Chapter 332: Strategic Conversations

The restaurant’s quiet private room.

After finishing the meal, Xu Chen had the waiter clear the dishes and bring a fresh pot of premium cooked Pu’er tea.

Xu Chen and Nie Fei sipped tea while wrapping up their discussion on the core strategies for ‘Ran Bing Sports’.

Both had their own ideas, and comparing them brought mutual excitement.

At least in brand core strategy, their thinking aligned perfectly; any differences in operational approaches complemented each other ideally.

Nie Fei held her cup of Pu’er, sipping gently, her smile hiding barely contained delight:

“Chatting with you, Teacher Xu, always brings a wave of surprises…”

“I’m truly curious how someone your age has such solid business frameworks.”

Xu Chen topped off her tea. “I just work hard, that’s all.”

Nie Fei: “Plenty of people work hard, but only a few succeed.”

“You’re different.”

…

As Nie Fei had analyzed earlier, the domestic sports brand market was fiercely competitive.

Nike and Adidas, with their massive budgets, top-tier quality, and cutting-edge designs, had built unassailable moats, dominating high-end and some mid-range segments.

Meanwhile, domestic brands like Li Ning and Anta relied on early-established user loyalty and affordable prices to hold the mid-to-low end.

In this environment, launching a new sports brand was no easy feat.

Yet, tough didn’t mean impossible.

Xu Chen and Nie Fei’s thoughts aligned here.

Take running shoes, the heart of sports gear, for example. International brands like Nike and Adidas commanded high premiums—prices jumping to five or six hundred, even seven or eight hundred yuan—that made many domestic consumers hesitate.

In their cost structure, the biggest chunk was brand premium, plus hefty marketing and store expenses.

The actual shoe cost might only be tens or a hundred yuan…

Domestic brands lacked that premium but couldn’t charge high prices, so they skimped on quality materials.

At the same time, their designs still lagged behind international ones.

…

By 2006, key domestic brands hadn’t yet pushed hard into mid-to-high-end development.

A few tentative tries had all ended in failure.

This opened a window for ‘Ran Bing Sports’.

Offer quality and design on par with international brands at more accessible second-tier prices, boosted by the Xie Bingran name—that was their core plan.

For overall branding, Xu Chen defined it as ‘National Trend Sports’.

In 2006, the ‘National Trend’ concept hadn’t caught on yet; domestic apparel brands mostly copied Western, Japanese, or Korean styles.

Xu Chen’s idea was to leverage Xie Bingran’s champion status and the national pride it stirred, creating a sports brand with deep cultural roots.

Blend avant-garde designs with traditional Chinese elements to pioneer the ‘National Trend’ in the industry.

‘National Trend Sports—a brand with national spirit…’

Nie Fei pondered the phrase, excitement bubbling up:

“This is truly unique. No domestic sports brand has tried this yet.”

“Everyone’s still just copying…”

“Even products with red themes haven’t made an impact…”

Xu Chen: “It’ll demand high-quality designs.”

“I’ve seen Li Ning and Anta’s recent lines; they added some cultural elements, but they feel outdated, with clunky designs.”

“To define ‘National Trend’, we need something truly striking.”

Nie Fei nodded: “There’s that British design studio, and Chen Youjian in Hong Kong…”

“But it’ll cost a lot.”

Xu Chen: “It’s worth it.”

Nie Fei smiled: “Hearing that puts me at ease.”

“After leaving Jiaduobao, I got an offer from a domestic sports brand.”

“I was considering it, but talking to their boss, I saw they wouldn’t spend on design…”

Xu Chen laughed: “My dad and I can handle the startup funds as best we can.”

“The details are up to you, Fei Jie.”

…

On product focus, Xu Chen and Nie Fei shared the same vision.

‘Ran Bing Sports’ would start with professional running shoes as its flagship.

Running shoes fit perfectly with Xie Bingran’s athletic image.

Compared to clothing, running shoes had stronger technical depth and brand value.

For any sports brand, domestic or international, running shoes formed the foundation.

In market strategy, Nie Fei and Xu Chen were in sync.

Whether Nike, Adidas, Li Ning, or Anta, they all relied on vast networks of dealers and stores across the country.

This raised the barrier to entry…

‘Ran Bing Sports’, starting with limited funds, couldn’t support a massive store network.

Without strong brand recognition, opening many stores would just burn cash.

But in 2006, the rise of e-commerce offered a simple launch path.

Taobao’s daily active users had surpassed 9 million, making it Asia’s largest shopping site.

Nie Fei’s suggestion: Launch an online official store and open one offline experience store in Shanghai.

Once ‘Ran Bing Sports’ scales up, decide on expanding the offline network.

As someone reborn with future knowledge, Xu Chen had ready ideas for hype and operations.

“Leverage Xie Bingran’s popularity, plus top-notch quality and design—our first product will have plenty of buzz.”

“We could do a limited run of 1,000 pairs.”

“Online pre-orders and grabs…”

In his past life, Xu Chen had seen all the sneaker hype tricks like futures and exclusive codes.

Bringing them to 2006 was like advanced warfare.

As Xu Chen outlined the tactics, Nie Fei couldn’t help but marvel:

“You’re turning our production limits and market tests into a nationwide frenzy, with extra hype on top.”

“You’re a real little genius…”

Xu Chen thought for a moment and added:

“We need to time the launch with one of Bing Ge’s wins when the hype is high.”

“Call the first product 【Ran Bing 001, Limited 1,000 Pairs Champion Edition】.”

Nie Fei mulled over the name:

“Ran Bing 001… Limited 1,000 Pairs, Champion Edition.”

“Sounds like it’ll spark a buying frenzy!”

