The Hard Journey Of The Spin Off Enterprises To Spanform Their Own Brands

In March 3rd, it sold only 60 pairs of shoes from a month, and now sells more than 10 thousand pairs a month. Yin Ji Qi It took him 8 years to work with his team.

"The spanformation from factories to independent brands is very difficult. We must be patient." Qisheng footwear industry Limited company (hereinafter referred to as "Qi Sheng shoe") chairman Yin Jiqi recently said, from the manufacturing industry into the business, to experience a long period of running in, expanding the channel for a few years, until the last two or three years has not begun to improve, gradually achieve profit.

Especially after the outbreak of the global financial crisis, more and more foundries are willing to sell domestically. brand But there are few enterprises that can really set up brands and run them well.

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, many brands like "Dibao" are named after the name of the famous shoemaker. Although they have a certain reputation in the area, they are hard to achieve the scale effect due to many reasons such as labor cost and market.

"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.