Shoe Enterprises Pform Domestic Sales &Nbsp; How To Turn From OEM To OBM?

December 10th OEM (Orignal Equipment Manufactuce) refers to the original equipment manufacturer, OBM (Orignal Brand Manufactuce) is the original.

It is generally believed that the OEM OEM is for export, while OBM for domestic sales.

In fact, this understanding is wrong.

In China's specific national conditions, the competitive advantage of enterprises is a low labor force, so the choice of brand names for foreign brands (OEM) is the inevitable way. With the rise of domestic brands, there are already many enterprises for the domestic brand OEM processing, but they are essentially domestic sales; and OBM is not necessarily domestic sales. With the constant strength of domestic brands, you will find that OBM is slowly coming out of the country and starting to export, but this is not good enough for domestic shoe enterprises, but color TV, automobiles, household appliances and so on have been exported for a long time, and they are also very mature.

So, to be exact, it should be export OEM and domestic sales OBM. Let's call it export and domestic sales for short.

We don't need to use too much ink to describe why shoe enterprises should pform from export to domestic sales, nor do we need to discuss whether shoe companies can pform from export to domestic sales. Only when we look at the existing state of export and the increasingly deteriorating export environment, as well as the changes in the domestic processing environment such as the appreciation of RMB, the increase of wages and production costs, etc., "made in China" has gradually lost its original price advantage and will be replaced by other new manufacturing countries.

And what about export? Unless you do not do this, you will be eliminated if you do not take the domestic route.

However, in view of the domestic market in recent years, the success of export oriented shoe enterprises has been pformed into domestic sales, but most of them have ended in failure and failure.

What causes the export enterprises to wrestle at their own doors?

Misunderstanding of export to domestic sales

First, the mode is wrong.

Simply using the export method and imitating the marketing mode of the existing industry, simply putting the exported shoes products into the domestic market is the primary reason for the pformation enterprises to get into trouble.

The domestic market can be described as the most complex market in the world. There are 5 different market environments and formats such as megacities, provincial capitals, prefecture level cities, counties, townships and so on.

Two, strategic mistakes.

Strategically speaking, enterprises are outside.

After selling to the domestic market, they did not re-establish their competitive advantages and capabilities.

The core competitiveness of export enterprises lies in the manufacturing and stability, rapid response capabilities, quality management capabilities, production cost advantages and the relationship management of large customers. After exporting to domestic markets, enterprises need to establish a comprehensive market competitiveness with consumers as the focus of attention.

Three, train of thought.

Without abandoning the idea of export, we did not develop the domestic market in the domestic mode.

The domestic market needs basic market input and cultivation period, and the investment return cycle is relatively long. Correspondingly, enterprises should make corresponding adjustments in marketing organization, management, production plan and finance.

Four, lack of talents.

The first consideration for domestic enterprises is to employ benchmarking enterprises or to hire professional managers to form marketing departments.

Domestic sales is a battle against the enemy, rather than a defensive battle. What is needed is the elites who can start business together with decision makers, rather than managers who continue to succeed stories.

Managers' cultural differences, differences in ideas, and differences in values will lead to the half sale of domestic businesses.

The pformation of domestic sales to enterprises is not a simple way to open up the domestic market. In fact, it is a process of pformation of strategic positioning, rebuilding and upgrading once again, and the pformation of enterprises in the global industrial chain, from the processing workshop to the licensing providers or even the industry chain managers; it is the process of enterprises from no brand to self created brand; it is the fundamental pformation of the business mode, profit mode, management and operation mode of enterprises; it is the pformation from the operation mode of large customers, the operation mode of trade to the refinement of marketing mode, and the pformation of the core competence of enterprises from the advantages of processing, cost, productivity, quality and technology to brand advantage, marketing advantage and research and development advantage. Export sales

In the final analysis, it is the comprehensive pformation and upgrading of enterprise strategy, mode and marketing.

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The essential difference between export and domestic sales

First, different target customers.

Export oriented is a large customer, belonging to B2B; domestic sales is for terminal customers, belonging to B2C.

Two, the growth pattern is different.

Export sales can expand rapidly, and domestic sales need steady growth and steady growth.

Three, the mode of operation is different.

Export is very variable, others will not allow you to process, you will have to find another job, belong to the passive type, sell your own brand internally, and have strong controllability, so you can change the processing factory.

Four, the product line is different.

Export products can not be extended, and domestic sales can be extended to related products, which is infinite in theory.

Five, the market input is different.

There is no need to invest in exports, and domestic sales need to invest a lot in brand promotion and marketing.

Six, resource integration is different.

Export needs to integrate upstream resources of industrial chain. The main way of value generation is investment production equipment and important customer relationship (including government relations). Domestic sales need to integrate the downstream resources of the industrial chain to invest in the value generation mode of "brand + channel + sales organization".

Simply speaking, export and domestic sales are two different steps in the industrial chain. The former is mainly production and the latter is mainly marketing.

The biggest difference between the two is the difference in profit space. The former accounts for less than 10% of the latter.

