Brand Shoe Enterprises Urgently Need To Achieve "Zero To Span" Operation

Wenzhou shoe enterprises should transform to R & D and brand direction. Those small enterprises that can not be transformed will be included in the "leading and matching" cluster development mode, and eventually form the value chain structure of the enterprise headquarters, R & D and sales in Wenzhou and the production base outside the city.

Under the background of the current financing difficulties of SMEs, news about the decline in profits, relocation and bankruptcy of Wenzhou shoe companies has been heard all the time. As a brilliant "China shoe capital", how should Wenzhou shoe manufacturers resist the decline of the industry and how to create a new value chain?

Objectively speaking, the footwear industry in Wenzhou has 7 advantages over other parts of the country in terms of industrial scale, superior enterprises, R & D innovation, service platform, brand building, management development and regional characteristics. The high added value of shoemaking is mostly concentrated in the aspects of style design, sales channels, brand marketing and so on. How to make breakthroughs in these areas, enhance the overall value of Wenzhou footwear enterprises, and form the "enterprise headquarters, R & D, sales in Wenzhou, the production base outside the city's value chain" is undoubtedly the best way to make shoes in Wenzhou.

In June this year, the implementation plan of transformation and upgrading of footwear industry cluster in Wenzhou also explained this idea very clearly. Along this direction, large shoe enterprises should transform to R & D and brand direction, and those small enterprises that are unable to transform will be included in the former industry chain system, forming a "leading + matching" cluster development mode.

Red dragonfly, AOKANG, Kangnai... Who will become the leader of the new model of helm?

Comprehensive comparison of leading enterprises in several industries, red dragonfly has clearly been in the forefront.

First of all, it is the first production management mode in shoe industry. The concept of product season management has always existed in the clothing industry. Before importing this concept, the status quo of shoemaking enterprises is sales, production, research and development relatively independent, relying on independent Incorporated Company operation, and lack of overall coordination mechanism.

To solve this problem, based on the analysis of the "Pyramid" business mode and process diagnosis, red dragonfly put forward the management idea of "product season operation as the main line": planning and sorting out the lean management process and upgrading it to the theoretical level. Through 7~8 months of consultation and detailed carding, Red Dragonfly will manage product season management ideas very clearly. Then, according to the characteristics of the industry and the needs of the enterprises to occupy the market, we shorten the supply chain business links, beat order, logistics optimization and supply chain information support as much as possible, thus greatly accelerating the speed of its supply chain reaction.

Another important breakthrough is its first integrated store model in China.

The concept of integrated store comes from Europe. It is a terminal form relying on strong brand influence to carry out multi product sales, and it is mainly used for luxury brand management. By the end of 2007, red dragonfly launched the first integrated store in the country with a business area of 900 square meters. It has assembled four fashion products, footwear, clothing, leather goods and accessories, to provide customers with one-stop shopping experience. The storefront is tailored by top domestic designers and integrated into LV, GUCCI and other international luxury brand space design concepts, so that consumers feel comfortable in luxury stores, and the price of their people makes red dragonfly a "affordable fashion" for consumers. The concept of "integration" of the luxury brand operation of the consumer goods has made the Red Dragonfly's single store performance rapidly improve, and its profit has increased by more than 20% over that of the ordinary store, and has been spreading rapidly at the sales terminal.

The most farsighted decision is what President Qian Jinbo put forward in 2005. At that time, when the real estate industry and securities industry started to heat up, Qian Jin Bo chose to return all industries other than the main industry to zero, including divestment from unrelated fields, ending diversification and achieving resource concentration. This concentrated strength is the best thing to do, making the Red Dragonfly leisurely and unhurried in the turbulent market in recent two years. In 2008, when the financial crisis knocked down many shoemaking enterprises, the red dragonfly was basically completed. The sales volume reached 3 billion yuan. The transcript also includes the "year-on-year growth in sales and inventory decline" under the situation of economic cooling. Today, the usury crisis has destroyed many of the Wenzhou enterprises involved, while the red dragonfly has not been affected. Not only that, the red dragonfly has already broken through the limitations of the footwear brand, and is moving towards a fashionable and international fashion group with rich industrial structure.