Jinjiang Shoe Enterprise'S Life And Death Secret Warfare

The secret war is the masterpiece of Hongkong's famous director Johnny To. The two power stars Andy Lau and Sean Lau play the role of the robbers and the police respectively. The two men are brave and ambitious in the play. They are brilliant and contend everywhere.

Amazingly, Jinjiang, China's shoe making capital, hundreds of miles away north of Hongkong, is showing a real version of the "secret war". From products to talents, from brands, channels to terminals, Jinjiang shoe companies can not compete with you.

The only difference is that there is no loser in the movie, but there is no winner in the Jinjiang shoe business.

(1) since the Jinjiang shoe industry was born, competition has become the "invisible giant" that affects thousands of enterprises in Jinjiang.

In order to get more chips on the balance of competition, every Jinjiang shoe company has racked its brains and fought for it.

Many outsiders have lamented the cruelty of the competition in the footwear industry in Jinjiang. It is hardly known that competition in front of the public is just a "war in the sun". Although it has become increasingly white hot and some flames are burning, it is not much "shocking".

In fact, there is another more tragic and even more treacherous battle between Jinjiang shoe enterprises.

The secret war took place in every link and every corner. Products, talents, brands, channels and terminals became the battleground of Jinjiang shoe enterprises in different periods.

The outcome of every secret war has rapidly increased the comprehensive cost of the footwear industry in Jinjiang and pushed Jinjiang shoe enterprises to the abyss of profit shortage.

In a sense, the dark warfare of Jinjiang shoe enterprises has fundamentally rewritten the development track of Jinjiang's footwear industry, and Jinjiang's shoe making industry has shown a deplorable and repeated low-level duplication of construction.

On the brand's Avenue of stars, there are only a handful of success. Most of the Jinjiang sports shoes brands are quickly annihilated after enjoying the pain and short term success. But after the successful shortcuts of the industry's predecessors, they inevitably take the same old road of failure.

The secret war not only consumes the resource accumulation of the shoe making industry in Jinjiang, but also destroys the opportunity for Jinjiang footwear industry to rise collectively in the strategic structure of the global footwear industry, and the destruction of Jinjiang's shoe making industry is beyond the imagination of most people.

The secret war has become one of the biggest obstacles to the development of Jinjiang's footwear industry.

Two, the first wave of product competition, the Jinjiang shoe enterprise's Secret warfare, happens in the product area.

After all, products are the foundation of competition and the beginning of brand.

In order to get the comprehensive competitive advantage of the products, Jinjiang shoe enterprises have paid more than the usual cost price except for launching a secret battle on product development. In the lever of product profit level, Jinjiang shoe enterprises have put forward a "trick" to attract customers by means of killing their meager profits.

All of this is just to start the first battle of brand products.

The competition in product R & D field is the most obvious in Jinjiang shoe enterprises.

At the beginning, the market of shoe design in Jinjiang was about 1000 yuan.

Soon, the owners of Jinjiang shoe enterprises found that 1000 yuan brought almost identical products to them, which simply could not bring the specificity and competitiveness they needed.

In order to make their products look a little more personalized and competitive, Jinjiang shoe enterprises began a bold style of purchase bidding, the market was broken one by one, the new record was born one by one, the standard of style design quickly broke through 1500 yuan, followed by 1800 yuan, 2000 yuan, and 2500 yuan.

It is understood that the majority of Jinjiang shoe enterprises have launched about 200-400 models (about 800-1500 color matching) a year, and only one of them, Jinjiang shoe enterprises have increased their development costs by hundreds of thousands of yuan.

If the cost growth of a few million yuan in Jinjiang can be easily handled by the shoe enterprises, then the pressure of product cost pressure brought by the application of inflation and new materials will become a heavy burden for Jinjiang shoe enterprises.

In the early years, when the materials were old and the technology was simple, the average profit of Jinjiang shoemaking enterprises could still be maintained at over 15%.

