China Dongxiang (Group) Co., Ltd. ("China Dongxiang" or "the Company"; stock code: 3818, together with its subsidiaries the "Group") is a leading international sportswear brand enterprise based in China. The Group is primarily engaged in the design, development, marketing and wholesaling of branded sportswear in China. Since 30 May 2006, China Dongxiang has owned all rights to the internationally recognised Kappa Brand in the PRC and Macau.
In April, 2008, as a new chapter in its multi-branding strategy China Dongxiang announced the acquisition of Phenix Co., Ltd.("Phenix"), which mainly owned and managed KAPPA and PHENIX brands in Japan. As a result China Dongxiang is enriching its regional brand portfolio and extending product types to help develop the China ski and outdoor fashion markets. The Company's aim is also to further enhance its current R&D techniques and ability to integrate Japan PHENIX's strong design and R&D capacity as well as relevant talents. Ultimately they want to provide a solid platform for KAPPA and other brands' long-term development in China.
These days, China Dongxiang's major products convey an active, fashionable and youthful image and are warmly welcomed by China's fast growing, affluent consumers.
China market - KAPPA
First established in 1916, the Kappa brand started to garner market recognition in Europe during the 1960s and 1970s and before long became one of the most renowned names for casual sportswear in Europe. Since then, the world has been enchanted by the lifestyle represented by Kappa products, so vividly identified by Omini, its unique logo featuring a back-to-back couple.
Through China Dongxiang ("the Group"), Kappa landed in China in 2002 to embark on an amazing journey of phenomenal growth in this populous nation. In May 2006, the Group acquired the brand ownership of Kappa in Mainland China and Macau to secure complete autonomy in all aspects of the brand's operations in these markets, such as product development, marketing, sales organizations and channel strategy, allowing it to devise comprehensive, market-oriented development plans. In April 2008,the Group secured the entire interests of Kappa in Mainland China, Macau and Japan following its acquisition of PHENIX, then owner of the Kappa brand and PHENIX brand in Japan.
After more than a decade of soul-searching and development efforts, Kappa has further cemented its strong foundation in China. Today, Kappa continues to carry that unmistakable sporting gene but, on top of that, it has positioned itself as a brand for the fashionable sportive lifestyle with the concept of "rebellious, passionate and outgoing." It targets young consumers who are enthusiastic about pop culture, discerning about the quality of life, eager to explore new ideas and happy to show off their personalities.
It requires rigorous practices in product quality and design to give substance to the concept of "rebellious, passionate and outgoing." Kappa products are developed on the basis of various aspects in pop culture. On top of the basic sporting gene, a diverse range of trendy elements are incorporated in the designs. In addition, more emphasis has been put on consumers' experience and the creation of overall styles through product matching, in order to develop unique, in-fashion products that meet the aesthetic standards and demands of the trendy.
Kappa is unique also in its marketing approach which seeks to promote the pop culture and shape the trendy lifestyle. More emphasis has been put in promoting the brand in the dimension of pop culture through in-depth crossovers with the entertainment, music and art professions, so that pop culture is seamlessly blended into the products and their marketing.
As at 31 December 2014, the Group had a total of 1,210 Kappa retail stores operated directly or indirectly under the China segment. The distribution network of retail stores covered all major provincial capital cities and other major cities and townships in China.The number of retail stores directly or indirectly operated by 7 self-owned subsidiaries of the Group increased to 350, and the number of franchise stores was expanded to 38. As such, the Group has further developed the coverage of its self-owned retail network and consolidated its self-operating business, resulting in notable revenue for the Group.
With the ongoing promotion of the brand new image of our retail stores, consumers are set to experience the rebellious, outgoing and character of Kappa in all aspects from products to shop display. In future, while persisting in innovation, the Group will also optimize the distribution of its channels within its stable and existing sales network, in order to continuously enhance the business performance of retail stores and drive the Kappa brand to new heights.
In view of the growing maturity of the e-commerce market, the Group continued to develop and optimize its e-commerce channel. Through the development of special online products, the sales mix of online products has been optimized, while our product and brand reputation has also been gradually enhanced as a result. Promotion and festive events were also organized in association with e-commerce partners to further explore the market and appeal to more consumers.
