The "Licensing Period" Of Chinese Footwear Enterprises

"We want to sell to the international fashion industry." Recently, the nine Xing Holdings Limited Executive Director and chief operating officer, Qi Le people, said. The listed foundry manufacturer in Hongkong has been the focus of OEM for 29 years after its establishment. But 5 years ago, nine Xing began to seek to push its own brand shoes into the international market. In 2012, the company will plan to take a more bold move, namely, to open its StellaLuna store in Paris and London.

In fact, the road of "made in China" brand is not smooth.

"The main obstacle is the brand". When it comes to the difficulties that China will make to the international market, Lu Qiang, the senior brand expert and general manager of the original general strategy consulting company, said that the mature markets such as Europe and America have been carved up by many famous brands, and consumers rarely buy brand products that they have never heard of before. Especially when these products come from countries or regions that lack the "country" brand.

If the international marketing master Kotler PHILPS once predicted, "in the next 20 years, it will be Chinese brand At the moment, the foundries may be the new force of Chinese brands.

　　 Transformation trend of OEM Enterprises

There has been such a story in the bookstore that two years ago, Hu Guohui, the special assistant to President of Foxconn, the chairman of the channel business group, painted a "U curve" for the company. To many people, the bottom of the U line, which represents the thinnest profit of the enterprise, is Foxconn's most powerful agent manufacturing business.

In fact, even as the "king of foundry", Fuji Yasushiya, like all enterprises that are struggling with small profits, is eager for the brands and channels with higher profits at both ends. However, two years later, including flying tiger shopping and galloping horses, Foxconn's progress in channel and brand is not smooth. Not only that, but the size of the "king of foundry" has made Foxconn worse.

The attempt to transform the channels of OEM giants is not a case of Foxconn. Baosheng International Holdings Limited is a relatively successful example. Although the name sounds strange, but as the world's largest brand sportswear and clothing manufacturer Yuyuan Industrial (Group) Co., Ltd., a controlling subsidiary, it contracted most of the sports brands including Nike and Adidas. At present, through direct operation and merger and acquisition, in 2011, Baosheng international direct and franchise stores reached 2765 and 3282 respectively, with 24 production lines.

The successful experience of Baosheng international is attributed to the outside world: "trust yourself, and at the same time let go of the regional chain retailers who are in the process of creating the successful mode of Gome expansion in sports products by integrating the latter's channel resources."

Tracing the earlier transformation of Chinese Foundry Enterprises Anta The name can not be ignored. Before the Asian financial crisis, Anta and many shoe manufacturers in Jinjiang produced sports shoes for multinational companies, which is an ordinary OEM factory.

According to senior brand expert Chen Liang, when Anta boss Ding Zhizhong began implementing brand strategy in 1997, the market was almost monopolized by several strong brands in Europe and the United States. Ding Zhizhong opened up a new path to take marketing as a breakthrough. First, he signed an agreement with the Chinese national table tennis team, and invited world champion Kong Linghui to become the spokesman of the brand image. Starting from the small and medium-sized cities in China, he set up his own brand and sales network. Since 1999, TV ads with Kong Linghui as spokesperson appeared on CCTV. After two months of the advertisement, the ordering companies in the whole country began to swarm into Anta factory. In 2000 Sydney Olympic Games, Kong Linghui won the table tennis men's singles champion, and Anta also won fame in this war.

Chen Liang believes that long term foundry has accumulated the foundation of improving product quality, technology and production equipment for Anta, and gained the original accumulation of production management experience. The key to occupy the market is to create an independent brand and succeed in marketing.

　　 "Licensing period" or only input no output

Although large and small foundries have the awareness or action of transformation, not every enterprise's pay will be rewarded.

"The transformation of foundry enterprises is not easy, especially the road to create independent brands is even more uneven." Zhuang Hua, a general manager of kovo Electronics Technology (Wuxi) Limited, told reporters that in general, in the process of creating a brand, an enterprise can withstand the transition period of not making money for about two years. It may take 5 years to form a brand team to start making profits.

Chuang Hua, the parent company of kovo electronics, is a foreign trade enterprise mainly engaged in electrical foundry in Suzhou. In 2005, the annual sales of the vacuum cleaner in the OEM produced by the company reached 800 million yuan, but from 2002, the development of the enterprise seemed to touch the ceiling. According to Zhuang Hua, competitors are springing up like mushrooms, numerous small and medium-sized enterprises that scramble for orders and compete for the market. "And the loss of talents to these small businesses is the processing enterprises, who naturally pay high salaries to whom."

In fact, talent competition, bargaining power reduction, rising cost and loss of orders are the reasons for domestic manufacturers to seriously consider transformation.

"The road to OEM is only one way to go. It's the most important thing to do is to grab someone's cake and grab it, so the enterprise can't see a sustainable future." Chuang Hua frankly.

　　 The idea of group brand sprout

Entrepreneurs and industry observers who hold the above view are not few. Not only the small and medium-sized foundries of Chuang Hua may encounter difficulties, even the listed companies such as nine Xing holdings will also face many challenges.

"Foundry manufacturers are trying to build. Independent brand At the same time, they will continue to rely on traditional customers, and these customers may not be willing to see the industry and Commerce in keeping abreast of themselves. Hong Kong University Science & Technology consumer industry expert Christian Helsen believes.

Based on the above reasons, Christian said that OEM manufacturers may not be able to change their business models. At the moment, there are few Chinese brands that go overseas.

Fortunately, in recent years, domestic organizations and standards such as GMC quality manufacturers alliance have begun to emerge, which means that another brand idea of "made in China" to expand overseas markets is sprouting.

"Made in China" actually does not lack quality products. Pan Jianyue, general manager of global market group, said, "however, in the current international market," made in China "is hard to fight alone. If a group of excellent manufacturers can unite to set up industry screening standards and thresholds, build a group brand with high demands and high standards may be a more practical way.