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    Why Does Jinjiang'S Listed Shoe Companies Embrace The Headquarters Address?

    2012/3/26 17:26:00 35

    Shoe Enterprises Cost Retail

    "These Chinese brands may not sound familiar or even weird.

    But the reality is that the little fish began to eat big fish.


    "The rise of China's local consumer brands has challenged the famous foreign brands, which has become a milestone in China's industrial development."

    The financial times has described the brand of Chinese local shoes and clothing represented by the "Jinjiang Department". "These Chinese brands may not sound familiar or even weird.

    But the reality is that the natural law is reversed, and the little fish begin to eat big fish.


    To create this miracle is precisely a group of Fujian businessmen who believe in "love to fight and win". After completing the magnificent turn from family workshops to listed companies, they set up a capital express to make the "Jinjiang Department" bigger and stronger. Besides "Lining", the ten major sports shoes and clothing brands in China are produced in Jinjiang.

    "They are generally not very educated, but they are very hard-working". Liu Shutong, who has been in the industry for ten years, has described the "Jinjiang Department" which is worth a lot of money to the Beijing Morning Post reporter.


    Listing Army


    "In the two or three tier market, the threat posed by Jinjiang department to Nike and Adidas is obvious."


    The rise of the "Jinjiang Department" is closely related to Nike.


    In the late 70s of last century, Nike set up a shoe factory for processing in Jinjiang, Chen Dai town.

    "Many of the shoe factory bosses are working in the Nike factory," Liu Shutong told reporters. When Nike moved the factory out of Chen Dai Town, a group of shoemaker workers stayed behind, and then shoes enterprises springing up everywhere in Jinjiang.


    At first, these shoe factories unified the route of OEM, that is, foundry production.

    Relying on the advantages of overseas Chinese, these enterprises have continuously obtained orders from all over the world. This has become the only way for many famous brands to complete their original accumulation. "At that time, they could earn 10 yuan to 15 yuan for processing a pair of shoes abroad."


    The turning point took place in the mid 90s of last century. A large number of OEM enterprises were successfully pformed from OEM to independent brand enterprises, and by these means, such as idol endorsement, advertising bombing, sports sponsorship and store operation, these family workshops became a well-known brand of Chinese.


    Anta was the first to create its own brand. The most widely circulated version is Anta's chairman Ding Zhizhong's entrepreneurial story.

    In 1987, Ding Zhizhong, 17, took 10 thousand yuan from his father's hand and 600 pairs of shoes bought from the shoemaking workshops in Jinjiang Chen Tai, and Beijing began to sell shoes in the north.

    5 years later, Ding Zhizhong returned to Jinjiang and co founded Anta with his father and brother.

    Today, Anta has become Lining's biggest competitor in the country, and Ding Zhizhong has become the "70 after".


    In Liu Shutong's view, the brutal growth of the "Jinjiang Department" is extremely vigorous. These enterprises maintain an astonishing pace in sports star endorsement, product development, sponsorship of sports events, operation of franchised stores and construction of industrial parks.


    Nowadays, listing is also a swarm of bees.

    At present, there are 12 shoes in 32 listed companies in Jinjiang, including Anta, XTEP, PEAK and so on. The large amount of funds raised by the listing has provided strong support to these enterprises, and has continued to maintain the huge investment of these brands in terminal channel expansion, advertising investment and event sponsorship. It has also given the local sports brands the strength to contend with international brands. In recent years, the threat brought by the "Jinjiang Department" to Nike and Adidas first army in the two or three line market is obvious.

    Lining, once a "native brother", though he still has the advantage of turnover, has been overtaken by Anta on net profit.


    Licensing movement


    "Since 2004, Jinjiang shoe enterprises have invested more than 6 billion 500 million yuan in CCTV and local satellite TV only."


    The "Jinjiang Department" campaign brand was originally built by imitation. "If any pair of shoes sells well in the market, in a few days, this shoe will appear on the desk of Jinjiang boss."

    In Liu Shutong's impression, Nike once proud of the air cushion shoes, not long ago became the "Jinjiang Department" sports brand strong push.


