How Can Chinese Shoe Enterprises Break Through The "Oligopoly" Of Foreign Brands?

Chinese enterprises were condemned once again for the so-called "counterfeit brand". A few days ago, snow boots brand UGG Holding Deckers Outdoor Corporation sued the brand infringement LOGO of Zhenjiang Peng Xiang Leather Trading Co., Ltd., saying that the "mUGGy" LOGO color matching and modeling of Peng Xiang are similar to its trademark, which easily leads to confusion among the public.

Why is Peng Xiang leather in its own brand? trademark On top of that is the addition of "UGG" three letters? In this regard, insiders pointed out that Peng Xiang was originally a OEM specially designed for famous foreign brands (OEM). Material Science With the rising cost, the cost advantage made in China is no longer the same. Peng Xiang may want to build a brand of his own.

Breakout of OEM manufacturers

With the enhancement of brand awareness, how to use the brand symbols to build the invisible marketing network into the public mind and transfer the products to consumers' hearts has become an urgent problem for our manufacturing industry. The emergence of the "mUGGy" brand is the product of looking for breakout in the long run.

In other words, Peng Xiang leather industry only wants to create a national brand on the basis of OEM. "Besides, the 3 words" UGG ", especially the wool boots from Australia, are a general term for a class of shoes, not just a brand. A person from Peng Xiang leather industry said.

Since 2001, there has been an obvious trend of division of labor in China's manufacturing industry. Some enterprises tend to "make factories" and accept commission processing, that is, the so-called "OEM". While others focus on "making brand", they allocate more resources to product research and development, market image building and market development. How to combine "making factory" and "making brand" skillfully, and taking advantage of both of them has become an important topic in China's manufacturing industry.

In recent years, processing trade has been developing vigorously in mainland China. Its share in foreign trade has always occupied over 50%, and has become the most important contributor to the trade surplus. In the short run, this trend will become more intense.

Most of the materials of snow boots are purchased from China, and many years of OEM processing experience make the "Peng Xiang leather" also have great advantages in processing technology. Based on the advantages of raw materials, Peng Xiang combines the experience of producing OEM for foreign brands these years, and the boots made are not imitated and plagiarized.

Nevertheless, it does not mean that Peng Xiang can gain market recognition. The OEM tragedy faced by China's manufacturing industry is effectively covered by Peng Xiang and other enterprises.

"Made in China" needs care

Ironically, after this lawsuit, Peng Xiang decided to act as a well-known brand of snow boots abroad. This famous brand product is one of the enterprises that make OEM processing through Peng Xiang. Peng Xiang has not been able to escape the strange circle of selling his own good products with others' brands.

Judging from this transnational dispute, all of this stems from the brand. UGG's "red jump" is a clear proof. In 1979, surfer Brian Smith bought some Australian UGG boots and brought them to the United States and began selling them in New York. Later he founded the UGG Holding company. In 1995, Brian Smith sold its shares to Deckers (DEX) outdoor sports company, which made Hollywood stars popular in the United States, gaining recognition in many countries.

It is worth mentioning that Australia has a large number of UGG brands, all brands are developed by hand-made shoes workshop, so it can be seen that the popularity of "UGG" in the world is due to brand awareness and seize market opportunities. For consumers, brand is a symbol of material benefits and spiritual interests to consumers, and is an experience and guarantee.

However, Chinese shoe companies are seriously lacking in brand awareness. Accustomed to the influence of the fine lineage of foreign products and the fact that the imitation of domestic products has not been reduced, the new generation of consumer groups always has a contempt for Chinese goods.

Niu Hong, an associate professor at south of the Five Ridges College of Zhongshan University, said that the Chinese market is forming an "oligopoly" of foreign brands. China made breakthroughs and surrounded the rebuilding of brands.