Saturated Market -- AOKANG Sells Shoes Without "Nets".

A few days ago, at the world's top marketing forum, the annual meeting of the American marketing, Wang Zhentao, President of AOKANG group, became the first domestic entrepreneur to go to the forum.

China is a big shoemaking country, with shoes output reaching about 5000000000 pairs each year, ranking first in the world.

According to statistics, footwear exports accounted for more than 60% of the total output in 2001, but the average unit price was 2.44 dollars.

In recent years, AOKANG's sales have increased by an average of 66.7% per year, with sales of 820 million yuan last year.

In September this year, AOKANG shoes were rated as "China's famous brand products".

Out of the affirmation of AOKANG's marketing achievements, Wang Zhentao became the winner of the "Golden Award", the first Chinese outstanding marketing person in the leather industry.

AOKANG's motto is "selling is the last word".

In the case of domestic shoe market demand is gradually saturated, what other methods can make the product sell?

The market background of the market is the lifeblood of the entire marketing system.

The competition in the domestic shoe market is becoming increasingly fierce. Manufacturers are fighting product war, price war and brand war. The hidden channel competition also emerges and becomes the focus of competition among all parties.

Competitors are strong.

For a long time, the multi-level agency system is adopted in the circulation of shoes.

Large and medium sized shopping malls have become the key targets for all brands to seize.

Some strong brands are priced at medium and high grade, and the strategy of "entering famous cities, entering famous stores, playing leading roles and creating first class" is determined.

Wenzhou shoes have a bad reputation.

The shoemaking industry in Wenzhou started from a small workshop. Once the quality consciousness was weak, the poor quality and low price hit the market. In the minds of consumers, it formed a bad impression of "fake and shoddy", which resulted in "encirclement and suppression" and refusal to sell in some cities.

Under the bad reputation of "made in Wenzhou", AOKANG started the marketing mode of "factory affiliation, introducing factories into stores", and sold the counters at the state-run shopping malls to produce and sell itself, and then opened "shop in shops" and "counters". It was difficult to open gaps and squeeze into shopping malls, thus laying a foundation for the original accumulation of enterprises.

In the initial stage of AOKANG, many shopping malls do not accept the new mode of "vendor pool", and it is very difficult to open up the market.

At the same time, shopping malls are places where brands are concentrated and competition is fierce.

Wenzhou shoes are generally located in the mid-range, with the reputation of "low quality and low price". It is more difficult to get rid of the tight encirclement through shopping mall channels.

In addition, AOKANG relies on many links in the multi-level distribution. Because of the multiple profits, it is easy to cause serious channel conflict, which is not conducive to market information feedback and factory control, and it is difficult to unify the brand image.

The market is changing.

In the mid and late 90s of last century, the market matured, and consumers put forward higher requirements for the style, richness and sales service of products.

Many shopping malls are declining due to the sluggish industry, and their role in the circulation channels has obviously weakened. Wholesale channels are also shrinking, and sales of enterprises are beginning to develop towards flat structure.

At the same time, some emerging circulation formats began to rise.

AOKANG chose to build a chain Monopoly Network in two or three tier cities and build a large enclosure.

When some strong brands sighed for losing the opportunity, AOKANG, a channel innovator, has already expanded and attacked the channel of competitors.

It adopts chain monopoly.

Leather shoes sales are characterized by strong seasonality, small batch, multiple models and strong service. They are more suitable for the circulation of stores.

AOKANG is the first shoe brand in China to learn from the McDonald's model.

Since the first chain store was established in Zhejiang in 1998, AOKANG has not been able to accept it. With the help of franchising mode, the chain network has spread rapidly in the two or three tier cities nationwide. At present, the number of franchised stores has reached 2000.

This prompted consumers who bought competitive brands to quickly realize brand pformation, and AOKANG's market share increased significantly, and the return was also in time.

It is a channel innovator.

With the help of new channels, AOKANG has maintained a rapid growth rate of 66.7% annually in recent years.

So as to surpass the crowd and achieve the shoe market shuffle.

