How does Nicholas Tse continue to endorse Xtep?

In 2001, China’s leading sporting goods company Xtep invited Nicholas Tse to serve as its brand spokesperson. No one thought that this endorsement would last for 19 years. This time span may be second only to the time when Wang Leehom endorsed Wahaha.

Unlike Wang Leehom who was terminated by the "second generation" Zong Fuli, the relationship between Nicholas Tse and Xtep not only shows no signs of ending, but is constantly escalating. Recently, Nicholas Tse invested HK$12.4 million and became a shareholder of Xtep International.

What’s the “extraordinary feeling” in Xtep that made Nicholas Tse spend tens of millions to invest in it?

The spokesperson was upgraded to a shareholder

In 2012, Xtep Ding Shuibo awarded Nicholas Tse the 10th Anniversary Special Contribution Award

The relationship between Xtep and Nicholas Tse began in 2001. At that time, the Xtep brand was founded, and founder Ding Shuibo invited Nicholas Tse to be the brand spokesperson. Subsequently, the "Wind and Fire Generation" sneakers co-designed by Nicholas Tse sold 1.2 million pairs, setting a sales record for a single sneaker that no one has ever broken.

Nicholas Tse has been an endorser for 19 years. Now, this spokesperson is not willing to just endorse, but also "anti-customer", directly bought into Xtep International's shareholder. On October 9, Xtep International announced that brand spokesperson Nicholas Tse agreed to subscribe for 5 million shares of Xtep International at a subscription price of HK$2.48 per share, with a total cost of HK$12.4 million. Boosted by this news, on October 12, Xtep International's stock price opened higher and closed higher by 17.53%, closing at HK$2.95, a new high in the past six months.

Although Xtep International announced that Nicholas Tse did not hold shares in the company before the two parties signed the agreement. But Toutiao Jun noticed that as early as 2016, Nicholas Tse subscribed for 5 million shares of Xtep International at a price of HK$4.5 per share, costing HK$22.5 million. Until March 2019, Xtep International's stock price reached a high of HK$6.74 per share. Unfortunately, it is impossible to know how Nicholas Tse's investment will return.

It is worth noting that Nicholas Tse is not the first celebrity to become a shareholder through endorsement. Also in 2016, the cross-border e-commerce platform Fengqu Haitao announced that its spokesperson Zhong Hanliang would become a shareholder of the company. This has brought a lot of traffic topics to Fengqu Haitao.

As for Nicholas Tse’s investment in Xtep, some people in the industry believe that Xtep has carved a path in China’s sporting goods market by relying on entertainment marketing. After the completion of this investment, Nicholas Tse and Xtep may have more in-depth cooperation.