Interview With Chen Jiang, Lingsha Underwear Co., Ltd.

Shopping malls are the main battleground of many underwear brands. How can we win absolute victory on this battlefield? I believe that only by a deeper understanding of what the ideal of shopping malls can be done, we should formulate strategies according to local conditions, so that we can know ourselves and know each other.

This year, the channel of Lingsha underwear has changed greatly from circulation to terminal. Therefore, how to deal with this change and how to stand out in the fierce market competition is particularly important.

To this end, we interviewed the Lingsha Underwear Co., Ltd.

Minister, let us join him in a multi angle, in-depth understanding of shopping malls and underwear industry.

Shopping malls

What is the requirement of the brand? Can you analyze it here?

Minister Chen: I would like to talk about several major entry requirements: the brand positioning must be clear, there are clear product interest points, there are differences, to avoid similar competition.

For example, this underwear is fashionable and sexy, and the other best is to be young and lively. They are complementary, so that they can avoid the killing of each product in the shopping mall to a certain extent, and attract consumers with different purchase needs to the greatest extent. The overall sales volume of shopping malls is increased.

At the same time, the shopping mall also needs to evaluate whether their brand positioning matches with the shopping malls. For example, a high-end shopping mall will not consider a very cheap underwear brand.

The brand image must be better and has a higher popularity because such brand can lift the brand image of the shopping mall, and consumers also like it.

Does this mean that it is difficult for new brands to enter the market, and mature brands will have the priority to enter the market?

Minister Chen: the situation in each shopping mall is not the same.

Shopping centres pay much attention to the balance and combination between mature brands and new brands.

There must be some mature brands, because their brand image is good, and there are fixed consumption groups, which can enhance the image of shopping malls, increase the popularity of shopping malls, and stabilize sales volume.

But the shopping mall will also introduce some new brands, because the brand repetition rate of various shopping malls is about six or seven percent, so each shopping mall is hoping to attract consumers by other brands or goods that can't be bought from other shopping malls to create our uniqueness and uniqueness, but they must meet the entry conditions, especially a good positioning and good brand image.

Nowadays, many enterprises are dreaming of underwear "Gome". They think that the traditional terminal mode of department stores is challenged by multi brand chain stores, and they think that this mode will replace the shopping mall mode. Do you think this mode poses a threat to shopping malls? Will it replace the status of shopping malls?

Minister Chen: for the time being, it has not caused any threat. Personally, it is considered that the difficulty coefficient is much more difficult than that of the household appliance chain. This format can not replace the shopping mall, but it may cause some impact if the development is mature in the future.

So what do you think is the reason why it can't be replaced?

Minister Chen: I think the underwear industry is very different from the electrical appliance industry. First of all, the terminal of underwear is very important. Many consumers decide whether you are a big brand from what store you sell, so many manufacturers often rely on the grades, reputation and geographical location of the shopping mall to enhance their brand image and rely more on shopping malls.

Secondly, I think this mode is not very suitable for consumer buying habits. Electrical appliances are large products. Consumers will consider more factors when buying an electric appliance. Relatively rational, they will go to a shop for a specific reason. After repeated comparison, many factors are involved in the perceptual consumption of underwear, which makes it very difficult for them to have absolute trust and loyalty to which brand of underwear industry. It is difficult for consumers to go to a store for dozens of underwear and more than 100 yuan underwear, so underwear manufacturers also need to take advantage of the shopping mall's own ability to carry out sales.

In the end, I think there is another price factor. Gome is one of the leading companies in the upstream and downstream industries to get more support and lower prices.

This is another big problem in the underwear industry.

From the production point of view, the biggest difference between underwear and electrical appliances is that most of the underwear is made by hand, while electrical appliances are automatic production.

In automated production, the larger the scale of investment, the lower the cost, and the large scale of manual operation can not reduce the cost.

Since manufacturers can not reduce the cost from the increase of production, where to give room for profit to "underwear Gome"? Another point is that the price of underwear is not the most important factor, because the factors such as style, fabric, upper body effect and other factors can easily affect consumers' perception of product value. The difference between the 10-20 pieces can not replace the perception of consumption.

Many shopping malls have high "

"The part that will not be completed will be borne by the supplier. Many new brands often fail to sell well in the market because of their low popularity. The loss is huge until the last exit. How do you think the new brand can avoid this situation?

Minister Chen: entering the shopping mall is like entering a competitive arena like a forest, facing the competition of close combat. The new brand is best able to differentiate itself from many mature brands in the mall, avoid confrontation with them, and avoid competition and win competition.

In the shopping malls, those characteristic varieties with accurate positioning and unique product concepts often sell well. Of course, the price of underwear, the terminal display, and the introduction of shopping guides are also very important, so manufacturers can take more time from these places.

Are there any shopping centres in the underwear industry that buy out famous brands for exclusive sale?

Minister Chen: there is.

For example, Wuhan Plaza will buy out 130 well-known brands for the first time, and sell them to the market in the name of "exclusive". In the opening of Qun Guang Plaza, a lot of products and discounts are publicizing "exclusive".

What do you think of the underwear industry?

Minister Chen: looking at the current underwear enterprises, there is very little net income in the past year breaking through 300 million yuan. I think the main reason is that the company is faced with many deep-seated challenges after reaching this scale. There must be systematic competitive advantages such as brand, quality control, sales management, marketing, customer service, logistics and financial management. The success of a single point is hard to support 300 million yuan.

However, at present, there is no company in underwear industry that has the competitive advantage of this system, and there is no increase in internal strength.

The emergence of almost every new product and new concept in the shopping mall will cause a stir of other brands, followed by various enterprises, and then the price war and promotion war that the bayonets are seeing red, and the result is "a family with joy and many worries".

Consumers' loyalty to their brands is not too high, "often losing their loyalty to big brands for one dollar."

So I think the whole industry should not be fully mature, not standard enough, still in a simple tactical level, and lack of systematic competitive advantage.

Can you describe underwear market with several key words?

Minister Chen: irregularities, homogenization, tactics, price wars, and concept wars are particularly evident in thermal underwear.

Many underwear in the melee, failure and predicament, which way do you think the underwear business is?

Minister Chen: I think there are two ways to go. First, some enterprises can make "Galanz in underwear industry", raise the low price to the system capability of the enterprise, fully cultivate their own low price ability of the system, integrate upstream and downstream supply chain, and win the strategic advantage of cost performance.

Second, go to the subdivision, differentiate the competitors from the competitors, clear the position, clarify the image, and make differences with other brands, avoiding vicious competition.