The "Frozen Capital King" Of Hong Kong Stock Listed Companies In 2010

Over 100 billion of children's consumer goods market The potential scale; 46 billion, the scale of high-end products in children's consumer goods; 20%, the annual compound growth rate of high-end products in children's consumer goods.

What kind of a is this? Industry?

The market scale is large enough, the imagination space is large enough, the development potential is large enough, and the industry scale is growing fast; however, the industry concentration degree is not good enough, and there is no scale enterprise, no strong brand, obvious lump homogenization.

14 billion, Doctor frog The market value of Hongkong's main board after listing has become the largest consumer product company in the world. 122 billion, the frozen capital of Ph.D. frogs is listed as the "frozen capital king" of Hong Kong stock listed companies in the year of 2010, even more than that of the Agricultural Bank of China listed in the same year.

What kind of enterprise is this?

In the eyes of some people in the industry, it is not the largest enterprise in the industry, but it is the first enterprise to move towards the capital market; it is not a standard industry template, but it has injected a "strong heart" into the whole industry.

This is a typical Chinese enterprise, from foreign trade OEM, OEM production, to its own brand building, and then to the formation of brand clusters; from the traditional channel construction, to the living hall, main store and other cross channels, and then to the "four nets" integration, 5A upgrade system integration; brand channel as the core of the unique distribution platform mode, let people are full of expectations for PhD frog. Then, how does the frog of this Ph.D. degree master the skills of conquering capital and government market?

Kungfu tips: brand combination

In addition to clothing, daily necessities, food and toys, children's consumer goods can also extend to more fields. Therefore, the frog has not only owned more than 70% of the total sales category, but also has its own, authorized and agent brand level.

This is a typical Chinese enterprise. First it starts with foreign trade, then builds its own brand, and then goes out of its own multiple brand.

In the eyes of some insiders, it is not the outstanding industry leader, but it is the first industry that brings the needle effect to the industry.

Back to 1996, with the increasing pressure on the survival of foreign trade business, Zhong Yong, who has been in the garment industry for more than 20 years, is acutely aware of this signal and resolutely decided to take the road of his own brand. Although he founded the first foreign joint venture in Shanghai in 8 years, Shanghai Rong an Knitting Co., Ltd. has achieved the export volume of US $30 million a year.

"At that time, I thought, since the United States can have Disney, is China also able to produce a doctor frog?" Zhong Zheng told reporters that he wanted to build an animation brand of the whole industry, but in fact, he did not go deep into the Disney mode of operation, only to be impressed by its strong brand appeal. In 1996, Zhong Zheng spent 10 million of the price. Please ask the Shanghai art film studio to produce an animated movie for Dr. frog.

Zhong Zheng, who has been doing children's clothing trade, obviously did not understand the situation of the Chinese animation market at that time. Because of the full opening to the outside world, a large number of popular anime in Japan and Europe and the United States poured into China, full of Chinese children's TV programs. From the animation production, industrial operation and derivative operations are far from the domestic animation, the impact of imported animation almost disappeared. This situation caused Zhong Zheng to lose confidence in animation production, and the television program was faced with many procedural problems of examination and approval. The original animation road was also aborted.

The exploration of animation has not been effective for a long time. Zhong Zheng began to ponder how to find a new path that could not only bring its own manufacturing advantages into full play, but also graft the advantages of international brands. He chose to "stand on the shoulders of giants", that is, to authorize international brands.

In 2005, Dr. frog received the authorization from Warner Bros. Harry Porter brand, responsible for developing, manufacturing and selling clothing and accessories products for children aged 4 to 14. This successful opening of the doctoral frog brand licensing Road, then gradually tennis prince, NBA, Barcelona, Juventus and other brand income.

For authorized brands, Zhong Zheng has two standards that he insists on. First, never do business brand, only do empowerment; second, only graft with strong market appeal of mature international brand.

The OPM mode of authorized operation means that whether NBA or Harry Porter, the doctor frog borrows only a cultural concept, and other specific links, from product development, research and development, to channels and marketing, are all in line with their own routes, which allows PhD frog to fully grasp the right to price. In terms of category selection, Zhong Zheng insisted on his "world-class brand" standard, because in his view, only the globally recognized brand should be the brand that Dr. frog should operate.

