Building Independent Brands Into Processing Trade Enterprises And Turning Domestic Sales Into Watershed

Start domestic sales, brand first.

It has become an important watershed for processing trade enterprises to succeed in domestic sales.

Some enterprises with relatively strong capital strength began to throw thousands of gold and build their own brands.

However, the scale of processing trade enterprises is generally not large. In the domestic market, the risk of building a new brand is self-evident.

On the other hand, if there is no brand and very difficult to pry the domestic market, it is impossible to increase the profit value of the product.

"The formation of a mature brand needs to invest a lot of manpower, material and financial resources, some enterprises go down to 10 million yuan, and no fame."

Liu Zhansheng, chairman of the city's Yang Yang clothing accessories Co., Ltd. (hereinafter referred to as "Han Yang Yang dress") has been struggling for more than 10 years in the underwear industry. Last year, his orders for foundry factories fell by half, and he began to have the idea of pformation.

"Transformation"

There is a need to have a brand, and it is not very realistic to make a brand by bank loans or taking the money from VC.

After a lot of hard work, Liu Zhansheng found a way: enterprise alliance, that is, "joint manufacturers with the same needs, create a brand together".

In June last year, Liu Zhansheng joined a Shenzhen enterprise that made seamless underwear, a Zhongshan enterprise that made underwear, a Foshan enterprise that made body underwear and an e-commerce company in Dongguan.

"The purpose of setting up this company is to create brand and take the way of brand."

It is a new thing that manufacturing enterprises are accustomed to the isolated Pearl River Delta in the field of processing trade.

However, after a new company is founded by a number of shareholders, there may be more frictions in the long-term operation, which may shake the survival foundation of the new company.

Therefore, the mutual trust and cooperation fit between the two sides is particularly critical.

Xue Shengwen, a senior researcher at CIC, said that the establishment of a brand can become a replicable mode of processing trade enterprises pformation, but the specific operation needs to be cautious.

As a form of cooperation, Baotuo helps to concentrate on major events and achieve optimal allocation of resources. The establishment of brands by small and medium-sized enterprises has some reference significance for other trade enterprises to achieve pformation and get out of difficulties.

But at the same time, we should also realize that in the process of cooperation, enterprises will encounter conflicts or frictions in proportion of investment, enterprise culture and management mode, so we need to take some reasonable strategies to deal with them.

Joint establishment of brand interest

When you hear the three words of "Mu Mu Feng", have you found that it is very similar to the underwear brand familiar with "Fang Li Fang", "adoration" and "Ttiumph"? Then you can tell at once that this is also an underwear brand.

"An Mu fan" listed on the market gave consumers a potential image of underwear brand, the name is Liu Zhansheng and others according to the nature of the industry, combined with the names of several brands in the industry.

"We used to do the OEM with dream bazaar, and dream bazaar did not have its own production plant. All the products were OEM outside, then OEM and sold by ourselves.

(essentially) it's just a sales company.

We would like to think that several of our garment enterprises also have their own styles. Do they combine to make a brand? "

In June last year, Liu Zhansheng, chairman of Han Zhi Yang dress, joined four companies in Shenzhen, Zhongshan, Foshan and Dongguan. The five party contributed to the Guangdong Lai do industry Co., Ltd. (hereinafter referred to as "Lai do industry").

Brand can give distributors and consumers the most intuitive impression and feeling about products, especially when developing domestic market.

However, foreign trade oriented processing enterprises used to be mostly order models, and OEM did not have their own brands.

When they sell their products domestically, their achievements in brand building are almost zero.

As a result, we need to build up our own brand to attract more distributors and consumers in the domestic market.

However, building and building brand is a very complex and long-term process.

For pformation enterprises, this is a huge challenge.

At different times and on different occasions, many people have proposed that the manufacturing enterprises should unite to create a brand.

However, this assumption has not been widely recognized by marketing planner and industry.

They believe that the joint establishment of a brand can really save money and cost, and can play its own advantages in order to do well in the brand. It looks quite ideal and has some operability. However, it is easy for different people to operate the same brand, and the difficulty will be greater.

Liu Zhansheng told reporters that the main purpose of his choice of co founded brand is to solve the problem of capital and product mix needed to build the brand.

"Brand" has many things to invest in every year.

For example, in terms of capital, we need to invest 2 million in the early stage, and invest more in the late stage, but my company can only support this 2 million for the time being.

Now, it is not easy to do the external orders and do the OEM. The part of the capital to be increased later may not keep up. This is a realistic and must consider issue.

If we join together and share the profits, each enterprise will have less investment and a lot easier. "

Another advantage of CO branding is that it helps companies solve the problem of product mix.

