The Good News Bird Buys HAZZYS&Nbsp; &Nbsp; &Nbsp; "Multi Brand" Strategy Is Difficult To Make Plain Sailing.

Recently, Zhejiang Wedding bird Dress Limited by Share Ltd (Stock Code: 002154) issued a notice on signing a brand licensing contract with LG apparel group and Shanghai Rong yuan Fashion Co., Ltd., the announcement said: in December 2011, the company signed a brand licensing contract with LG dress group and Shanghai Rong yuan Fashion Co., Ltd., and the LG Apparel Group awarded the contract. Zhejiang Wedding bird clothing Limited by Share Ltd HAZZYS brand The right to use the trademark is valid for January 1, 2012. The period of validity is 10 years, of which the first 5 years will be renewed for 5 years when the number of outlets and the amount of sales meet the standards agreed by the three parties. The contract operator is Shanghai fusion. Latest fashion Limited company.

The cooperation between the wedding birds and the HAZZYS can be traced back to 2007. In that year, the wedding bird took the agency of Korean LG clothing brand HAZZYS, and was responsible for developing its Chinese market network. This is another international cooperation made by the news birds in 2006 after the Italy brand Maurizio Baldassari's agency business in China. At that time, it was the first successful cooperation between the domestic garment industry and Korea. For a long time, the good news bird has put forward a new idea of "innovating and developing the future, subdividing and improving performance". market The control power and core competitiveness of marketing channels are also widely concerned by the apparel industry.

Today, the news birds are in the Shenzhen Stock Exchange. list And HAZZYS has gone through 5 years. When the way of cooperation has changed from brand agent to trademark right, this means that from now on, the role of the Phoenix bird has changed from agent to CEO.

　 Why do we join hands with LG?

As for LG, the mainstream media in South Korea reported this: the LG brand casual wear brand HAZZYS entered the Chinese market. LG apparel announced in January 25th that it signed the HAZZYS brand licensing contract with China News Bird Group Limited. The news bird program will design and produce HAZZYS brand clothing products in China. In the second half of this year, 6 -7 stores will be opened in Shanghai and other places. Ju Benjie, general manager of LG fashion, said: "Korean fashion companies export brands almost unprecedented."

As for chairman Wu Zhize, LG Fashion is an opportunity.

In March 2006, vice president of LG group and President of LG fashion group came to Wenzhou to take a field trip to the headquarters.

As everyone knows, LG, as a famous multinational company, ranked seventieth among the top 500 in the world, and LG Fashion's brand HAZZYS is one of the three famous clothing brands in Korea. Its annual sales volume was nearly 1 billion dollars, mainly for consumers aged 20 and -35. The products belong to modern and traditional sports and leisure clothing. The founder of the Chinese market is preparing to find partners in China. According to Ben Chen, LG products emphasize local practices and marketing localization. For example, in China, the design and development of its products are based on the needs of the Chinese market to meet the requirements of the Chinese consumers to the maximum. Therefore, he hopes to cooperate with China's top peers. LG is responsible for design and production, and partners are responsible for marketing network development and brand promotion. Later, Ben Chen personally led the research on the marketing network of the birds and birds for more than a month. The brand awareness and the perfect network system of the news birds left a deep impression on Ben Chen.

As the vice president of LG group, he certainly hopes that the more the network will be paved, the sooner the better, and image publicity will also be launched. At that time, Wu Zhize thought rationally that Korea and China are totally different two markets. The market of Korea is single, while China has four grade market, and the haste makes no progress. Blind network expansion will bring great hidden danger to the long-term development of the brand. In particular, network development requires LG to set up 500 terminals in 5 years, nearly 1000 in 10 years. In this regard, Wu Zhize has his own view. He thinks that LG Fashion as a brand name dress, not only depends on sales volume to open its influence, but also relies on being refined and strong. In March 30, 2007, the two sides reached a consensus on various cooperation and signed a framework agreement in Shanghai.

According to the analysis of the industry at that time, the way of cooperation between the birds and the birds will be successful. The reasons are: first, the birds have rich marketing experience and multi resources, which can effectively avoid risks and reduce costs; two, the three big private brands (good birds, flangton and treasure birds) will complement each other with the two agency brands (HAZZYS, Maurizio Baldassari), which will provide the foundation for their continuation to the international brand. Three, learning and accumulating experience including design, image and brand operation will lay the foundation for its participation in international business.

