Brief Description Of British Sports Retailer JD Sports's Operation

According to the world clothing and shoe net, according to the latest release of the first half of 2017 earnings, British sports retailers

The pre tax income increased by 33%, and revenue increased by 41%. The annual revenue is expected to continue to rise.

So how does the sports retailer stabilize the British market and continue to open up overseas?

What inspiration will it bring to other sports retailers? Journalists will unveil the 6 secrets that it can take a firm foothold in the sports retail market:

JD Sports CEO Peter Kaugil (Peter Cowgill) bluntly pointed out that their success is inseparable from the product itself, and the close relationship with suppliers.

"We have become brands.

"The first choice for men's and women's clothing and children's clothing," Gil said, "we have been strengthening the brand lineup.

Our cooperation with international brands is second to none.

They are more recognised for providing top consumer experience for brands.

Many retailers have begun to expand the scope of their own brands in order to enhance their profit margins and resist the impact of currency fluctuations on procurement costs.

But JD Sports has chosen to invest more in other brands, which has stabilized its relationship with suppliers in turbulent markets.

Compared with the rapid growth in revenue and sales, the comparable sales volume excluding the current variables is weaker, rising by 3% in the UK and Ireland and 7% in the continent.

The result shows that its sales growth mainly comes from store expansion.

"We don't know what to do tomorrow. On this point, I challenge every retailer. Your goal is to do the best."

JD Sports's future sales increase also depends on store expansion? Gil said, it is useless to try to predict consumers' buying ways and preferences in advance.

"In fact, no retailer in the world can tell clearly what the comparable sales figures are for tomorrow. They will only utter a lot of lies."

JD Sports is actively exploring the international market and bringing high-end sports apparel from Britain to overseas.

In the first half of 2017, it opened 23 new stores in the European continent and plans to continue to plough the European market in the second half of the year at a rate of 1 stores a week.

In addition, it opened its stores to Australia in the first half of the year, and expanded its network of stores in Asia.

However, JD Sports is still not satisfied with the current international market share, and plans to continue to open up new markets in the next 12 months.

But why does it continue to enter the overseas market?

Kaugil believes that they have established a strong brand position in the global market, which is also a driving force for them to go out.

"In the international market, JD Sports is a landmark retail business in this field," he said. "This is not arrogant.

Because, as far as I know, every corner of the world has enterprises that want to cooperate with us, but we can not cope with them.

We have to decide which market to enter, whether to enter further areas or which partners to choose.

This is the focus of our work.

According to earnings reports, JD Sports outdoor business revenue reached 100 thousand pounds, which is the first profitable business.

Although its outdoor brands, Blacks and Millets, suffered a small loss, the decision to buy Go Outdoors at the end of 2016 finally achieved results in 100 million.

"Four years ago, when we took over, Blacks and Millets did not operate well.

So, I am glad to see our progress.

Kaugil said.

He firmly believes that JD Sports's outdoor business will eventually go on a steadily rising road after years of losses.

"We are very good administrators," Kaugil said. "We have done microscopic analysis of all aspects of outdoor business and moved the strategy of sports business to outdoor business.

The difference between customers is different.

Therefore, with the support of these analyses, our outdoor business will become better and better.

Sports Direct, a sporting goods retailer from the UK, is determined to become Searl, a sports department's British department store.

In recent months, it has not only acquired about 50 Bob 's Store and Eastern Mountain Sports stores, but also announced the addition of Finish Line, an American sports retailer, to take advantage of the chaos to seize the market.

Although this poses a threat to the overseas layout of JD Sports, it still insists on building a high quality display platform.

Kaugil said he would not worry too much about the strategic adjustment of his opponents, because their relationship with suppliers was difficult to replicate.

"We need to create an interesting platform for the brand side, a safe harbor," he said. "We treat people with friendliness and fairness and regard them as partners in common development."

Recently, JD Sports announced the increase of Hot-T, a South Korean footwear retailer, which raised its initial shareholding to 15% to 50% and made its shop a JD Sports retailer.

Hot-T, which has been backing Shoemaker Inc for the past year, has achieved sales of 17 million 200 thousand pounds. The profit before tax and depreciation is 200 thousand pounds, mainly for shoes such as Nike, ADI, Puma and other brands.

Compared with other major footwear retailers such as ABC Mart and Lesmore, Hot-T has a relatively small share of the next store.

However, Hot-T's 23 main stores are located in Seoul, Busan and other important cities, which can bring more consumers and fashion consumers to JD Sports.

Most consumers of Hot-T have brand awareness and have their own understanding of fashion.

They will try out Nike's latest high-end products to the store, which is in line with the positioning of JD Sports's high-end brand line.

JD is not the first British retailer to bet on Korea.

Earlier, the South Korean government signed a series of cross-border trade agreements to attract foreign retailers who want to seize the Southeast Asian market into South Korea.

In 2016, boots, the British beauty and skincare brand, also entered the Korean market through Emart.

In recent years, H&M, Zara, Boboli and UNIQLO have opened stores in Korea.

However, South Korea is a challenging market.

In 2015, Tesco supermarket was no longer overweight in the Korean market, and WAL-MART and Carrefour were frustrated halfway.

Only the American supermarket chain Costco kept a long position.

Therefore, JD Sports has retained its original management team after acquiring Hot-T 50% shares and reshaping the store brand, hoping to achieve the goal of taking root in the Korean market through the local team.

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