Shoe Enterprise Dr. Frog Market

In October 23rd, Beijing, which had just cooled down, Zhong Yong wore only a thin suit coat, but was sweating all over because he was so busy.

According to Sullivan's survey data, Chinese children's consumer goods

In September 29th, the doctoral frog listed on the concept of consumer goods in Hongkong attracted more than 84 thousand retail subscriptions. The over subscription ratio reached 485 times, and the "frozen capital" reached 122 billion, which was more than the 2.65,0.04,1.53% listed in Hong Kong.

But for this reason, he experienced many road performances, but he felt quite calm about it. He said: "we have been committed to building the largest market for children's consumer goods in the world, and now we can say that we have achieved our expectations in part.

Our biggest task in the future is to continue to expand our share and scale in this market on the basis of quality assurance. "

One stop shopping platform for children's goods

According to its prospectus, Dr. frog sales reached 640 million in 2009 and gross margin reached 42%.

For this year's performance, Zhong Zheng is confident that it will reach 1 billion 200 million.

In fact, although the market for children's products is very large, most of them are small and medium-sized enterprises, and less than 20 yuan is more than five hundred million yuan.

The one-stop shopping platform opened in Beijing, with over 30 thousand commodities, 8 children's wear brands, hundreds of classified brands and shopping centers of 2000 square meters, all shows its determination to become the leader of the industry.

For this reason, Zhong Zheng, who has many years of experience in foreign trade and foundry industry, does not conceal his ambition. He said: "we now have five sales channels -- traditional department stores, standardized stores," doctor frog 365 "living rooms, main stores and online stores, and now there are nearly 1200 retail terminals.

We aim at 0~14 year old children consumer groups, you can say that you can buy everything you need here.

Only one cotton stick has more than 100 models. There will be dozens of choices for a bottle of shower gel. You can stroll around the main shops of the doctor frog. In addition to finding the richness of the items, the biggest feeling is that the price is really good.

For this evaluation, Zhong Zheng used not only to explain in a hurry, but seemed to be right in his mind.

"Yes, I must first declare that for every family, it will not give children bad products, so our products are of the best quality in the same type, so our price will not be low, but it will make the consumer really satisfied."

Zhong Zheng smiled and said.

Retrieving the story of the growth of Dr. frog, in 1996 he pformed himself from the foreign trade processing industry to do his own brand of children's clothing. He always remembered an old leader's message to him: "let Chinese children enjoy the best resources in the world."

And Zhong Zheng Yong is following this path to develop his children's clothing business. While building his own main brand, he not only widely endorsed high quality brands in Europe and America and Japan, but also signed with many entertainment production companies to authorize the production of children's clothing products such as Harry Porter, tennis King son, Thomas small train and so on.

In addition, it signed a contract with seven popular professional league brands, such as NBA and UEFA, to authorize the production of related products.

With the opening of the children's wear market, the doctor frog extends the product line to bathing, skin care, food and other fields, not only in Japan to produce its own BABY2 related products, but also actively acts on behalf of the high-quality brand products of Japan and Australia, which are rich in brand resources.

In this regard, Zhong Zheng has his own business philosophy. He said: "many people ask us where business models come from, and whether they have copied the successful experiences of others. I think there will be references.

But in general, it is our own groping in practice, and being good at integrating other people's advantages.

For example, Japan's local production is cheaper than our OEM, so we choose to go there to make use of their rich SME resources.

Children like Harry and Potter, so we went to negotiate with Warner and spent a lot of money on the production of the magic costume similar to that in the movie.

The expectant mother is very hard to get pregnant, so we started a one-stop shopping platform in 2004.

These are not blind imitation, but deep experience and ideas gained from the market, so I dare say this business model is our original creation.

At the same time, he also said: the use of global resources to create a brand new one-stop sales platform for children's products has appeared in some countries in Japan and Europe and America.

But unlike them, the frog is not only buying globally in the field of brand, but also fully outsourcing in the field of production.

At present, there are only three main parts of doctor Frog: brand marketing, product design, and store management.

In the upstream, they choose to take the place of Commerce and industry. They choose franchisees in the lower reaches. In their peers, they choose the agent brand as if they are a super buyer. For a doctor frog, it is the key to make a wise choice.

Accompanying customers

However, from a different perspective, even if the goods are comprehensive and high quality, if there is not enough terminal market to connect, everything is a cloud in the eye.

As a matter of fact, when outsourcing the production process, it is really a tough choice to make decisions for many years.

In addition to the choice of brand and product design, Zhong Zheng believes that the most devoted effort in the past six years is in the field of terminal marketing.

"There are nearly three hundred million children in China, and about 10000000 new babies will be added each year, but the number of children's clothing enterprises in China is about more than 6000, less than 10% of the total number of clothing enterprises in the country. Children's clothing production accounts for only about 6% of the total clothing output of the country, and children's clothing ownership is far lower than that of adults.

In this market for children's clothing, we will have great prospects, not to mention other children's consumer goods industry.

Zhong Zheng said: you can use every day to describe their enthusiasm for the retail market.

As of June 30, 2010, it has opened 1062 department store brand counters, 24 street shops, 33 365 PhD frog living rooms and 7 main stores, covering 140 cities in 28 provinces in China.

But this can not be satisfied. Zhong Zheng hopes to cover more market demand. 40% of Hong Kong's fund-raising will be expanded, and 488 new stores will be added in the second half of this year.

In these stores, 40% will be directly run, 60% will join, and will make extensive use of local resources to integrate, quickly expand their own dishes, expand Maori space.

"Like a chase war, I think children's clothing industry or children's consumer goods industry does not have such a high threshold and many competitors. What we are doing now is to make use of the advantages of our existing channels to influence the market and customers in many fields, leaving the best and deepest impression on their minds."

Zhong Zheng frankly expressed that compared with many other competitors, Dr frog started developing the channel brand three years ago, that is to say, the trend of this change is no longer dominated by manufacturing, but rather integrated resources based on platform and channel as the Gome and Suning in the electrical industry.

From OEM to private brand, then to agents, authorized other brands, and finally develop their own large channel network, Dr. frog has made an example for many Chinese export-oriented enterprises.

Zhong Zheng, 54, is very concerned about party and government news. He feels that expanding domestic demand over the past two years is crucial for a doctor frog.

If you want to sell enough products, you must lay your own passageway. He thinks this is a necessity.

The development and prosperity of doctor frog is actually difficult to separate from the pformation and reform of the whole Chinese society. From his point of view, it is not only a mode choice, but also a look forward to the future.

Expert comments:

Fang Shaohua (Rongxin capital fund management partner, domestic famous management consultant, doctor of Business Administration)

In fact, there are many enterprises that pform from OEM in China, but their wiser choice is to enter a subdivision industry, then rapidly scale the subdivision industry, and rationally integrate global resources, and draw the distance from competitors by virtue of capital strength.

This compound business model is very rare in China, but it does prove that Chinese entrepreneurs have begun to enter the stage of feeling quickly. They are no longer just following the traditional route, but are willing to take advantage of all the resources available to make a living.