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    On The Channel Reform Of Footwear Industry

    2007/12/3 0:00:00 10302

    Wenzhou Shoes

    It has always been from the booth to the Huanglong market, from the wholesale market of all parts of the country to the current regional sales; from disorderly wholesale to today's brand store, from awkward crowding in the corner of the shopping mall or even being shut out to today's first-class commercial section of the city, the flagship store has opened one after another.

    Today, whether shoe industry supermarkets or shopping malls can see the brand of Wenzhou footwear industry, Wenzhou shoe industry has gone through a tortuous and brilliant process, and has completed the marketing of From EMKT.com.cn revolution. There are many things worth summarizing and thinking about.

    Since the era of brand management in Wenzhou footwear industry, the marketing channel mode of footwear industry has gone through four processes: disorderly wholesale, regional wholesale business, exclusive store operation and enterprise integrated network marketing.

    And the brand in the forefront of channel change has also achieved great development, such as the representative enterprises such as AOKANG, red dragonfly, Kangnai, the leading brand of Wenzhou shoe industry.

    However, the rapid expansion of Wenzhou footwear industry is also faced with such a difficult problem: the homogenization of products and the differentiation between products and products, between brands and brands are becoming smaller and smaller, and sales channels are becoming more and more patterned.

    A large number of two or three line brand enterprises do not follow the example of leading enterprises blindly and follow the example of leading enterprises without serious and rational scientific research. This leads to the low profitability of the two or three line brands and even losses, and some brands have to withdraw from the market.

    To create such a situation, first of all, the mode is homogeneous, easy to copy, the whole industry has no technical threshold, low capital threshold, low entry threshold, and new entrant learning quickly; secondly, the terminal dealers are mostly in the husbands and wives shops, the management level is generally not high, the brand concept is vague, and the team spirit is lacking. The manufacturers, agents, and terminal retailers are in harmony. The monopoly mode is easy to damage, and the profit margin of the whole industry is declining. Thirdly, the manufacturers in Wenzhou generally have a problem, the product itself is not systematic, the category is incomplete, the products are not complete, the products are not matched, the profit center of the product is not found, and the added value of the brand is low.

    The brand of Wenzhou footwear industry is basically based on the two or three level market, so the competition of the county level market and the terminal of small prefecture level cities has become the focus of these brands.

    Due to many factors such as small population, relatively poor economic income and conservative consumption concept, apart from several powerful brands, other brand stores sell many kinds of cards.

    In 1998, AOKANG footwear industry opened its first franchise chain. Since then, the "Monopoly chain" has started to become popular in the footwear industry of Wenzhou. Some large and medium-sized shoe companies have followed suit. At that time, how many shoe companies opened their stores at the end became a standard to measure their brand strength.

    For a time, Wenzhou brand shoe stores that unified their image and unified prices sprung up in small and medium-sized cities throughout the country.

    It is understood that in 2001, the shoe industry in Wenzhou reached nearly 3 stores at its peak, but the effectiveness of a considerable number of enterprises declined.

    By the end of 2003, some enterprises that were hard to sustain were overburdened and began to change their thinking.

    Some of the more successful brand stores have begun selling some brand shoes to maintain their livelihoods.

    So far, this trend is becoming more and more intense. However, manufacturers are not aware of their brand. The effective terminal stores are generally the current situation. However, they are desperately trying to make an image of the following terminals, making counters, and distributing goods. It is considered that first occupying the market is the most important. The agents selling the brand names in the special stores can only keep their eyes open.

    So, is the way of operation of franchised stores to the end? I believe that at present there will not be any number of stores in the future.

    In the domestic market, to represent the overall appearance of China's footwear industry is still the shoe brand in Wenzhou.

    Wenzhou shoes are famous for their brand and construction channels.

    In 2001, "China Shoes Capital" was settled in Wenzhou.

    In 2003, more than three thousand shoe and leather enterprises in Wenzhou, with an annual output value of nearly 40 billion yuan, became the dominant party in China's footwear industry, occupying half of the domestic shoe market.

