Case Analysis And Risk Aversion Of Chinese And Foreign Brand Cooperation

Mr. Zhang Zhe, general manager of Shanghai morning brocade Consulting Co., Ltd., introduced the case analysis and risk aversion of Chinese and foreign brand cooperation at the Humen China International Fashion Fair. Mr. Zhang Zhe is a famous professor at Tsinghua University and French Fashion Institute. His wonderful and profound speech deserves our careful consideration. Here are the general contents of Mr. Zhang Zhe's speech:

Thank China very much. Spin The information center gave me an opportunity to talk about the issue of foreign cooperation. The Textile Information Center gave me a lot of questions. It took 20 minutes to make clear what I said. I feel that the American friend who spoke just now is a great propagandists and has publicized a large number of American brands. I am here from the perspective of Chinese enterprises to talk about the problems we face and the issues we need to consider from the perspective of enterprises.

First of all, let's look back at Chinese enterprises and foreign enterprises. clothing A phased change in the process of domain cooperation. Our cooperation in 80s is basically to seek foreign capital and investment. We were short of money at that time, hoping to find money, run factories and find orders. For foreign countries, you gave me orders, I gave you production, this is the main content of Sino foreign cooperation stage in 80s and 90s. In the early 90s, besides the concept of cooperative enterprises, a new concept emerged, called brand franchising. The main content is your brand, to help you fight the Chinese market. This is the beginning of the late 90s. Since Pierre Cardin's brand entered China, China's brand operators have gone forward and invested a lot of money to help them fight the Chinese market. Of course, Mr. Sun also said that when the market was knocked down, it was a pity that people kicked them out of the door. This is the second characteristic of 90s. This process is still there so far. In the past ten years, in addition to the concept of joint venture production and brand direct operation, China New areas have emerged in the apparel industry and foreign cooperation, namely, design and Marketing Domain cooperation, this is my brand, you guide me to design or you guide me to do marketing, this change is very big. I worked for you before, now you work for me.

The next ten years will be Chinese enterprises and foreign enterprises. clothing Domain cooperation is more important What is the concept of the brand? It is the Chinese brand's going to go out. Just now, Hu talked about the internationalization of Chinese brands. The future cooperation may be my brand, so you can help me. This is the stage difference, the demand of the enterprise is different, the content of Sino foreign cooperation is also different. But we should pay attention to the changes in content and the relationship between host and guest. To some extent, it is like signing a contract, Party A Party B. Now our Chinese enterprises have gradually changed from the former Party B to Party A, and the change from the past orders to the issuing orders is very subtle. Although we do not fully realize that this change has begun in real enterprises. Because I spend most of my time in the enterprise to do some nationalized cooperation projects for Chinese enterprises, so I can deeply appreciate the difference between them. It is very interesting to know the difference between the two sides. {page_break}

In the process of discussing this problem, we came to the conclusion that cooperation It is necessary. It is necessary in these respects:

1, Chinese enterprises, whether in the domestic market or in the international market, are still lack of adequate design and marketing experience. This is very clear.

2, the global fashion market is basically still being affected. Europe and America The dominant trend of fashion is not to be changed in the short term. Just now, Hu talked about the issue of international discourse. This is also a reality, and it can not be changed at once.

3, when making the Chinese market, foreign fashion enterprises are mostly small and medium enterprises, so he can not directly do the Chinese market. The foreign enterprises we see today are basically big brands in China, such as Dior, Lei Deng and Armani. These brands are large enough to be directly used in the Chinese market. But these enterprises are very few in the international market, in Europe or in the United States. Most of the enterprises are small and medium-sized enterprises. They do not have the financial resources and manpower of these big brands. So when he entered China, he could not do it himself. As the American friend just said, he needed to find Chinese collaborators. And China's Collaborator If you think you really need it, to some extent, in the past few years in the Chinese market, the world has witnessed that the scenery is good here in the past 30 years. Therefore, they all want to enter the Chinese market, because he has no manpower, money, material, energy and energy, and he will need to find a Chinese partner if he wants to enter the Chinese market. So the necessity of such cooperation is not to be doubted. It is only a cooperative way and method to consider. There is a need for such cooperation. Chinese enterprises are going to do it.

This is back to the topic, how to avoid risks. I think that in avoiding risks, the most important thing is to change the mindset. In Chinese enterprises, the spanformation of traditional thinking is very difficult. In the past 30 years, when we were doing business, Party B was used to it and suddenly became party A. easily Changed. So I want to divide it into two parts: one is the international market, the other is the domestic market. {page_break}

Because of the world economic crisis in recent years, the Chinese market is particularly good, so I will take More The energy is spent in discussing the domestic market.