For ‘Ran Bing 001’s unique edge, Xu Chen laid out the core idea.

“That squishy feel and bouncy midsole.”

In his previous life, the most successful running shoe trend started in 2013 with Adidas’s ‘squishy feel’ concept.

After their ‘popcorn’ shoes exploded in popularity, ‘squishy feel’ became a hit, influencing the whole category.

In the following decade, Nike, Li Ning, and others jumped on board with bouncy soles, creating a wave.

But in 2006, no brand had pushed this concept yet, giving ‘Ran Bing Sports’ a golden opportunity.

‘Ran Bing Sports’ would define not just ‘National Trend Sports’ but also ‘squishy feel’.

…

Xu Chen shared the key strategy, and Nie Fei furrowed her brow, deep in thought.

“This is pretty innovative…”

“Everyone’s doing bouncy tech, but no one’s marketed it as a concept yet.”

“‘Squishy feel’ is a bit crude, but it’s got real appeal—young people will love it.”

As an expert in sports gear, Nie Fei shared some industry knowledge with Xu Chen.

Just like electric cars have their ‘big three’—motor, control, and battery—running shoes have theirs:

Upper, midsole, and outsole.

The upper handles fit, support, and breathability.

The midsole manages feel, bounce, and cushioning—key to comfort.

The outsole deals with durability and grip…

Xu Chen’s ‘squishy feel’ and ‘bouncy’ ideas centered on the midsole.

The midsole was the core of professional running shoes, determining performance.

Nie Fei, as an industry pro, knew the main tech principles inside out.

Midsoles fell into two categories.

First, mechanical structures—like Nike’s air cushion or Asics’s Gel cushioning.

These were stable and long-lasting but often made shoes heavier due to dense materials.

Second, foaming tech.

Later, Adidas’s Boost ‘popcorn’ was an advanced foam, light and bouncy, perfect for lightweight designs, but less stable over time.

Currently, the main foam was EVA, introduced in 1975, used in some domestic mid-range shoes…

If Xu Chen remembered right, Adidas’s Boost tech didn’t hit until 2013.

But foam innovations, including secondary foaming from EVA, existed in the 2000s…

Xu Chen said: “For the midsole tech you mentioned, I suggest going with foam materials.”

“First, it meets the lightweight need, and second, it avoids big-brand patents on mechanical structures.”

“The only challenge is finding the best, most advanced foam in the industry.”

Nie Fei hesitated: “Foam has durability issues, so it’s mostly for mid-to-low-end products domestically…”

Xu Chen: “We don’t need to worry too much.”

“One, we’ll seek the latest foams and fix any durability problems.”

“Two, our shoes won’t price like Nike or Asics, so no huge pressure.”

“Three, running shoes are consumables—we can just tell users to replace after so many kilometers…”

Xu Chen’s third point drew from past experiences.

In the 2010s and 2020s, with the marathon boom in China, a couple of pro running brands emerged.

They detailed products—like one for 10km runs with 1,000km lifespan, another for 30km with 500km…

It was clever marketing: Made users feel it was expert-level while turning shoes into regular replacements, boosting repeat buys.

These future tactics were eye-opening for Nie Fei; she couldn’t hide her admiration:

“Your ideas are so fresh and brilliant.”

“You and your dad are born for business…”

Xu Chen laughed: “I can’t compare to my dad; I’m just tossing ideas around.”

“Plus, with an industry pro like you, Fei Jie, to make them real…”

Nie Fei chuckled, clinked her tea cup with his: “I’ll deliver.”

…

Over that pot of tea, they hashed out most of ‘Ran Bing Sports’ implementation plan.

The rest was up to General Manager Nie Fei.

On finances, Fang Jun and Nie Fei were handling it; with him overseeing, Xu Chen didn’t need to worry.

‘Ran Bing Sports’ startup funds would come from East Morning Star Advertising’s cash plus a transfer from East Morning Star Co.

In about six months, they’d gather around ten million yuan.

Nie Fei and Xu Chen figured that was plenty to start.

Leverage Xie Bingran’s buzz without big marketing spends…

Focus on e-commerce, not widespread stores…

Build around the first hit product, ‘Ran Bing 001’, without overextending the line…

With that base, ten million would suffice.

Next up: Team building for ‘Ran Bing Sports’.

Sun Aimi and Gu Xinxi could lend some time to support Nie Fei, but growth needed more staff.

They needed talent in three areas.

First, a product expert for supply chain, materials, and factory ties.

Second, an e-commerce specialist for online stores and promotions.

Third, a design expert for core product design—though not urgent; Nie Fei planned to budget for a top studio for ‘Ran Bing 001’.

Sun Aimi could help a bit more.

Marketing would be covered by Nie Fei with Sun Aimi and Gu Xinxi—and of course, Xu Chen.

The Shanghai offline store could wait; it wasn’t a priority yet.

…

…

The night breeze carried a chill.

Xu Chen walked with Nie Fei around Tonghai University’s campus.

Nie Fei puffed on a slim cigarette and said softly:

“I envy you—young and already successful in business…”

Xu Chen: “My success is thanks to you handling things, Fei Jie.”

Nie Fei: “You and your dad are quite the business duo.”

She took a drag and added:

“Is your dad single?”

Xu Chen paused, looking puzzled at her.

Nie Fei laughed: “A catch like him is prime real estate.”

“If needed, I can introduce some top women—many are overseas returnees, ready to settle down.”

Xu Chen: “…”

Nie Fei thought for a second, glanced at him, and smiled:

“Forget I said that. Getting you a stepmom and a sibling isn’t my call.”

Xu Chen gave an awkward smile and stayed quiet.

For some reason, images of Fang Jun and Wu Yue popped into his mind.

Out of nowhere.

…