The biggest benefit of this authorized brand to doctor frog is the accumulation of experience in brand operation. Take Harry Porter as an example, it is one of the best licensed brands of PhD rankings, but Zhong Zheng uses frankly that Dr. frog does not earn much money from it. In the process of running Harry Porter brand, Dr. frog learned how to connect products with brand culture. "Taking the brand road is not empty talk, at least when product development, you need material." Where does this stuff come from? In other words, brand culture. " This is a very important achievement in the exploration of multiple brands of doctor frog.

Harry Porter achieved great success as the "Zunyi conference" in the history of the development of doctor frog, but at this time, the frog did not distinguish the two segments of "baby" and "child". Regardless of the doctor frog or Harry Porter, all products are concentrated on clothing, shoes and hats and bags, toys and other accessories. Strictly speaking, at this time, the frog is still only a children's clothing enterprise, and its consumption orientation is also very limited.

In 2007, the doctoral frog who still had part of the OEM business accepted an order from Japan for infant garment processing. Careful use of Zhong Zheng found that the price of a baby garment is almost the same as that of the adult clothing, but it uses much less material. Does this mean that baby products have more profit margins than children's clothing? This speculation was quickly confirmed, and the doctor frogs also established their own baby brand Baby2, which expanded from children's clothing to skin care, washing, daily use and other fast food products, and became a truly pregnant baby product development and retail business. Until now, Dr. frog basically achieved the brand layout of children covering 0-14 years old.

This multi brand structure has become a magic weapon for the rapid development of the frog market. Contrary to the children's clothing enterprises, most of the traditional enterprises are stable, and the construction of new channels is also very fast. But their short board is that most of them do not build their own brand, but a pure channel supplier. A single agent brand can easily lead to internal competition among different brands and enterprises in different enterprises, and eventually lead to price confusion and terminal control. Nowadays, the situation of pregnant and infant children is quite common. In contrast, the PhD frog owns not only 70% of the total sales category, but also its own, authorized and agent brand level. When developing new markets, we can skillfully play a beautiful combination {page_break}.

Kungfu tips two: "crossover" channel

Multiple brands need three-dimensional channels, and the stereoscopic channel mode is one of the core competitiveness of PhD. Department stores, street stores, 365 life houses, main stores and so on provide a mode of "power station" for PhD frog mode.

From the manufacturing industry, the frog has always emphasized its brand name rather than its sole channel business identity. In fact, the doctoral frog is not entirely a product brand, and its "intersecting" channel becomes another highlight of the multi brand portfolio.

From 1996 to 2004, it was a period of twists and turns. During this period, the most outstanding achievement came from the rapid development of department stores.

In 2000, the number of doctoral frog counters reached 200. But in the next 5 years, the number of shops has been hovering around 300. In this process, the single channel brings an irreconcilable contradiction: the gross profit space of the traditional department store is very small. With the expansion of the geographical area, more and more dealers join the sales link, and the profit space is further compressed. Zhong Zheng used himself to notice bottlenecks. "If you have always relied on department stores, the access brand is hard to establish, and ultimately you still have to have your own store".

How can we change this situation? Zhong Zheng has been enlightened from the Japanese Akachan365 mode, and his rich product display and one-stop shopping experience make him an eye opener. In 2004, Zhong Zheng opened the first PhD frog 365 life hall in Shanghai port Hui square, selling 3000 kinds of products including clothing, shoes, children's daily necessities, fast food products, etc.

The performance of the "model room" has not been satisfactory. In nearly a year or so, Zhong Gong tried to ponder over the advantages of this channel mode through repeated experiments, and found out a lot of valuable experience. For example, he found that the sale of FMCG was far better than that of clothing, and the former could drive the latter's sales. In addition to clothing, daily necessities, food and toys, children's consumer goods can also extend to more fields. From this time on, Zhong Zheng realized that "besides selling products of own brands, authorized brands, agents and distributors, we can also sell toys, even books, audio-visual products." This laid the foundation for a wider channel extension in the future. Today, Zhong Zheng Yong has further strengthened this model to a more complete store of products. According to his disclosure, Dr. frog has been discussing cooperation with Xinhua media (600825) and introducing books and audio-visual products. In the future, he plans to extend to more fields such as children's games, education and so on.

