From mother to daughter
If the business is just to make money, I will dig coal and mine. I was born in Wenzhou and started business in 1987. In 1995, I founded the red dragonfly. In the same year, red dragonfly co organized the "Red Dragonfly Tour" with Wenzhou TV station. This is also the first experience of our brand. In 1997, red dragonflies began to advertise on major TV stations. Since the Red Dragonfly started its brand investment earlier, in the late 90s, red dragonfly was regarded as the domestic first-line footwear brand.
The first ten years of the establishment of Red Dragonfly are basically making products, what products the market needs and what products we provide. In 2005, we really planned the brand. While respecting the market, we should integrate the values of the brand and put forward the slogan of "leading the Oriental fashion and opening the original life". This sentence can make me do my whole life. In red dragonfly, I am both chairman and artistic director, not necessarily every founder can be an artistic director, and not necessarily everyone who designs is a professional. Design comes from the experience of life, in fact, it is more of a character.
Over the past decade, the daughters of young mothers wearing red dragonflies have become the mainstream consumers of our society. There are generation gap between us and the consumers now. These daughters will think that red dragonfly is the brand of their mothers, not their own. During the meeting, I often said that red dragonflies had good relationships with their mothers, and their relationship with their daughters was much worse. So we will learn to earn our daughters' money in the future, and we can not earn money from our mothers. The growing consumption power of young people is becoming more and more important.
This generation of consumers is more interested in foreign brands, and they are willing to follow the trend of global fashion. The sinking of overseas brands in domestic channels caters to their needs. Many people feel that this will bring us to the local brands. But in my view, the maturity of the new generation of consumers is not only a precursor to the decline of local brands, but rather an opportunity.
Nowadays, young people generally have strong information search ability and brand recognition ability, so in this case, fake foreign brands will not have any opportunities. Ten years ago, or even four or five years ago, fake foreign brands were very popular. Many enterprises saw the value of foreign brands. A little bit of foreign brands came into being. Today, the post-80 consumers know how to find the origin of the brand, even if the brand registered abroad, they can also use English to search for the real value of these brands.
In the past, we knew little about the post-80s young people. They are selfish, have no collective consciousness and have a poor sense of belonging. In fact, the younger generation loves their motherland as well. The earthquake in Wenchuan shows us another side. So when our enterprises become stronger and products do better, they will accept or even be more willing to choose our products. When Chinese consumers begin to identify with local brands, historical accumulation will become the scarce resources of the brand. By then, the Red Dragonfly would have its advantages.
So this generation of consumers is our opportunity. Zhang Zhifeng and I, who founded NE.Tiger, have long recognized that the Chinese wind will rise. When our culture can be exported, it is time for local consumers to truly recognize domestic products. Therefore, there is no shortcut to win the recognition of daughters, and the most important thing is to persist.
The logic and foundation of upward movement
The red dragonfly is not a luxury consumer in the traditional sense. It is not a white-collar worker in the first tier cities of Beijing and Shanghai, but a new class of "white bone essence". With the process of urbanization, a number of new cities have emerged in China, and a number of emerging consumers have emerged. Moreover, along with the development of the third industry and the upgrading made in China, there has been a blue collar income of 5 to 100 thousand yuan in the coastal area. They are young, energetic, eager to integrate into the life of big cities, and more importantly, they want to integrate with metropolis in temperament. In the process of urbanization, their aesthetic orientation gradually matured and began to have the concept of collocation. But this class is deterred by luxury brands, and the red dragonfly is to serve the group.
Our consumers will not simply pay for CCTV advertising, and have moved to the stage of truly understanding products. At this point, we have to work hard on products and shopping experience. There are two kinds of experience. One is to rely on low price to give consumers the feeling of exceeding value. The other is to increase the added value of products and shopping, and give consumers the feeling of exceeding value. I am never optimistic about price war. In my opinion, brand is like human temperament. Now we use fashion integrated stores to enhance the comprehensive temperament of consumers.
The ideal red dragonfly fashion integration store should be like this: its storefronts are large and showcases all kinds of goods. It is not a traditional shoe store, nor is it a shelving heap. All shoes and clothes are paired with each other, with a series of shoes and bags. When consumers come in, they can feel a high sense of value. Our storefront must be able to conquer consumers, and look at the appearance of the store, so they will try to come in. In this way, they will not be calculating for similar prices.
With the rapid development of China's economy, some domestic sports brands have made great use of capital market funds to occupy street shops in advance, making the Commercial Street's rents increase rapidly. Even in the financial crisis, the average growth rate was 20%. Generally speaking, the rents of the shops in the commercial street are just like the tenders, which are based on the price of the highest price in a street. As long as a listed company gives an increase of 20% of the bid, then our rent must rise. Red Dragonfly now has 4000 stores. In the face of rising rent, facing the increasing cost, what should we do? We did extensive market research, re-examine their strengths and weaknesses, and of course, combine my personal preferences, hoping to find a good solution. What I personally respect most is Europe's luxury enterprises with their own unique history and culture. Although the history of the red dragonfly is not long, it is a brand that serves the public. Now there are more extensive terminals, but we can also find something we can learn from luxury goods. Red dragonfly can serve as a luxury item by providing a package of services ranging from clothing to shoes to accessories.
As long as our customers come to our fashion integration store, they can choose from clothing to leather bags, leather shoes, clothing, and scarves and accessories. However, this requires that enterprises have a very strong brand, which is why most luxury goods do so.
Some people also questioned my practice. If the fashionable integrated shop area is at least several times the original rent, it will also rise. Can the Red Dragonfly afford it? In fact, the most expensive one in the shop is the first 8 meters, the warehouse behind the back and the upstairs are very cheap. Therefore, the rental cost of the Comprehensive shops will not rise or fall.
We use the ability of individual consumers to mark the success of our spanformation. Three years ago, there were occasional consumers spending 1000 yuan in our store, but these are all cases. It can not be said that the brand of red dragonfly has reached the level that consumers are willing to spend. Today, through fashion integration stores, consumers who spend 1000 yuan on a single consumption are increasing day by day. Now, red dragonfly has more than 80 stores with more than 200 square meters. In 2010, we plan to launch 80 more.
