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From AOKANG And Red Dragonfly Changes To See The Shoe Industry Sales Channel "Butterfly"

2008/5/22 16:00:00 15

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2007 is an important turning point in the development of China's footwear industry's sales channels.

As the leader of Chinese footwear industry, AOKANG and red dragonfly have launched the famous brand space and integrated store mode respectively.

In October 2007, AOKANG opened an area of 2300 square meters of blue sea famous brand space in Heze, Shandong. It not only entered the five major brands of AOKANG's AOKANG, beautiful beauty, red Firebird, Kanglong and GOEX, but also included 20 famous brands such as playboys, crocodiles, kangaroos and so on, and then opened 4 large scale famous brands in Shandong, mainly operating several brands of their own.

And at its headquarters in Wenzhou, the space of dawn is more than 1000 square meters.

It is reported that "famous brand space" will be the main direction of AOKANG's future development.

Wang Zhentao, President of AOKANG group, said: "this is a big trend. Diversified stores will replace single brand stores.

This can be seen as another revolution of AOKANG to terminal. "

In October 2007, red dragonfly's first more than 300 square meter integrated concept store was unveiled in Jiefang Road, Wenzhou. It mainly trades in four categories: Red Dragonfly leather shoes (including sports shoes), red dragonfly leather products, red dragonfly women's wear and accessories.

As of April 2008, red dragonfly has opened more than 20 integrated stores in the country.

In the future, the Red Dragonfly integrated store mode will be gradually pushed away nationwide. It is expected that more than 30 shops will open in the end of April.

The Red Dragonfly will expand the mode by adopting new shop or original monomer store. According to the plan of red dragonfly, the integrated store mode will develop to 500 in the next 3 years.

From the change of AOKANG and red dragonfly to terminal channel, we can find common ground between them: they are developing towards the direction of scale and centralization.

Some people think that this model belongs to the shoe industry supermarket mode, but I don't think so: first, the products and brands covered by supermarkets are relatively wide, and this mode only runs its own brand products; second, the products of supermarkets are popular consumption, and the grades are not high, and AOKANG and Red Dragonfly are the first line brands in China. Obviously, they will not "drop their identity", especially AOKANG, and make great efforts to become a supplier of leather products for the 2008 Beijing Olympic Games. They also invite Liu Xiang to be the spokesman of the image, whose intention is obviously promoting the brand image.

It should be said that this mode is a form of extension of franchised stores, which further amplifies the role of franchised stores.

I call it brand integrated store.

In a sense, it also reflects the future development direction of China's footwear industry.

Next we will analyze the advantages of this model.

Cost advantage

Because of its particularity, shoes industry has a higher demand for the location of storefronts. In recent years, the price of real estate has been rising, and the rental of shops has also risen. According to industry insiders, the average price of commercial stores in domestic second tier cities has exceeded 1 million /100, and some places even reach 2 million, even the average rent of three cities in China has reached 400 thousand /100.

Such a rental level, a single brand of footwear products, has been very difficult to support.

Besides, rent and pfer fees are still rising. Apart from staff salaries and operating expenses, there is a big problem in the profits of exclusive stores, and brand integrated stores can alleviate this situation better.

Qian Jinbo, chairman of the Red Dragonfly Group, said that the use of integrated store mode can increase the effectiveness of every square metre in the store, and the rent pressure of the integrated store mode is expected to drop by 15% compared to that of the single store.

Xu Xuliang, manager of AOKANG Hubei branch, said: "famous brand space" does not have to be in the first class location, so we can choose the second class location.

At the same area, the rent of lots is at least 3 times more than that, which gives us a lot of room for cost control.

For example, in Shanghai, 1 million 800 thousand we can only rent 70 square meters on the Nanjing Road, but Shaanxi Road, which is not too bad in lots, can be rented to 500 square meters.

Scale advantage

Compared with traditional stores, the brand integration store has not only increased the area greatly, but also has many kinds of products, which can provide more services to consumers.

Qian Jinbo said that the Red Dragonfly integrated concept store, drawing on the international popular mode of operation of large stores, is a concentrated display of all kinds of products of the Red Dragonfly brand, so that consumers can choose leather shoes in the shop, and at the same time, they can conveniently buy all the leather goods, clothing and accessories needed to satisfy consumers' demand for one-stop shopping.

Xu Xuliang said: "traditional stores between different brands are distributed in a decentralized manner, and consumers have to buy one type of products to buy the same type of products, so they have to find them one by one. But the" brand space "is generally between 200 square meters and 500 square meters, giving consumers more choices.

This marketing mode can change the past practice of "single card sale", and integrate many brands together to achieve the goal of resource sharing.

Image advantage

Traditional stores often sell products with single products. The products in the store are relatively single, and the store image is boring. The brand integration store can display all kinds of different brands or styles of the brand, so that the store will become richer and more prominent in product collocation.

In addition, this brand product will be displayed in front of consumers at the same time, it will give consumers a shocking effect, and it will greatly enhance brand awareness and reputation in the minds of consumers.

From the change of AOKANG and red dragonfly to terminal channel, we can foresee that the sales channels of Chinese footwear industry will usher in a new round of butterfly change after three modes of shopping malls, franchised stores and shoe supermarkets.