China market - KAPPA

Brand Positioning

KAPPA's positioning proposition is: Sports, Fashion, Attraction, Taste. Target customers are 18 to 35 year olds who are trendy and adventurous in terms of their lifestyle choices and what they wear.

KAPPA originated in Italy in the 1970s and has been a renowned sports and casual wear brand throughout Europe since then. The KAPPA logo displays a man and a woman sitting back to back, which represents sports, youth and a passionate lifestyle.

In early 2002, KAPPA introduced the romance and passion of the Mediterranean Sea to China Dongxiang, providing mainland consumers with a new concept of sport and fashion. China Dongxiang gained ownership of the KAPPA brand in mainland China and Macau in May 2006, enabling the Group to independently implement its operation plans on product design and development, production, marketing and promotion, sales and distribution.

Brand Introduction

KAPPA's products are designed for sports and leisure. Since its launch in China, KAPPA has been continually introducing original European tastes to Chinese consumers, sharing innovative and unique sports dress concepts and fashions.

KAPPA's apparel, footwear and accessories are specially designed so they can be matched together with each other. In order to help satisfy various consumer needs, a diverse line of items has been developed, including football, classic, national, gym, lifestyle and others.

Distribution Network

KAPPA's strong growth has come from the fast expansion of its distribution network. China Dongxiang as well has developed global-leading commercial ideas along with an improved and unique sales management system. The Company's strict distributor appraisal system ensures tight control and distribution for each regional market and reduces mutually undesirable competition. Moreover, the sales reward system in place to spur competition greatly increases distributor activity as well as loyalty and, in turn, brings about an abundance of benefits for them.

An on-going scientific management system has effectively helped China Dongxiang's brands develop in the mainland sportswear market, which has also contributed to a rapid growth in the number of retail stores. Today, KAPPA's distribution network covers all provincial capitals and other major urban areas in China. Highly fashionale, dynamic and distinguished, KAPPA stores now number over 2,800.

While continuing to nurture this successful business model, China Dongxiang also plans to open other flagship stores and seeks greater co-operation with its distributors to boost sales.

Marketing and Promotion

Actively promoting the brand through various channels
KAPPA's major marketing and promotion strategic foundations aim at sponsorship of sporting events and the entertainment industry. Sponsorships, advertisements, publicity and associated brand promotions have boosted recognition of the brand as well as raised overall sale volume. KAPPA has further consolidated its market position and gained wide recognition through sponsorship of the Hong Kong Table Tennis Team, China Forty-nine Olympic Sailing Team, the selection of the Olympic wheelman, the China Open as well as other excellent performances at the 2008 Beijing Olympic Games. In addition, KAPPA also actively participates in entertainment projects such as movies, TV series, TV entertainment shows and concerts. The brand positioning in sports, fashion, attraction and taste are passed along to consumers, while increasing the general exposure of the brand.

Collaboration with international brands
Moreover, KAPPA, with its own brand character and strengths, continues to implement its co-branding strategy. After a successful cooperative venture between KAPPA and Pepsi (China) Co., Ltd. as well as with Dongfeng Citroen in 2007, KAPPA sought further co-operative strategies in 2008. KAPPA participated in all the activities of China Pepsi. Meanwhile that same year, Pepsi brought to the market a limited edition package design of Pepsi Cola, which was specially conceived for KAPPA. The modified C2 Dongfeng Citroen sparked extensive interest when it was presented at the Beijing Car Exhibition in April 2008 at which KAPPA took part in the design and adaptation work.

Participation in welfare activities
KAPPA also takes its community responsibilities seriously and actively organises and participates in various social charity activities. These include the 2005 Star Football Match for Poverty-stricken University Students,"I Want to Go to School".. and other large social welfare activities in 2006 and 2007 that have effectively promoted the brand image. In 2008, KAPPA's top officials responded quickly as soon as they were informed about the severe earthquake in Wenchuan of Sichuan Province and other places. Total donations by KAPPA came to over 15 million Yuan. KAPPA will continue sponsoring large social welfare projects in 2009.