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    Get Rid Of &Nbsp As An International Brand, And Take The Road Of Independent Brand.

    2011/7/19 10:29:00 56

    Brand Foundry Enterprise

    July 19th, along with China

    Footwear market

    The rapid development of footwear industry has an average annual growth rate of 23%. At present, there are more than 20 thousand shoe making enterprises, with an annual output of more than 7 billion pairs, accounting for 60% of the world's total output. The production technology and processing production of shoes enterprises in China have reached the international level. However, the distance from the "manufacturing power" has yet to be improved. Looking back to 2010, the footwear industry in China has gone through a series of attacks, including financial crisis, production cost, price rise and labor shortage.


    The reason why China is a big shoe manufacturing industry is mainly because of the majority of China.

    Shoe enterprises

    For international brand production to do foundry, but no real production technology strength and independent brand.

    The so-called foundry refers to the fact that the brand owner does not directly produce the product, but uses the "key core technology" that he grasps, and is responsible for designing, developing, controlling the sales channel, and giving specific processing tasks to other enterprises.

    This approach is very popular in the shoe market.

    After many international brands enter the domestic market, because of their ignorance of their market conditions, consumer groups and consumption concepts, they often look for shoe manufacturers to shorten the breeding cycle of new markets.

    And domestic shoe enterprises are encountering the "three shortage" problem, and the production will certainly not be shut out, resulting in many domestic shoe enterprises adopting seed mode to maintain vitality.

    According to insiders, domestic foundry enterprises are distributed in Fujian, Guangdong, Dongguan, Zhejiang and other regions.

    Of course, there are advantages and disadvantages for international brands to do foundry.

    The advantages of OEM are mainly manifested in two aspects:


    First, save time and cost.


    Quanzhou is a gathering place for the international footwear industry. It has not only the brand cluster, the huge production team, but also the various marketing talents, favored by international brands, such as the American Playboy, Disney Sports, the French crocodile, Italy kangaroo and other production bases are gathered around Quanzhou.

    Some foreign brands have entered the Chinese market. Because of their ignorance of the domestic regional market, the most convenient mode is to cooperate with local enterprises with experience and market channels so as to save the cost of cultivating new markets, while domestic shoe enterprises can save time cost of self created brands through agents, while learning advanced technology and business models of international excellent brands, so as to create a foundation for the creation of independent brands in the future, not just to earn immediate profits and production costs.


    Martin, global CEO from "HI-TEC" company, said that the rapid growth of China's economy this year is a new growth market in the global consumer market.

    With the economic growth and enthusiasm for sports in recent years, the economic growth and enthusiasm for sports will make the market wider.

    It is the most convenient and effective way to find the agent in the local market in order to make the brand enter China quickly and integrate into the Chinese market at a faster time.


    According to professional analysis, China is the largest consumer market in the world. It is the stage of foreign giants' brand dreams. Many foreign brands are not familiar with China's consumer market, crowd consumption concept and local customs because they have just entered the Chinese market. Looking for some experienced and market domestic shoe enterprises cooperation is the best choice, so that they can quickly familiarize themselves with the market, expand the market and better promote new brands.

    Because of the large production team and abundant labor force, the core technology is lacking.

    OEM for foreign brands can reduce the operating costs of self created brands, avoid bigger prices and maintain the survival of enterprises.


    Two, reintegrating resources through foundry.


    As mentioned in the previous paragraph, the choice of international brands for foundry is not only to earn production costs and agency fees, but also to learn the core technology, sales strategy and management experience of foreign brands.

    This is most evident in the development of XTEP. XTEP has chosen to cooperate with the world's top 100 brands, whether in terms of economy or team training, promotion and publicity.

    Enterprises can cooperate with international excellent brands to accumulate operational experience and management experience.


    Ye Qi, vice president of XTEP, believes that Disney is a world famous brand with rich international business experience and cooperation with international brands. It is a rare opportunity. Apart from gaining premium from its brand value added, we also learn about their brand management and how to develop new sales channel resources.

    After working with Disney, XTEP has gained a lot of revenue and knowledge in the licensing management of international brands.

    {page_break}


    In fact, enterprises are the integration of resources, and integration is the ability of enterprises.

    It is another important goal for enterprises to reintegrate resources through proxy brand.

    Whether it is an agent brand or a private brand, a new brand entering the market is facing the new integration of market channel and management team.

    One more brand has more opportunities to get resources.

    Finally, whether we can integrate successfully, the key is to see the integration ability of a new company.

    Therefore, when accepting foreign brands to do OEM, enterprises should first consider what new resources they hope to develop in the end, and have a clear purpose.


    Three, it is not necessarily a good thing to dress for others.


    Making clothes for others refers to the international brand of Chinese enterprises, but they are busy, but they are good for others.

    Many famous international brands adopt agency or short-term brand licensing.

    This means that through the operation of Chinese enterprises in the domestic market, it is easy for the brand side and the agent to cause short-term market behavior.

    Short term market brand access may be withdrawn halfway.

    This will cause direct economic losses to domestic enterprises.

    It not only wastes time and cost, but also has not learned their operational experience and business mode, resulting in two talents.


    Creating private brand is the key.


    Therefore, there are also disadvantages to the advantages of subcontracting. After all, their respective market situation is different, not as a long-term goal.

    From the perspective of long-term development of enterprises, it is the key to create independent brands.

    Enterprises use big brands to accumulate market experience and get their own market. After laying the foundation, they can do more market and brand in the future.


    Only with innovation can there be new development.

    The shoe market in China should put an end to Shanzhai and plagiarism, and invest in R & D when necessary, and not always follow the path of imitation.

    Independent innovation is the important direction of enterprise development.

    Then it is not easy to move from "manufacturing" to "creating". It is necessary to have a complete industrial chain, sales channels, product quality, design and development.


    In the face of cruel market competition, enterprises will create their own products by insisting on building core technology, designing and developing new products, ensuring product quality and increasing market promotion.

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