Nowadays, the reason why the birds choose the multi brand strategy is due to the inherent advantages of multi brand strategy. First of all, because of the increasingly diverse and differentiated demands of consumers, multi brand strategy will locate different brands in different market segments, and help to meet different consumer needs. A brand has a proper positioning, can win a certain consumer group; many brands have many characteristics, and can widely occupy the market. Secondly, the multi brand strategy can spread the risk of the market competition on different brands, and each brand is relatively independent, so that once the individual brands have problems, they will not bring disaster to other brands and the overall image of the enterprises. If a single brand strategy is adopted, all the resources of the enterprise will be invested in a brand. Once the popularity of the brand decreases and the reputation is impaired, the enterprise will bear enormous pressure and risk. Thirdly, multi brand strategy is a sharp weapon to crack down on competitors and protect themselves. It has two meanings: on the one hand, the multi brand tree has the strong image of the enterprise, so that the competitors dare not attack arbitrarily; on the other hand, multi brand strategy can occupy different market segments and sales channels, meet the needs of different consumers, and implement close and effective defense so that competitors can hardly get involved. {page_break}

　　 Can multi brand operation be icing on the cake?

Nowadays, the news bird has taken the HAZZYS trademark management right, that is, it has the right to operate independently of HAZZYS. If it hadn't been successful in the past few years to run HAZZYS brand in China, it would not have spent so much energy to continue running the brand. But is it smooth sailing after winning the brand operation right?

At present, the development of multi brands can choose three ways: create brands, buy domestic brands, or integrate with international brands. The existing clothing brand resources have become less and less, and therefore it is becoming more and more precious. Whether or not we can seize resources will become one of the key factors in the next round of shuffling of the garment industry.

When many domestic clothing brands are becoming bigger and stronger, they gradually find that a single brand is not enough to support themselves to develop and expand at a higher and more stable speed. Especially in the context of the international financial crisis and the weakness of the international consumer market, if we want to have a firm foothold in the apparel market at home and abroad and continue to expand steadily, multi brand operation, market segmentation and the introduction of international brands will be the only way to maintain the momentum of development in a certain period of time. However, looking back at many domestic brands that have already done their best, they are not all smooth sailing in the operation of multi brands.

One of the leading brands of many brands in China is Shanshan Group. For the layout of multi brands, Zheng Yonggang, chairman of Shanshan Group, has long stated that it is necessary to seize high-quality international resources and enhance its own strength. According to the data of Shanshan stock, at present, there are more than 20 clothing brands under Shanshan banner, which is managed by Ningbo Shanshan fashion clothing brand management Co., Ltd. as a platform. However, there are other experts in the industry who have different opinions about it: Although there are many brands, unfortunately, there is no strong brand in Shanshan. Without the support of the main brand, Shan Shan's multi brand strategy is like a "mixed Legion" which is superimposed by many brands. This makes the earliest brand pioneer of the clothing industry of Shanshan not enjoy the huge dividends brought by many brands.

Indeed, through the earnings report of previously reported birds, we can also find that many brands have not brought the ideal profit support to the wedding birds. In 2010, the Zhejiang San Jie Luo Garments Co., Ltd. lost its net profit in 2010. The profit of Shanghai Bao bird Clothing Co., Ltd. was 2010 lower than that of 2009, with net profit of 15 million 910 thousand yuan, down 31.03% compared with 2009.

In fact, a closer look at the domestic brands involved in many brands, whether it is a good bird or a fir, we have not seen a successful case of multi brand strategy, and no group can make an effective demonstration effect in this industry. It seems that this is also a common problem in the domestic clothing industry. When making many brands, the clothing enterprises have not changed their ideas.

Intellectually, multi brand mode is sometimes a double-edged sword. Multi brand strategy will not only increase the cost of advertising, but also lead to the decentralization of marketing resources. If there is no solid backing to rely on, there is no high-quality business management team and personnel quality. Multi brand strategy is more like a pavilion on the beach.

The implementation of multi brand strategy is inevitable for resources to be differentiated. How to deal with the differentiation of resources is a problem that garment enterprises must consider. After the development of multi brands, the resources of production, supply and marketing will be divided. Because of the fear that resources will be differentiated, most garment enterprises can not make up their minds to separate the sub brands from the company. This leads to the fact that most companies make more than one brand, but there is no way to distinguish the main brand from the product line to the marketing terminal. The way to multi brand is to go, but how to truly enjoy the profit growth brought by multi brands is a long-term learning process, which will affect the next round of shuffling of the domestic garment industry.