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Fashion Brands Enter Business From Brand Dealers To Retailers.

2008/8/15 0:00:00 54

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Brands will be adjusted accordingly according to their own needs at different stages of development.

In 1993, international brand baozi began selling its high-end clothing and accessories products in mainland China.

After entering the twenty-first Century, with the increasingly fierce competition in brand management, the operation mode and concept of international brands have penetrated into domestic brand enterprises.

In its own early brand management model no longer become the core advantage of the situation, Baozi began to combine with the retail industry, in 2001, the acquisition of the shares of the Paris spring department store, originally owned by TOP FORM, and the Paris spring department store as a wholly owned subsidiary of baozi company.

In July 2007, Paris spring department store bought Beijing's traditional high - grade department store - Seth shopping center.

In recent years, China's clothing brand purchases department stores or commercial real estate cases are also common. From the end of 2004, in less than a year, Ningbo Bo Yang group spent hundreds of millions of yuan to buy and buy, and build three large scale department stores, which are tens of thousands of square meters. They are 20 thousand square meters of Ningbo new Jiangxia mall, 16 thousand square meters long Yuyao commercial building and 10 thousand square meters of Nanchang Bo Yang commercial building.

The famous domestic textile and garment production enterprises in the near ten major brands are flourishing, and they march into the department store industry.

Coincidentally, in January this year, in order to make up for the shortage of high-end consumer market in Quanzhou, the seven wolves group spent hundreds of millions of yuan to buy more than 200 stores in the two phase of Quanzhou New Gate Street.

In order to ensure the successful operation of the project, the seven wolf group also set up a project operation company specially.

More importantly, all the storefronts in the project are owned by the seven wolf group, which is "only rent not sold", unified planning, unified investment and unified management.

Current session guests

Karol Lee

Expert Committee of China Garment Association Expert Committee

President of Bi LAN International Business Consultant Co., Ltd.

Research experts on developing business models of Chinese Enterprises

Dialogue 1

Clarifying the relationship between brand and retailing

The core point of view: the pformation of brand role is a normal reaction to China's development to a certain period. In the future, a group of product brands will slowly turn to the retail brand operation.

Host: what are the reasons for these textile and garment brands to enter the business?

Is this conversion from brand to retailer normal?

Li Kailuo: I think this is very normal.

Because how to turn our enterprises from a brand management perspective to a truly retail management perspective is the way for our brand to go global.

China can always say that it has been seeking the way of brand, and it is embodied in the category of textile and clothing. The most ideal stage is to enter brand management.

Now we are all talking about brand management, but brand management is, in professional terms, made up of two words in English.

In other words, brand management is more about gene, that is, we must first identify the brand's internal gene, location, and then achieve its outward dissemination.

Therefore, each brand has its own unique gene.

This is a way of brand management and management.

The retail management mode is just the opposite, it is to find its own inner world.

For example, I decided "Mercedes Benz is the back seat, and BMW is the front seat". This is an old topic. It means that the BMW car gives you the pleasure of driving, and the Mercedes Benz is the joy of riding, which is the different genes of the brand.

Each brand is looking for its own genes. The core competition of the brand is the difference, and the difference is to create your own genes.

Just like everyone is a unique individual.

This is a very important point that helps us sort out the relationship between brand and retailing.

Moderator: can you further illustrate the relationship between brand and retailing?

Li Kailuo: we divide the brand into two categories, one is the product brand, the other is the retail brand, that is, the commercial brand.

The early stage of baozi itself is a product brand, the product brand is "my name is baozi", while the latter retail brand is "baozi" into a brand name of retail, but may later be the "treasure" of the retail brand, and has already been bigger than the "gene" of the product brand itself in the product or category.

And what is retail management?

The retail brand, or the brand of the retail store, can appear in the name of a shop like Bo Yang. This store may run department stores, home textiles or other products.

Between the product brand and the retail brand, many enterprises do not know clearly about it, do not know whether they want to make product brand or retail brand.

Host: will this kind of role change become a trend?

Li Kailuo: let me give you another example: How did the "hot wind" come into being?

It originally opened a shop, did not want to be a brand, so starting from a shop, because it attaches great importance to independent retail operation, slowly through this way, it has become a retail shop, thus becoming a retail brand, and then continue to chain.

Because the market is constantly changing, it is also constantly combining its products.

Most of our brands have problems that they can't solve themselves, that is, to organize products across the year and across the seasons.

This is worth thinking about by Chinese enterprises.

I think there will be a group of foresight entrepreneurs who will go ahead and change their minds and slowly start using their original brand strength to control the retail resources.

