Local Clothing Giants Compete For Overseas Brands To Give Themselves Cosmetic Surgery.
Last year, every AOKANG employee's logo was printed on the back of the brand name GEOX, which now belongs to BELLE. In May of last year, the successful listing of HK $8 billion 660 million in Hongkong, BELLE, was taking advantage of capital advantage to open up battlefields in China. After looking for the acquisition of domestic competitors, BELLE turned its eyes to agents for overseas brands. According to BELLE sources, BELLE's mission now is to seek brand managers from all provinces for GEOX.
Wang Zhentao, chairman of AOKANG, must have regretted last year. After losing GEOX, AOKANG gained the brand management right of VAL LEVERDE. Unlike the previous GEOX operation, AOKANG gained the brand management and production rights of Wanli wade in the world for 10 years. Founded in 1969, wanwade has a history of nearly 40 years, and there are more than 2300 stores in the world, with sales of 150 million euros last year.
After seeing AOKANG's takeover, insiders of a red dragonfly shoe brand told reporters, "we also have plans to acquire overseas brands. Many enterprises in the industry are making this plan."
Many well-known brands in the clothing industry, such as Shan Shan, Li Lang, AOKANG, red dragonfly and other familiar names in China, have been or are implementing the plan to obtain overseas brand dealership.
Borrow foreign brands to give yourself "cosmetic surgery"
The first is that enterprises register their brands abroad, then they pack themselves in the form of foreign brands, and the other is to buy second line brands overseas.
Wang Zhentao, chairman of AOKANG, told reporters about the story of AOKANG's marriage to Wanli Wade. "I have met with the president of Wanli wade for a few times. He is old, and the children are not interested in shoes industry, so he is very interested in US and hopes someone can accept his brand."
Not long ago, when the old man visited China, Wang Zhentao rushed to Shenzhen and joined it. A perfect plan came to mind in his mind, "buying the foreign brand".
As early as the footwear industry began to operate, Shanshan has opened the curtain of overseas acquisitions of brands, and claims that it is the best time to buy brands overseas. Unlike the association between Lenovo and IBM, the overseas acquisition plan of enterprises is not "going out" but "coming back" and mining their respective channel sales potential.
Yang Donghui, vice president of the textile industry association, summed up several types of overseas brands to reporters: "the first is to register their brands abroad, and then to package themselves with the attitude of foreign brands, so as to increase the brand value of the products."
The other is that most of their overseas acquisitions are second tier brands, mainly for Chinese market demand. Most enterprises buy local brands that are not strong, but bringing them into China and selling them in China will bring good results. "
Reporters also learned that the products of these foreign brands are usually processed on behalf of China, and many agents or acquisitions of their enterprises are just for them.
Channel wars require multiple product lines.
With a large number of exclusive stores, and the size of the store is growing, enterprises need the support of high-end brands.
"Actually, we do not lack the technology of these brands because we are capable of producing them. We are short of their high-end brand image." A clothing business person disclosed. "Now the big brands in China have a large number of franchisees and direct stores. Each chain store has an area of 400 square meters. It has the ability to introduce new high-end products and expand profits with sales. "
Reporters learned that domestic brands linked to foreign brands have built huge sales networks. There are nearly 3000 stores in Shanshan, and 9 foreign brands have been integrated into their own store sales system. Among the shoe brands, AOKANG now has nearly 3000 stores, and there are 2600 red dragonflies; and the number of BELLE's monopoly stores, the largest shoe brand in China, exceeds 3000. Apart from the brand abroad, its domestic brands exceed 12.
"Now, everyone is eating" channels "! Like an appliance store, try to introduce more products into the sales channel to make money. The above sources revealed.
Because of the impact of RMB appreciation and other reasons, "from this year, the competition of garment enterprises has changed from export to domestic sales." This has become an important feature of the apparel industry's marketing pformation, and one of the key factors affecting domestic sales is the construction of channels and diversified brands.
Li Dongsheng, deputy chief of Si Li company, is worried about the construction of product channel. "Competition in terminal channel construction has been very intense." Li Dongsheng described that the era of OEM has passed, that is, the "weed period" of textile enterprises, and now domestic enterprises are developing their own brand, which is "shrub period". "Building a good sales channel can quickly improve product sales, and the consumption market in every city is only so large. Whoever can make the best and best of their channels will have the opportunity to promote brand development."
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