According to Mike's view, at this stage, some leading brands are the insiders of the channel system. They are the main channel members. They hope that the existing channel layout will remain unchanged and stick to the large and medium shopping malls, which will give AOKANG a chance to develop.

AOKANG has played the role of the innovator outside the circle, and developed the chain system, which is the real challenger of the main channel.

Once AOKANG's strategy is successful, it will have a huge impact on the integration of main channels.

He killed a gun.

A few days ago, AOKANG launched the "A plan" for hundreds of large shopping malls in China. The main point is that shopping malls approve annual sales tasks and enterprises choose locations in shopping malls. AOKANG will adopt world-class operation processes in terms of cooperation mode, brand selection and business training according to development needs.

AOKANG plans to gather its brands and sell them at a retail outlet, opening the exclusive brand supermarket of domestic shoe making enterprises.

According to the analysis, AOKANG regards the big shopping mall as a new target of channel development. This move has the meaning of two birds and one stone: the way of comprehensive coverage of the market adopted by AOKANG, the market network is woven as far as possible without leaving blank points, so as to increase the market share; because of the enhancement of the enterprise strength and the successful development of the peripheral market, AOKANG uses the big market to seize the commanding heights, lock the high-income crowd, enhance the brand, and bring the advertising effect into full play.

Multi channel strategy.

In essence, AOKANG focused on the development of chain monopoly network, but also did not give up AOKANG, which has opened 800 stores.

In addition, new channels are being sought.

The purpose of AOKANG's multi-channel strategy is to build up a three-dimensional market network, respond to fierce competition in the market segments, block the competition brand and serve its multi brand strategy.

AOKANG now launches 3 brands of AOKANG, Kanglong and beautiful ladies, and each brand adopts an independent channel.

As the market is huge, the quality of the channel has become the focus of construction. AOKANG has begun to strengthen the rationality of the channel distribution: AOKANG, located in A and B cities.

AOKANG lock-in is a salaried class, with a large number of consumers. Therefore, the brand is mainly targeted at large and medium-sized cities, and the retail outlets are mainly located in the bustling commercial streets of prefecture level cities, and retail terminals are mainly chain stores and shops.

Kanglong is located in C class city, Chang Kanglong.

Kanglong's consumer groups pay attention to affordable and fashionable.

Therefore, in the channel of monopolization and agency supplemented, the direction of attack is rural and township, and the retail outlets are located in the main streets of some towns or ordinary commercial streets in cities.

The beautiful woman is positioned in the A-level market to meet the fashion demand of white collar women.

The attacking direction of beautiful ladies is the large central cities and coastal open cities. The retail outlets are located in the busy commercial streets that are often frequented by the white-collar workers or the terminal control of the major "famous brand" traders. How to enhance terminal control is a difficult problem.

AOKANG adopts vertical marketing system.

While strengthening the management and support of franchisees, we should give full play to the influence of Direct stores on the market.

The vertical marketing system is adopted.

At present, vertical sale system has become a main form of distribution in consumer goods sales.

AOKANG set up a marketing company, which set up a provincial branch of the marketing company in the whole country, set up an office under the provincial level, managed and supplied the terminal market, and established a vertical marketing system dominated by the manufacturer. Although the operation cost increased, the control ability of the terminal market was enhanced significantly.

Terminal construction is strong.

AOKANG's chain monopoly network consists of two parts: franchised stores and direct stores.

For franchisees, AOKANG must conduct a rigorous inspection and sign a contract with clear obligations and obligations.

In order to reduce the risk of operation, AOKANG asked all distributors to make the first payment, and stipulated a certain proportion of exchange.

In the terminal distribution, AOKANG requires that the location should be located in the busy commercial street, and the establishment should be dense.

To reflect the unity of chain stores, AOKANG requires all stores to fully implement the principle of unified image, unified brand, unified management and unified service.

Each branch conducts business guidance and assistance for distributors to solve business problems.

In order to improve the market reaction speed, AOKANG's marketing system information network is also advancing.

