Peak seeks power over contract manufacturers
12/03/2013
The group believes the investment will give it more control over its manufacturing process and enable it to react quickly to changes in the market.
Xu Zhihua, CEO of Peak, said: "I believe the sportswear industry will benefit from an increase in per capita spending on sports products as a result of the acceleration of urbanisation in China and from the potential demand in global markets. We have confidence that we can further enhance the competitiveness of our brand and promote the spirit of our company both domestically and overseas. Meanwhile, we will also take advantage of the opportunities that arise from industry consolidation and awareness of our brand to expand our business.”
The group will continue its cooperation with the National Basketball Association, the Fédération Internationale de Basketball, and will raise its profile in other sports, including running, tennis and football. It also intends to expand its presence and promote its brand overseas in 2013.
For the year ending December 31, 2013, turnover decreased by 37.5% to RMB2.9 billion (£314 million), profit decreased by 42.3% to £114 million and the company closed more than 1,300 stores.
“I believe that after this period of intensive destocking and adjustment, Peak will recover very soon and attain sustainable growth in the coming years,” added Mr Xu.
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