Small And Medium Shoe Enterprises In Wenzhou: How Far Can Branding Go?

As we all know, Wenzhou is a famous shoe production base in China. The famous shoes capital has many famous brands, such as AOKANG, red dragonfly, Kangnai, and so on. These brands have been firmly in the two or three tier market in recent years, and some have achieved good results in the primary market.

In Wenzhou, where shoe factories are so numerous, creating brand names and building strong brands are the topics and urgent needs of these shoemaking enterprises.

- Marketing FromEMKT.com.cn manager gave birth to brands. From 2000 to 2006, almost all the counties, towns and even prefecture level cities in the country were occupied by the brand of Wenzhou.

Famous trademarks, genuine leather signs, famous brands in China, well-known trademarks in China, national inspection free products, Chinese genuine leather shoes and so on, all the honors are basically collected by Wenzhou shoe enterprises.

This is separate from the management and operation of professional managers introduced by Wenzhou shoe companies in recent years.

Various media have also publicized the achievements of the brand building of Wenzhou enterprises. From the government to the enterprises to the local people, there is a strong desire to create brand names. There is a market for brands and sales. Enterprises have already felt the strength of the brand.

In this place where everything will follow suit, the establishment of brand is no exception. Some small and medium-sized shoe companies rush to take the road of brand. In a short while, Wenzhou has become a brand name shoe capital.

- the embarrassment of the incompatibility of honor and the incompatibility of enterprises: according to market understanding, in 2006, the well-known trademarks of Wenzhou shoe enterprises suddenly came out of many enterprises owners, and they were very encouraged and encouraged to make big strides.

Manufacturers, agents, and business management have almost lost their way in front of honor.

However, enterprises ignore their various imperfect factors.

Such as capacity, development, market access, terminal image, team management concept, quality, service, talent allocation, shortage of funds and so on.

One after another began to parrot and imitate the business models of international brands such as Nike and Adidas.

Women's shoes are processed in Guangzhou, Chengdu and other places. Casual shoes are processed in Shishi, Guangzhou and other places. Gentlemen's shoes are produced and processed from other local shoe factories in Wenzhou.

Thus, a hollow brand will be built and sold to the market, or even a special store.

Because Wenzhou two or three line brand enterprise basically adopts this kind of management pattern, causes the wholesale market the different brand the same product to be everywhere.

Product homogenization is extremely serious, price war is imminent.

Because the image of terminal retailers is not in place, product homogenization is serious, business ideas are relatively backward, business mode is relatively simple, and marketing execution is not in place, resulting in two or three line brand terminal sales fatigue.

In the face of weak market sales, some brands began to make short term advertisements in CCTV, provincial satellite TV and other TV media. This kind of delivery is like Dragonfly water, and advertising cost and output are out of proportion.

Other brands began to create retail stores and standardized stores.

Manufacturers and agents are desperately trying to make a counter image, door image and outdoor advertisement.

However, the lack of overall strength opened up a store not long before it became a miscellaneous shop.

Due to the weakness of terminal sales, inventory backlog is serious and capital pressure is heavy.

In the end, retailers are short of agents, manufacturers, bad debts and bad debts. The profitability of these two or three line brands is generally low, or even some losses. Brand survival is at stake.

What is particularly worth mentioning is: Nike and Adidas, their R & D is in their own hands. Professional large manufacturers are specialized in processing their brands. The quality checks are very strict. If we find that defective products will never enter the market in testing, they will cut off a few pieces with the pressure knife shoes, and which domestic shoes enterprises can do this.

Looking back at some shoe manufacturers in Wenzhou, the R & D, production, quality, shipping time and so on are basically in the hands of others. Is such a brand truly a brand?

The agent's helplessness: a senior Porter - a brutal competitive environment for the market. Retailers are constantly asking agents for their business. Manufacturers are constantly pressing agents, and agents are trapped in the middle. They feel that the environment for survival is becoming more and more serious.

In the face of pressure from manufacturers and unreasonable demand from retailers, in addition, huge inventory and arrears pressure them to breathe. The enthusiasm of agents is wavering and confidence is falling.

Agent: dare to ask where the road is.

The terminal retailer's hesitation - I visited a number of terminal retailers who run Wenzhou brand shoes. They said that our small town opened many stores, all of which are Wenzhou brands. These brands have almost the same honor and product styles, and some even have the same commodity numbers.

The high price is equal to suicide, and the discount sale is not enough to make money.

The quality is not sure. To do a single brand monopoly, even the daily expenses of the clerk can not be maintained, but only to sell several brands to earn a small profit in order to survive.

The rent of the store is raised every year, and the good location is hard to rent, especially for the big brands. They open two or three facades, and the two or three line brands can only shrink back from the remote place, but they can not be reduced to miscellaneous brands.

- Awakening and thinking - in the highly developed era of information technology, consumers are becoming more rational. The era of brand recognition, which relies on advertising + honor and celebrity endorsement, has become a history of the era of selling miracles. Many enterprises have invested little in advertising, and even have been unable to make ends meet.

In the face of such a market environment, many enterprises, especially small and medium-sized enterprises, can not help but ask whether the road of brand building continues.

The author believes that building brand is the trend of the times, but we must combine the advantages of the enterprises to see the weaknesses, create good internal strength and identify their positions, and rationally and scientifically formulate the way of enterprise development.

Wenzhou shoe enterprises actually have many advantages. China has a large population, large market and many opportunities. The footwear industry has not yet formed a real leading brand, basically a regional strong brand.

The brand of foreign shoe industry has not yet fully entered. The so-called international brand of edge ball also has little advantage, and its lethality is not strong.

The shoe industry has a low threshold and no technical barriers exist, and the Chinese have already recognized domestic brands, especially the Wenzhou brand.

Wenzhou also has a good basic environment for shoemaking and businessmen all over the country.

However, it can not be ignored that the local shoe manufacturers in Wenzhou produce a single product structure, and the homogenization of products is very serious.

With the increasingly fierce market competition, market segmentation is becoming increasingly obvious, and consumption is gradually developing towards individuation.

Relying solely on Outsourcing (OEM) has been unable to support the long-term development of the brand. This hollow brand prosperity is only apparent. This is the need for all small and medium-sized shoe companies to think about, and ultimately must be adjusted.

Ye Zhao, who has been engaged in pharmaceutical sales, insurance training, clothing marketing, has been working in marketing management for a long time. He has long experience in shoe marketing and management. E-mail wzyz6791@163.com asks readers to criticize and communicate with them.