First of all, the domestic market is mainly composed of two parts, one is brand management, the other is our brand design cooperation.

The brand management in the past is what we call brand management. In the past, when international brands entered China, they basically made a detour in Hongkong or went to Taiwan, Japan and Korea to enter China. Of course, people keep their voices and goose. In Hongkong and Taiwan, they all need to kill one another, so Chinese enterprises are hard to develop. I can say that in the past 20 years, from 90 years to today, in the process of all brand franchise entering China, the failure is the majority. But today is not the same. Today's market is changing, so now European enterprises. U.S.A Businesses feel that they need not bypass Hongkong to cooperate directly with mainland enterprises. Because the mainland enterprises have grown up, they already have the strength, already have sales experience, and have the experience of building network sales, etc., he can directly talk with mainland enterprises. Therefore, the advantages of mainland enterprises began to grow. However, there is a very big misunderstanding in the franchise of Chinese brands, that is, the essence of brand franchise is still very weak. Why do you want to carry out the brand special franchise and its essence? For example, this U.S.A Friends introduce so many French brands. They want our enterprises to negotiate with them and bring them to the Chinese market.

From the point of view of Chinese enterprises, why should he bring his brand to China? Nothing more than these: first, to enjoy the international fame of the brand, second, to enjoy his very good design concept and product mix. Third, maybe he can enjoy the means of marketing and the means of contacting the network. {page_break}

But when doing the Chinese market, there is always a very big one. problem Brand franchising is often not well done in China. Why?

In fact, brand franchising is especially popular in Europe and the United States. They use this approach in entering the US market, entering the Hongkong market, entering the Japanese market and entering the Korean market, and why most people do not earn money in China, because the Chinese market is a unique market. Where is the unique Chinese market?

There are several reasons: the first and most important reason is that the Chinese market was a completely closed market 20 years ago. After 20 years of reform and opening up, the Chinese market is still not open enough so far. This includes the opening of information, the opening of the market, and the opening of talent flow. So in this case, for example, a brand is already a well-known brand in the world, and it may still be an anonymous product in China. Therefore, it is impossible to enjoy the brand franchise, and the most important thing is to enjoy the international popularity of the brand. In this case, you have to start from scratch to help him fight the market.

Second, China's distribution system is completely different from that of the US and European markets. So we must spend a lot of money to build this brand's sales network to create the brand's popularity. from logic Let's talk about spending two to thirty million to build the brand's international reputation. Why not build your own brand instead of building your brand? So in the past few years, China still spent a lot of efforts to build its own brand, because he really had a lot of trouble in building an internationally famous brand. {page_break}

In addition, when making international brand, many enterprises are eager to get a foreign brand, so he will let foreign companies realize that he is strong and strong. In fact, among international brands, brand franchising may be two figures or three figures. One is the brand royalty rate, which is determined by a percentage of sales, which is 6 -10 of sales. Internationally, it is stipulated that there are seldom more than 10 or more unless you are an internationally famous brand. Maybe this figure is still very easy to negotiate in negotiations. The second is to protect the bottom. When Chinese companies do not turn themselves in and make foreign brand franchises, foreign companies will ask to write a business plan and how to fight the Chinese market. In order to get the right to operate, we will make this plan very beautiful. In the first year, you earn thirty million, second years to ensure that you earn sixty million, third years to ensure that you earn one hundred million. But in fact, this warranty is not arbitrary. It is based on the case of 10, thirty million, 10, three million, and I will take three million of the bottom. This figure is linked to the business plan, and Chinese enterprises often do a very beautiful business plan in order to get the brand management right. Actually, they can not do it. He just wants to get it. But when the plan is launched, in fact, the highest number of guarantees is often taken by many companies. Bottom guard After the number is given to you, in fact, 1/3 of your enterprise's liquidity is gone. This is a terrible thing. I have seen a lot of enterprises, and have participated in the discussion of many enterprises, that is, in this process, I myself have to go around. We must recognize the essence of brand franchising and how to do it.

Finally, international brand franchising should be rationally chosen, long-term cooperation, careful deployment and self-protection.

