OEM Shoe Factory Pformation Of Its Own Brand "Eight Years' War"

In January 25th, only 60 pairs of shoes were sold in one month, and now more than 10 thousand pairs are sold by now. Yin Jiqi and his team spent 8 years.

"Factory pformation to autonomy

Especially after the outbreak of the global financial crisis, more and more foundries are intending to pform.

In a word, 100 factories turn to brands, and only one can succeed.

The reason is that the market access threshold is high, operating costs are large, and the integration of domestic and foreign marketing is difficult.

Difficulties in domestic sales

Yin Jiqi founded Qi Sheng footwear industry in 1998, and started the 100% generation contract.

At that time, the processing trade was in the ascendant, and orders were too busy.

He soon realized that the labor cost advantage of the Pearl River Delta would be gradually lost, and the profit would be thinner and thinner, only to take orders from other brand shoes.

After several years of OEM production, Yin Jiqi accumulated a certain amount of money to build a high-end brand with his money, not only for CK and other international brands.

However, to build a brand from scratch, it is not yet known when to enter the threshold of high-end shopping malls, so he thought of the curve "licensing" mode.

In 2002, Yin Jiqi bought the brand of "Dibao al o" in Italy, the world's shoemaking kingdom.

In Europe, there are many brands like "Dibao Georgia", named with the name of the famous local shoemaker. Although the local famous shoemaker has a certain reputation, it is subject to many reasons, such as labor cost and market, so it is difficult to achieve the scale effect.

"European shoes are slender, which are quite different from those worn by Chinese people. We basically did not adopt the original design and R & D team of Dibo Agio, but rather focused on their R & D design."

Yin Jiqi's reasons and goals are clear, because in the domestic market, Chinese shoe enterprises are more familiar with local consumption habits.

Buyout brands are largely aimed at getting tickets to high-end stores in China.

Qisheng fulfilled its desire to enter the high-end shopping malls, but the difficulties ensued, which exceeded Yin Jiqi's expectations.

At the beginning, the store was placed in the last counter. The location was not good, the product price was high, and the lack of popularity in the country, the operation experience and confidence were not enough, only sold 60 pairs of shoes in the first month, far from the high store rent.

In contrast, domestic brands are short and short because of too little quantity, while orders for OEM are easily shipped out of one container.

For a long time, the operation of Qisheng shoe's domestic brand was in a state of loss. Basically, the money earned by the foundry was used to fill the hole.

In the process of burning money in the early days, Yin Jiqi often inflate himself like this.

Some companies are fighting back halfway.

Find "eyebrows"

Factories and brands belong to two different modes of operation.

When a factory is pformed into a domestic brand, there is often a common problem that is to maintain the way of doing the factory, too much emphasis on products, and 90% of the energy is still on the product.

From raw material procurement to product shipment, Qisheng shoe industry strives to improve every aspect and process of shoemaking.

Leather and shoemaking machines were imported from Italy.

At the same time, Qisheng shoe industry also has its own laboratory, each new product has to undergo 50 thousand, 6.5 hours of bending, as well as tensile, wear, blasting and other more than 10 test procedures.

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However, to build an independent brand, it is far from enough.

After years of struggle in the domestic market, Yin Jiqi gradually explored the difference between making a factory and making a brand.

When exporting to the foundry, it is basically customer oriented, providing quality assurance and efficient supply services according to the requirements of customers, while domestic brands are dominated by themselves, and the procedures are much more complex and demanding.

He began to find some feelings and found that his previous marketing, packaging and planning promotion were relatively weak, lack of awareness and talent in this area, so he began to exert himself in these areas, and found more suitable domestic consumers' taste in design, promotion and so on.

At the same time, we accelerated the pace of opening stores, and opened more than 100 stores in the first level market of municipalities and provincial capital cities to seize the high-end brand market of men's shoes.

2008 is a turning point for Yin Jiqi.

The Beijing Olympic Organizing Committee issued the order for 2000 pairs of leather shoes of Qisheng shoe industry. The Qisheng shoe industry should produce leather shoes for the Chinese delegation and the Olympic Organizing Committee officials at the opening ceremony of the Beijing Olympic Games.

This greatly enhanced the brand awareness of the company.

In the same year, when the global financial crisis broke out, many export foundry factories around Yin Jiqi closed down because of the shrinking international orders.

From this year on, he is more determined to take the route of his own brand, and is glad that he has taken a step ahead of schedule.

Labor costs and raw material prices have risen sharply this year, and labour intensive manufacturing enterprises are generally affected.

Qisheng shoe industry is no exception. It has reduced the scale of factory production and reduced the number of workers from more than 2500 to more than 1500.

"Domestic brands, because of their pricing power, can absorb the cost of raising prices by raising prices. The price of some basic shoes has risen from 1500 yuan to about 1800 yuan.

However, we spent 8 years in the production line of Qisheng shoe industry, only 25% of them were self owned brand products, and 75% were OEM.

Yin Jiqi said frankly, there are still many areas for further integration in expanding domestic sales.

Because the brand is positioned as a high-end brand, relying on the relatively limited shopping malls, and for the time being, he does not plan to accelerate to the two or three tier market.

In this regard, Yin Jiqi has his own set of other development plans, and adopts the strategy of rich product categories. In recent one or two years, the products of independent brands have been expanded from men's shoes to women's shoes.

In the shoes market, the consumption of women's shoes is 3 times that of men's shoes. Despite the fierce competition in the women's shoes market, there are still some spaces in the high-end women's shoes market. In addition, the acquisition of new brands to expand market share is also a move.