed him to explore ways of building the company's own brand. It was searching for a "new engine" to tide over the difficulties of shrinking overseas orders and rising labor cost.

"Companies can no longer make a name for themselves by bombarding consumers with advertisements. Besides, it was way too expensive. We thought buying big international brands might be a 'shortcut', so we started as their brand franchisor in China," said Liu Zejun, chief marketing officer of Kelme (China).

In 2014, Kelme sold its franchises in China to Ke's firm. The fast expansion of the Kelme brand in China led to a further deal between Yuanxiang and Kelme. In 2018, the Chinese company acquired controlling shares in the Spanish sportswear company for 300 million yuan ($44.68 million).

However, buying foreign brands is only a step in Chinese companies' transition toward going global. "We don't want to be the Chinese Nike, but the world's Anta," said Ding Shizhong, chairman and CEO of Anta. The company considered design and scientific research as the key to improving the brand's value.

Alongside overseas acquisitions, Chinese enterprises have been seeking new "growth engines" through the robotic revolution, industrial innovation, and green development, according to Ke.

Xinhua

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