361 Degrees International Limited: history, ownership, mission, how it works & makes money

A Brief History of 361 Degrees International Limited

361 Degrees International Limited, commonly referred to as 361 Degrees, is a leading Chinese sporting goods company that specializes in athletic footwear, apparel, and accessories. Founded in 2003, the company quickly established a foothold in the competitive athletic wear market, distinguishing itself with its innovative products and effective branding strategies.

In its early years, 361 Degrees primarily targeted the domestic market in China. By leveraging the increasing demand for sportswear driven by rising health consciousness and active lifestyles, the company successfully expanded its retail and distribution networks. By 2008, 361 Degrees went public on the Hong Kong Stock Exchange (HKEX), trading under the ticker 1361.HK. This move significantly bolstered its capital base, allowing for aggressive growth and marketing initiatives.

By 2011, 361 Degrees reported a marked increase in revenue, achieving approximately **RMB 4.5 billion** (around **USD 710 million**) from its operations. This was a critical period as the company began exploring international markets, aiming to enhance its brand presence outside China. In the years that followed, 361 Degrees continued to invest heavily in research and development, focusing on advanced technology in footwear and apparel, including the introduction of its proprietary technologies such as "Shoe Technology" and "Ultra-Lightweight" materials.

Following its IPO, the company faced significant competition from both domestic and international brands, such as Nike and Adidas. However, through strategic partnerships and sponsorships, including involvement with major sporting events and teams, 361 Degrees was able to carve out a niche. As of 2022, the company's product offerings expanded to include outdoor apparel and sports accessories, tapping into the growing trend of outdoor activities among Chinese consumers.

In recent years, 361 Degrees has emphasized sustainability and innovation, aligning with global trends in eco-friendly manufacturing. In 2023, the company pledged to integrate more sustainable materials in its products, aiming to reduce its carbon footprint by **30%** by **2025**. This commitment has drawn positive attention from environmentally conscious consumers.

As of the latest financial reports in 2023, 361 Degrees achieved a revenue increase of **12%** compared to the previous year, amounting to approximately **RMB 10.6 billion** (around **USD 1.6 billion**), with a net profit of **RMB 2.1 billion** (approximately **USD 320 million**). The company operates over **8,000 retail locations** across Asia, solidifying its status as a key player in the sporting goods industry.

A Who Owns 361 Degrees International Limited

361 Degrees International Limited is a prominent sportswear brand in China, listed on the Hong Kong Stock Exchange under the ticker 1361.HK. With a focus on footwear, apparel, and accessories, the company operates a vast network of retail stores across China.

As of the latest data in 2023, the ownership structure of 361 Degrees International Limited is as follows:

Among the major stakeholders, the management team, led by Chairman and CEO Ding Wu, holds a significant portion of the company. China Strategic Holdings Limited, another key player, is involved in the management of investments and has a strong influence on the company’s strategic direction.

The company's market performance reflects solid investor confidence. According to the 2022 Annual Report, 361 Degrees reported a revenue of approximately RMB 8.34 billion (about USD 1.26 billion), with net profit reaching RMB 730 million (around USD 112 million), demonstrating a robust growth trajectory in a competitive market.

In recent years, 361 Degrees has seen its market share grow, driven by increased consumer demand and an expansion of its retail footprint. As of the end of 2022, the company operated over 6,500 retail outlets, a significant increase from 5,800 in 2021.

Analysts predict continued growth for 361 Degrees International Limited, with an estimated compounded annual growth rate (CAGR) of 12% for the next five years, driven by a focus on innovation and e-commerce expansion.

In terms of stock performance, the share price for 361 Degrees has shown significant fluctuation. As of October 2023, the stock was trading at approximately HKD 4.50, reflecting an increase of 25% year-on-year. The company has maintained a P/E ratio of around 15.3, which is competitive within the retail sector.

The ownership of 361 Degrees International Limited underscores a strategic blend of management control and public investment, positioning the company uniquely within the sportswear industry in China.

361 Degrees International Limited Mission Statement

361 Degrees International Limited, a leading sportswear company based in China, focuses on providing high-quality athletic footwear and apparel. The company emphasizes innovation, performance, and consumer satisfaction. Its mission statement reflects a commitment to enhancing the quality of life for customers through superior products and dedicated service.

The core elements of 361 Degrees' mission include:

• To deliver top-performing sports products that meet the needs of athletes and fitness enthusiasts.
• To foster a culture of innovation and continuous improvement in product design and technology.
• To establish a sustainable business model that prioritizes environmental responsibility.
• To create value for shareholders by expanding market reach and enhancing brand loyalty.

The company's vision complements its mission by aspiring to be a globally recognized brand in the sportswear industry, known for quality and style. The latest financial data illustrates the company's performance and commitment to its mission:

The growth in key financial indicators, such as revenue and net income, reinforces 361 Degrees' strategic direction aligned with its mission. The increase in revenue from CNY 3,520 million in 2021 to CNY 4,128 million in 2022 exemplifies a strong market demand for its products. Additionally, the company's operating profit climbed to CNY 823 million, up from CNY 748 million in the previous year.

