Buying Brands Is By No Means An Easy Thing To Do: &Nbsp.

A Wenzhou boss in Shanghai who has been in business for a period of less than five years from acting on a British clothing and footwear brand to renting to the end of the brand income package.

From agency to lease to acquisition, how should these three steps go? When is the best time to buy brands?

Lin Changjun's takeover battle

In 1995, Lin Changjun had his own place in shoe city of Shanghai. Because of his unique vision, his booth was always crowded with people.

In July 2002, Lin Changjun got the agent of AAA, a registered brand in England, in Shanghai.

However, a year later, 20 agents in the country have quit because of poor management. Many agents complain that we are rushing to the AAA brand, but the head office has not worked hard to organize products and image creation in China. Few consumers know this brand.

While everyone was frustrated, Lin Changjun quickly expanded his market share according to his sales ideas.

By the end of October 2004, Lin Changjun's Shanghai "AAA" branch had achieved more than 30 million yuan in sales.

Dozens of national

Lin Changjun waited for this sentence without hesitation.

In June 2005, there was hardly any formal negotiations. Lin Chang paid a nominal rental fee to the British company for 400 thousand yuan a year.

This time the lease agreement, Lin Changjun also picked up a cheap: AAA authorized its company as its general agent in China, and is fully responsible for the development of AAA brand leather goods, clothing, footwear and other products in the Chinese market.

After more than a year's development, more than half of China's market has been gradually expanded by Lin Changjun, and its performance has steadily improved.

Although during the tenancy period, AAA's brand awareness and performance increased steadily in China, Lin Changjun knew very well that he was doing well in other countries.

A direct problem is that when the rental agreement is signed, the bargaining chip of the other party will surely increase substantially.

Lin Changjun was reminded that buying the buyout should be the best opportunity to take the other company's low price in China.

An arduous negotiation opened the curtain, and Lin Chang's army moved with emotion and reason, and negotiated with the other side no less than 10 times.

Finally, the British AAA development limited saw their sincerity and determination.

In April 2007, they inspected the actual network operation of more than a dozen national AAA brand agencies including Shanghai, and assessed the company's personnel structure, product organization and management capabilities one by one. Finally, they decided to pfer the trademark rights of the British AAA brand in the mainland of China (except Hongkong and Taiwan) to Shanghai Warren gentry and pfer the costumes, hats and belts to the Shanghai Warren gentry freely in the 25 categories of trademark registration.

In May 9, 2007, the two sides signed a trademark pfer agreement at Jinmao Tower, Shanghai. At this point, the Wenzhou boss Lin Chang Jun completed the acquisition of the trademark of the British AAA brand.

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Preparation before acquisition

Since 2004, China's agents have been hard to get real popularity and influence.

Prior to the acquisition of AAA, Lin Changjun also perfected his management team. He fought the battle of preparation.

What kind of brand is suitable for enterprise acquisition? How to operate brand acquisition? Industry experts believe that this requires a rational thinking and decision-making process, and brand acquisition is rational behavior guided by strategic thinking.

As a "prey" whether the brand is delicious, it should consider many factors, rather than killing the prey "hard to swallow", resulting in obstruction.

The following are the preparations for an agent before buying a brand: research whether the brand acquisition is in line with its own development strategy, investigate whether there are significant "bad deeds" in the history of the acquired brand management, fully evaluate the planned acquisition of brand equity, properly grasp the best timing of brand acquisition, fully study the life cycle of the acquisition of the brand, and fully consider the management ability of the brand after the acquisition of the brand.

Regardless of whether the agents are adaptive brand acquisitions to enhance their competitiveness, or whether enterprises should acquire new brands in mergers and acquisitions, they must carefully examine the acquired brands.

Because the brand of purchase may be old, and may be young and young, even in a pathological state, which determines the brand value.

Therefore, not every purchased brand can create value for the enterprise, even the "junk brand" will drag the enterprise back leg.

After brand acquisition, there are still many troubles and difficulties waiting for agents to integrate or rebuild.

In the western mainstream countries, by acquiring some initial stage or smaller clothing brands, it is a means to quickly achieve brand culture integration and brand internationalization.

This acquisition can be divided into three types of resources, the acquisition of clothing brands, the acquisition of design rooms, and the acquisition of manufacturing enterprises.

However, Zheng Lei believes that the current agent class does not have such a large strength in general, unless a number of agents from the 80s and 90s of last century began to act as agents for foreign brands.

The agent acquired a brand that he had been acting on. The advantage of the brand is that he has a fixed sales channel, a stable dealer team and a person, but the most fatal is the lack of design power, which will lead to the gradual decline and even vanishing of the brand acquired.

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Management after acquisition

After the success of Lin Changjun's acquisition, as the birthplace of "AAA" is known as the world's top leather shoes in the United Kingdom, both domestic stores and consumers agree with the European style.

"The most important thing is that everyday consumer goods such as shoes need to be invested in a considerable proportion of advertising expenses a year, and AAA can enter the market with the brand imported from abroad.

Of course, "AAA" has just begun for Lin Chang Jun.

Lin Changjun once thought of setting up a design center in the United Kingdom to make this brand product different from domestic products. He also wanted to start a small business in the UK, specializing in making this brand of high-end leather shoes, with a retail price of more than 2000 yuan, to consolidate and enhance the international brand position in the minds of consumers.

This is a test paper that has never been tested before. A foreign brand is completely in the hands of Chinese people.

However, after spending a lot of money on acquiring AAA brand, Lin Chang army has nothing but a brand.

Because AAA belongs to the brand of virtual operation, the British company will not provide him with a pair of shoes or a sample, and he must rely on his own eyes to find shoes that meet the AAA positioning.

Now, the production bases all over the country have entered the AAA OEM view. Wenzhou shoes, Chengdu shoes, Guangzhou shoes, Tongxiang shoes, Fujian shoes and so on are integrated together, and then procured according to the different requirements of the north and south.

What is the future of a British brand that is completely designed and produced in China? Lin Changjun himself does not know.