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Moyen wants to quickly establish its brand awareness nationwide to build the first brand of outdoor products in China
On January 20, Drilling International Outdoor Group Co., Ltd. (referred to as Drilling International) held its first franchisee ordering meeting for the "Mo Nai" brand at its headquarters in Xiamen. Nearly 500 franchisees from across the country attended the event. Mo Nai Outdoor aims to expand its KA channels from 1,500 to 2,000 in 2010 and open 1,000 new stores, positioning itself as the leading supplier of outdoor retail terminals in China.
To boost brand recognition nationwide, Mo Nai Outdoor plans to invest 150 million yuan in advertising this year, a significant increase from last year’s 5 million yuan. The company is following the same strategy that helped brands like Seven Wolves, Anta, and 361 Degrees rise to prominence—leveraging television media to build brand awareness. Now, Mo Nai Outdoor is adopting a multi-channel approach, starting with CCTV and TV, then moving to traditional print media, while also focusing on digital platforms such as Sina, Tencent, and Greenfield.
A month prior, Mo Nai became the official outdoor product sponsor of the 2010 Xiamen International Marathon. According to Chai Jianxin, general manager of Mo Nai Outdoor, the average price of their products is around 200 yuan, targeting consumers with a monthly income of over 3,000 yuan.
Meanwhile, another outdoor brand, Pathfinder, has already made waves in the capital market. In 2009, it achieved sales revenue of 293 million yuan, a 38.38% increase year-on-year, with net profit rising by 68.13%. As of January 21, its stock price stood at 43.05 yuan per share, with a dynamic P/E ratio of 57 times.
Drilling International, which operates under three brands, including Mo Nai for the mass market, is expanding rapidly. It offers a wide range of products, from footwear and bags to camping gear and sports equipment. In 2010, the company planned to launch 2,652 new products. With nearly 700 million yuan in sales in 2009, the company is now exploring private equity investment opportunities.
Private equity investors have shown interest in Drilling International, with some expressing enthusiasm for the growing outdoor market. The company recently restructured its development strategy, with listing being one of its key goals. Over the past few months, several PE firms have visited the company, with the first round of financing expected soon.
Zhai Lihua, chairman of Drilling International, has experience in the capital market, having previously led WorldCom Warner through multiple rounds of funding. While he acknowledges the success of other brands, he emphasizes that each company has its own unique path.
When asked about the company’s listing plans, Zhai was cautious, stating that while the outdoor market holds great potential, the focus remains on operational quality rather than rushing into capital operations.
Recent industry reports highlight strong growth in the global outdoor sector. In the U.S., outdoor store sales rose by 2% in July 2008, while chain stores saw an 11% increase. Online sales surged by 30%. In Europe, 85% of outdoor industry members expressed confidence in the market, with most reporting increased domestic and international sales.
In China, the outdoor products market has seen explosive growth, with total retail sales reaching 3.65 billion yuan in 2008—a 53.3% increase from 2007. Industry experts predict the market will grow at a rate of 50% annually, surpassing 10 billion yuan in value.
At the Mo Nai franchisee meeting, a Xi’an-based franchisee noted that the outdoor product market is just beginning to take off, similar to how the sports goods industry flourished in the early 2000s. Chai Jianxin was impressed by the enthusiasm of the franchisees, selecting 500 out of 5,000 applicants for the first round, with another 500 expected to be added later this year.
Established in 1997, Drilling International has built a strong presence with 24 branch offices and 1,500 retail outlets in major supermarkets like Wal-Mart and Carrefour. The company continues to pursue its goal of becoming the top outdoor brand in China.