Multi Brand Operation Is The Direction Of Xi De Long's Future Development.

01, 29, "at the beginning of the business, because of the shortage of funds, the conditions were very poor, and the factory premises were rented.

The raw materials for the ceiling of the workshop are asphalt.

19 years later,

In 1985, Lin Shui Po, 17, started his apprenticeship. He worked hard and worked steadily from packing, running business to developing new markets. He was familiar with the production and marketing of shoes factories.

In 1992, he founded a small family of 7 years apprenticeship in shoe factory.

In 2001, Lin Shui pan registered the brand of "Xi De Long". This happy name comes from the idea that "Chinese people like to regard dragons as mascots".

And the next task is how to start the brand in the whole country.

At that time, the popularity of Jinjiang shoes was "Hong Kong and Taiwan celebrity endorsement wind".

Lin Shui pan, however, pondered that he could never play the same cards as others.

So he invited the assistant director general of the State Sports General Administration and former national table tennis coach Cai Zhenhua to be the image ambassador. Later, he also appeared a professor, Sun Yining, a doctoral tutor of the Chinese Academy of Sciences.

In October 30, 2009, Xi Long lung went on the market in Nasdaq.

Before the listing, the domestic equity fund, new horizon capital, announced $30 million to acquire 3 million 960 thousand shares of the company.

Subsequently, the new horizon capital also invested $13 million 100 thousand in investment by exercising these subscription options.

These allow him to have enough money to rush ahead.

Lin Shui pan told me that his latest plan is that "in 5 years, the 10000 stores in the country have been sold."

In the early 80s of last century, many Jinjiang people began to rely on hammers, scissors and sewing machines. They engaged in shoes production with little investment and low technical requirements, and quickly became rich.

However, the idea of Lin Shui pan never stays in a shoe factory.

As the shoe factory continues to grow, he realizes that OEM can only play the role of a nameless setter, with low profits and not a long way to go.

So he was determined to create his own brand and develop and design independently.

At the end of the 90s, shoe factories had expanded more than 150 times than the beginning of their factories.

Lin Shui pan is analyzed through production and sale data obtained by multi year workers. It also conducts field investigations and studies from Beijing, Shanghai and Guangzhou.

According to his data, the annual output value of the global sports industry is as high as about 400000000000 dollars, with an annual growth rate of more than 20%.

"At that time, the domestic sports industry started late and the scale was small, and the output value and international difference were 10 times."

Lin Shui Pan said, "this is the opportunity."

The direction of pformation is fixed, and then the team is built.

"Talent is important at any time."

Lin Shui Pan said, "first of all, the competition among enterprises is the competition of talents.

Whoever has the professional talent and the right professional manager can win the battle.

If we find that the existing management mode of enterprises is difficult to introduce talents or make it difficult for them to play a role, we should make structural adjustment, and organizations can be changed because talents are more important than anything else.

In 2001, with the advertising of image advertisements on CCTV5, the sport shoes of Xi De Long began to jump rapidly throughout the country. Orders from all over the world such as snowflakes and short production capacity were highlighted.

At that time, Lin Shui pan, which had always been prudent and prudent, rushed to Putian in person, and acquired two large scale production lines within a day.

To solve the short board problem of production scale, R & D has become the top priority.

"We have to develop product research and development every year by 5% of our sales volume."

Lin Shui Pan said that Chinese feet are different from westerners. They must collect data and do research so as to make shoes that are more suitable for Chinese people.

Nowadays, people can see that a rectangular "guy" - "foot scanner" is placed in the store of the dragon. Consumers will put their feet in this machine, and the data of their arch height, the main supporting point of the sole of the foot and the force of the ankle will be accurately recorded.

In fact, the sportswear market has always been a red sea. International brands have gone half the market. Many domestic brands are crowded in the other half of the market, and only more than 3000 similar companies in Jinjiang.

How can we win in such a brutal competition?

"Economics has a principle called" flywheel effect ". It means that in order to make a stationary flywheel rotate, you must make great effort at first, and the flywheel will rotate faster and faster.

After reaching a critical point, gravity and momentum will become part of the driving force.

At this point, you don't need much more energy, the flywheel can still rotate quickly, and it keeps turning.

It means that if you can step on the rhythm and seize the right time, you will be able to move forward quickly.

In his view, after the listing, Xi dragon has driven into the fast lane by the flywheel effect, and next is facing the problem of how to expand effectively.

"Thousands of counties and cities in China, if we open two stores in every county or city, that means seven or eight thousand terminal outlets. This is a big market space."

