Shoe Enterprises To Abandon Chains And Seek Breakthrough In Department Stores

With the change of international and domestic environment, great changes have taken place in the domestic terminal industry.

Brand shoe enterprises are using the department store channel to pave the way for internationalization.

Seven wolves, one of the important pillar industries of Dalian Wanda Group, signed a ten thousand department store signed only three years ago to become a strategic partner. This means that seven wolves can set up counters in nearly 30 stores in the country, and with the Wanda Plaza and hundreds of thousands of goods landing everywhere, the LOGO of the seven wolves will also follow.

On the basis of the existing more than 3300 facade shops, the seven wolves have expanded their focus to new business forms such as department stores, Shopingmall, etc., which are popular in large and medium-sized cities.

Building a monopoly chain system with street shops has always been the strength of Quanzhou sports shoes brand, and also the foundation for the rise of Quanzhou sports shoes brand in the domestic market.

With the rising cost of street shops and the growing saturation of resources, some sneakers have begun to turn their attention to department stores.

For some newly rising sports brands, department stores have also become a new channel for them to catch up with their competitors.

They hope to take advantage of the department store access to win the rise of brand image, jump from the three or four tier market that has long been entrenched to the one or two level market, break the geographical limitations of sales, and then lay the groundwork for the internationalization of the brand.

Government helps Dongguan shoe companies enter department stores

In October 30, 2010, "dialogue Dongguan - national brand and China's department store Summit Forum" was held successfully in Dongguan Ming Xuan Hotel.

This dialogue forum aims to build an exchange platform for Guangdong shoe enterprises and domestic department stores, helping to upgrade the pformation of Guangdong footwear enterprises, and strive for the long-term good development of the regional economy.

In the context of the country's first proposal to "expand domestic demand strategy" into the five year development plan of the country, the move is also seen as a powerful measure to promote the core competitiveness of China's footwear industry, speed up the pformation and upgrading of the industry, and seek fair competition with international brands.

With the strong appeal of the Chinese Department Store Association and the recognition of Dongguan enterprises' independent R & D capability.

The forum has brought together many well-known department stores in China. These large and medium-sized chain store enterprises have occupied the core business circle of the major cities in China. With this sales channel, Dongguan enterprises have been able to plug in the wings of take-off, which will greatly shorten the time to develop the domestic market and achieve the goal of upgrading enterprises.

Shoe companies enter the shopping mall to taste the sweetness.

At present, there are no accurate figures on how many shoe making enterprises in Wenzhou have entered the market, but the fact that shoe companies are entering the shopping mall is becoming a trend.

According to a material provided by Wenzhou economic and Trade Commission, only 52 enterprises in 2009 alone, 80 Wenzhou products brands entered 792 shopping malls throughout the country, with annual sales volume of 1 billion 41 million 200 thousand yuan.

Among them, Wenzhou shoes account for more than half.

In Tianjin Mai Mai Times Square, there are 23 enterprises entering the market. Kangnai and other Wenzhou famous brand shoes are very popular among consumers.

Kong Lingwen, director of Commerce and trade of Wenzhou economic and Trade Commission, told reporters that AOKANG, spider king and Jill Da shoes have successfully entered the shopping arcade of northeast big business, Beijing contemporary, Chongqing Pacific, new century department store, Shanghai Bailian and Beijing Wangfujing.

Some well-known shoe companies began to taste the sweetness of entering the market, and their sales performance has increased by a certain margin.

AOKANG's sales revenue in 2008 was 1 billion 450 million yuan, increased to 2 billion 53 million yuan in 2009, red dragonfly sales income in 2008 was 1 billion 706 million yuan, 2009 reached 1 billion 947 million yuan, Kangnai's sales income in 2008 was 2 billion 100 million yuan, and 2009 was 2 billion 230 million yuan in 2009.

Shoe companies still have problems in department stores.

It is not easy for shoe companies to march into department stores. China's famous brand shoes have been locked away from the high threshold of high-end shopping malls in China for a long time.

Generally, the two or three line shopping malls are packed together, and almost all the front-line shopping centers are foreign famous brands.

Because of this, most shoe brands choose monopoly system as a marketing channel.

However, the high operating costs of chain monopolization continue to engulf corporate profits, and shoe companies have been looking forward to making breakthroughs in other ways.

Moreover, a person in charge of footwear enterprises in Wenzhou told reporters that the problem of homogenization of Wenzhou's products is more prominent. Many brands are "making a collective appearance" in a shopping mall, and it is easy to produce homogenization competition.

Despite years of development, Wenzhou shoes have gained popularity in the whole country, but it is comparable to that of the second and second tier brands at home and abroad.

Another shoe business veteran is sighing: mature property is hard to find.

From the current business situation in the shopping malls, many of the new shopping malls and commercial streets are still located.

Some have just started to enjoy the benefits, but once the shopping mall is warming up, they will be marginalized.

For foreign shoe enterprises, the use of department stores to scale sales and establish a brand image in relatively high-end retail channels can lay a foundation for the sustainable development of foreign trade commodities.

However, foreign trade enterprises will also face many problems that need to "do in Rome as the Romans do".

The traditional mode of marketing through agent channels cut off production, supply and marketing, and the cost of operation is relatively high. The direct mode is conducive to reducing costs.

Therefore, most foreign trade enterprises choose direct camp mode.

In recent years, great changes have taken place in domestic retail formats. Large shopping malls have gradually become the mainstream consumption channels of dominant brands, and have begun to affect the consumption trend of urban residents.

As a gathering place of domestic ethnic brands, Wenzhou has a large scale of shoes and clothing industry and a large number of brands. Many enterprises such as Jill, AOKANG, and news birds have made new breakthroughs in improving the overall image and overall strength of the brand. However, they are hard pressed to enter the shopping mall as the best channel to enhance their brand image, which limits the further development of the brand.