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How Does Leather Enterprises In China Go From Foundry To Independent Brand?

2009/4/6 16:20:00 42033

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90% of China's clothing and footwear enterprises are foundry production. However, under the combined effect of three factors, namely, the international financial crisis, the appreciation of RMB and the rising cost of human resources, typical labor intensive industries, such as clothing and footwear enterprises, have seen a large number of SME failures.

From the point of view, China's export processing enterprises rely heavily on low labor costs, adopt a large number of foundry production models, and maintain operation with meager profit margins, mass production and too large single customer orders. This industrial structure needs to be adjusted urgently. The manufacturing mode of Taiwan has proved that this manufacturing oriented industrial economy has drawbacks and can not be sustained. Therefore, the pformation of the foundry enterprises to their own brand management is imperative.

Although a lot of initial investment is needed to operate its own brand, the survey found that over 75% of OEM manufacturers have begun or are ready to pform to their own brands.

The pformation of foundry production to independent brand management takes a long time. The enterprises lack the pformation experience, enterprises need to invest large amounts of capital in the early stage, need to establish R & D capability, need to change the business operation mode, need to re establish sales channels and networks, and enterprises have great uncertainty in return on investment.

However, a considerable number of CEO have begun to learn from the experience of brand enterprises in the same industry, and how to maximize the use of the extended advantages of the existing foundry industry in the pformation of brand management, and try to carry out brand management innovation in new products and new regional markets, these efforts have already achieved initial success.

NE TIGER is a famous brand of Ne Tiger Fashion Company, founded in 1992 by its chairman and artistic director, Zhang Zhifeng.

At present, NE TIGER is China's top luxury brand, not only laying the status of the first brand of Chinese fur, but also creating the leading edge of high-end custom dress, advanced custom wedding dress and advanced Chinese dress.

In the beginning, Zhang Zhifeng was mainly made up of garment foundry.

Even by 2008, the OEM business for other brands still accounted for 70% of its total sales.

The consciousness of independent brand is gradually established by Zhang Zhifeng in the process of contacting with international manufacturers.

Since 1992, Zhang Zhifeng has set up four design and marketing centers in NE, TIGER, in France, Italy, the United States and Hongkong, China.

NE TIGER can be ranked among the first fur brands in China, with three main links: first, accurate market positioning and differentiated competition strategy.

NE TIGER is the clothing brand, but Zhang Zhifeng focuses on the fur niche market.

In this way, limited resource input can produce significant results.

After the initial establishment of NE TIGER's luxury brand on fur, it has been postponed to two other niche markets -- advanced evening dress, tailored wedding dress and high quality Chinese clothing.

In this way, NE TIGER avoids the danger of weakening the value of brand generalization.

The second is the quality of fur.

People treat fur like 203,0.62,0.31%, and they pay more attention to fur material.

NE TIGER is made from raw materials, each of which comes from the world's top mink producing areas such as Denmark, the United States and Canada.

Now, NE TIGER has become the first Chinese member of the Purple Club in Copenhagen, and enjoys the right to adopt the world's best "Purple grade" fur in its design.

The third is design, and even the design is the soul of NE TIGER. Zhang Zhifeng himself is a designer. He constantly brings forth new ideas, through the extraction of traditional Chinese design elements and the use of traditional Chinese precious fabrics, combined with Western cutting techniques and top fur, in an effort to pursue the ideal state of combining Chinese and Western cultures.

In the Eleventh China International Fashion Week 2008 spring summer series clothing conference, NE TIGER launched the "splendid national color Chinese dress" series.

The fabric adopts "Jin Jin Jin" Brocade and combines the embroidery technology with four famous embroidery techniques. The color is interpreted by yellow, black, blue, green and red colors, giving people strong visual impact.

NE TIGER applied Western stereotactic technology to design to better reflect the Oriental style.

The designer also mixed the Chinese and Western mix of the gowns, double Palace satin, Italy brocade, lace and brocade, and re interpreted the western style half cup dress, skeleton bra, pleated skirt, fishtail skirt and other classic styles.

Successful case:

In terms of brand communication, NE TIGER expands its influence in industry and target consumers through exhibition marketing and event marketing.

From the foundry to the development of brand is a comprehensive ability to enhance the process, so it is destined to be a long process.

Zhang Zhifeng plans to stop all OEM business by 2010 and focus on developing its own brand.

Editor in chief: Du Jun