Developing Independent Brand Is The Key To The Development Of Children'S Clothing.

Xing Jiquan, who was originally in the mood of "soy sauce" to take part in the CMBE Shanghai international pregnancy and baby show, unexpectedly gained a lot.

"In the morning of the first day of the exhibition, we received more than a dozen overseas customers in succession. They came to order from us."

He told reporters.

Xing Jiquan founded the enterprise Qingdao little bear Tom home Limited (hereinafter referred to as "little bear Tom") is a manufacturer of infant furniture manufacturers, and some of the peer is different, this enterprise was founded in 2004, just for Japan, Europe and many other countries of the enterprise OEM infant furniture, from last year, the enterprise decided to pform, create its own brand "Tom bear".

Turning to the reason for this "solo", Xing Jiquan stressed that this is for enterprises in the next decade or even more than 20 years after the development of consideration, seize the initiative.

What Xing Jiquan sees is in fact domestic.

The continuous gold rush.

Data released by the baby industry research center showed that the total size of the 0~12 baby market in China last year was about 1 trillion and 150 billion yuan.

In recent years, the baby market will maintain a high growth rate of about 15%. It is estimated that the baby market will reach 2 trillion yuan by 2015.

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Good child (China) commerce and Trade Co., Ltd. Chairman Feng Jing Qiu told reporters that the baby industry's high gross profit margin attracted a number of enterprises to enter, at the moment, international brands want to enter the Chinese market, and domestic enterprises are besieged like ants like this industry, this trend has been increasing in recent years.

Behind pformation

Is the key

As rich crystal Qiu said, behind the scramble, the baby industry's high gross margin is the biggest reason for many OEM companies to covet.

Reporters asked many exhibitors at the above exhibition and found that the baby industry generally had a high gross profit margin.

One exhibitor told reporters that the factory price of a baby crib in China is 2400 yuan, but the terminal price can be sold to 5000 yuan.

The factory price of a children's dining chair is 300 yuan, and the terminal price is above 800 yuan.

And some imported baby clothing is even more, a domestic production, the United States OEM and then imported to the domestic sales of children's clothing price can be higher than the factory price 5~8 times.

Obviously, all of these are beyond the role of the foundry.

There are also a few people who share the same feelings with Xing Jiquan.

Fu Fu Wen, chairman of the board of chairman of Fukang toy products Co., has once felt the dilemma of supporting roles.

In 2002, when Lao Fu Wen wandered around a shopping mall in Shenzhen, he found that a foreign brand baby cup was priced at 49 yuan, and this cup was the product of the company's OEM at that time. But when the factory was sold, it only had 5 yuan. "Wearing foreign clothes, changing the name and body price will increase 10 times."

Lao Fu Wen made such a metaphor humorously, and the difference between retail price and factory price was almost 10 times the disparity, which made him deeply feel the creation.

Importance.

After that, Lao Fu Wen started the preparation of his own brand. In 2007, he signed the establishment of Dongguan Pro kiss Industrial Co., Ltd. (hereinafter referred to as "kiss me"), and launched its own brand product in second years.

Recalling the days of OEM production for overseas clients, Xing Jiquan also admitted that OEM could only follow the order, often passive.

For most manufacturing companies who earn their living by OEM, they have few capabilities in product R & D and design, but this is the key to pforming their own brands.

Lao Fuwen felt the same way.

"This requires courage to jump out of factory thinking and take risks.

Most of the products that are supplied by foreign customers are vague, and the way of thinking is completely different when they make the brand. They need to consider both the R & D, the functionality and the packaging design. "

Xing Jiquan, who was interested in design and had the product of independent design, was confident.

He pointed to a self made rocking bed to demonstrate to reporters that he only changed the bed part and supporting part of the product slightly, and the rocking bed became a round table.

"As long as we have our own design capability, we are not worried that there will be no market in the future."

Xing Jiquan said with great delight.

Talent and capital are indispensable.

Lao Fuwen introduced that in 2002, when considering the pformation, there were actually a group of such baby products manufacturing enterprises in Dongguan. At that time, the industry even circulated such a saying: "making brand is to seek death, not to do brand is waiting for death", because in the face of the pformation of cross roads, talents and capital are the biggest problems for enterprises.

"Although funds are the threshold of the road, a lot of enterprises that pform their own brands will initially think of investing heavily in advertising to open the market, but the market which is smashed with money is not stable."

Kiss me CEO Zheng Zifeng pointed out, "on the contrary, finding out where the team is is more important."

According to Zheng Zifeng, since 2005, enterprises have invested 5 million yuan for the establishment of the internal training system, and have hired consultants to create talents suitable for enterprise development planning for enterprises. At present, 70% of my key talents are from the original talent training system.

In his view, only by holding professional talents is the first step in building a brand.

Compared with Lao Fu Wen, who had been rooted in the baby industry for 30 years and accumulated enough funds, Xing Jiquan was not so lucky.

Because of limited resources, Xing Jiquan's team now needs 10 months to develop and design a new product from concept to market.

From the beginning of last year, money has been the biggest pain in his heart, Xing Jiquan confessed that it was his biggest "short board".

"Loans can not be done and there is no financing. We have spent most of our money on product research and development, and there is no excess capital in the channel layout."

He admits that this also makes his company unable to fully open the market at present.

"Although our own R & D products have been patented, they still worry that they will be counterfeited by other peers. If we can not seize the market opportunities, we may be overtaken by the latter."

Xing Jiquan said with great reluctantly.

In September 2009, Fuxing combined with Carlyle Group's 902 million yuan injection of high-end infant formula milk business, Ashley, became the largest private sector financing paction in the past 5 years. In July 2009, Zhixin capital invested 100 million yuan to invest in the children's clothing enterprise Dr. frog, and promoted the VC/PE financing scale of the industry in 2009.

Since 2012, the domestic maternal and child industry has completed 3 financing pactions, disclosing the scale of financing 630 million yuan.

In fact, there is also its own concern behind the picky capital.

"Industrial concentration is low, market opportunities and gaps are numerous, leading to insufficient competition in the industry. Small, low and scattered industries are the basic characteristics of the industry."

A VC investor told reporters that the implementation of every link of the whole baby industry chain is to segment the market one by one.

Although the capacity of each market is very small, it has survived a large number of enterprises.

In his view, some baby businesses have a very high turnover, but after careful analysis, the source of their profits is based on agency channels, without their own core brands, and the competitiveness of such enterprises will obviously be insufficient.

"It is possible to finally emerge if we take the brand channel or the complete industrial chain layout."

He said.

According to the reporter, at present, private brand sales account for only 20% of the total sales of "bear Tom".

The two companies have stressed to reporters that reducing the share of OEM and expanding the sales of their own brands are the inevitable directions for their future development.