What Is The Promise Of The Expo's Licensed Product "Six Cuts After Five Passes"?

Since November 2009, the World Expo Shanghai Business Committee has taken the lead in the development of licensed products in Shanghai.

2010 according to the requirements of "China 2010 Shanghai World Expo licensed product manufacturer recruitment document", the Shanghai World Expo licensing office selects layers of all kinds of products. There are nearly 60 textile and garment production enterprises also "pass five passes and cut six will", have obtained the qualification of licensed production. Is this qualification just once and for all? What does the qualification of concession mean? How should the Expo brand work?

License is an honor.

Zhu Min, director of research and recruitment department of Shanghai World Expo licensed product Office (hereinafter referred to as the "licensing office"), introduced to the "textile and clothing weekly" reporter that among the 29 categories of licensed products, home textiles and clothing are the two major categories. These two categories account for 30% of the licensed products. However, because of the high price of the licensed products such as precious metals, textile and apparel products do not account for a large proportion in the sales volume. At present, from the sales performance, the best licensed products are T-shirts and Polo shirts, first because the weather starts to turn hot, and also because the Expo elements are most easily reflected on the clothes. The sale of home textile products is slower, which is also determined by the characteristics of such products. "World Expo has a long duration, and our licensing period for licensed products is relatively long, so our focus now is how to prevent shortages," some companies told us, "production can not keep up with sales." Zhu Min introduced.

Shanghai world three international trade Co., Ltd. Expo T-shirt has become the World Expo licensed product.

Compared with the investment of tens of millions of yuan or even hundreds of millions of yuan, the threshold of licensed manufacturers and franchisee vendors is relatively low, especially for small and medium-sized textile and garment enterprises. Zhu Min believes that, "in fact, many enterprises want to participate in World Expo's enthusiasm is not only limited to profits, they to a large extent get the qualification of Shanghai World Expo licensed manufacturers as an honor, and the affirmation of their products."

Ideas behind the franchise

What value can World Expo concessionary production bring to enterprises? In the face of this problem, almost all enterprises think World Expo is a huge business opportunity, but according to their own positioning and development level, each enterprise has different expectations.

Some of the big companies that already have a strong position in the industry regard World Expo as the bridgehead to the international market. Zhou Chengjian, chairman of Metersbonwe, said: "to do business, we need to maximize profits for every transaction. Doing business is a lifelong business. The harvest is not in every transaction, but in the improvement of the global position of the enterprise value and the greatest embodiment of social benefits." This is the biggest demand of Metersbonwe participating in the Expo. {page_break}

Many enterprises regard World Expo as an opportunity to open up the market. Fujian gage textile and apparel Co., Ltd. has provided security clothing for the Expo. Lin Hong, general manager of Gage, said: "before we do foreign trade, we need all countries to run. Now, so many countries are exhibiting in China at the same time, attracting visitors from all over the world. The Expo is a stage. It depends on how we perform. At the same time, after many years of OEM processing, we very much hope for transformation. Since we got the Expo project, we have been carrying out detailed plans since last year, increasing investment in research and technology, and introducing international designers from Germany, France and Korea to design products. We rely on Shanghai's strong business atmosphere to turn the Expo into an opportunity to turn to the domestic market. "

World Expo has also become an opportunity for enterprises to expand their business scope. Zhang Weiwei, director of Expo project center of Shanghai quqiao textile and dyeing Co., Ltd., said that Shanghai bridge is a large-scale textile enterprise developed locally in Shanghai. It is also one of the first four textile and garment enterprises in the textile industry to become the world's concessionary manufacturer. Before the title bridge was exported to yarn and fabric, it began to make garments after becoming a concession producer. Baofeng Footwear Co., Ltd. of Quanzhou, Fujian, is one of the largest women's fashion slippers R & D and manufacturing enterprises in the world. It has been exporting for 21 years in the footwear industry. At present, it is actively entering the domestic market and has begun to set foot in the garment industry. This time, World Expo has launched the swimwear and other licensed products. Gao Shaoliang, director of Expo project at Baofeng company, said: "just second days after the opening of the Expo, our licensed products were out of stock, and many of them were ordered by large buyers. World Expo market is promising.

