Opening Up The Group, Constantly Innovating And Inspiring New Vitality Of Old Brand

Revitalizing old brands is Kai Kai Group Development strategy, and innovation is the key to its rebirth.

　 Shanghai has never been short of old brands.

The Shanghai Kai Kai Group, a subsidiary of the Jingan District SASAC, brings together many well-known brands in Shanghai, including the opening of clothing, Hongxiang clothing, dragon and Phoenix cheongsam, Heng Sheng, first sipeia, blue Tong Bo and Lei Yun. These old brands are divided into three sections: Shanghai ray Yun Shang pharmaceutical West District Limited, Shanghai Hongxiang Department Store Co. Ltd. and Kai Garments Co., Ltd.

How to revitalize these old brands is related to the success or failure of the development of the group.

　 First hold on and develop again.

"We try our best to protect these old brands, at least we can survive and talk about development. These old brands can't die in my hands. " Chen Huiquan, chairman of Shanghai Kai Kai Group, told state-owned assets in Shanghai.

What he valued is not only the value behind the old brand, but also the inheritance of culture. For example, the dragon and Phoenix cheongsam keeps the classics of the Shanghai style cheongsam in the production process, and its eight crafts have also won the title of the national intangible cultural heritage. Lei Yun Shang is a time-honored brand with more than 300 years of history. Lei Yun Shang Liushen pills and Yunnan Baiyao (59.50, -0.80, -1.33%), pizin (97.42, -1.04, -1.06%), Ann Gong Niuhuang Wan and Hua Tuo Zai Zai Wan formula are the 5 remaining national secrets (top secret) prescriptions in China.

"These things are valuable assets left by our predecessors. In the past, people did not regard the brand as an asset, but if we make good use of the old brand, we will surely shine new vitality." Chen Huiquan said.

A typical example is the rise and fall of Hongxiang clothing. 4 years ago, the company earned nearly 20 thousand yuan a year, almost bankrupt, and now the company has made a brilliant turn and its annual sales volume has reached 2 million yuan.

According to Chen Huiquan, four or five years ago, the old brand opened almost all the lines except Lei Yun. But now it can basically achieve the fast development of enterprises with a deficit and a small surplus.

Lei Yun Shang West Limited is one of the largest source of profit for the group. In 2008, the profit of the company was around 14 million yuan, and it doubled to three yuan after three years. Its annual report shows that in 2011, Lei Yun Shang West made a net profit of 13 million 980 thousand yuan for its industrial contribution, accounting for 36% of its net profit.

However, not all old brands can operate freely like Lei Yun. For companies struggling to survive, the group should be supported by various aspects, such as rent subsidies in the first three years, and subsidies for key enterprises to apply for government subsidies.

"Even though it was hard, I didn't want to sell the old brand, but the funding problem is really tight, I hope to introduce investors, but we want to keep the brand investment, otherwise it will not sell even if its bid is higher." Chen Huiquan said.

The sale of old brands was a surge in the tide of attracting investment in the 90s of last century. Li Guangdou, a brand expert, once said that TNCs' strategies for Chinese brands have always been "win, fight, fight, win, buy, and buy them and put them on the shelf." For a time, many old brands quietly disappeared.

Opening up does not want to repeat the mistakes of history, so it is very vigilant for investors. Despite the dragon and Phoenix cheongsam A few years ago, two partners were discussed, but all of them ended in failure. "We want to introduce financial investors or good brand management teams, but they can't be bought." Chen Huiquan said.

Cut the dress according to one's figure

The rebirth of old brands is not done blindly. It is very important for the opening group to manage many brands.

For example, Longfeng Qipao, Heng Sheng suit and other old brands are all custom made by hand, with small output, high cost and long production cycle, but they can make ready-made garments according to the individual needs of customers.

"This kind of enterprise is suitable for the luxury line. It doesn't need to be bigger, but it should be refined and strong, and take the road of quality, and become a luxury brand in China." Shi Guozhen, general manager of Hongxiang general merchandise Co., Ltd., Shanghai, said.

On the way to improve the quality, blue Tong Bo step has taken a step. Shanghai Blue Tang Bobo Leather Shoes Co., Ltd. is composed of blue leather shoes shop and Bobu leather shoes store. The average price of the blue shoes is about 200 yuan. Now, with the improvement of store, brand and quality, the average price has risen to more than 1000 yuan. {page_break}

"We produce new products every year and invest and develop on marketable products. Last year, the group's injection of blue Tong has increased from 3 million yuan to 10 million yuan. Shi Guozhen said.