Disadvantages and advantages of export to domestic sales

First, the disadvantage of export to domestic sales.

1. no products: the brand, core value, packaging and price of products are in a blank state.

2. no channels: pformation enterprises basically have no distribution system in the domestic market.

3. no team: foreign trade is a big customer relationship management. There are few foreign trade personnel in general enterprises. To pform the domestic market, the size and team capability of the marketing team are totally different from those of export.

4. no experience: the difference between export and domestic sales is different. The meaning of domestic marketing is different from that of the market, consumers, competitors, products, prices, channels, communication, organization, team and management. Foreign trade experience has no reference to domestic marketing.

5. R & D is weak: the export business mode usually provides customers with product standards, such as sampling, drawing processing, technology and technology control to ensure quality, and the ability of new product development can not meet the needs of the domestic market.

6. there is no system: the export process is only in the supply chain from the product to the dealer's link, compared to the domestic supply chain system, from the product to the after-sales service and customer relationship management, the export enterprises obviously lack the support of the marketing system.

7., we do not know consumers: they are almost ignorant of the target consumers, purchase needs and consumer psychology in different regions and different levels of the domestic market.

8., we do not understand the market: we do not understand the channel form, business format and market characteristics of the five different levels of market in China (from the first tier market in Beijing to the provincial capitals, prefecture level cities, counties, townships, etc.).

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Two, the advantages of export to domestic sales

1. stable processing capacity: export enterprises have unique advantages in processing and production and product quality management capabilities. Buyers focus on stable production capacity, stable quality, stable and low price. Every year, we do not know how many times the two sides have audited, so that enterprises have good advantages in the above aspects.

2. stable quality management system: the survival and development of export enterprises depend largely on pragmatic and down-to-earth spirit, good factory management experience and cost control capability, which is a great advantage in the pformation of domestic sales.

3. speed of life and death, quick response: export enterprises know that once the order is signed, what the shipping schedule will mean for the enterprise, in any case, it can not delay the shipping schedule, and continuous overtime or even overnight rush is common practice. Therefore, the enterprise has trained the ability of quick response and a very strong sense of time, so as to ensure timely delivery and storage after entering the domestic market.

4. customer service experience and ideas: thinking about how to stabilize big customers, how to improve the purchasing ratio of large customers, how to maintain the relationship with big customers, and so on, so that export enterprises have developed good customer relationship management experience and awareness for many years. Through cooperation and learning with large customers, enterprises have developed good business values, which is a good advantage compared with the domestic market which has not yet been fully mature in business ethics.

5., having good credit from banks, suppliers or members of the outsourcing Association: the capital issue of domestic marketing is the biggest problem. No factory will pay in time. This is an indisputable fact. At this time, strong financial strength and smooth financing channels are likely to be the key to success.

6. from scratch: a blank sheet of paper can draw the most beautiful pictures.

As the saying goes, "know your enemy and know your enemy, and fight for ever."

Knowing their own advantages and disadvantages, it is possible to foster strengths and circumvent weaknesses, make fewer mistakes and take fewer detours.

Some experience of successful pformation of export enterprises can be used for reference by enterprises in the industry.

Successful experience of exporting to domestic sales

First, enterprises have clear goals and plans, firm willpower, entrepreneurial passion and mentality, and decision-makers' "driving on their own" and creating a new team, which is one of the key factors for successful pformation of enterprises.

Second, the success of domestic sales needs not only to focus on what resources and capabilities the enterprise has now, but also to focus on what kind of resources it needs to succeed in running the domestic market, what kind of insight to market opportunities, the ability to acquire resources from the market and the ability to integrate resources effectively.

Third, successful domestic enterprises have gone through the pition from production standpoint to consumer standpoint.

The consumer position here is not simply advertising as the main marketing tool, but rather to satisfy or even stimulate consumer demand as the starting point, and comprehensively adjust the enterprise's product mix, management mode, distribution mode and a series of business models.

Fourthly, the balance between long-term construction and short-term benefits.

The road of enterprise development and branding is a marathon, rather than a 110 meter hurdle race. MerleA.Hinrichs, the president of global resources, is very incisive: the brand can only get the priority of consumers if it has the influence in the end consumers. Therefore, it is not successful to see only the short term cost and lack of courage to invest and maintain.

With the 30 years of China's economic reform and opening up, great changes have taken place in the domestic and international environment.

If China's economy develops to a certain level, it needs corresponding productivity and products to match with it, otherwise the world economy will be tilted.

The cheap advantage of the traditional manufacturing industry will gradually be passed on to the next relay (as China inherits the traditional manufacturing industry in Europe and the United States). This is the general trend.

As a traditional manufacturing industry, shoemaking enterprises should be prepared ahead of time. The earlier they are prepared, the greater the chance and the smaller the loss.

And the pull of domestic demand just makes up for the shortage of export power. Therefore, exporting OEM shoes enterprises to pform domestic OBM enterprises is also the trend of the times.

With the continuous integration and growth of domestic OBM, it is possible for China's OBM to go abroad. The export of China's export OBM will only become a reality. China's Gucci and LV will probably emerge.