After years of development, the CARAVA (喀尔沃) brand has now entered a mature phase. Facing the industry conditions of 2012–2013, it has been able to adjust its channels steadily with market orientation, achieving rapid development and forming a unique and healthy market positioning. Its achievements are evident, and its experience is worth sharing.
CARAVA’s Strategic Adjustment Direction
In 2012, the overall domestic market performance and scale did not meet the company’s expectations. Consumers were also perplexed by the numerous outdoor brands available, which placed higher demands on brand owners—the need to shape and continuously cultivate product differentiation and brand personality. 2012 was also the second year of CARAVA’s brand marketing strategy. The company established a marketing department and a retail department. Prior to this, the brand’s sales channels were mainly outdoor stores. In 2012, e-commerce channel sales grew by over 300% year-on-year; foreign trade business grew by 81% year-on-year. Therefore, the company began to adjust step-by-step from product structure and pricing system, focusing the main growth points for 2013 on supermarket retail channels and e-commerce channels. At the same time, the company continued to increase investment in product R&D and conducted in-depth research in representative domestic markets multiple times to understand changes in end-consumer demand and closely monitor the overall development trends of the outdoor industry.
CARAVA’s Professional Channel Situation
In 2012, the traditional professional channels in China faced a reshuffling situation. CARAVA’s sales channels, which were primarily outdoor stores, were also impacted. The lack of operational experience in professional channels, along with blind large-scale ordering, led to product overstocking. Meanwhile, end consumers became more rational and conservative, resulting in an overall slowdown in the expansion of professional channels. As of early December, CARAVA had added 5 new exclusive stores, 2 new directly operated counters, and 56 new professional outdoor store clients within its channels. This basically filled the gap in sales decline caused by the shrinkage of professional channels. CARAVA maintained stable sales volume for the year of 2012 and achieved its inventory reduction target. The professional channel sales performance remained roughly the same as that of the same period in 2011.
CARAVA’s Terminal Image Upgrade
Since 2012, the channel construction of 喀尔沃 (CARAVA) has been gradually adjusted. Over the next three years, the brand will strengthen its existing high-quality professional outdoor store channels, further expand into third-tier markets, and gradually develop department store and exclusive store channels. For this purpose, the company’s SI (Store Identity) has undergone systematic innovation in the second half of 2012. It received praise from both new and old customers at the Asia Nanjing Outdoor Show in July and the 2013 New Product Launch in October. The new terminal image will continue to be launched alongside new store openings and the terminal upgrades of flagship outdoor stores. Recently, the directly operated store in Xi’an Stadium Sports Mall and the CARAVA exclusive store on Binhe Road in Taiyuan have both debuted with new images. Terminal upgrades for flagship outdoor stores such as Shenzhen Huohu and Changchun Jintent are also being completed successively.
CARAVA’s R&D and Promotion
The product unit development of the CARAVA brand has been carried out alongside channel upgrades. At the 2013 Spring/Summer “Metamorphosis” new product launch, the products were further explained. The main highlights include strengthening the fashionability of designs and enriching color variety, all while adhering to the original principle of specialized technical fabrics. This further realizes 喀尔沃 (CARAVA)’s long-held wish—to let more outdoor enthusiasts experience an outdoor lifestyle that is “joyful, fashionable, and comfortable.” It also more accurately interprets 喀尔沃 (CARAVA)’s outdoor philosophy of “professional quality, leading fashion.” In 2012, CARAVA conducted integrated marketing through media operations, event marketing, and cooperation with the One Foundation Rescue Alliance. Currently, the brand’s awareness has seen breakthrough improvement across major industry media, and online discussions continue to gain traction.
2013 Development Goals for CARAVA
In 2013, CARAVA’s brand marketing will be led by a professional outdoor image, with products closely aligned with market demand, targeting the general consumer population. This will give more outdoor enthusiasts greater opportunities to experience CARAVA’s highly cost-effective outdoor gear. The outdoor market in 2013 will face greater challenges, and competition among brands will gradually shift from price wars alone to competition in channels and branding. Through internal management improvements and market channel expansions laid in 2012, CARAVA will adhere to a development mindset of “seeking progress while maintaining stability” in 2013, with an expected growth rate of 35%. The number of directly operated stores and exclusive stores will reach 20–30, and the brand’s terminal network coverage will reach 350 outlets.