Assessment and training.

In order to promote the healthy development of the channel, AOKANG carries out A, B and C grading management.

Enterprises reward the excellent agents, and give the most preferential treatment in the support system such as distribution, advertising and promotion.

Store management is carried out in terms of location, store image and management service.

At the same time, AOKANG invested about 2 million yuan a year in various training for salesmen, dealers and retailers, and organized 122 training last year.

At present, AOKANG has upgraded the service quality as the trump card of the terminal, and focuses on strengthening the shopping guide service of terminal salesmen.

Its main content is to create a "communication worker" and "consumer psychological consultant type" shopping guide team, disseminate brand information and product knowledge, and provide consumer guidance from the perspective of customers.

The store opens the road.

In AOKANG's franchised network, the ratio of franchised stores to direct outlets is 2:1.

In the process of rapid and steady development of chain monopoly system, AOKANG's Direct stores have played an irreplaceable role: 1. Experience source of management and supervision of franchised stores.

2, guard against market risks.

Market terminals are completely controlled by agents, and manufacturers are easily controlled by others.

The establishment of Direct stores can avoid the pressure from agents to pressure manufacturers to change hands.

3, a template store developed by the market, plays an exemplary and leading role in franchising stores.

So as to "open one, succeed one, consolidate one, drive one".

4, handling inventory and promotion.

Because dealers and manufacturers' interests and strategic objectives are not exactly the same, therefore, promotions, inventory handling and so on are better for direct sale stores.

In the domestic footwear industry, AOKANG is famous for its great planning activities and promotional activities.

Through the promotion of advertising, public relations, sales promotion as a strong combination of promotional products to promote sales, to boost the growth of channel performance.

Every year, there are big planning activities.

The effectiveness of AOKANG's planning activities is well known in the industry.

AOKANG believes that not only consumers are the targets of brand communication, but channels are also the objects of brand communication.

In addition to a large number of strong entertainment programs to promote advertising, AOKANG's internal rigid regulations every year to engage in one or two major planning activities, in order to enhance brand awareness and reputation.

The planning activity is a sensational effect.

Take just one example: in December 15, 1999, AOKANG burned 2000 counterfeit AOKANG shoes which were seized by counterfeiting in Hangzhou, and attracted more than 100 domestic and foreign news media coverage.

Why does an ordinary corporate activism have such a great news value?

At that time, a newspaper headline fully revealed its significance: "12 years ago, a fire burned the fake goods of Wenzhou people; 12 years later, the fire broke out and Wenzhou people burned fake products".

AOKANG's planners skillfully link the event with the fake and shoddy leather shoes produced in Wenzhou in 1987, which burned in Hangzhou, which fully reflects the changes of the times and the entrepreneurial history of Wenzhou shoe industry reborn with the brand name.

From the perspective of the effect of activities, it not only effectively protects the interests of enterprises, but also creates a brand new image. It also focuses on creating an impression of "AOKANG is the representative brand of Wenzhou footwear industry".

The way of sales promotion is homogenization.

At this stage, sales promotion has become a magic weapon for enterprises to increase sales volume.

However, the way of promotion is becoming homogenized.

While doing seasonal sales promotion is not conventional, AOKANG has introduced an internationally popular cumulative promotion mode.

For example, the beautiful ladies fashion shoes, through the establishment of a consumption membership system, take the form of consumption points, when consumers' consumption points reach a certain amount, they can enjoy preferential treatment of discount and gift giving, and increase the sales volume of products by repeated purchases by consumers.

After China's accession to the WTO, China's footwear industry is facing tremendous competition pressure from international brands.

AOKANG boss Wang Zhentao said AOKANG is the most valuable market network, which is competing with foreign brands of capital.

It is reported that AOKANG has signed a cooperation agreement with the European footwear industry ranked second in the brand GEOX, the two sides will exchange channels.

The AOKANG brand "going global" will use GEOX to build its own sales channels in 51 countries' talent and market resources, so as to truly realize the internationalization of sales methods.

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