Wenzhou Red Straw Hat Shoes Brand: The Power Of Regional Marketing

　　 Wenzhou Many small and medium-sized enterprises have been in operation for more than 10 years or even 20 years, but the annual output value has not been promoted and the scale has not been broken. What is the "barrier" that hindered their growth? In fact, at this time, enterprises can stop to see how the "growing" enterprises have skipped the "road".

Only 700 employees of Wenzhou red shoe company, a private shoe making enterprise, have been established in recent years. Marketing The "base area" has achieved rapid development. The company has more than 1200 sales terminals, and this year it can achieve an annual output growth of 40%, while Xi'an market The annual sales account for about 40% of the red hat company. In Wenzhou, the obscure red straw hat is very popular in Xi'an.

　 Making Xi'an leather shoes "first" brand

Almost all the regional markets in the country have the "first" footwear brand of local consumers. The first straw hat in Xi'an footwear brand is almost unheard of for consumers in Wenzhou.

In the town of Qian Shi Village, Huang Tian, Yongjia, there is the largest private shoe making enterprise in the country. That is the AOKANG group, which is less than 100 meters across the AOKANG corner. It is the red straw hat company.

Qu Chengsheng, chairman of red hat company, started the shoe factory in 1989, but only registered the "red straw hat" brand in 1997. In July 1998, he sent his sister and brother-in-law to Xi'an Fairview shoe city to set up wholesale red hat leather shoes. After 3 years, Qu Cheng Sheng found that this single wholesale leather shoes model is very unstable, and business depends entirely on products. He also found that AOKANG, red dragonfly and several other large footwear brands in Wenzhou had been branding operations and developed rapidly.

Therefore, from the second half of 2002, red straw hat company also began to brand operation in Xi'an Market: opening up a brand store of leather shoes, unifying the image of VI and enriching the structure of footwear products. In 2006, the red straw hat company, which originally made men's shoes, began producing women's shoes.

Qu Chengsheng believes that the rise of red hat in the Xi'an market can be roughly divided into four stages. The first stage is from 1998 to 2002, and only do wholesale business of leather shoes. The second stage is from 2003 to 2007, the first to set up stores, footwear products in the peer stand out. Around 2007, red straw hat has become the first brand in Wenzhou shoes of Xi'an. The third stage is from 2007 to 2010. Through the integrated marketing, the red straw hat has become the preferred brand for consumers in Xi'an to buy leather shoes. The fourth stage is since 2010, the red straw hat began to operate in Xi'an.

"A market in Xi'an, half of the red hat company." Chen Xu, marketing director of red hat company, said that before 2007, the annual sales share of the red hat Xi'an market accounted for about 60% of the whole company. In recent years, with the overall performance of the company rising, the annual sales of the Xi'an market accounted for about 40% of the red hat company.

Qu Chengsheng believes that the biggest reason for the red hat to navigate the footwear market in Xi'an is to focus on market share and improve marketing.

Expanding Xi'an into a "base area" to the surrounding market

As the saying goes, it is better to cry out than to make a look. With the successful model market, there is a successful experience that can be seen and touched. With the marketing of "base areas", we can enter and attack, retreat and defend. In the marketing strategy, the so-called base area mode is also known as "regional marketing" or "model market building". After being bigger and stronger in Xi'an, the marketing network began to expand to neighboring Xianyang, Weinan, Ankang and Hanzhoung. So far, there are about 200 marketing outlets in Shaanxi. Qu Chengsheng said that now the company has established a marketing network in Gansu, Shanxi, Xinjiang, Inner Mongolia and Beijing, and has six or seven provincial general agents and four or five provincial self marketing companies.

In the process of expansion of marketing territory, although people often call for the provincial general agent of red straw hat company, Qu Chengsheng is often declined by "steady progress". He believed that the small and medium-sized enterprises should do their best in order to make good use of their strengths and avoid weaknesses.