In recent years, shoemaking materials have been constantly improving, and the cost has gone up all the way. From the initial rubber outsole to the popular TPR bottom, PU bottom and MD bottom, the cost has increased by more than 80%.

Although the factory's factory price increase has reached 80%, the profit of Jincheng shoe-making enterprises has not increased significantly.

Not only that, in order to cope with the obstructions and dug of enterprises in the same city, they gain greater competitive advantages, attract more or maintain high-quality agents, make their brands become the preferred brands recommended by agents, and maximize the market scale. Jinjiang shoe companies are eager to persuade themselves to give up the expectation of maximizing profits temporarily, and compete with each other to reduce the price level of the products, and lower the factory's factory price again and again until the average profit level of the industry.

Under the background of this dark war, the profit level of Jinjiang shoe enterprises has not increased substantially like the cost, but it has not increased or decreased from 15% to 10%.

If the profit level is taken into account if inflation is taken into consideration, there is basically no profit.

To be sure, the shoe industry in Jinjiang has not enjoyed the cake brought by the development of Chinese society and the shoe industry, but is getting worse and worse.

Three, the competition of talent, meat and war products is still the competition of talents in the final analysis.

An excellent design director can revitalize and enhance the brand's design strength, which is exactly the most urgent need of the brand at the beginning of its rise.

Therefore, the competition of design talents has become the first confrontation between Jinjiang shoe enterprises and the war of flesh and blood.

Multinational brands and well-known brands are involuntarily involved in this battle. Those who are top designers in Lining, Adidas, Nike and other famous sports companies have received the first olive branch from Jinjiang shoe companies. The number of times, tens or even tens of times of reward is no longer the night sky talks.

As a result, under the dual action of the sincerity and monetary encouragement of the owners of shoes enterprises in Jinjiang, a large number of powerful and potential designers of sports shoes are flying peacocks southeast to settle in Southern Fujian.

The arrival of these talents has indeed greatly improved the design and R & D level of the Jinjiang sports shoes industry in the short term.

However, when the group of people was not familiar with the terrain, and they could not find the north, they received one after another anonymous phone call. The promise they made was even more astonishing. They found that their value had begun to move closer to the 7 digit.

After the top developers and designers were completely monopolized by the larger sports brands, many Jinjiang shoe bosses began to turn their attention to the first technical backbone of these talents after they settled in Jinjiang.

So, in less than 2 years, the cost of the shoe making industry in Jinjiang has been turned upside down several times, which has eaten up the tiny profits of Jinjiang shoes.

After solving the problem of designing and developing talents in line with the international trend, Jinjiang's sports shoes enterprises began to consider the major events of product sales.

Marketing management talent has become a new hot spot in the battle of talents.

The same as technology research and development, some middle managers of Adidas, Nike and Li Ning Co began to receive frequent calls from the owners of Jinjiang shoe enterprises. Soon, some excellent marketing managers were moved by the high prices thrown by the owners of Jinjiang shoe enterprises, and some of them were moved by their sincerity.

The arrival of talents who are well versed in the marketing of sporting goods has accelerated the upgrading of marketing management in Jinjiang shoe enterprises. The concept of franchised stores has been valued for the first time and has become the mainstream of sales.

The concepts of maximizing the use of the brand, maximizing profits and diversifying products are also born in a timely manner and play a huge role.

After spending 1-2 years in Jinjiang, these marketing groups have chosen to leave. After being used to nine to five in the big cities and enjoying their private weekends, they can not adapt to the fanatical or even deformed working environment in Jinjiang.

Although they chose to leave, they were just like the sparks that Chairman Mao said, and quickly began to prairie fire in this hot land of Jinjiang.

Some local marketers who work closely with them have been used to fill the gap.

A lot of people have been reborn for five or six times or even more times.

In order to enhance the marketing level of enterprises, Jinjiang shoe enterprises are willing to pay the price that ordinary people can not imagine.

