Domestic Shoe Enterprises Achieve Market Win-Win With Brand Agents

Recently, XTEP international, China's leading fashion sporting goods company, has been awarded the non exclusive franchise of the Disney sports brand awarded by the Disney consumer product department. It can also use the Disney movement brand to design, produce, distribute and sell clothes, shoes and accessories in 21 countries including Southeast Asia, the Middle East and central Europe.

In recent years, China's footwear industry has developed rapidly. China has become the largest footwear manufacturing base and footwear exporter in the world.

At present, the cartoon characters of "playboy" and "Disney Sports", "crocodile", "Italy kangaroo", "Santa Fe", "rogue Bunny" and "Altman" series in the US have recently been authorized to produce or sell by the Quanzhou shoe enterprises, involving nearly 20 brands in Europe and America.

Since the outbreak of the financial crisis, foreign brands have been seriously affected by the economic downturn, while domestic shoe companies have intensified their industrial upgrading and expanded their international market strength, and have acted as agents of foreign brands.

According to the insiders, the purpose of domestic shoe companies to act as agents for foreign brands is not only to earn immediate profit from agents, but also to accumulate operational experience from cooperation with international excellent brands, win more market share through proxy foreign brands, expand sales, increase reputation and enhance corporate image.

Choosing to cooperate with domestic shoe companies, foreign brands are out of China's rapid economic growth and are considered as a new growth market in the global consumer market.

Especially the economic growth and sports enthusiasm brought by the Beijing Olympic Games in 2008 will make the market wider.

If foreign brands want to make brands enter China quickly and integrate into the Chinese market in a quicker time, the most convenient mode is to cooperate with local enterprises with experience and market channels so as to save the cost of cultivating new markets.

Most of the sports brands in China not only have brand clusters, huge manufacturing bases, and various marketing talents, but also brimming with the entrepreneurial passion of daring to forge ahead, and naturally become the partners of international brands.

In addition to reducing the promotion cost and gaining profits from brand agents, the experience of domestic enterprises in learning foreign brands' experience in management, technology and channels is also another purpose of many enterprises keen on agency.

"Disney is a very good international brand, acting as" Disney Sports ". Apart from gaining premium from its brand added value, we also learn from other people's brand management and develop a brand new channel resource, which is also a harvest.

"Disney Sports" marketing director said.

And XTEP vice president Ye Qi believes that XTEP and Disney cooperation, in addition to seeing the economic benefits, but also to see another point, that is, the team is a good opportunity for training and upgrading, enterprises can cooperate with international excellent brands in the accumulation of operational experience.

"Cooperation with Disney is an obvious boost to the internationalization of XTEP brand.

There are many rules of commercial game that we are not familiar with in international competition.

Disney as the world's top 100 brand, has rich international business experience, therefore, for XTEP is a rare cooperation, but also a rare learning opportunity.

In addition, there are some drawbacks in the domestic shoe enterprises' proxy for foreign brands.

First, the risk coefficient is relatively high. When domestic shoe enterprises rely on foreign brands to open up market sales, once the agency contract expires, enterprises may face the risk of not renewed.

Secondly, the profit margins of enterprises are small.

Foreign brands, because of their popularity, have made agents save brand promotion fees, but agents have to pay a high brand agency fee.

Therefore, domestic shoe enterprises can not always be satisfied with OEM processing. They should constantly strive for industrial upgrading and brand building.

As the industry has said, for an enterprise, acting abroad is only a phased choice.

Instead of always dressing others, you might as well focus your efforts on creating and promoting your brand.

Self created brand is the best choice for the survival and development of an enterprise.