Roley: "Procter & Gamble" For Home Textile Industry

The first half of 2011, China's home textile pilot

What is the reason why Luo Lai can stand strong in the depressed stock market? What is the reason that he has broken through with foreign giants, domestic powers and numerous miscellaneous armies?

As one of the few home textile listed companies, Luo Lai's every high flying action is written around the increase in total volume. The core secret is that Luo Lai has adopted a market strategy of multi brand operation and ten thousand arrows, and now the famous brand of Luo Lai has reached more than 10.

Chairman Xue Weicheng believes that an important factor in the growth of Luo Lai is the further expansion of the company's brand advantage.

In 2011, the proportion of other brand income increased by 3 percentage points, and the gross profit margin increased by 4.6 percentage points.

The sales revenue of Xue Dan Dan, Shang Marco and Disney increased by 49% over the same period last year.

In this case, the most significant increase in gross margin was snowy Dan and Shang Marco. The gross profit margin increased by 5 percentage points and 8 percentage points respectively, while the gross margin of other brands increased by nearly 8 percentage points.

The market growth strategy of multi brand strength has begun to appear in the growth potential of the company.

Xue Weicheng disclosed that in the early stage of the brand strategy, the company's resources were mainly tilted to the brand of Luo Lai, and the proportion of main brand income has been above 80%.

Other brands are replicated in small scale according to the brand model of Luo Lai, and each division independently develops the market without forming a strong synergy with the main brand.

At the same time, most of them are located in the first tier cities in China.

On the blueprint of the company, the reporter clearly saw the "ten billion strategic plan" developed by the company. In 2011~2016, the sales target of the brand of Luo Lai and its multi brands reached 10 billion yuan, of which the proportion of multi brands increased to 52%.

The intention is self-evident, and the next step will be to expand the brand development, including making full use of the strong channel resources formed by the brand and the financial strength of listed companies, and promoting the rapid expansion of other brands through the way of leading brands to drive new brands to open stores, and to store more brands at home.

This has already made Luo Lai taste the first sweet: 1~6 month of 2011, the other brands of the company rose 40 percentage points higher than the main brand.

On the other hand, he upgraded the existing channel structure with the advantages of multi brand operation, and established a strong synergy with the main brand through complementary brand positioning and differentiated product category planning.

For example, in the high-end department stores in the first tier cities, the famous towel brands in Europe, India and Pakistan, including Christy and Graccioza, will be built to build a full import bathroom, focusing on Millefiori, Durance and other imported perfume brands to create an imported fragrance hall.

At the same time, these brands can also be integrated into the Luo Lai home store in the form of Museum Hall as a product category supplement.

Luo Lai will rely on multiple brands and capital advantages in the next 1~2 years to make efforts to expand the competitive gap between the two tier key cities and developed cities with multi brand and multi-channel layout.

For Chinese textile enterprises, there is a big market risk in the operation of single brand. The brand must be divided into layers to occupy high, medium and low market, and it is difficult for a single brand to eat the whole market.

However, the operation of multi brand is not easy. Many home textile enterprises have not yet started a brand. Many brands often make enterprises spend more energy and material resources.

So how did Luo Lai do that? Can we achieve its goal by means of capital alone?

Xue Weicheng told reporters: "as the world's leading brand of the most successful daily chemical industry, Procter & Gamble, in the home textile industry, Luo Lai also takes multi brand management as one of the core competitive strategies of the company. Although it has greater risks, it has proved that multi brand operation is more suitable for home textile industry.

At present, we have formed an international, multi brand matrix of 15 professional home textile household brands, namely, agents, empowerment and self creation.

Xue Weicheng analysis, the implementation of this approach helps to achieve long-term strategic objectives of enterprises: through multiple brands to cut, occupy the market, seek greater market share, become the industry leader.

This strategy also helps Luo Lai to target and cover a wider segment of the market to meet the preferences of different consumers with multi brand width and product line depth.

In response to the market segmentation, Roley has introduced Europe's largest professional towel manufacturer Christy, Portuguese high-end bathroom brand Graccioza, European household fragrance leading brand Millefiori, high-end perfume care brand, and launched in 2008 the American technology sleep brand SLIIP, independent children's brand Roley KIDS and online e-commerce brand LOVO.

In 2010, Luo Lai launched a cost-effective brand for China's three or four tier market with huge potential.

With the upgrading of the consumption demand of home textiles, it is becoming the focus of future development to satisfy consumers' personalized and integrated home purchase needs through a series of multi brand and multi category coverage.

The multi brand operation mode of Luo Lai, with complementary brand positioning, rich product category and fashionable store image, brings consumers new shopping experience and fashionable and diversified lifestyle. It has been loved by more and more mainstream families in pursuit of high quality life.

This constitutes an important growth point and differential competitiveness for the future development of the company.

At present, Luo Lai uses the compound channel mode, which is mainly affiliated to the company and directly operated as a subsidiary.

Of the more than 2000 shops in the country, the proportion of direct battalions is less than 15%.

The growth of business revenue in recent years has a lot to do with the rapid expansion of franchising channels. The top 50 customers who joined more than 5 million yuan contributed 35%~40% total revenue.

The direct channel is relatively slow because of the higher demand for shop opening and channel management.

In the current stage, it is still a top priority for the company to seize the market. The main channel mode of the company is more efficient than its peers.

At this stage, in Europe and the United States and other developed areas, all kinds of home life category brand professional shops and the whole home life hall has become increasingly popular and mature, forming the mainstream of the home textile market.

With the rapid integration of home textile market at home and abroad, these formats will become an important opportunity to promote the growth of domestic textile industry, and also a focal point and force point for brand dealers to achieve marketing upgrading and mode innovation.

And Rai Lai is always in the coexistence of risks and opportunities, bold and resolute force, large-scale multi brand covering terminal, while "hidden monopoly" customer resources, this customized market strategy has reached the market goal of "win without war".