At the 2024 Beijing Half Marathon, the three leading foreign masters suddenly slowed down, and Chinese player He Jie seized the opportunity to cross the finish line at a gallop, and finally won the championship by one second. This kind of plot that only appears in movies is actually staged like this, which can be described as thrilling and exciting. However, the victory caused quite a stir after the game. Because He Jie is a contracted athlete of Xtep International, and the three foreign players who slowed down are also wearing Xtep equipment, this makes many netizens begin to wonder: Is this a well-choreographed "drama"?
Xtep International's stock once plummeted by 8.63%, what are investors panicking about? Are they worried that Xtep International will be involved in the controversy of manipulating the competition? Yes, the sponsorship fee has been so much, Xtep International originally wanted to enhance its brand image in this way, but it did not expect that it might lift a stone and shoot itself in the foot because of the controversy of the "escort" champion.
When it comes to investment, Xtep International is really not built. In 2023, their advertising and promotion expenses will reach 1.961 billion yuan, an increase of 27.59% over the previous year, accounting for 13.7% of total revenue. This kind of big investment in brand building was originally hoped to enhance the public recognition of the product through an event such as a marathon. In fact, Xtep's running shoes are indeed shining in the domestic marathon arena, such as the wearing rate in the Xiamen Marathon, which is far ahead, which can be described as the limelight.
However, nothing is just about the good side. Xtep International appeared a little "panicked" in this incident, and their response was that they were still waiting for the results of the organizing committee's investigation. The reaction in the stock market was also immediate, and investors were clearly concerned about the uncertainty, after all, it is about brand image and future market performance.
In the competition in the running shoe market, Xtep International is not alone. From ANTA's "Champion Running Shoes" to Li-Ning's Chitu 6 PRO, every brand is doing its best. The competition in the market is fierce, and brands are constantly introducing new technologies in an attempt to catch the eye of consumers. Xtep International, as a veteran of running shoes, is constantly updating its product line to meet the needs of amateur runners to professional runners.
Xtep International's "highland" overturn undoubtedly sounded the alarm for them. Brand building is not only about investing in advertising and sponsorship, but also about maintaining a clear brand positioning and consistent product quality in a highly competitive market. Public trust in a brand builds up slowly, but once damaged, it takes longer to recover