Sun said that many enterprises were kicked away, but they did not learn to protect themselves. There are many ways to protect yourself. This brand has a very important sovereignty. When it reaches a certain level, you must learn to get it back early. Brand ownership, even equity participation, formal M & A or investment, turn brand franchise into brand merger. This is a practical problem. We must grasp it well. Otherwise, once the layout is made, he will take it back and do it himself. It must be more profitable than giving you a piece. Therefore, we should learn to intervene from brand franchise to equity discussion at the right time. This is to intervene as early as possible, what circumstances to enter, what circumstances should be cut into, is a very learned thing, to be discussed. This is about brand franchising.

The second is in the domestic market, in the past two years or in the past 10 years, our own brand has to learn to introduce international brands and international talents. Just now Hu talked about learning to integrate international resources. In this regard, our enterprises are doing more and more. I talked about this problem two days ago at the Ningbo clothing festival. Now you look at it, the best we do now. China Brand, especially in women's clothing brands, we entrepreneurs and designers often walk internationally, and Hongkong designers, Taiwan designers, Japanese designers, Korean designers have played an increasingly important role in Chinese brands, including even the world's top designers. Our company's top designers in Paris have seven people collaborate with Chinese brands. He is very good for the promotion of Chinese brands, because he already owns his own brand, so in this case, instead of spending a lot of effort in brand franchising, it is better to introduce his own brand into international talent, and make his brand bigger and stronger. {page_break}

But when you introduce international talent, what do you need to consider? problem It's important to know what you want, what international designers can do, and what our own team can do. In particular, what international talent can do, in fact, he has to ask what he can not do. For example, when we are working with some enterprises in China, when he introduces international designers, he often asks me such a question: is he able to know how to do the market? This is the most easily asked question of Chinese enterprises. We recommend a very good Chinese brand, a very famous designer in Europe, and cooperate with Chinese enterprises. Chinese enterprises will be very easy to ask, "does he understand the Chinese market? Does he understand the Chinese market?" maybe you will ask this question, I will say, do you think he might understand the Chinese market? This is impossible. If you put it in China and stay in China every day, even if you speak fluent Chinese again, do you think he will understand the Chinese market? Impossible, so it is impossible to ask him to do anything that is impossible. Who knows the Chinese market, you know the Chinese market. Don't push your responsibilities on him. What can he do for you? For example, designers in Europe and America know about the international trend. Just now I also talked about international. fashion The trend is still dominated by Europe and America. What he can bring to you is information and experience. So in this case, we must have our own team and set up our own team. After that, we can graft the international design talents and your own team. Therefore, in the process of foreign cooperation, more cooperation in the future should be oriented towards cooperation in soft power rather than cooperation in hard power. We need to learn from abroad, respecting knowledge, respecting wisdom and respecting soft power. Because what we lack is soft power.

I will give you a simple case analysis. international The introduction of design power and cooperation with Chinese enterprises. Many of our brands already have their own design team and have their own brand. In this case, how to cooperate, you have to decompose the design work. The design of a brand is nothing more than these four things: design plan, style design, fabric organization and selection, and final distribution. The so-called distribution is to make this inventory more in place, more coordinated and more in line with the international trend. In the process of cooperation, these four things, which we Chinese can do, our design team can do, that is, the choice of style design and fabric organization. So in this design, what we lack most is the design plan and distribution. In this process, because the designers in Europe and America worked hard in the market for a long time, he set up their experience. This process is often only perceived and can not be explained, so they need to be done. In this way, we set up a new mode according to this mode. How to cooperate with the foreign design chain is to invite the famous designers or front-line designers from abroad to suggest the design plan for each season's product, that is, the design plan. Then the Chinese design team will finish the style design according to this plan. After finishing the style design, fabric organization and selection and so on, when the stock is basically in shape, I will invite foreign designers to come to China to help me spanfer the goods and make the stock more in tune. In this way, the design plan can be completed in Europe and no need to come to China. So his cost is coming down, and when I spanfer the goods, my goods have already been made, and the style design can be done by myself. believe Chinese designers. In this case, adjusting it to the right place is what he and our team do together.