CARAVA’s Strategic Adjustment Direction
In 2012, the overall domestic market performance and scale did not meet the company’s expectations. Consumers were also perplexed by the numerous outdoor brands available, which placed higher demands on brand owners—the need to shape and continuously cultivate product differentiation and brand personality. 2012 was also the second year of CARAVA’s brand marketing strategy. The company established a marketing department and a retail department. Prior to this, the brand’s sales channels were mainly outdoor stores. In 2012, e-commerce channel sales grew by over 300% year-on-year; foreign trade business grew by 81% year-on-year. Therefore, the company began to adjust step-by-step from product structure and pricing system, focusing the main growth points for 2013 on supermarket retail channels and e-commerce channels. At the same time, the company continued to increase investment in product R&D and conducted in-depth research in representative domestic markets multiple times to understand changes in end-consumer demand and closely monitor the overall development trends of the outdoor industry.
CARAVA’s Professional Channel Situation
In 2012, the traditional professional channels in China faced a reshuffling situation. CARAVA’s sales channels, which were primarily outdoor stores, were also impacted. The lack of operational experience in professional channels, along with blind large-scale ordering, led to product overstocking. Meanwhile, end consumers became more rational and conservative, resulting in an overall slowdown in the expansion of professional channels. As of early December, CARAVA had added 5 new exclusive stores, 2 new directly operated counters, and 56 new professional outdoor store clients within its channels. This basically filled the gap in sales decline caused by the shrinkage of professional channels. CARAVA maintained stable sales volume for the year of 2012 and achieved its inventory reduction target. The professional channel sales performance remained roughly the same as that of the same period in 2011.
CARAVA’s Terminal Image Upgrade
Since 2012, the channel construction of 喀尔沃 (CARAVA) has been gradually adjusted. Over the next three years, the brand will strengthen its existing high-quality professional outdoor store channels, further expand into third-tier markets, and gradually develop department store and exclusive store channels. For this purpose, the company’s SI (Store Identity) has undergone systematic innovation in the second half of 2012. It received praise from both new and old customers at the Asia Nanjing Outdoor Show in July and the 2013 New Product Launch in October. The new terminal image will continue to be launched alongside new store openings and the terminal upgrades of flagship outdoor stores. Recently, the directly operated store in Xi’an Stadium Sports Mall and the CARAVA exclusive store on Binhe Road in Taiyuan have both debuted with new images. Terminal upgrades for flagship outdoor stores such as Shenzhen Huohu and Changchun Jintent are also being completed successively.
CARAVA’s R&D and Promotion
The product unit development of the CARAVA brand has been carried out alongside channel upgrades. At the 2013 Spring/Summer “Metamorphosis” new product launch, the products were further explained. The main highlights include strengthening the fashionability of designs and enriching color variety, all while adhering to the original principle of specialized technical fabrics. This further realizes 喀尔沃 (CARAVA)’s long-held wish—to let more outdoor enthusiasts experience an outdoor lifestyle that is “joyful, fashionable, and comfortable.” It also more accurately interprets 喀尔沃 (CARAVA)’s outdoor philosophy of “professional quality, leading fashion.” In 2012, CARAVA conducted integrated marketing through media operations, event marketing, and cooperation with the One Foundation Rescue Alliance. Currently, the brand’s awareness has seen breakthrough improvement across major industry media, and online discussions continue to gain traction.
2013 Development Goals for CARAVA
In 2013, CARAVA’s brand marketing will be led by a professional outdoor image, with products closely aligned with market demand, targeting the general consumer population. This will give more outdoor enthusiasts greater opportunities to experience CARAVA’s highly cost-effective outdoor gear. The outdoor market in 2013 will face greater challenges, and competition among brands will gradually shift from price wars alone to competition in channels and branding. Through internal management improvements and market channel expansions laid in 2012, CARAVA will adhere to a development mindset of “seeking progress while maintaining stability” in 2013, with an expected growth rate of 35%. The number of directly operated stores and exclusive stores will reach 20–30, and the brand’s terminal network coverage will reach 350 outlets.