Dialogue 2

Master retail resources

The core point of view is that retail resources are very important. Some brands that enter the business have completed the pformation from brand to retailer. The first thing is to incorporate those agents who are already experienced and mature in the market. They are "retail resources".

Compere: so, is there any risk for the brand to change the role and enter the business?

What is the most important thing after changing roles?

How can we avoid risks as far as possible?

Li Kailuo: let me give you an example.

There is a brand name of Taiwan Baocheng International Group, called YY SPORTS.

The parent of Baocheng International Group is the largest company in the world that provides processing for ADI and Nike, and a number of giants such as ADI and Nike can bring very high profits in a year. They have strong technology and R & D capability.

Because ADI and Nike never make design, it only comes out of the concept of fashion trend, and the others are given to supporting enterprises.

Baocheng international once had the desire to make its own brand, and didn't want to do OEM for others. At that time, it also had the opportunity to buy the brand and turn it from the manufacturer to the brand dealer.

But ADI and Nike do not want to compete with one brand and compete with them.

But Baocheng international has never given up its determination to make the brand. At last, it adopted another method -- from the manufacturer to the retailer and the YY SPORTS.

This is a retail form similar to Guangdong's "lead" and Beijing's "SPORTS100". The name of the shop is called YY SPORTS, which sells all sports brands such as ADI, Nike, KAPPA and so on.

After that, Baocheng international produced one billion yuan, and in one or two years, it has constantly incorporated those agents who are already experienced and mature in sports brands. These agents are called "retail resources" because they hold the terminal.

We used to call "terminal". In fact, the terminal is the unit body. This concept is too small.

Large agents such as I am in Fujian, I may have controlled 100 shops in Fujian, which is called provincial agents.

With these resources in mind, Baocheng can join hands with these former sports brand agents, cooperate or even simply buy.

So YY SPORTS developed two hundred or three hundred stores in a short time by changing the number.

At the end of last year, Baocheng international integrated its retail business in the Chinese mainland market, established Baosheng international company, and successfully listed it on the role of YY SPORTS, and was once again recognized in the capital market.

Besides Bo Yang, its move is not surprising and well understood.

Because we all know that it is more difficult to make clothes and make clothing brands.

In the entire value chain, from raw materials to manufacturing, to agent distribution, to the last retail business, each of them did their jobs.

And Huafu, a company that produces colored yarns, has also made a home textile city in Anhui. The aim is to control the access when it has funds and conditions.

It can be said that the pformation of roles is actually the pformation of business ideas, and Bo Yang's practice has a very clear purpose.

Dialogue 3

Don't let eggs in one basket.

The core point is that although the competition is becoming more and more intense, the seven wolves are constantly pforming themselves and upgrading their eggs in a basket. This is a very important business idea in modern business.

Host: at present, we can not comment and speculate on whether these brands can enter the business successfully. But can we draw some experience from them to draw lessons from other brands?

Li Kailuo: take seven wolves as an example.

The purpose of the seven wolves investing in the commercial street is very clear. The seven wolf city is there. The seven wolves grow up in the grass roots. Of course, we know the value of the grass roots. Of course, this "grass root" is not derogatory.

Most of the brands in Fujian began to develop from Jinjiang, which is slightly "grassroots" compared with the Wenzhou market.

But they know that the principle of "wild fires can not burn out and spring breeze is born again" is expanded by the way of rural encircling the cities.

So most of Fujian's brand is developed from the two or three tier market, slowly surrounding the central city, and then making product subdivision.

There is a characteristic of Jinjiang brand, that is, department stores are not the main body in the two or three tier market that they are growing up. The commercial street is the main body. They mainly open up exclusive stores, and most of them occupy commercial pedestrian streets. They know the value of franchised stores.

The seven wolves are well versed in this way. Its listed company has 800 million yuan in the private placement of shares. The use of the money is useful. It opens 40 large life houses, 200 flagship stores and 600 stores.

The seven wolves know well what is the most valuable resource in the battlefield -- the control right of the battlefield is the commercial street.

So it also sees the potential for developing this commercial street.

It bought the street down instead of giving it to itself. Instead, it changed the situation. Since everyone was panning for gold, I changed my mind and sold water for everyone to drink. Since everyone was fighting for a bunk, I simply ran the whole street, and the resources were controlled by me.

This is just like the arms dealer, who is most pleased in the war, and I will sell arms to watch the war if I fight against you.

The seven wolves know very well what is most valuable in this business battle.

Dialogue 4

Pressure determines change

Core point: business not