The posh Armani/Aqua shop within Chater House in Hong Kong’s Central was the venue for the celebratory dinner.
Founded in 1999 by Chairman Ding Shuipo as an OEM for the global sporting goods brand export markets, the company struck out on its own in 2002 with the launch of its Xtep brand, thus joining the ranks of domestic rivals and fellow Hong Kong-listcos like Li Ning, Anta and 361 degrees.
XTEP INTERNATIONAL, China’s top fashion sportswear play, recently celebrated the fifth anniversary of its Hong Kong listing in grand style, with several executives, guests and stunning models sharing in the gala festivities.
Xtep designs, develops, manufactures and markets sportswear, including footwear, apparel and accessory products, sold mainly under its self-owned Xtep brand and other licensed brands.
CLSA said Xtep’s aggressive sponsorship of marathons and other road races, including the annual Standard Chartered Hong Kong Marathon, has apparently been paying off.
Also, the slogan “Love Running, Love Xtep” as well as a continuous effort to promote the Xtep brand via high-profile athlete and entertainer spokespersons has become a cornerstone strategy of the Hong Kong-listco’s marketing campaign.
UBS recent gave Xtep a “Buy” recommendation, saying it expects the fashion sportswear leader to be among a select few domestic players to survive an ongoing industry consolidation process.
“We believe Xtep, along with Li Ning and Anta, have the best chance of emerging from the consolidation process,” the Swiss research house said.
Meanwhile, Merrill Lynch said that Xtep’s recent domestic market share stood at 5%, but the brand’s hit rate on Chinese search engine Baidu was an impressive No.3 among PRC brands.
On the financial side, JP Morgan said Xtep enjoys the largest net asset backing among its rivals.
“That means Xtep is trading at the lowest price/franchise value in the sector,” the US research house said.
XTEP To Survive Consolidation