Lin Shui pan believes that "in the next two or three years, the dragon will further consolidate its share in the two or three line market.

In addition, we will march from the two or three tier cities to the first tier cities and complete the pformation from product operators to brand operators.

But this is not a blind expansion plan.

"We will control the annual closing rate to 5%.

A franchised store is a brand image of a company. If you open a shop blindly and extensively, you will get twice the result with half the effort. "

He said, "so in the next few years, we will not put too much energy into big stores and flagship stores."

In addition to the expansion of franchised stores, finding new profit points has become a new target for the company.

"Now the sports products market has reached saturation, and the momentum of development is not so fierce as in the past few years. The natural growth of consumers alone can not support the whole market far enough, and we need to find other growth points."

Lin Shui Pan said that the $100 million raised by the listed companies today mainly invested in R & D, marketing and supplementary liquidity.

He disclosed that the company is also planning an e-business platform. At the same time, the lifestyle and values of "85 after" and "after 90" people are being studied in depth. In the future, lifestyle products are the mainstream of the sportswear market.

As we all know, footwear enterprises in Jinjiang started in the late 80s and early 90s, mainly distributed in Chen Dai Town, where shoes accounted for 85% of the total number of shoe enterprises in the city.

In 2001, Jinjiang was recognized by the Chinese leather and footwear industry research institute as "China Shoes Capital".

Since the mid 1990s, the overseas market has been an important position for Quanzhou shoe enterprises.

As early as the mid 90s of last century, Jinjiang shoes went abroad for a long time in the wholesale market, and there was no obvious embodiment in brand value.

The "Jinjiang Street", which was opened in Budapest, Hungary in June 2003, is a collective attempt of Quanzhou brand to go to the world.

In 2006, the Southeast Asian market began to become a new base for overseas expansion of Quanzhou sports brand.

However, as the market matures, the hidden troubles of Jinjiang shoe market are more and more prominent.

Rising raw material prices, a large increase in labor costs, tight money and financing difficulties have exacerbated the plight of shoe development.

Lin Shui pan told me that after the global financial crisis, Chen Dai town chose to set up "one enterprise, one file" for 101 key enterprises.

Through files, the enterprises can be tracked in real time, updated in the month, and fully grasp the details of the enterprise's production scale, brand strategy, sales outlets, market distribution, business development, technological innovation, employment and so on, and find problems in time.

In addition, an industrial production control room was set up in the town to pay close attention to the supply and demand of production factors and the operation of funds.

"In the past, Jinjiang had seized Wenzhou's market by price, and now it has also encountered price wars elsewhere."

Lin Shui Pan said that if we want to change this situation, we can only pform and upgrade, and enter the high-end market.

Lin Shui Pan said that in addition to further consolidating the share of "Xi De Long" brand in the two or three tier market, the company will also acquire one or more high-end brands in Europe and the United States to achieve the goal of entering the first tier cities in the country.

"The advantages of high-end brands in Europe and the United States lie in brand effects, R & D, and the strength of local brands in the supply chain management and terminal sales, and the acquisition of high-end brands in Europe and the United States will help speed up our entry into the domestic high-end market."

He said.

This is obviously a clever move.

Lin Shui Pan said that at present, it only focuses on those world-renowned brands that can be accepted and pformed by Chinese consumers.

Last year, some American brands including TheSharp-erImage, LinensnThings and EddieBauer filed for bankruptcy protection after they filed for bankruptcy protection.

In his view, "acquisition or cooperation agency" in the Greater China region will not only make profits, but more importantly, it will accumulate rich experience and resources for entering the international market.

At present, the sportswear enterprises in Quanzhou have a precedent and operate more specifically in the field of foreign brand management.

The purpose is not only to increase the channels to create profits, but also to learn from other people's advanced management experience.

"China's sportswear brand is changing from OEM (processing) to ODM (original designer), and also has western brands in addition to its own brand."

Lin Shui Pan said, "the acquisition of foreign brands by private enterprises, with the upgrading of their brands, is something that can be done."

It is understood that at present, most of the footwear products of Xi Dalong sport are self-produced and partly outsourced, while the sportswear series is fully outsourced.

And in the plan of Lin Shui pan, the future will not invest too much energy in production.

"I think enterprise development has three stages, from product production, brand operation to capital operation.

Although many sporting goods companies are listed, they have only entered the capital market, and can not be regarded as capital operation in a sense.

At the moment, multi brand operation is the direction for the development of Xi Long lung.