    In fact, the establishment of local sports brands can not escape the way of imitation or even Shanzhai.

    The predecessor of the 361 degree was Buick (Fujian) Shoes Co., Ltd., because the car and Buick brand crash, the industry and commerce departments were asked to change the brand and company name.

    In Jinjiang, the "gram" generation is not only a minority, but also PEAK, Meck and Hongxing Erke, all of which are considered to have the suspicion of taking the Nike express.

    And now the Anta brand and XTEP logo are also called "reprint" of foreign sports brands such as Brooks and Reebok.


    Even advertising creativity and slogans are full of strong imitations.

    Li Aiqi, a technical manager of IT company, is a basketball fan. The TV in his family is always fixed on CCTV sports channel. In his view, the advertisement of the domestic sports brand is astonishing. "These advertisements are shots of volley shot, strong dunking and so on, coupled with the slogans of shouting and shouting, and all of them are like an advertising company."


    But this kind of advertising bombing brought rapid growth to the "Jinjiang Department". With the help of "sports stars + advertising bombing", the "Jinjiang Department" started a vigorous "brand building" campaign in 2000. At that time, most of Jinjiang's sports brands imitated the "licensing" mode. They hired celebrities to endorse, sponsor major sporting events and hit heavy gold to advertise on CCTV, so CCTV5 was nicknamed "Jinjiang channel".

    Li Aiqi has a new memory of the "brand building" movement. "As soon as the TV is opened, these advertisements are all pervasive."

    According to the official data provided by Jinjiang, since 2004, Jinjiang shoe enterprises have invested more than 6 billion 500 million yuan in CCTV and local satellite TV only.


    Nowadays, the advertising bombing of the "Jinjiang Department" still exists, but differentiation begins to emerge. Some brand advertisements begin to emphasize the core value and spiritual appeal of the brand, and the way of expression becomes softer.

    On the products, the blind pursuit of international brands has developed into a fanatical pursuit of R & D, and a large scale increase in R & D design costs has become a major event for every Jinjiang sports brand enterprise after listing and financing. At present, the footwear industry in Jinjiang has controlled the footwear industry to produce more than 2000 core technologies and has 189 patents.


    Move away from Jinjiang


    "Jinjiang has not satisfied their ambition. Anta, XTEP, 361 degrees, PEAK and so on have moved the base camp to Xiamen."


    "The atmosphere of entrepreneurship is so strong that there is nothing like doing business without doing anything."

    Jinjiang Ji Ming was a staff member of a local institution. When he finished school from Beijing and went back to his hometown, he was stunned by a strong entrepreneurial atmosphere.


    Unlike Nike, Adidas and Lining, the "light asset model" outsourcing product manufacturing and retail distribution business, all enterprises in Jinjiang department are vertically integrated business models of R & D, production and sales.

    In Liu Shutong's view, vertical integration mode can better control the cost of intermediate links.


    The vertically integrated business mode has also created the advantages of Jinjiang's complete industrial cluster. These shoes and clothing enterprises have basically realized the whole process from production to sale without leaving home.

    Data show that in 2010, Jinjiang had 378 shoe enterprises above designated size.

    Leatherwear

    Footwear industry, chemical industry,

    shoes

    Production and other coordinated production groups.

    Among them, Chen Tai has attracted more than 600 shoe and shoe machine enterprises at home and abroad, with an annual turnover exceeding 20 billion yuan.


    Despite the advantages of industrial clusters, Jinjiang has not been able to satisfy the ambition of these sports brand enterprises, and migration is inevitable.

    More listed shoes and clothing enterprises have moved their headquarters from Jinjiang to Xiamen, a scenic and more cosmopolitan city. Liu Shutong told the Beijing Morning Post reporter, "in recent years, Anta, XTEP, 361 degrees, PEAK and so on.

    brand

    They have moved their respective strongholds to Xiamen. "

    At the same time, the production line was moved to the Midwest cities with lower labor costs. Under the pressure of the tide of the times, the "Jinjiang Department" gradually moved away from its base camp.

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