Deep Analysis: The Brand Extension Phenomenon Of Shoemaking Enterprises

There is an important principle in Economics: you can't put all your eggs in the same basket. Otherwise, if you lose your hand, the eggs in the basket will be broken. This principle has become the most common reason for the diversified development of the brand in the vast number of enterprises.

From the "SARS storm" in 2003, China's domestic shoe market suddenly fell to a low level, and the sales of various footwear products continued to decline. The backlog of products from one quarter to the next season brought many enterprises and brands into the vicious circle of vicious circle, and the rising raw material and labor costs pushed the already fierce market competition to a near tragic level.

Insiders predict that if there is no obvious rebound in the domestic footwear market, many enterprises will fall out in the brutal market competition.

Reporters interviewed recently found that in such a sluggish footwear market, the domestic shoe enterprises seem to have some "do not work properly", whether those enterprises with large production scale, high brand awareness or small start businesses are planning their own diversified development strategy, and the direction of their diversified development is amazing similarities -- leather luggage products and sports casual wear.

Phenomenon 1: before entering some shoe brand shops, basically all kinds of footwear products occupy most of the shelf space. But recently, reporters in Beijing interviewed that all kinds of newly built leather products and sportswear in the local shoe brands and sports brand stores on both sides of the street were placed in a very prominent position. Some shops even gave their main locations to these newly developed products, and the promotional advertisements hung in the shop made people feel the determination of the manufacturers to promote new products.

But the salesmen of these stores told reporters that the best selling products in the shop are still all kinds of footwear products.

Phenomenon two: due to the recent downturn in the domestic footwear market, many shoemaking enterprises have made their product development, production and ordering activities ahead of schedule, so as to make up for the losses of the previous season as soon as possible.

Some time ago was the "high season" season for the shoe making enterprises in autumn and winter. The reporters were invited to participate in the ordering meeting of several Jinjiang sports shoes enterprises in Fujian. It was found that the proportion of clothing accessories in these enterprise product lines has been greatly increased. Some brands that did not sell clothing products have launched their own clothing series, and some enterprises have made it clear that sportswear and clothing will be a new focus of their brand development in the future.

Phenomenon three: Zhejiang Wenzhou's water head town, leather belt and leather goods industry is the local pillar industry.

In the first half of this year, the head of a leather production company revealed that since the end of 2003, their enterprises have been continuously receiving orders for leather belts and leather goods from their "neighbours", the downtown area of Wenzhou. Although the quantity of each order is not very large, the number of enterprises coming to order is very large.

And reporters also learned that in the water head of other garment manufacturers, the situation is basically the same.

Coincidentally, in Fujian Shishi, a garment industry as a pillar industry in the city, many sportswear manufacturers also shoulder the heavy responsibility of providing related products to Jinjiang's sports shoes enterprises.

According to these enterprises, they are often influenced by the strength of development. They often put the same products on different brands to provide different brands and enterprises to use.

It can be seen that when the footwear market continues to wander in the doldrums, many of our shoemaking enterprises have chosen to extend their brand to related products, while leather products and sportswear garments, which are relatively similar in production technology and marketing methods, have become the preferred target of brand extension.