KAPPA seeks differential survival through Pepsi's “fashion elements”

KAPPA has already found a way to promote fashion, and even contributed to PepsiCo's first cooperation with a sportswear brand. In the latest release of the KAPPA costumes for the shadow dance series of both parties, Pepsi's packaging designer and KAPPA's designers have added a large number of Pepsi fashion elements to the costumes.

“Professionalism is not comparable to Adidas and Nike, but KAPPA will be the most fashionable among sports brands.” KAPPA invited a number of entertainment stars, not sports stars, as general manager of KAPPA Sportswear Co., Ltd. Qin Dazhong explained the reasons for cooperating with PepsiCo. “There are too many similarities between Pepsi's consumer groups and KAPPA's consumer groups. They are all followers of fashion.” Pepsi has too much experience in shaping himself into a synonym for fashion. teach.

KAPPA originated in Italy in the early 1980s. In April 2002, Li Ning Sports Goods Co., Ltd. invested in the establishment of Beijing Dongxiang Sports Development Co., Ltd., and obtained KAPPA's franchise agency in mainland China and Macau.

KAPPA's product line includes two large blocks: one is a pure professional body, and the other is a fashionable leisure product. Initially, all the energy of the movement was concentrated in the professional sector, and a large number of professional sports products with high-tech fabrics were introduced. However, in the professional sports field, Adidas and Nike are too strong. However, KAP-PA, which is comparable in price to Adi Nike, has no way to put off competition with cheap domestic brands.

In 2003, KAPPA could hardly support it. From the beginning of its birth, Chen Yihong, who was fully responsible, began to consider the way out. The transformation of Li Ning, the major shareholder, gave KAPPA some inspiration. Li Ning, who used to be in the gap between Adi, Nike and domestic Jinjiang footwear, broke through the intensification of professional sports and fusion of oriental elements.

In 2005, as the general manager of Li Ning, Chen Yihong bid farewell to Li Ning and became the Chairman of the Board of Directors. He specifically established Shanghai Kappa Sporting Goods Co., Ltd. to fully promote the transformation of KAPPA in China. “We have looked at several of Kappa's best customers worldwide and found that there is a convergence of sporting and fashion clothing products around the world,” explains Chen Yihong.

In 2006, the company signed KAPPA Continental and Macau’s permanent proxy rights and requested a privilege to instantly select each new season. KAPPA's global design library provides more than 2,000 clothing designs each season. It is divided into two seasons a year. However, according to the authority of general agents, it is the next release season when China gets apparel design.

Since the sports product line has few changes in style, the impact is not obvious, but for the fashion product line, it often means that the goods will be pressed in the first quarter. "Each quarter must select 200-300 garments based on Chinese characteristics and perform 100% updates."

In 2002, KAPPA entered China's first year with sales of only 15 million yuan. With almost no advertising, sales reached 200 million yuan in 2005, and reached 1 billion yuan in 2006. At present, there are more than 1,200 KAPPA stores.

"We continue to strengthen the feeling of fashion in 2007." Qin Dazhong said that in 2006 KAPPA put forward the concept of IN change, which is combined with the most popular and fashionable elements of the moment. This coincides with Pepsi. KAPPA succeeded in getting one of the packages through cooperation with PepsiCo.

KAPPA has done research and found that with KAP-PA's positioning, the consumer population totals no more than tens of millions. These young people who pursue fashion are just lovers of Pepsi products.

In China, cooperation with Pepsi is just the first step in integrating with fashion. “We will also actively cooperate with fashion representatives in various fields such as Ferrari in the automotive sector and I-pod in digital products.”

However, in China, KAPPA also knows that they cannot escape from the sports brand. "Our cooperation with them aims to create a sports fashion circle." Qin Dazhong said, "Simple than fashion, we can't compare VeroModa, ONLY, ESPRIT. But if we are in sports brands, we are the most eye-catching."