Doctor Frog Children'S Clothing: Research And Development Brand Development Channel &Nbsp; Build Three-Dimensional Access.

　　 Doctor frog Headquartered in Waigaoqiao Bonded Park in Shanghai, it is situated in an ordinary 6 storey building. The predecessor of the PhD frog is a foreign trade enterprise for textile export. The product is mainly exported to Europe. According to Zhong Zheng Yu's memory, because of the appreciation of RMB and the price rise of raw materials, etc. foreign trade The profits of enterprises in 1994 and 1995 were squeezed, and the development of the company suffered from financial difficulties.

According to the economic situation at that time, Zhong Zheng decided to make the first spanformation decisively and at the same time developing the country. market Walk on two legs. In 1996, the brand of doctoral frog was created. In 1997, a new shareholder, Shanghai Shang Shi, was set up, and the Shanghai frog company was founded.

It is difficult for the foreign trade enterprises to spanform into domestic enterprises. The doctor frog started to walk on the "small broken step", and he also competed in the cost of manpower. In 2000, due to the rising cost, Dr. frog encountered difficulties again. Zhong Zheng used to think about how to stand out in the competition.

"I pay great attention to learning from others. After exporting products to Japan, I will observe how they sell these products." Zhong Zheng found that a large number of Japanese children's products entering China were mostly processed by some Japanese small and medium sized businesses. After being sold to China through distributors, agents and other links, the prices of these products were 4 to 6 times higher than their export prices.

In 2008, Zhong Zheng made a bold attempt: in Japan, he applied for the registration of a brand "Baby2", which was commissioned by Shiseido to manufacture OEM products for Japanese professional enterprises, and directly entered the Chinese market. Because of the compression of the intermediate links, high quality and obvious price advantage, it was a great success. "Unlike the general multinational companies, the doctor frog uses foreign high-end production technology, and obtains huge gross margin through domestic channels and brand building." A senior person in the children's industry analyzed.

"Transformation is a gradual process, and it takes at least 10 years." Zhong Zheng Yong said, "small and medium-sized enterprises must play their own characteristics, be specialized and thorough, and then use China's largest demand advantage to integrate and enhance global resources in the process of operation, and insist on doing things that improve the quality of consumer life, so you won't have enough room for development."

R & D brand development channels

Since 2008, Dr. frog has made second spanformations - selling all the production business and creating a business model integrating R & D, design, brand and channel.

In the view of doctor frog, this mode avoids direct operation and financial risk expenses generated by production, operation and management workers.

At present, there are many brand types of PhD: the core part is the existing three private brands -- PhD, Baby2 and Dr.Frog, and private brand sales account for more than 50%. In addition, Dr. frog has 8 authorized brands such as Thomas and his friends, Babu engineers, Harry Porter, tennis prince, NBA, Manchester United, Barcelona, Juventus children's clothing, etc. Zhong said: "in the future, we will integrate more front-line sports and cartoon cartoon brands around the world, such as girls' wear HelloKitty".

Besides the variety of brands, the channel mode of doctor frog also shows the characteristics of intersecting. According to the introduction, as of June 30, 2010, the company has 1126 sales outlets, including department store brand counters, street shop specialties, doctor frog 365 life Museum and flagship store.

"We will arrange different formats according to the characteristics of each city." Zhong Zheng said that the department store brand counters are equivalent to the "BELLE" footwear industry, while the street shop is similar to "Muse and bang Wei". The 365 life hall of the doctor frog is like "Watsons", while the main store is similar to Gome and Suning. "But we are different from the above companies." He said that because of the authorized brand and its own brand, the doctor frog is not only a channel enterprise, but also a higher garment profit, so it can undertake the construction cost of various channel modes. "The gross profit of authorized and private brand is almost the same. Generally speaking, the gross margin of the company is above 40%. "

It is reported that the sales volume of doctor frog in 2009 is the highest in the domestic high-end consumer goods market. In the first half of this year, the profits of the company's turnover and equity holders were 595 million yuan and 146 million yuan respectively, up 169.3% and 257.2% respectively. Zhong Zheng Yi disclosed that the sales volume of the company will exceed RMB 1 billion 200 million yuan this year.

The model was copied to the whole country in 2-3 years.

Zhong Zheng believes that the completion of a doctor's frog in a relatively short time is mainly due to its business models, including brand operation, product development and three-dimensional access. After the successful listing of Hongkong, the business model can be replicated nationwide within 2-3 years.

He also mentioned that he would consider buying some channels and brand research and design companies at home and abroad. Foreign acquisitions are focused on brand and design companies, and China hopes to acquire some brand businesses with its own channels.

"The number of children in China reaches more than 200 million, and about 10000000 new babies will be added each year, but there are only more than 6000 children's clothing enterprises in China, less than 10% of the total number of garment enterprises nationwide, and children's clothing production accounts for only about 6% of the total clothing output of the country." Zhong Zheng used to say that China has 200 billion yuan of children's consumer goods market, but the enterprises in this industry are very scattered, which provides a good opportunity for the rapid growth of PhD. "We hope that the sales revenue of the company will grow at a rate of about 50% a year." In his view, the best way to seize the market is undoubtedly a channel. He said, "we shop almost every day." According to the doctor's frog prospectus, 40% of the funds raised will be used to open new retail stores between 2010 and 2014 in 5 years.

Data show that by the end of June 2010, the company had 1062 department store brand counters, 24 street shops, 33 PhD 365 living houses and 7 main stores.