There are some concrete accidents in marketing talents. There is a Shishi sportswear enterprise that has become the "Whampoa military academy" of Jinjiang sports shoes enterprises in the sense of sport. In this enterprise, as a regional manager, the grass-roots cadres with a monthly salary of 2500 come to Jinjiang. They often change into a dress project director, and the monthly salary rises to 10 tens of thousands or even tens of thousands of 20.

If the hype of technology R & D and marketing management personnel is relatively high because of its high technology content and the reluctance to accept it, the speculation of ordinary line workers will be puzzled by most enterprises outside Jinjiang.

Before 2004, the monthly wage of Jinjiang shoes enterprises remained between 600 yuan and 800 yuan. In 2005, the figure became 1000 yuan to 1200 yuan. In 2006, the figure became 1200 yuan to 1500 yuan.

In a short span of two or three years, the price of the industry has been doubled, and the processing cost of the enterprise has been doubled.

Four, brand competition, in 1999, Anta first launched the brand strategy in a big way.

Anta made a profit in the first World War.

With Kong Linghui's confident and sincere "I choose, I like", Anta has also become the brand chosen by Shenzhou.

Success is a great example.

Anta tasted the first oral taste of the soup, and the other brothers did not show their weakness.

For a time, regardless of the size of the enterprise, whether it is necessary or not, whether or not the strategy does not conform to the strategic planning, Jinjiang shoe enterprises are making great efforts to launch a brand battle.

Celebrities and advertisements have become the new theme of the battle of Jinjiang shoe enterprises after the war of talent.

Walking in the streets and alleys of Jinjiang, Hong Kong, Taiwan and Chinese and foreign celebrities, who have models and faces, are smiling with one smile, and spare no effort in recommending one after another sports brand.

The frenzy of hiring star spokesmen was almost comparable to the current property market. The company has accumulated savings for many years or bank loans and private tender financing. The so-called bid financing is a financing method of Jinjiang folk, consisting of a number of members. Members take turns on duty as agreed.

Each person pays a certain amount of money every month, and the person who turns on the month can get all the money.

In some ways, this kind of tender is similar to that of a bank's mortgage loan, which is more than one loan at a time, and then returns to the stars regardless of whether it is worth or not.

What's more, a number of shoe companies often look at a star at the same time. In order to win a moment's enthusiasm, all of them do not show weakness and compete to raise their prices.

Star brokerage company took advantage of the fire and started to raise prices.

When a star wars came down, Jinjiang shoe companies often contributed to the stars for a year or even two years of profit, especially those who ignored the actual hiring of superstars and even broke the capital crisis.

During this period, the first thing that the bosses of Jinjiang shoe enterprises even met was -- did you invite them?

Jinjiang shoe enterprises are going to join the celebrity spokesmen quickly. Fundamentally speaking, they are not the strategic steps of enterprises, but also based on the secret warfare between enterprises.

In Jinjiang, we can feel the obvious phenomenon of "local light". There is no enough respect and recognition between enterprises and enterprises because they are not mysterious.

At this time, when a company breaks the equilibrium and introduces the star spokesperson, other similar enterprises will compete with others whether they are suitable or unnecessary. In a few months, they also launched the brand image spokesperson project.

Even if the supply of enterprises is in short supply, in order to save face, the shoe companies in Jinjiang will also introduce star spokesmen.

Not only that, but the competition on the star spokesperson is even more shocking. If any one employs a second tier star to endorse the product, then the shoe companies that will soon be in the same level will often employ the first line stars in the country to overcome the former.

Meanwhile, other shoe companies at the same level have begun to turn their sights on Hongkong, Taiwan and even Korea, Europe and the United States.

The star wars have consumed all or most of the Jinjiang shoe enterprises' savings, and the rest of them are not idle.

Brand campaign will blossom and advertising will keep up.

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