Shoe Enterprises Aim At The Rural Market And Implement The Strategy Of Besieging The City

After the failure of the armed rebellion in the city, the Communist Party put forward the strategy of "encircling the cities by the countryside", mainly because the disparity between the two sides was so great that the Communist Party represented the proletariat and had a supporting base in the countryside. Now domestic shoe enterprises are also beginning to shift their eyes from the competitive first tier cities to the countryside, hoping to share a sweet meal from this "big cake".

With the inclination of national policies to rural consumption, medicine goes to the countryside, education goes to the countryside, home appliances go to the countryside, and cars go to the countryside. All walks of life are chasing the tide of "going to the countryside". On the one hand, the per capita consumption level of the three or four line cities has been greatly improved in recent years, and consumer demand has gradually become diversified. On the other hand, the fierce competition in large and medium-sized cities has almost suffocated. The shoe industry's "going to the mountains and going to the countryside" generally presents two trends: first, the first and second tier brands that originally attacked large and medium-sized cities, and began to enter the countryside to breathe fresh air with strong strength; two, the small and medium-sized enterprises that wanted to "encircle cities in the countryside" face the unreachable terminal operation cost of the big cities, and now they are also at ease to be a "small rich peasant".

"Exporting to domestic markets" is also a big market in rural areas.

Experts think it is a good way for the Ministry of Commerce to "export to domestic sales" for foreign trade shoe enterprises. In addition, experts pointed out that through the way of products to the countryside, expand the sale of foreign trade commodities in the rural market.

Zhou Shijian, executive director of the China International Trade Association, said: "we can make some other products to the countryside. For example, some production materials for agriculture, some important consumption materials for the farmers, can also be used to refund the tax rebate to the domestic market, so that we can subsidize some low-income domestic groups to buy these export products."

Experts believe that, because export products are generally demanding in quality, appearance, variety and packaging, they will impact domestic products in a certain extent, promote domestic products to improve their grades, develop in the direction of deep processing and high added value. At the same time, pricing will be more reasonable for competition. However, experts also pointed out that in order to fundamentally alleviate the problem of export decline, we should constantly adjust the foreign trade policy as required and take measures to promote foreign trade.

PEAK's strategy of encircling the cities in the countryside

Since its inception, PEAK has been positioning itself in the brand strategy of high rising and high hitting, starting from CCTV and Hunan satellite TV, and carrying out comprehensive cooperation with NBA in endorsement. In marketing strategy, PEAK has adopted the strategy of "encircling the city by the countryside", first cut through the two or three line cities, then gradually infiltrated to the first tier cities, and gradually raised the unit price and partial product positioning.

In March 16, 2010, following the successful listing of Hongkong in September last year, Fujian sports PEAK released its 2009 annual report for the first time. The report shows that PEAK achieved sales of 3 billion 95 million yuan in 2009, an increase of 51.6% over the same period last year, and net profit increased by 67.1% to 628 million yuan.

Within a year, how did PEAK achieve a 67.1% increase in net profit? This is due to PEAK's strategy of infiltrating the two or three tier cities into the first tier cities. Unlike most of the moves to reduce profit margins, Xu Zhihua disclosed that the reason for PEAK's profit increase is mainly from the promotion of unit price, but the advantage of cost reduction is not obvious.

Unlike the big business circles in big cities, the central business circle of county towns is generally narrow, and most of them are made up of two main roads. This leads to a very short distance between the brand stores. The shoe store or the sports shoe shop is next to each other. What activities did the next store launch, how many products they entered, and which styles were selling well? Maybe "neighbors" had seen them in their eyes and moved on their hands. Therefore, in the three or four tier cities, not only consumers follow suit, but businessmen follow suit. Outstanding people have always been imitated, but their "throwing" skills are stronger, and their adaptability is stronger. They can adjust their strategic plan in time and shake off the imitators.

Any brand or product entering a new market needs to grow from unfamiliar to familiar, and small market is no exception. When the terminal operating cost is getting higher and higher, people in the industry are beginning to get entangled with the question: "how many stores are we going to open up, first we should grab the stores, or do we open the shop cautiously?" Different growth stages require different business strategies. "Horse racing enclosure" or deep tillage and meticulous work, brand shoes enterprises should know how to act according to circumstances and step by step.

When the product has just entered the market, it is also the time to build sales channels for the products. The cost, resources, policies and advertising communication of enterprises should be carried out around the channel investment. At this moment, how to quickly develop distributors and receive remittances and orders is the top priority. At this stage, the refund is more important than sales. It is extremely dangerous to get stuck in the trap of breaking the capital flow. It is also very dangerous for enterprises to take more consideration of incentives for distributors and retailers, and expand the distribution team as much as possible, so as to expand the scale of network channels.

Layout of the three or four tier cities, especially in the early stages of development, should control investment and increase risk management and control. Because the consumption capacity of the county market is limited, the speed of capital return is relatively slow, and the more sinks the channel, the harder the capital recovery is. Secondly, when we go straight to the battalion, we will join in the development. After all, the number of counties and towns in the country is too large to rely on brand operators or agents to directly manipulate them. It is not realistic to rely on the strength of franchisees to expand their market share. What brands need to do is to "strengthen direct business and standardize franchisees". Through the "model" strength of Direct stores, they can restrict and direct the operation of franchised stores, cultivate high-quality franchised stores, and cut down inferior or more serious outlets, so as to achieve the metabolism of joining blood.