Qu Chengsheng said, for example, four or five years ago, the general agent of Wuhan red hat company and the general agent in Xinjiang had the same strength. At that time, the annual sales volume of the two markets could reach $6 million. The difference is that there are seventy or eighty distributors under the general agent of Wuhan, and the customer groups are "low, small and scattered". With the rapid development of other footwear brands in Wuhan market, the red hat hat shoes are hard to find in Wuhan. The Xinjiang general agent only develops seven or eight key sub dealers, through the opening of shoes brand stores, integrated marketing, and the development of new customers by the old customers. The largest distributor has opened 5 red straw hat shoes brand stores in a short span of two years. In recent years, the sales performance of red hat and Xinjiang general agent has increased by 50%-60% per year, and the red straw hat has become the top five of Wenzhou leather shoes brand in Xinjiang market, ranking closely with Kangnai, Erkang, red dragonfly and so on.

In expanding the market at the same time, red hat company also attaches great importance to upgrading the existing marketing network. Chen Xu told reporters that the company has more than 1200 sales terminals, of which more than 500 are exclusive stores. This year, red hat has opened more than 100 new stores, and the company's monopoly network has increased by 20%. On the other hand, through the spanformation and upgrading of the original marketing shop, the product mix has become more abundant, and the training guide has improved the service quality. The performance of the old store has increased by 20%-30%. Therefore, "the leather shoes sold by the company are expected to exceed 1 million pairs this year, and the annual output value is expected to increase by 40% or so." {page_break}

Off-season single income increased by 120 million yuan.

According to Qu Chengsheng, the red straw hat has 2 production bases for leather shoes. At the headquarters of the red straw hat company in the thousand stone village of Huang Tian, Yongjia County, more than 500 employees specializes in producing men's leather shoes, and the daily production of leather shoes is three thousand or four thousand pairs. In Chengdu, Sichuan, China's "women's shoes city" of Chengdu red straw hat Footwear Company, nearly 200 employees specializing in the production of women's shoes, daily production capacity of more than 1000 pairs.

In May and June each year, it is usually the off-season production of domestic leather shoes manufacturers. At this time, many shoe factories in Wenzhou will be allowed to leave and let their employees go home. But Qu Cheng Sheng has his own brilliant idea. He started working with a Russian leather shoe company 10 years ago and made OEM processing in the off-season.

In this way, the red hat company produces eighty thousand or ninety thousand pairs of high-grade leather shoes for the Russian brand OEM during the off-season, not only increasing the output value of 120 million yuan per year, but also making the employees do something and earn money. Truly, "in the hands of a single, not panic in mind, down-to-earth, happy."

Experience:

Every business needs a marketing base.

Qu Chengsheng said that the experience of the brand operation of red hat company over the past decade may lie in the following points:

First, every small and medium-sized enterprise needs a leading market and has its own marketing base area.

Second, enterprises should remember two words: simple. Life is simple, and the way of doing things is persistent and simple.

Third, we should learn to borrow the good tricks and good models of Wenzhou's big brands, because borrowing is always faster than "closed doors".

Comment:

Brand planning expert, thinker Planning General Manager Zeng Yun Li:

In the marketing strategy, also known as "regional marketing" or "model market building", is the so-called "base area mode". In essence, the enterprise concentrates its strength on the specific market with relatively weak competitors in the limited resources, and builds intensive marketing network, and has enough manpower and material resources to form comprehensive advantages such as channel management, brand promotion and market construction, so as to achieve the goal of "completely boil the water". In fact, this is a necessary path to develop the brand. Only in this way can polymerization benefit be formed, avoiding waste and reducing risk.

Xie Rongfang, vice chairman of China Leather Association and executive chairman of Wenzhou shoe leather industry association,

Through the establishment of a "base area" in Xi'an, the red grass hat shoes company has expanded its sales mode to expand its market to the surrounding market. It has set a good example for SMEs to occupy the market quickly and effectively. While doing a good job in marketing, red hat company is also effective in grasping management, quality and product development.