    According to statistics from industry associations, Wenzhou shoes own nearly more than 30000 stores in the national market, and occupy 7 of the same industry's absolute superiority in quantity.

    Therefore, the growth and trend of Wenzhou shoe brand stores is a microcosm of the brand monopoly trend of China's footwear industry.

    Compared with the shoe brand in Wenzhou, there are such problems in the national brand shoe monopoly: the huge monopoly network has the danger of high cost and inefficient management.

    The extensive tendency of channel operation, the heavy quantity and quality in the construction process, the neglect of the future in the immediate future, the low quality of sales network, and the unsatisfactory sales volume of single stores, etc., have caused the unstability of channel construction and the persistent turbulence of enterprise performance.

    As the forerunner of China's footwear Monopoly chain, AOKANG group has also changed its monopoly channel in the face of the severe market reality. Since 2003, AOKANG has put forward and implemented the strategy of "multi legged walking" in the construction of monopoly channels.

    A new train of thought has been injected into the operation of franchised stores. On the one hand, the construction of self operated stores should be strengthened, and its proportion will be raised to more than 20%. The profit range will reach more than 80% of the total sales volume of the company; on the other hand, the quality of the construction of the monopoly marketing network will be enhanced.

    From the point of view, with the self shop as the base point, the radiation will gradually form a regional monopoly pattern, so that franchisees can improve their performance together, so as to "open a successful one, consolidate one and drive one".

    In addition, pay attention to the choice of tactics, "small cities open big stores, big cities open more shops", will sell the brand AOKANG, Kanglong, beautiful beauty, and agent Italy brand GEOX together to open a large shop, weaving the market network as far as possible without leaving blank, and strive to become a strong regional brand.

    In recent years, there have been some changes in the brand of Wenzhou footwear industry, and some brands are gradually opening their own stores, directly controlling the terminal.

    In particular, the red dragonfly and AOKANG are taking the lead in this respect. The "Hui Lima" shoe industry supermarket launched by the red dragonfly is focused on building the brand property of "Hui Lima". It absorbs several brands of Red Dragonfly's own "Red Dragonfly", "hot", "Jie road" and "Red Dragonfly shoes" at the same time, and absorbs the brand names of the middle and high grade and well-known brands in the whole industry.

    AOKANG group's "AOKANG brand space" shoe industry supermarket also achieved very good results.

    In addition, the rise of shoe industry supermarket also means that the era of market integration has begun to change to the trend of market integration enterprises, such as Hubei Prince shoe city and the Golden Shoe supermarket which specializes in middle and high grade shoes.

    In addition, the resurgence of shopping malls in recent years has provided a new platform for the footwear industry in Wenzhou, which has far-reaching significance in promoting the brand.

    At present, the competition in the footwear industry is becoming more and more competitive. Channel stores, shopping malls and footwear supermarkets will be the main selling channels for the footwear industry in the next few years.

    Here is a simple analysis of the status of these three channels. First, as a franchised store, its advantages lie in promoting the brand image of shoe companies, wide audience, relatively rapid return of funds, timely and effective information feedback, and its shortcomings are single product, single brand, poor selectivity, large advertising investment, and relatively backward business philosophy and methods of terminal businesses.

    Secondly, as an emporium, its advantage lies in its low input cost and high consumer trust. Its shortcoming is that the market entry threshold is too high, the retail price is high, the mechanism is not flexible enough, the brand image is not prominent enough, the capital withdrawal is slow, and the management requirements for the enterprise are high.

    Thirdly, the advantage of the shoe industry supermarket is that the market is fast and the cost is low, and the choice is large. The shortcoming of the capital is that the brand image of the enterprise is weakened, and the relative passive life of the manufacturer's agent is mastered by others.

    How will channel change be changed?

    Any kind of marketing mode has its timeliness. No enterprise's marketing mode is immutable. The only certainty of enterprises is the uncertainty of marketing environment. The traditional marketing channel should adjust the marketing strategy in the face of new environment, new economy, new technology and new situation.

    From the past to the present, the channel problem is still the core topic of enterprise marketing.

      

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