Canal Channel Strategy To Seize The High-End Market

A few days ago, at the world's top marketing forum, the annual meeting of the American marketing, Wang Zhentao, President of AOKANG group, became the first domestic entrepreneur to go to the forum.
China is a big shoemaking country, with shoes output reaching about 5000000000 pairs each year, ranking first in the world. According to statistics, footwear exports accounted for more than 60% of the total output in 2001, but the average unit price was 2.44 dollars.

In recent years, AOKANG's sales increased by an average of 66.7% per year, and last year's sales reached 820 million yuan. In September this year, AOKANG shoes were rated as "China's famous brand products". Out of the affirmation of AOKANG's marketing achievements, Wang Zhentao became the winner of the "Golden Award", the first Chinese outstanding marketing person in the leather industry.
AOKANG's famous saying is "selling is the last word."

In the case of a relatively saturated market demand for footwear in China, what are the ways to sell products?
Channel is the lifeblood of the entire marketing system. The competition in the domestic shoe market is becoming increasingly fierce. Manufacturers are fighting product war, price war and brand war. The hidden channel competition also emerges and becomes the focus of competition among all parties.

Competitors are strong. For a long time, the multi-level agency system is adopted in the circulation of shoes. Large and medium sized shopping malls have become the key targets for all brands to seize. Some strong brands are priced at medium and high grade, and the strategy of "entering famous cities, entering famous stores, playing leading roles and creating first class" is determined.

Wenzhou shoes have a bad reputation. The shoemaking industry in Wenzhou started from a small workshop. Once the quality consciousness was weak, the poor quality and low price hit the market. In the minds of consumers, it formed a bad impression of "fake and shoddy", which resulted in "encirclement and suppression" and refusal to sell in some cities. Under the bad reputation of "made in Wenzhou", AOKANG started the marketing mode of "factory affiliation, introducing factories into stores", and sold the counters at the state-run shopping malls to produce and sell itself, and then opened "shop in shops" and "counters". It was difficult to open gaps and squeeze into shopping malls, thus laying a foundation for the original accumulation of enterprises.

Wenzhou shoes are generally located in the mid-range, with the reputation of "low quality and low price". It is more difficult to get rid of the tight encirclement through shopping mall channels. In addition, AOKANG relies on many links in the multi-level distribution. Because of the multiple profits, it is easy to cause serious channel conflict, which is not conducive to market information feedback and factory control, and it is difficult to unify the brand image.

The market is changing. In the mid and late 90s of last century, the market matured, and consumers put forward higher requirements for the style, richness and sales service of products. Many shopping malls are declining due to the sluggish industry, and their role in the circulation channels has obviously weakened. Wholesale channels are also shrinking, and sales of enterprises are beginning to develop towards flat structure. At the same time, some emerging circulation formats began to rise.

Channel selection AOKANG took the lead in developing the chain Monopoly Network in the two or three tier cities and encircling the land in large numbers. When some strong brands sighed for losing the opportunity, AOKANG, a channel innovator, has already expanded and attacked the channel of competitors.
Adopt the form of chain monopoly. Leather shoes sales are characterized by strong seasonality, small batch, multiple models and strong service. They are more suitable for the circulation of stores. AOKANG is the first shoe brand in China to learn from the McDonald's model.

Since the first chain store was established in Zhejiang in 1998, AOKANG has not been able to accept it. With the help of franchising mode, the chain network has spread rapidly in the two or three tier cities nationwide, and the franchised store has reached 2000.
Home. This prompted consumers who bought competitive brands to quickly realize brand transformation, and AOKANG's market share increased significantly, and the return was also in time.
Act as channel innovator. With the help of new channels, AOKANG has maintained a rapid growth rate of 66.7% annually in recent years. So as to surpass the crowd and achieve the shoe market shuffle. According to Mike's view, at this stage, some leading brands are the insiders of the channel system. They are the main channel members. They hope that the existing channel layout will remain unchanged and stick to the large and medium shopping malls, which will give AOKANG a chance to develop. AOKANG has played the role of the innovator outside the circle, and developed the chain system, which is the real challenger of the main channel. Once AOKANG's strategy is successful, it will have a huge impact on the integration of main channels.
Kill a bullet.

A few days ago, AOKANG launched the "A plan" for hundreds of large shopping malls in China. The main point is that shopping malls approve annual sales tasks and enterprises choose locations in shopping malls. AOKANG will adopt world-class operation processes in terms of cooperation mode, brand selection and business training according to development needs. AOKANG plans to gather its brands and sell them at a retail outlet, opening the exclusive brand supermarket of domestic shoe making enterprises. According to the analysis, AOKANG regards the big shopping mall as a new target of channel development. This move has the meaning of two birds and one stone: the way of comprehensive coverage of the market adopted by AOKANG, the market network is woven as far as possible without leaving blank points, so as to increase the market share; because of the enhancement of the enterprise strength and the successful development of the peripheral market, AOKANG uses the big market to seize the commanding heights, lock the high-income crowd, enhance the brand, and bring the advertising effect into full play.

Multi channel strategy.

In essence, AOKANG focused on the development of chain monopoly network, but also did not give up AOKANG, which has opened 800 stores. In addition, new channels are being sought. The purpose of AOKANG's multi-channel strategy is to build up a three-dimensional market network, respond to fierce competition in the market segments, block the competition brand and serve its multi brand strategy. AOKANG now launches 3 brands of AOKANG, Kanglong and beautiful ladies, and each brand adopts an independent channel. As the market is huge, the quality of the channel has become the focus of construction. AOKANG has begun to strengthen the rationality of the channel distribution: AOKANG, located in A and B cities. AOKANG lock-in is a salaried class, with a large number of consumers. Therefore, the brand is mainly targeted at large and medium-sized cities, and the retail outlets are mainly located in the bustling commercial streets of prefecture level cities, and retail terminals are mainly chain stores and shops.