Foreign Second Line Shoe Brands Set Foot In China Market

A few days ago, news from Chengdu, the first monopoly field, which is composed of Italy footwear brand "Baotuan", will be opened in September 28th, which includes nearly 100 genuine Italy brands, and the appearance of the brand direct marketing stores. It may mark the beginning of the overseas "middle reaches" brand exploring the new mode of China, and the beginning of foreign second-line brand scale in China.

Chengdu model

The upcoming shopping mall, named "Yi Shang Ming", will focus on nearly 100 Italy first-line and second-line brands to embrace the Chinese market, including Lara, Garda, Zodiaco, Ability & Style and other Italy famous brands.

As the first "hug" expansion of the Italy footwear brand in the Chinese market, the "choice of famous brand" is not chosen in the first tier cities, but in the second tier cities. It is also an important production base for domestic women's shoes, which is the first shop in Chengdu.

According to relevant channels, the first investment and operation organization of the "famous brand" shopping center consists of 4 units, namely the Italy Footwear Association, the Hongkong footwear industry association, Hongkong cordis International Co., Ltd., Sichuan West shoe Capital Co., Ltd., and the statement from the investor said Chengdu's "Italian brand" will be the first model store opened in China.

"Chengdu is the first step in our expansion of the Chinese market. We will build Chengdu as a model store in China."

Wang Wei, President of Hongkong cordix International Limited, announced that "IFG" is planning to invest in five Italy brand alliance direct selling centers in mainland China. The first choice of Chengdu has four main reasons: first, Chengdu's leading position in the western cities; two, the strong consumption power and consumption demand of the Chengdu people; three, the "women's shoes of China" - the economic focus and policy support of Wuhou District in Chengdu; four, the mature footwear industry's economic environment and tremendous development potential.

Wang Wei's interpretation of Chengdu's "preference for famous products" has not won the full support of the industry. Many employees have found different interpretations from the brand structure of "Italian famous brand". "The brand name of" Yi Shang Ming "is mostly made up of Italy second line brands which are not known in the domestic market. Maybe these brands will be more attractive to the domestic second tier market.

"Collective direct operation"

It is understood that the "Italian brand" is currently in the domestic use of the "flagship flagship store" and "direct sales center" combined mode of operation, which means that the expansion of these brands in Italy does not have intermediate procurement and agency links.

Although the explanation given by the authorities is to adapt to the purchasing power of the Chinese market, the "Italy design, Italy manufacturing and Italy brand" which were once unattainable were "flying into the homes of ordinary people".

However, because most of the brands that join the "Italian brand" are second-line brands in Italy, their direct expansion is considered to be a forced move under the relative lack of brand influence.

Relevant analysts say, because there is no strong influence and capital strength of the first-line brand, the risk of the second tier Italy brand expansion in the Chinese market is that it may be difficult to get a firm foothold in the short run.

And choosing agent mode is easy to be controlled by agents, thus losing control of Chinese market.

"Relatively limited overseas brands tend to rely on local franchisees in developing an emerging market, because the direct mode requires more promotion costs and operating costs (weak bargaining power in store rentals, etc.).

But too much reliance on local agents is easy to control, and the market is completely mastered by local agents, especially in such a large scale market of China, the rapid growth of agents may even resist the acquisition of the parent brand.

The analyst said, "therefore, the" Yi Shang brand "store, which is mainly composed of Italy second line brand, may want to get rid of the disadvantages of the previous second-line overseas brands in China's expansion mode. It adopts a new expansion mode and collectively runs through the same level brand.

The advantage of this is that it can make up for the shortage of single brand influence and difficult to open the market. At the same time, because the group has expanded its overall influence, it will benefit the individual brand, save the cost and difficulty of promotion, and then have the opportunity to bypass the agent to realize the direct growth of the Chinese market.

However, there still exists a certain market risk in the "Huai Shang Ming" mode.

While solving all the malpractices of the past "alone efforts", the "famous brand" also faces the problem of "the same kind of competition". Because the brands are all in the same grade, and some brands are very similar in positioning, therefore, it seems very difficult to fully realize the "unity" within the "brand name brand". There is doubt that the Italy brands that compete with each other can effectively produce "resultant force".

As a result, the promotion mode of "famous brand" will be tested in the "group" itself, and how it will coordinate the interests of nearly 100 Italy brands is the key to its success.

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Pricing embarrassment

The first "famous brand", which is about to open in Chengdu, covers an area of more than 4000 square meters. The location is the pure Italy shoe direct selling center with the largest and richest brand in Western China.

Obviously, Wang Wei is very confident in the Italy lineage of "Italian famous brand": "all brand shoes from Italy are designed and made in Italy, and then sold to Chengdu for sale by air."

Wang Wei is optimistic about the promotion power of the blood superiority of "Yi Shang Ming" and its promotion to market sales. In fact, this pure "made in Italy" is also an important competitive advantage of "famous brand", which agrees with the domestic market environment that advocates Italy's quality culture.

However, pure Italy's "lineage" sales still need the appropriate pricing tool.

"Italian brand" is different from the concept of luxury brand in the first line of Italy brand. It is difficult to sell the price of luxury goods, and the pricing of these middle reaches brands in the European market.

At present, such prices are still somewhat expensive for the general domestic consumers.

Wang Wei said that through the direct battalion and the middle link, the "Italian brand" has been very cost-effective. "The price of the general product will be around 1500 yuan / double. These products belong to the middle and upper grade products in the footwear industry of Italy."

But such prices in Chengdu such a domestic second tier market, so that consumers agree with Italy brand has not heard before, is still difficult.

"For the second tier brands in Italy, the price of 1000 yuan or more should be higher in Chengdu."

Experts say, "for high-income groups, the Italy culture will often choose expensive luxury goods instead of the second-line brands they haven't heard of. For middle income people, even the Italy brand, the price of 1500 yuan is still high.

From the sales situation of single Italy second line brand in the past shopping mall, the product sold by thousand yuan or above is not very fast.

This is actually an inherent problem of overseas second-line brands in the Chinese market, which is different from the fact that luxury brands have opened up in China. The development of overseas real "middle class" brands has always been in a state of indifference. These brands sell at a price higher than that of the general Chinese consumers, and at the same time, it is difficult for consumers to bring high-end "vanity experience" to consumers.

As a result, the embarrassment of overseas second-line brands, which is not inferior to the market, will become a market reality that "will be famous" will have to face in the future.

At present, the "famous brand" can be seen as the beginning of the "middle reaches" brand scale of Italy, and it is the beginning of the domestic market. Through the "collective direct operation" mode, these Italy second-line brands hope to share the high growth of the Chinese market.

However, although the "Huai Tuan" direct camp helps to form the scale advantage and rapidly spread it, however, facing these Italy brands is still the embarrassment of the relative lack of purchasing power in the Chinese market.

From this point of view, it is better to say that the biggest value of "Italian famous brand" is to help Italy mid-range brands embrace the middle and expansion costs instead of "the famous brand" is popularized as "the blood of Italy". In the future, it is possible to provide cheaper products to the purchasing power of the Chinese market.

At the same time, from another angle, the appearance of "Italian famous brand" shows that the overseas brand structure entering the Chinese market is changing. After the first brand "conquering the city", the overseas intermediate brands began to enter the scale.