The dragon and Phoenix cheongsam has also begun to taste sweetness. Four years ago, the dragon and Phoenix cheongsam earned less than 1 million yuan a year. Now a shop can produce 800 to 900 cheongsam a year, with an annual income of 2 million yuan, because it is tailored, and the dragon and Phoenix cheongsam does not have the pressure of inventory. The average price of a dragon and Phoenix cheongsam is two yuan and three thousand yuan. The most expensive set of gold embroidery clothing is priced at 38 thousand yuan, less than 5 days after the launch.

"For these brands, we will not abandon the pure manual and pre shop mode of operation, the output will not be increased too much, but it will give more cultural connotation, and bring forth new ideas, design more new products that meet consumer tastes, so that the old brands can inherit and develop in innovation." Shi Guozhen said.

And the opening of clothing brands, such as machine production, will take the road of scale in the future.

Lei Yun Shang is also the same in the western region. It has been involved in scientific research, production and circulation, but mainly in sales and circulation. "In the future, we will continue to expand the scale of the industry and make bigger and stronger drugs wholesale, total generation sales and expanding retail channels." Zhang Xianghua, chairman of Shanghai Lei Yun Shang pharmaceutical industry West District Limited company, said.

　 Innovation as soul

The old brand is the development strategy of opening the group, while "innovation" is the key to the rebirth of the old brand. It cannot be emphasized. But how to get a delicate balance between this "new" and "old" is a difficult problem.

Among the many old brands that are hard to survive, Lei Yun Shang West has found new business opportunities in a commercial blue sea with its brand innovation.

Five years ago, Lei Yun Shang West Pharmaceutical industry adjusted its management strategy, took the health industry as the main development direction of the company, gave up the general health care products market, and made a breakthrough quickly by creating the brand of "top ray" brand high-end ginseng and antler tonic product. Over the past three years, "Shang Lei brand" has made Shanghai famous trademarks and famous brand products from scratch, and its profits have doubled.

At present, Shanghai Lei Yun Shang Pharmaceutical Co., Ltd. has formed 14 categories of more than 500 independent brands, and the number of stores is 30. The annual sales volume is 200 million yuan, and the annual profit increase is more than 30%.

Western Areas Ltd has set up a three year action plan for Chinese medicine. This year, all stores have been renovated and set up a Chinese medicine hall for questioning. These stores are very antique and traditional Chinese elements are injected into it. This shows the cultural details of Lei Yun as a hundred year old brand, and also sets the distance with other brands and other owners of "Lei Yun Shang" brand.

Because Lei Yun's brand is more than just opening the group. Lei Yun was founded in 1734 and sprang up in Suzhou, and was born in Shanghai. Therefore, both enterprises have a company named Lei Yun Shang. In 1992, when the administrative company changed its system, three drugstores named Lei Yun were set up in Shanghai. In September 2000, Shanghai Pharmaceutical (11.87,0.01,0.08%) held the Shanghai Lei Yun Shang Pharmaceutical Co., Ltd., and integrated it with Lei Yun Shang Nan and Lei Yun Shang Bei. It was called Shanghai ray Yun. In April 2000, Lei Yun Shang Xi was reorganized with Shanghai Jingan medicine company, and founded the Western Areas Ltd. In addition, there is a northern area of Lei Yun, under the jurisdiction of Hongkou District.

"The three Lei Yun is completely independent. Although there are duplication in the industrial structure and product categories, the latitude and longitude of the three companies in the industry is still very clear." Zhang Xianghua said.

The call for integration of Lei Yun Shang brand has always been there, but it is difficult to push forward. Several previous integration failures ended in failure of interest segmentation.

"We hope to make the brand first, but not for the rest."

In addition to the innovation of business strategy, the group opened the group at the cost of the development of the old brand.

In the first half of last year, the Dragon Phoenix cheongsam signed a school enterprise partnership agreement with Shaw vocational school, and started training the "successor" of the dragon and Phoenix cheongsam from the students. The students were instructors from the dragon and Phoenix cheongsam, and the students went to the Longfeng Qipao studio before graduation.

Hongxiang department store also set up its own design center. In 2008, it began to cooperate with the Department of fashion design of Donghua University. After a year, the designer, model designer and sample worker were introduced through the market approach. The establishment of the design center provided a steady stream of innovative design for many old brands of Hongxiang department store, and provided services in brand positioning, marketing and publicity.

"The cost of the design center is very high, nearly three yuan has been invested in nearly 3 million years, and the profit of Hongxiang department is only about 1000000 yuan a year. Act as clothing We must innovate in design. Shi Guozhen said.