Double Star Group Responds To "Competition For Control"

Conference site (left Sheng Shun Shun, Wang Hai, Wang Zengsheng) from the end of February this year, a "broken goods" storm swept Sichuan, Chongqing, Yunnan, Guizhou and Ji'nan more than 2700 double star stores.

At the same time, a pair of star groups and dealers around the "dealer control" competition is also increasingly fierce, with Chengdu double star and Ji'nan double star as the representative of dealers and headquarters tit for tat.

In response to these reports, the Qingdao Double Star Group held a special news conference on "double star market reform" on the afternoon of April 11th. Wang Hai, President of Binxing group, Wang Zengsheng, deputy secretary of Binxing group and deputy general manager of Binxing group, attended the press conference and responded to the so-called holding agent affair.

Wang Hai, President of the two star group, answered the reporter's questions, and the background of the reform of the binaries market system. Wang Zengsheng, deputy secretary of the Binxing group, explained the background of the reform. In 1999, Wang Hai, the president of the double star, put forward the policy of "selling and reforming the market line", so that the state-owned management company changed from the subordinate enterprise of the group to the private agent.

In Wang Zengsheng's words, this is the market system reform that Wang Hai has taken the initiative of "losing state assets, imprisoned and punished".

While the market is partly infringed, there are also a series of discordant phenomena in the market: first, some agents are fighting alone, making their own decisions, ignoring their immediate interests, ignoring the long-term development of the brand, killing each other on the business, reducing prices on the price, and not displaying the image of famous brand on the service. The quality problems of consumers reflect whether they are asking for or even for their own interests, scrambling fees, collecting fees, selling together, selling products that are unsalable, causing confusion in the market order, damaging the image of famous brands, and increasing the burden of chain stores.

If the original Shijiazhuang agent runs the "pellus" brand, the former Lanzhou agent operates the "five island horse" brand (the above two agents have been abolished). Meanwhile, the Chengdu company is also operating the double star brand while carrying out the group's rush to mark the DBSD trademark with the same name and the same pattern as the group DBSD. It also produces and operates its own brand, including the Ji'nan company, which has just been restructured. Soon, in July 23, 2004, Han Junzhi, on behalf of the group, applied for the registration of her own "Anbang JD" trademark on the twenty-fifth categories of shoes, clothing and other commodities. The application number was 4183582, and it was privately produced and operated by the group. Two, some agents benefit from the policy of "double star", and use their resources to operate their own brands.

(see photo) in the face of these phenomena and problems, the double star group has also stopped and put forward specific measures and requirements.

However, since the reformed agent has no ownership relationship with the group, it is difficult for the group to effectively restrict these behaviors, including the brand development plan formulated by the group.

It is against this background that the double star group carried out the reform of the market system.

Together with the resources of the market, we should integrate the talent resources of the double stars for many years, and jointly build up the long-term strategic objective of "double century brand" and "build a century old shop". We also propose that a new platform after reorganizing must create a safe and secure system and environment for investors in chain stores. We must adhere to the management principle of "double star brand first, chain store benefit first". We must not increase prices arbitrarily, collect fees arbitrarily, do not mix sales, and let chain stores be beneficial. We also propose that every cent earned by the platform of double star famous holding area will be used for the construction of local network, advertising and promotion, to enter the high-end market, and enhance the popularity and gold content of the brand. Wang Zengsheng said that for the reform of the market system, the attitude of the two star group is very clear. The purpose of the reform is to integrate the interests of all the factories.

The controversial 51% concept and origin: in order to solve the problems of "going all alone and making use of the resources of the two stars to manage their own brands" in the market, the group set up a market reorganization, straightening out and development leading group headed by Liu Shuli in April last year, and adopted the reform plan of the "double star group holding market 51%" by Liu Shuli and group research.

The general principles of the reform plan are: the reorganization of double star company and market agent, the participation of the market agent in the two star company, and the good market agent can serve in the high position of the two star company.

Through reform and reorganization, we can unite together, form a resultant force, enhance competitiveness, enhance economic strength, and jointly expand and strengthen the double star brand, achieve win-win cooperation and develop famous brands, and we all get rich.

It should be said that this reform idea is in line with the current situation of the double star, in line with the law of brand development, in line with the requirements of the modern enterprise system, and has fully considered the actual situation of various regions and agents in the actual operation. It has fully taken into account the interests of all sides, and has won the support and support of the agents everywhere. The agency and double star companies of nine regions (three northeast provinces, Tianjin, Hubei, Hunan, Shaanxi, Shanxi, Lanzhou, Qingdao and Linyi) have completed the equity changes. These companies are full of confidence in the further development and growth of the double star brand, which is the origin of 51%.

As for the concept of 51%, unlike what Chengdu and Ji'nan companies say, "what a famous company does not want to invest is to hold southwest 51%. It is to encroach on their property and seize their interests". Instead, the two star companies and the agents in each area are re establishing new operation companies, building new logistics platforms, and holding 51% of the two star celebrities in the new platform.

