United States Footwear Brand Alliance Quanzhou Enterprises

With the global sales of 1 billion 600 million US dollars, we have been sitting on the "SKECH ERS" brand of all the footwear brands in the world. Our owner has recently signed the China market cooperation agreement with the parent company of Quanzhou Luen Thai Light Industry Co., Ltd., and the two sides will hold 50% of the shares in China to set up the headquarters of SKECHERS company to jointly develop the domestic market in.

The Morning Post reporter was exclusive to learn that the newly established SKECHERS company of China may set up a branch in Quanzhou.

Cooperation is a pioneering, non agency, unauthorized, international brand entering the Chinese market. When choosing partners to cooperate, the prevailing mode of brand agent system or the limited period authorized sale system of a brand is still rare.

Chen Weili, chief executive officer of Luenthai Enterprises Ltd, who is attending the Quanzhou conference, is also the chief executive officer of SKECHERS China. He told reporters that the plan of "SKECH ERS" brand in the next 3 years in China is to build the scale of 1200 sales outlets.

"In addition to the four cities in Beijing, Shanghai, Guangzhou and Shenzhen, we will adopt the form of direct battalion, and the investment in terminal construction of most other domestic markets will be open to all agents in the country."

He said, "on the market side, there are many ready-made things in the US headquarters of SKECHERS, which provide us with convenience, such as terminal space design, product style, etc. we only need to make some local amendments according to the specific circumstances of our country, which allows us to concentrate on the construction of the market.

Therefore, 3 years to develop 1200 sales outlets is a conservative estimate.

Chen Weili also revealed: "in the future, SKECHERS has offices and exhibition halls in Beijing, Shanghai, Guangzhou and Shenzhen. In addition, the company is considering setting up a branch in Quanzhou.

This is not only a factor of hometown complex, but also a consideration of the advantages of Quanzhou footwear industry cluster.

The Quanzhou production area brings together a lot of excellent marketing talents from domestic and foreign sports brands, where people have rich resources and experience in the development of agents resources.

SKECHERS is a slang in the southern California, meaning "sitting young people". It represents young people who pursue fashion and personality. In just 15 years, SKECHERS has become the first sport leisure brand in the heart of the 12-25 year old American group. It represents a fashionable attitude towards life and has been spread over over 100 countries and regions worldwide.

According to the introduction, in 2008, the products of "Ke Ke Er s" brand entered the Chinese market, including the leisure sports equipment such as shoes and clothing. The market positioning mainly includes 4 series: fashion leisure, sports leisure, CALLGEAR and children's products. The product design and research will be provided by the SKECHERS company of the United States for all-round support.

It is said that the company has more than 10 thousand footwear designs in the US market, with more than 4000 pairs of shoes on its shelves.

Only 60 million pairs of shoes deal with two provinces in Guangdong and Fujian each year.

Industry background, foreign brands have repeatedly joined hands with Quan enterprises. In recent years, international brands have joined hands with Quanzhou shoe companies to enter the domestic market. The mode of cooperation generally adopts brand agency system and brand authorized sales system.

Among them, last year, the three international brands of Quanzhou footwear industry, "Disney", "England" and "HI-TEC", reflect the various business objectives of local enterprises.

XTEP (China) Co., Ltd. began working with Disney Sports early last year in cooperation with The Walt Disney Company.

Ye Qi, vice president of XTEP, believes that the cooperation with The Walt Disney Company is obvious to boost the internationalization of XTEP brand.

In its view, The Walt Disney Company has a wealth of international business experience, which is a rare learning opportunity for XTEP.

In the view of Chen Shuhuan, President of three Shu group, cooperation with international famous brands can save a lot of promotional expenses.

He believes that the operation of internationally renowned brands, although the early licensing fees are expensive, but compared with the huge promotion cost of self created high-end brands, it is more cost-effective.

The company's current international brands include "playboy", "crocodile shirt", "Italy kangaroo" and the England Football Association's "England" brand.

However, Chen Shuhuan also stressed that cooperation with international brands will promote the new upgrading of the management ability of their own enterprises in team building, brand and terminal.

Quanzhou Tai Ya shoe materials Co., Ltd. has obtained the sales authorization of the famous British outdoor sports brand "HI-TEC" in the Chinese market. One of its purposes is to achieve a similar precedent "KAPPA" experience from the upstream enterprises to the brand enterprises. "KAPPA" experience is in sight. Before the cooperation between the United States and the company, there are already agents in the country, but the market reaction is not very satisfactory. The agency business will be taken over by the company.

Prior to this, the international famous brand "KAPPA" has encountered similar situations.

When KAPPA first entered the Chinese market, it was represented by the Li Ning Co. Later, the "KAPPA" side set up an independent Chinese company and changed the sports route into a fashion line. The situation in the Chinese market has expanded rapidly in the past two years.

A fashion sports brand in Quanzhou believes that many international famous brands are acting in the domestic market through agency system or short term brand authorization. Therefore, whether it is for brands or agents, it is easy to cause short-term market behavior.

"After all, there are two kinds of risks in short-term market behavior: children who raise others, and eventually children will be taken away; the right to use the brand may be withdrawn halfway."

The source said.

Hong Jie, executive director of the Standing Committee of China Marketing Society, believes that China is the largest consumer market in the world and a big cake for foreign brands. They want to enter the Chinese market and face the problem of localization first. Finding cooperation with domestic enterprises familiar with the Chinese market is the first choice.

"In terms of domestic counterparts, if you do not act as an agent, it will still come after all, rather than acting as an agent for ourselves, so as to seize the channel."

Hong Jie believes that the domestic shoe enterprises should strive for the position of the sporting goods market. Besides building their own brands, it is also a good way to accumulate their own market by using foreign famous brands.

He said that through agents to lay a solid foundation for further development in the future to add chips, is not a private enterprise development route.