Japan market - PHENIX
In 1953, "PHENIX" was established by Mr. Tajima Kazuo, an outdoor sporting enthusiast, and quickly earned high praise and widespread fame in skiing, alpinism, gliding and kayaking. Mr. Tajima devoted his whole life to his favorite outdoor sports at which he not only excelled but also gave his best efforts to help those who loved them, too. PHENIX DNA brings together all his ideas and passes them on from generation to generation.
Like its founder, the PHENIX company itself has been deeply devoted to all extreme outdoor sports, including skiing, and hopes to provide the finest support for outdoor sports enthusiasts through its fine line of products. The Company's technical R&D Centre with over 25 years' history has professional development techniques for creating advanced sportswear based on years of research into sports dynamics and physiology. Over the years year, this knowledge has been applied to a wide range of functional materials to meet the demands of leading athletes across the world.
PHENIX revels in the joys of sporting competition. How to extend techniques and function to aid sports is the DNA of PHENIX which has been passed down until now as taught through Mr. Tajima's words and deeds. Combining function that provides the body with comfort and protection as well as a fashion sense that makes people feel stylish and happy results in the "creative idea" of feasting on sports. This is how PHENIX has opened up a brand new world!
PHENIX owns a number of popular brands such as PHENIX, X-NIX, INHABITANT and KAPPA which have been widely hailed by consumers.
As an international top brand within the industry, PHENIX focuses closely on product function and fashion, seeking perfection in every detail. Function and fashion blend beneath simple designs and beautiful shapes. The wide application of functional materials allows PHENIX to respond quickly to environmental changes during different seasons. The result is excellent resistance to cold even in freezing conditions. With PHENIX, we can see the detail-oriented mindset of the Japanese and the R&D philosophy of emplying the designs of other products and industries. These products are more than just outdoor gear, they represent apparel that reflects today's fashion trends.
"X-NIX" is a snowboarding apparel brand that has rapidly grown in popularity. Created by fusing function and fashion, the brand includes various styles of gear and accessories. Multiple tests with the full support and co-operation of top snowboarders, this professional brand offers excellent water resistance, flexibility and heat preservation, which allows for greater snowboarding enjoyment under any weather conditions.
"INHABITANT" literally means "aborigines" which is an apparel brand mainly for young people covering almost all extreme sports like surfing, snowboarding, wakeboarding unleashed, BMX and skateboarding, as well as entertainment and lifestyle activities, like DJing. Just as the name name implies INHABITANT includes the individual spirit and passion of X generation; that is, we are all INHABITANTs. INHABITANT commits itself to constantly providing "aborigines" with various unique and fashionable sportswear and regular apparel, such as diving suits and snowboard suits made of high performance materials, as well as casual sportswear made of renewable cotton and sweat-releasing materials.
Since launched in Japan in 1983, KAPPA has been focusing on sports and committing to provide people who enjoy sports with fashion and comfort during sports. It is what KAPPA has focused for a long time to sense every athlete's hot breath, to subtly detect any change of their facial expression, to correctly respond to the climatic and environmental changes where they are, and to extend a maximum presentation of their healthy and energetic moment as well as their personality. The spirit and passion in athletes are the power promoting KAPPA to achieve continuous progress and development. In 1994, PHENIX Company bought all rights of KAPPA in Japan so that PHENIX's philosophy based on sports obtained a better development and extension. Currently, products of KAPPA (Japan) include collections of athletics, casual and golf.
Currently, sales outlets are located at popular skiing areas in Japan, Korea, Australia, Europe, Canada and United States. In 2009, our group will be expanding the brands to the mainland China market, providing high quality and well designed ski wear.
Marketing and Promotion
Sponsoring professional skiers and teams is the major marketing and promotion strategy of PHENIX which was appointed the official supplier of the Japan National Ski Team at the 2010 Vancouver Winter Olympics. Moreover, the Norwegian Alpine Ski Team and many excellent Japanese skiers, including Akira Sasaki, Seika Matsuzawa, Daisuke Sasaki and Yasuko Kono all sponsored by the PHENIX brand while top skiers like Daisuke Murakami, Katsufumi Matsui, Daniel Frank, Zi Fujinuma, Keiko Inamura, Qiki Tosaki, Kohei Kawaguchi and Takayuki Fujiwara and others have long been sponsored by X-NIX.