之所以要這樣做，是因為雙星作為老的國有企業，在99年市場賣斷改制過程中，自然形成了工廠、代理商、連鎖店三個利益體，而目前的經營方式是由隸屬于集團管理的工廠直接給地區代理所設的平臺鋪貨銷售，地區代理可以在不投錢的情況下，僅僅依靠自己所搭建的平臺，按照工廠在平臺的銷貨額來提成，其中提成比例最高的是成都公司，綜合統計在16%至18%之間，濟南公司也在12%以上，屬于真正的“空手撈銀子”，按照他們自己所講的西南市場年銷售額3億元計算，成都公司一年的毛利潤就在4800萬到5400萬之間，這還不包括成都公司每年未經集團許可私自從2000家連鎖店收取的5000元/年、合計1000萬元的廣告費和每個連鎖店1萬元的保證金，這都是非常不合理的，連鎖店也是怨聲載道，敢怒不敢言。

It can be said that after these years of restructuring of Chengdu and Ji'nan companies, relying on two star brands and making use of logistics platforms, they have made huge profits. This is also the most important reason why Chengdu and Ji'nan companies do everything possible to obstruct the group's market pformation.

But in the long run, this reform is not contradictory to everyone's interests, but is consistent, not to infringe on everyone's interests, but to ensure everyone's interests, so that everyone can earn more money.

Because the market in the southwest and Ji'nan is bigger, it is also far from the national market and the world market covered by the two star company. Therefore, after a share change, a certain share of the star company will surely benefit more than the local market.

But since the reform itself is a redistribution of interests and will touch some people's immediate interests, so this time, the first market reform plan put forward by Liu Shuli, when Liu Shuli and Han Junzhi came to the Chengdu company and its affiliated company, which were absolutely held by Liu Shuli, had repeatedly changed.

Why is the "Chengdu company" so strong? The predecessor of Chengdu company is the southwest operation general company under the group.

In the reform of the agent system implemented by our group, the operating companies in all major regions of the country have reformed the system through "installment repayment of the funds owed by the group for the benefit of the group on a yearly basis".

Like the agency in other parts of the group, the Chengdu company was established in the agent system reform implemented by our group, and its restructuring plan was formulated and implemented directly by our group.

Only the southwest operation company has fixed assets. This part of assets belongs to the state-owned assets owned by our group at the same time. Therefore, our group's reform plan for Southwest Company was carried out after the approval of the Qingdao municipal SASAC. It is also a double star group that has signed a restructuring agreement with the Chengdu company.

Before the restructuring, the Chengdu company was a regional operation company under our group. It was not the object of direct supervision by the SASAC. After restructuring, it was a private enterprise. It was only a regional agent of our group's products. Its legal person Liu Shuli held 51% or more shares in the Chengdu company and its subsidiary company after restructuring. It belonged to absolute holding and had one vote veto.

Our group does not own the shares of the restructured Chengdu company and its subsidiaries. The Chengdu company and its subsidiaries do not represent the rights and qualifications of our group.

In 2004, our group sold and restructured the Chengdu company, and gave the Chengdu company the preferential policy of "waiving the four years' operating fee and four years' Brand Royalty", which gave the power of all the other agents in Chengdu not permitted to use the trademark of "double star" and "DBSD".

According to the provisions of the trademark license contract, Chengdu company can not only sell double star products in the southwest, but also produce and sell clothing and part of footwear with "double star", "DBSD" and other trademarks, and the agents in other areas of our group can only sell products produced by our group as a member of the enterprise.

Over the years, Liu Shuli has used his convenience to produce double star products, squeezed out products from other enterprises of the group by various means, restricted the products of some high cost performance companies to enter the southwest platform, and proposed some unreasonable or even damaging interests of the members of the group, and harming the operation conditions of the vast agents, chain stores and operators. What is "Southwest platform has the final say, I want to tell who to enter, who to enter", the factory and agent have great and indignant opinions on this, and also seriously affect the overall development of the double star brand.

At that time, for the sake of market stability, the group gained more favorable conditions for other regional agents in the southwest market operated by Chengdu companies and affiliated companies for Liu Shuli's decision.

We recognize that Liu Shuli and the southwest market operation company have made certain achievements for the development of the double star brand, but their achievements largely benefit from the authorization of the group and benefit from the value of the double star brand, thanks to the special policy that Wang Hai president gave Liu Shuli all other agents in the country.

Liu Shuli, the head of the Southwest Company and Han Junzhi, head of the Ji'nan company, gained the most personal benefits when the president of Wang Hai took the most personal risks in the market pformation.

Difficult negotiation process with Chengdu company.

The Party committee and President Wang Hai attached great importance to the restructuring of Chengdu company and gave full consideration to the actual situation of Chengdu company.

Since the question of 51% was formally put forward in April last year, the group has been relieved of its authorization of the Chengdu company in February this year. The leaders of the group conducted many communications and consultations with Liu Shuli and Han Junzhi in June, July, October and January and January this year.

Liu Shuli began to agree with 51% and later disagreed; he began to agree to assess first, then disagreed with the assessment, and repeatedly went back and forth.

At the beginning of January this year, Liu Shuli made a clear statement for president Wang Hai, agreed to reorganize the new operation company, build a new logistics platform, and hold 51% of the new platform by double star company. In this case, in the middle of January, the group sent three vice presidents to Chengdu. On the implementation of the 51%, combined with the actual situation in Southwest China, and solve the southwest issue in a practical and realistic way, the meeting was explained to the backbone, and the two sides agreed to conduct an asset assessment of the Chengdu company first.

But when the group was preparing to send someone to the southwest for assessment, Liu Shuli did not agree to the assessment because he had worked too much before the Spring Festival and waited until the Spring Festival was over.

After the Spring Festival, Liu Shuli and Han Junzhi found president Wang Hai in nine at the beginning of the month. They also disagreed with the 51% opinions agreed before the festival, and did not agree with the assessment.

In view of this situation, taking into account the West