In 2005, the first "model room" began to make profits and maintained more than 20% sales growth over the next few years. This huge success has begun to change the situation of small scale, single species and incomplete category of children's products in China, and has attracted more attention from children's products brands. In addition to its own brand and authorized brand, a series of hot products such as Lego toys have been settled in succession. The "doctor frog 365 life hall" has become a gold brand channel brand for children's products.

After the 365 life hall, new channels for doctoral frogs have springing up, and new formats such as online shops, street shops and main stores have been launched. Previously, although the idea of "one-stop consumption" was not new in the whole retail industry, it was not easy to do this in the fragmented market of children's consumer goods. Most enterprises still focused on specific areas, but Zhong Zheng used to be very optimistic about this extension from children's clothing to toiletries, fast food products and other fields.

As of June 2010, Dr. frog had 1062 department store brand counters, 24 street shops, 33 PhD 365 living houses and 7 main stores, forming a clear and intersecting channel network.

The construction of channel bridges has made up for congenital deficiencies in the manufacture of doctor frog clothing. As a peripheral competitor of the baby industry, children's clothing enterprises often rely on the resources of children's clothing sales. Although they can follow the original resources and save part of the cost in the retail network and distribution channels, they still can't compete with the brand companies that specialize in the chain of pregnant babies. At the same time, clothing sales channels are mostly confined to exclusive stores and shopping malls counters, mainly to join the distribution. The baby industry is closer to the fast moving consumer goods, and there is a great difference in channel laying. The channel laying of doctor frog has achieved a leap from clothing to baby and baby industry. The traditional channels of stability and various forms of new formats have obvious advantages. At the same time, it has strong control over the two high growth channels of the 365 life hall and main store, which is worth learning from the children's clothing enterprises in spanition.

Now, doctor frog is still digging around this double brand advantage. According to the prospectus, about 40% HK $836 million will be used to open new retail stores between 2010 and 2014 in order to further expand the group's retail network. For the PhD frog, the most important thing now is to spread the channel as soon as possible, open up the distance from our competitors, and strengthen this core advantage.

Kungfu secret three: precise interactive marketing

Traditional advertising can not directly see the market reaction, nor can accurately evaluate the advertising effect, and it is very difficult to effectively integrate with the existing channel sales of PhD. Dr frog wants a way to interact with consumers and get market feedback clearly.

Despite the fact that its own brand advantage is not yet prominent, the authorized brand does not have any uniqueness. Zhong Zheng Yong does not worry that he is being imitated and surpassed. In his words, the expertise of PhD is to integrate the best resources in the world and share it with Chinese consumers. We have always been imitated by others. "

Indeed, the secret of Zhong Zheng's best and frequent success is that he is very good at making full use of all kinds of new marketing tools and concepts, and spreading the demand according to the different channels of doctor frog, so as to achieve the ultimate goal of creative marketing.

The most typical example is that in July 2010, PhD frogs 12580 life broadcast, and 100 thousand yuan solicited the marketing plan of advertising words. This idea is entirely the idea of Zhong Zheng. According to his account, the first 12580 books wanted to develop an advertising cooperation with the frog, but the promotion plan from the other side did not touch him. "Traditional advertising can not directly see the market reaction, nor can it accurately evaluate the advertising effect", and it is very difficult to combine effectively with the existing channel sales of doctor frog. Zhong Zheng used to tell the new leader that Dr. frog wanted to interact with consumers and get market feedback clearly, and eventually he thought of a brilliant reward for advertising.

After the publication of the "12580 life broadcast" campaign, Dr. frog received nearly 230 thousand short messages. Zhong Zheng uses the opportunity to strike the iron, through the "12580 life broadcast" platform, so that 31 million people can vote for the final winner. In the whole process, Zhong Zheng used the obvious idea that "the meaning of drunken man is not there". As he said, success is not how much the advertising word that can be produced through the "sea election" can be produced, but how many effective audiences are involved in the process. Later, Zhong Zheng himself admitted that he still did not use the slogan of "100 thousand yuan".

