Leather Brand Luggage Construction Faces Dilemma

Qian Xiang Town, Dongyang City, Zhejiang, is an important part of Dongyang. Luggage and bags Production base, leather goods and bags industry started at the beginning of reform and opening up. Qian Xiang town used to be the same as China's other leather production bases, and it is also the international brand leather processing and production base. Many bags and leather enterprises are accustomed to the pattern of sample processing and OEM production. They are unwilling to pay any effort to open up the market, cultivate their own brand of leather products, and despise them. Leatherwear Brand building, so that luggage and leather goods enterprises are facing increasingly difficult predicament.

However, in the past two years, the luggage enterprises in Qian Xiang town of Dongyang have taken an amazing step in their own research and development and creating their own brands: step by step from " OEM The "behind the scenes" of processing goes to the front desk of fashion.

Independent research and development have a way out.

Dongyang City thousand Cheung town luggage industry main products include briefcase, schoolbag, drawbar bag, backpack, mountaineering bag, leisure bag, travelling bag, beach bag, toolkit and so on ten series more than 30 varieties, the product 90% exports abroad, 10% relies on the Yiwu market to sell to the whole country. In the Yiwu International Trade City, there are more than 500 bags and stalls in Dongyang, accounting for about 1/3 of the total market volume.

Statistics show that although Dongyang's leather goods and suitcase enterprises produced more than 100 million bags in 2007, its output value was only 1 billion 360 million. "The fundamental reason is that the product grades are too low, lack of brand products, and the added value is too small." Sang Guoping, Secretary of the Party committee of Qian Xiang Town, said to the "China made news" reporter.

In the interview, Lv Guoshui, chairman of Dongyang Xiang Feng Industrial Company, deeply regrets the "frustration" of luggage enterprises. "Without independent research and development, enterprises will never enhance their core competitiveness." R & D design to change the future, design is the inherent requirement and source power of transformation and upgrading of luggage and leather industry.

Dongyang Xiang Feng Industry is the first enterprise in thousand Xiang town to set up R & D center in Guangdong province. Lv Guoshui told reporters that we are strong manufacturing, but low-end design. Especially in today's sharp rise in raw materials, land and labor costs, we also further remind us of the pressures and challenges faced by the way of development.

"It is an inevitable choice to raise the added value of the brand and enhance the bargaining power of the brand." Lv Guoshui told reporters, "why do we need to build R & D centers in Guangzhou? Because many famous international brands such as GUCCI and LV are located in Guangdong, their production and business philosophy is worth learning. If we want to go out of thousands of Xiang bags, we must learn new ideas and form new ideas.

"Improve your reputation by subcontracting, and then promote your brand. This road is not easy to walk, but we have to go on. Our luggage and bags do not have no way to do the domestic market. Let's see how we can go on this road and how to locate our products.

Lv Guoshui said that the establishment of R & D centers in Guangzhou can enhance their popularity in their peers. Through this window in Guangzhou, we can learn from others' advanced ideas and get out of our own way.

Brand is the competitive power.

Lv Dajun, chairman of Zhejiang Dongyang Ding Da leather goods Co., Ltd. is also a "large exporter". He told reporters that the "Ding Da" trademark is already a famous trademark in Zhejiang province. It was registered as early as 1993. But in 1997, when the company switched to foreign trade, it lost the share of the domestic market. "I regret doing so." Lv Dajun said that Ding Da leather products began to re launch products to the domestic market in 2010, but its share was very small.

"Only products with independent research and development will go to others. It is impossible to produce without upgrading the quality and upgrading the product. Lv Dajun said.

China is a large country of leather goods and bags, but it is not a big brand of luggage and bag.
 

China's luggage enterprises should be more aware of who lives longer than the ones who compete for brands. China needs a hundred years of brand and a century old shop. If an entrepreneur wants to succeed, he must first establish his brand awareness. The brand competitiveness is based on brand strategy. Similarly, if the bag companies want to succeed, they must improve their brand competitiveness.
The owner of the lion king leather Limited company told reporters that the enterprise's own brand has accounted for more than half of the export share, and profits have also increased significantly, which is in sharp contrast to the previous OEM production.

After Lv Guoshui went out, he found that the bags of foreign trade were also divided into three grades: high, medium and low, and the middle and high grade ones were produced in Shenzhen and Guangdong. The middle grade bags are mostly produced in Fujian. The bags in Jiangsu and Zhejiang provinces are not medium to high grade at all. They are only medium grade products.

What bags do you need after 90?

"Originally, we only went to Dongyang to investigate other bags enterprises and markets. They thought they were already great. After arriving in Guangzhou, a Pierre Cardin supplier invited us to participate in a product conference. An expert at the meeting talked about the positioning of the enterprise and gave us a vivid lesson. Lv Guoshui was very excited. After coming back, they also began to think about where the position of the enterprise should be determined, and where the idea of the enterprise should be. What is the thinking of the 80 and 90's now?

Experts predict that in the next few years, China's post-90s spending power will be impacting, and its degree is far higher than that of 70 and 80. It will be a "Diamond class" consumer in the new era. Lv Guoshui is also considering this huge market. He believes that in the process of promoting brand in the future, high, medium and low end products should be available, and the market of every category should be infiltrated.

For thousands of Xiang enterprises, the important means to enhance the added value are either to cast the brand, to cultivate consumers' trust in the brand, or to expand the functions of the products, and to upgrade the products. In the new wave of development, they all focus their attention on brand building.

Because the foundation in the domestic market is not stable, it is prudent for enterprises to open up the domestic market. "First stabilize the fundamentals and then expand the domestic market." Lv Guoshui said.

The Party committee and government of Qian Xiang Town, in order to strengthen the construction of bags and industrial bases, vigorously implement the brand strategy, guide enterprises to enhance brand awareness and innovation ability, and promote product upgrading. At present, "China's bag and bag industrial base" has officially been accreditation through expert assessment in Dongyang. In 2010, the "thousand Cheung Cup" bag design competition and the 2010 bag and bag innovation forum and popular trend conference were held in Dongyang to publicize the thousand Cheung bags industry while improving the innovation capability of the thousand Cheung bags enterprises.

In the past few years, the investment of Xiang Feng suitcase has exceeded 1 million yuan, and this does not include raw materials. After its own research and development, it will quickly improve the quality of its products and enhance the influence of its brand, and the customer type will also shift from low-end customers to high-end customers.