In this case, I can give you some of the projects we have recently operated. The most typical case is a brand in Shenzhen, which has been collaborated with famous French designers in 03 years and asked him to be an artistic director. His own design team has been working in this mode, and this cooperation has continued to this day. A contract for two years, in March this year, we signed fifth contracts. A famous French designer has been working with Chinese enterprises for ninth years. There should not be many brands in China. Now he has established absolute authority in this company. When we signed the contract some time ago, the French Embassy had never seen any French designers. China The company has been working together for so long. And in the past nine years, the company in France has been turned off, because the economy is unstable, other markets are full, and in 07 he became the art director of the famous French brand, and did not affect his work in Paris. But he still insists on working with Chinese brands. Such cooperation, including the brand, the French designer is very famous, but the designer works in France. He worked with a girl company in Shenzhen for 10 years from 07 years. The original two contract period has already been completed. It was supposed to make third contract periods, but he could not come because it had been bought by the crocodile company as art director, so he could not come. So we must invite European first-class designers to China's first-class brands for operational cooperation. {page_break}

Of course, there are also some other aspects besides design. For example, you must know what the brand wants and what is one of the best women's clothing in China. Last year's sales volume reached one billion and eight hundred million yuan, and a brand was one billion and eight hundred million. He said, Mr. Zhang, I can't get a good picture. I want to do propaganda. There are no good pictures. What do I do? I said, you are very clear, then I'll help you. He even said, "we even took pictures in Italy, so the photographers in Italy couldn't photograph them. According to the European hype, I will send a stylist for you to make the costume. So in June of this year, we took a group of photos for autumn and winter clothing. These photos have been highly appraise in Chinese media and shopping malls in China. This is the cooperation between international talents and Chinese brands. This is a very viable cooperation. This is from the domestic market, let's talk about the international market again. Internationally, quite a number of brands are facing problems in the international market. International market has been bad. market There is a very important concept, which is how to turn from passive operation to active management. In the international market, Chinese enterprises are mostly manufacturers, processors. Basically speaking, this kind of business operation is passive operation, so the so-called passive operation is simply to make a living by taking orders. What is order? Someone wants to give you a list. How can you turn from passive operation to active management when someone gives you a single order?

Just now, Chairman Sun talked about a concept: how to turn from Party B to Party A and how to turn from passive operation to active operation, the most important thing is to set up our own product mix. That is, you have to build your design team and make your own product. This is the first. The second is if you have your product mix, or even use your own. brand If you go to the international market, Chinese and foreign cooperation can build the brand of Chinese enterprises, and the advantages of Chinese enterprises, and move towards the international market at a higher level, that is, to achieve their brand in the international market. In fact, Chinese enterprises have begun to enter the international market. First of all, the strategy is in the Asian market, so the stores in Macao have been opened for over a year, and the stores in Singapore have been opened. This Monday, the Korean store opened. This is the beginning of China's brand becoming international. Let me show you another best example of China: Hangzhou's Jiangnan Buyi is a thorough Chinese brand. Build up an international design team with their products and their brands. His women's clothing is basically a Chinese design team. His men's dress design team is placed in France, and France's highly talented designer has worked together. His shop has already opened in New York, and is one of the most important high-end shopping malls in New York. He has opened 120 square meters, a very beautiful shop, and has opened 150 square meters in Paris's old Buddha's Cabinet this year before the national day. This is the mainstream European fashion sales channel has been opened, the store in Vancouver has been opened. So the new way to the international market also needs internationalization. team Not just the design team, but also the sales team. So, in the next 10 years, the direction of Sino foreign cooperation is my brand, you sell it for me.

One thing to do in risk aversion is to cooperate with professional institutions. Cooperation with foreign countries is not just a foreign language issue. In many enterprises, I find that there are no foreign language talents in foreign countries. This is not just a foreign language problem. You must use professional institutions. They know not only foreign languages but also foreign cultures. So to raise this problem is not just a foreign language problem. The two cultural differences are huge, and often turn good things into bad ones. This is often encountered in the process of operation, so it is necessary for professional institutions to complete the preparation and investigation in advance, coordination and communication in the matter, adjustment and consultation afterwards. This requires specialized agencies, specialized advisory bodies, specialized legal institutions, and specialized investigative bodies, all of which need cooperation. therefore utilize Specialized institutions are important issues of international cooperation and must be effectively utilized. This is the last point in risk aversion. {page_break}

Finally, I make a conclusion. clothing Competition in the market is mainly characterized by competition, product development and brand marketing are the key, and we still lack enough experience to learn from international power. Whether in the domestic market or in the foreign market, it is not so easy for us to put ourselves in the active position and to break through from our thinking and learn from Party B's thinking into Party A's thinking. In the future, the focal point of Sino foreign cooperation is software, so we should respect knowledge, respect wisdom and respect talents. In view of the current situation of most Chinese enterprises, it is an important risk aversion to employ specialized consultants.