This electric shock confirms the idea of Zhong Zheng's grafting of new media and information communication means. Next, he pondered over how to combine these new marketing methods with the pluralistic channels of doctor frog, and how to integrate himself with the traditional "store centered" business structure and serve himself. How can we better apply the 365 main stores that will be vigorously nurtured in the future?

Zhong Zheng uses the following methods: pushing the industrial upgrading of the four networks of the four networks, namely, the Internet of things, the Internet and the mobile Internet, the store channel network and the membership network. Through the display of the entity store, the experience of A-level, the entertainment grade A, the interactive level a and the member service A-level, we provide 5A services for the children's customers.

This idea has now become a reality in the 365 million main stores in Wujiaochang, Shanghai, which opened in January 22nd. In 4000 square meters of space, intelligent service is everywhere: when you enter a store, the message of "Dr. frog welcome you" will appear in the customer's mobile phone; meanwhile, customers' names, age and other personal information and shopping records will also appear in the doctor frog system. After shopping, every selected product will automatically display its price, material, size and other information; the system will also match other essential clothing according to the customer's body shape and skin color; in daily life, the members of the PhD frog will receive regular information and promotional activities of PhD frog products through PhD wireless terminals.

"5A level intelligent shopping experience" has become another innovation in the new mode of operation of doctor frog, but this attempt is just the beginning. According to the development strategy of doctor frog, Zhong Zheng hopes that every specific product in the future can be traced and managed by computers through the Internet in every state of logistics and service. {page_break}

Kungfu tips four: the first national leader in the region.

The leading experts in the leading industry and the whole country must first become a "high hand" in a certain field and region, and can not lead the military region.

In fact, the first and most important problem faced by the PhD frog from the export trade to the domestic market is how to open up the Shanghai market and establish its own base.

As a commercial center in China, Shanghai has huge market space. In 2004, Shanghai's per capita GDP had exceeded 4500 dollars. At the same time, Shanghai children under 18 accounted for more than 2 million, and children's clothing demand was strong.

Nevertheless, it's not easy to eat the biggest piece of cake. At that time, Shanghai market, many domestic and foreign children's clothing, juvenile clothing brand competition has been very intense. If we want to grab as much as possible to the market share and get the greatest economic benefits, only by efficient brand operation can we win the game.

One of the interludes to break out of the regional market is the little frog newspaper. In the process of trying to promote the animation and derivative industry in Chung Chung's government, in order to expand the brand image of PhD, Dr. frog has published a frog newspaper in 1997, popularizing the brand of PhD frog in the form of comic stories. At that time, the school issued a joint issue with the school, with a circulation of more than ten million copies. Many primary and middle school students in Shanghai have known the "doctor frog" through this newspaper, and have had an intuitive and deep impression on the cartoon image. This has not only become an important tool for opening the department stores, but also accumulated the first batch of basic customers for the brand.

When the doctoral frog brand clothes appeared in the shopping mall, many children in Shanghai were full of joy and joy. They laid a foundation for the initial opening of the Shanghai market. Although the final doctor did not walk on the road to Disney, this directional attempt could not be regarded as a windfall.

In the late 90s of last century, Shanghai concentrated almost all the famous brands of children's clothing in the whole country and most of the world. But Zhong Zheng finds that compared with foreign brands, many domestic children's clothing enterprises trying to brand spanformation take steps to overcome difficulties. The reason is that these enterprises lack excellent children's clothing designers, and their research and development capabilities are lagging behind. Because children's clothing enterprises in China generally start late and their ideas are relatively backward, designers mostly focus on adult clothing design, and devote too little energy to children's clothing, which directly affects the overall development of children's wear market.

At that time, Zhong Zheng decided that if we wanted to occupy the big cake of Shanghai children's clothing market, we must start with "design" and strengthen our brand's R & D and design ability. Starting from the first brand spanformation in 1996, Zhong Zheng has gradually shifted its center of focus to brand product research and development and sales, and its design and R & D capabilities are continuously strengthened until 2008 as a complete "light asset" company. Before that, in 2004, the PhD frog had become one of the most important domestic clothing industries.