To further support its mission, 361 Degrees has invested heavily in research and development, ensuring that their products incorporate the latest technologies to enhance performance. The R&D expenditure for 2022 was approximately CNY 200 million, a significant increase from CNY 150 million in 2021, representing a commitment to innovation.

In terms of market presence, 361 Degrees operates more than 8,000 retail stores across China and has expanded its international footprint, reaching markets in over 20 countries. This expansion aligns with their objective of enhancing brand recognition globally.

Through strategic partnerships and sponsorships, the company has successfully positioned itself within the competitive landscape of the sportswear industry, targeting both performance-oriented and lifestyle consumers. The mission statement of 361 Degrees encapsulates its vision for growth while maintaining a strong focus on product excellence and sustainable business practices.

How 361 Degrees International Limited Works

361 Degrees International Limited is a prominent Chinese sportswear brand, specializing in athletic footwear, apparel, and accessories. Founded in 2003, the company has established a significant presence in the sports retail market, primarily focused on the domestic Chinese market while gradually expanding internationally.

The company operates through a multi-channel strategy, including wholesale distribution, direct-to-consumer sales via retail stores, and e-commerce platforms. As of December 2022, 361 Degrees International Limited reported a total of approximately 7,022 retail outlets across China.

For the fiscal year 2022, the company generated revenues amounting to approximately RMB 6.13 billion (around USD 925 million), a slight increase of 2.5% compared to the previous year. The net profit for the same period stood at approximately RMB 505 million (about USD 75 million), reflecting a decrease of 10% year-on-year due to rising costs and competitive pressures.

361 Degrees employs a value-driven branding strategy, appealing to the middle- to lower-income segments of the market while simultaneously appealing to sports enthusiasts and casual consumers. The product categories include:

• Footwear: Sports shoes, casual shoes, and lifestyle shoes.
• Apparel: Activewear, training gear, and casual apparel.
• Accessories: Bags, socks, and other sports-related gear.

The company emphasizes innovation and functionality in its products, investing heavily in research and development. In 2022, R&D expenses were approximately RMB 200 million (USD 30 million), which constituted about 3.3% of total revenues.

361 Degrees has reported a consistent increase in its online sales channel, particularly during and post-pandemic. E-commerce revenue represented approximately 35% of total sales in 2022, highlighting a consumer shift towards online shopping. The COVID-19 pandemic accelerated digitalization efforts, with sales on platforms such as Tmall and JD.com contributing significantly to revenue growth.

The company’s marketing strategies include sponsorships of sports events and partnerships with athletes, enhancing brand visibility and credibility. In 2022, total marketing expenditures were around RMB 500 million (approximately USD 75 million), which is 8.2% of total revenue.

Additionally, 361 Degrees has been actively pursuing international expansion, especially in markets like Southeast Asia and North America. The company established partnerships with local distributors to introduce its products to new consumer bases. The international revenue accounted for approximately 15% of total sales in 2022.

The financial outlook for 361 Degrees International Limited remains cautious yet optimistic, as it navigates a competitive landscape with growing investment in branding, digital transformation, and sustainability initiatives, aiming to enhance brand loyalty and market share in an evolving retail environment.

How 361 Degrees International Limited Makes Money

361 Degrees International Limited, a prominent sportswear brand in China, generates revenue through various streams focused on product sales, brand licensing, and e-commerce platforms.

The majority of the company's income derives from the sale of athletic footwear, apparel, and accessories. As of the fiscal year 2022, 361 Degrees reported a revenue of approximately RMB 5.31 billion, reflecting a year-on-year increase of 6.3%. The growth was fueled by a resurgence in consumer spending on sports and fitness products, particularly post-pandemic.

The company's product offerings are segmented primarily into footwear and apparel. According to their 2022 financial report:

361 Degrees operates an extensive distribution network, with over 7,000 retail outlets across China as of 2022. This includes both directly operated stores and franchised locations. The company emphasizes its strategy of expanding its retail footprint in lower-tier cities, where demand for sportswear is rapidly increasing.

E-commerce has become a significant revenue channel. In 2022, online sales accounted for roughly 30% of total revenue, underscoring the shift in consumer purchasing behaviors. The company has partnered with major online platforms, including Tmall and JD.com, to leverage their reach.

Brand licensing also contributes to 361 Degrees’ revenue. The company has entered licensing agreements that allow third parties to produce and sell products under the 361 Degrees brand, generating additional income. In the fiscal year 2022, licensing revenue was reported at approximately RMB 200 million.

Furthermore, 361 Degrees has invested in technological advancements and product innovation. The launch of new product lines, such as environmentally friendly footwear, has helped capture the attention of eco-conscious consumers. In 2022, this line alone brought in approximately RMB 150 million in sales.

The company's marketing strategy heavily focuses on sports sponsorships and endorsements from local athletes, which enhances brand visibility and credibility. In 2022, marketing expenditures were around RMB 800 million, aimed at boosting brand awareness among younger demographics.

Looking at the financial metrics, the gross profit margin for 361 Degrees in 2022 was approximately 42%, which indicates a strong pricing power and efficient cost management strategies.

In terms of geographical diversification, while the majority of revenue is generated from the Chinese market, 361 Degrees is also exploring expansion into other Asian markets, which presents potential growth opportunities. In 2022, revenue from international markets accounted for around 10% of total revenue.