World Expo is also a catalyst for technology upgrading and product upgrading. According to Huang Guanhua, executive director of Xu Rong Group, Flycool cool fabric is a licensed product in World Expo, Shanghai. The fabric can produce a cool feeling of 1~2 degrees below the temperature when it comes into contact with skin. When you wear this series of clothes, you can raise the air conditioner by 1 degrees, which can save energy greatly. The cultural shirt developed by Tianzhu alliance with fine denim and colored bamboo is designated as a licensed product in World Expo. Tianzhu fiber not only highlights national characteristics, but also has antibacterial, health and environmental protection. Colored bamboo is another kind of low energy consumption and energy saving material after coloured cotton, which coincides with World Expo's "low carbon and environmental protection". Zhu Huanyou, Secretary General of Tianzhu alliance, told reporters that this kind of cultural shirt developed by Tianzhu fiber has become a licensed product in World Expo, and its symbolic significance is greater than practical significance. Jin Lijun, manager of the franchise Product Management Department of Hangzhou Wan Shi Li Silk Gift Co., Ltd., said: "brand image and word-of-mouth are intangible assets. In addition, World Expo is also a review of enterprises. Every enterprise wants to collect the whole body's strength to make the product the best, and to make breakthroughs in technology and design, which has a great role in promoting the enterprise's self improvement."

Special problems arising from licensed products

At the same time, the big enterprises are trying to rush to eat the cake of the World Expo, and some companies that have obtained the authorization of licensed production have begun to worry about it. Licensed products have their own characteristics, retail products can not be discounted, promotions, and licensed manufacturers are not allowed to sell online. This is what the franchising office has made clear before the signing of the contract. The licensed products of the 2008 Olympic Games produced some problems of inventory and piracy, so that there were often peddlers selling Fuwa in the underground passageway of Beijing's Wangfujing. Zhu Min said that the Olympic Games will only last 18 days, while World Expo will last for 184 days, which will give the enterprises enough time to digest. The franchise also controls overall inventory according to market conditions. Nevertheless, from the current situation of the sale of licensed goods, there are also some special problems.

"Licensed products have their own characteristics. For example, during the production process, the order of the World Expo needs quick response and quick listing. Now, the supply chain of many enterprises is the same as the traditional supply chain of foreign trade orders. If it is done according to the traditional order process, it may be a problem, because the clothing involves the rapid reaction of upstream and downstream cooperation, which is not a single solution of an enterprise, it needs the cooperation of the whole industrial chain. Lin Hong, general manager of Gage, is so analytical.

Jin Lijun, manager of the franchise Product Management Department of Hangzhou Wan Shi Li Silk Gift Co., Ltd. frankly said: "with the experience of the Olympic concession production, we have adopted the strategy of small batch production this time, but the cost of such unit price is higher than that of mass production. Anyway, we will try our best to keep inventory within 20%. There are thousands of licensed products. First of all, your products must be featured. Our scarf tie suits, Expo memory rolls, brocade paintings, Riverside pictures on Qingming and Lanting Pavilion preface sell well because they have caught the needs of consumers. Lin Hong, general manager of Gage, stressed the need to plan ahead. He said: "we have long considered the inventory problem, so we can not wait for the finished product to plan again, but start from the yarn, raw materials and other aspects. According to the volume of the whole market, different main products are launched every month, mainly because the product classification is clear, and each category has a clear positioning. For example, around the theme of "Chinese nation", 56 colors of 56 nationalities were developed, such as hats, trousers, shoes and so on, to open the market of large supermarkets. The business series mainly focused on the list of government purchases, showing the theme of "China Tour", such as totem of Shanghai India. In short, we should have both goals and systems. We must do our homework ahead of time, and then implement it forcefully. "