Under the support of strong R & D and design, the brand influence of the PhD frog is expanding gradually, and the more stable the channel is. He was good at grafting the relationship between politics and business, and even did business in the school. He took almost all primary and secondary school clothing business in Shanghai.

In the eyes of Zhong Zheng Yi, if we want to be a leader in the leading industry and the whole country, we must become a "high hand" in this field and in the region.

At present, there are 380 million children in China. Although the main body of the consumer market is still in the second tier cities, Zhong Zheng believes that there are no two or three lines in the baby market. Under the premise of China's overall consumption promotion, there are more than 330 prefecture level cities and 2858 County-level cities in the market. The PhD frog in the two upgrade is also seeking to realize the expansion from the Yangtze River Delta to the whole China. As of June 30, 2010, the doctoral frog shop has already spread to 140 cities in 28 provinces of the country.

Kungfu tips five: soft power of "Leadership Innovation"

Zhong Zheng has a famous assertion that "a good entrepreneur should at least see the development trend of the enterprise and industry in the following 3 years".

Starting from a foreign trade enterprise, Dr. frog walked all the way to China's largest children's consumer goods development and retail business. Zhong Zheng's personal leadership and innovation consciousness played a key role. His annotations include: he is good at grafting political business relations, innovative consciousness, strong learning ability and good marketing, which covers the main qualities that a successful business leader should possess.

Zhong Zheng Yong's innovation and marketing consciousness began to show up very early. In the 80s of last century, China's sports cause attracted worldwide attention. Sportswear made of polyester cotton covered by athletes was loved by many people. According to this demand, we have developed a new type of jacket which is more beautiful and practical than the sportswear.

At that time, the exclusive market in Shanghai was the old brand "people stand". In the marketing, the ingenuity of Zhong Zheng tried to make the leader of the municipal government take the lead in "experiencing consumption", and deliberately rented a counter sale beside the "human" store in Nanjing West Road. After the launch of the product, it started. In 1985, Zhong Zheng made 1 million of the "less frequent" business.

Since 1988, we have made export of foreign trade garments, spanferred to our own brands in 1996, and then authorized brands in 2004. In 2008, we launched a reverse OEM route and established an "Overpass" channel. Until 2010, we successfully launched the market. The frog has always been a step forward, which is closely related to the personal qualities of Zhong Zheng Yong. According to Chen Liping, chief operating officer of doctor frog, before the financial crisis came in 2008, the manufacturing factory of doctor frog was still a very profitable business, but Zhong Zheng firmly decided to turn it off. At that time, many people felt unreasonable. But later, the decision proved to be quite correct. Because the financial crisis that followed it destroyed many factories that had been working for more than ten years overnight. If we did not unload this burden, it would be enough for workers to resettlement them.

Zhong Zheng explains his famous assertion that "a good entrepreneur should at least see the development trend of the enterprise and industry in the following 3 years". This vision keeps him always "not satisfied" and the habit of learning at all times, and is regarded as the leader of spiritual leaders by company executives. But with the spread of doctor frog channels and markets to the whole country, the problem of internal management is becoming more and more prominent.

Most of the executives of Dr. frog are native born Shanghai people who are familiar with the market in Shanghai and even in East China, but they do not know much about the national market. At present, the cultivation of doctor frog still emphasizes internal training, loyalty and recognition are important criteria for measuring management. Around Zhong administration, executives play more roles as executives and do not take too many important strategic decisions. In the interview, we also found that executives often talk about the strategic turning point in the development of the company, which is called "Zhong Zhong". This may not be bureaucracy, but at least there is a distance from the management level required by a listed company. The doctor frog, who is the brand of Zhong Zheng, is increasingly facing the bottleneck of talent development.

In this regard, Softbank Sai Fu investment partner Lu Hao pointed out that Zhong Zheng Yong is a good seed, but he did not fully spanmit his commercial sensitivity to his team, still rely on his own to maintain a doctor frog. In addition, doctor frog also does not pay enough attention to option incentives, and there is a hidden danger of brain drain.

In response to this problem, Zhong Zheng Yi disclosed his talent highland plan: establishing a talent highland that can graft capital markets and supplemented by equity incentives. He regarded it as a perfect plan to "assure investors and stabilize the team".