"A brand needs multiple product combinations to support it. This is a big problem for processing trade enterprises to make brand pformation, because a factory can not produce so many products.

If a few companies combine to play their respective advantages and produce products that are in line with brand positioning, they will be more conducive to the development of the brand.

It is understood that among the four processing trade enterprises shareholders of lato industry, two are seamless underwear, one is for body underwear, and one is for underwear.

"If we only do seamless series, doing beauty is not our strength, it will be very troublesome.

For example, customers need beautiful bodies, and I need to buy this bit from other places, not only the price is high, but also I may need to take cash to pick up goods from suppliers.

And if my co operative factory can produce, his supplier's source of goods is long and cheap, and payment is usually a monthly knot, and the time is later, the pressure on the enterprise will be much smaller.

Enterprises in Yangtze River Delta are more alliances than PRD.

Xue Shengwen said that the phenomenon of the joint establishment of brands by several enterprises appeared in the army of the pformation of processing trade, with certain contingency, but also certain inevitability.

"Under the influence of the world economic crisis, the development of China's foreign trade has been hindered, the export has declined, and the price of raw materials has gone up, which has further reduced the profit margins of enterprises. It is an accidental factor for the Pearl River Delta enterprises to build a brand.

However, because of the gradual loss of the demographic dividend and the rising labor cost, the competition faced by enterprises is more intense.

Taking the road of pformation and upgrading, improving technological content, enhancing core competitiveness, and achieving brand marketing are inevitable choices for enterprises in the Pearl River Delta region.

In fact, in the Yangtze River Delta, enterprise alliance is no longer a rare thing.

There are many ways to form alliances in the Yangtze River Delta, such as production alliances, R & D alliances, brand alliances and so on.

The collective economy of the Yangtze River Delta also has a large number of cases of enterprise alliance, forming a "group" in small businesses in the same area, and using a brand externally.

These alliances are often accompanied by mutual participation.

Xue Shengwen said that in the development of the alliance, the Yangtze River Delta enterprises have developed early, large scale and mature systems, and the alliance has become one of the important competitiveness of the Yangtze River Delta region.

In contrast, the development of the PRD is lagging behind, and the resources and capital resources of enterprises need to be improved.

But it is worth mentioning that the Pearl River Delta has a large number of enterprises, and the form is more flexible, with certain alliance development potential.

In this regard, the government can play a positive role in providing more support for Corporate Alliance.

The risk of running a brand is high.

There are many problems in the pformation of foreign trade enterprises into domestic sales.

A number of enterprises in pition are running the same brand together, and naturally face more problems.

When doing domestic marketing, enterprises need to combine market demand, product mix, channel network, brand operation, team execution and other multiple factors to carry out systematic operation.

Enterprises will directly face the complex consumption structure, demand groups, consumers and producers, and the unpredictable sales market.

On the one hand, enterprises need to make a detailed study of the market, and produce a variety of product mix in order to be marketable; on the other hand, enterprises need to do well in brand promotion and channel control so that they can move forward steadily.

After the establishment of Lai do industry, it took months to plan and prepare for the new brand. According to their plan, "Mu Mu Fei" took the middle and high-end line, and the customers were mainly white collar workers.

At the best price, Lai do get the products from four processing trade enterprises shareholders.

"The products produced by the four factories may not be the same grade. Some products are low-end and some products are high-end. I will only take the high-end products produced by your factory into our brand.

That is to say, the products that fit their product positioning and ideas are taken as brands.

If all products are included, the brand image will be messed up and confused, and consumers will not know clearly.

"Mu Mu fan" began to appear in the market in March this year. At present, it only sells on the Internet. First, it chose to appear in Tmall.

"A few months, too much growth, but relatively much better than" acting ".

After all, having their own brand is selling. Unlike before, they sell brand names.

My factory used to be a store too. Before you own a brand, you sell people's brand, and consumers do not know what you are doing.

At the very least, we have our own brand, and our factories and our stores now sell all their own brand products.

One day, if our brand is recognized by consumers, it will be able to develop a bit more.

After several years of operation, the brand has accumulated a certain degree of popularity and recognition. We will invest more money later, and we will have confidence and confidence.

Liu Zhansheng told reporters that at present, "Mu Mu fan" mainly takes the electronic commerce channel. This channel has more than 30% profit than the OEM processing itself, and because the operation mode is not complicated, there is no big brand management problem yet.

It is certain that we have different opinions on running the same brand.

For example, how to combine products and how to promote them, there are some differences and need to run in.

Generally speaking, the solution is put forward by small shareholders, making decisions by large shareholders.

And I, as the largest shareholder, usually choose the most practical way.

For example, in the way of promotion, we must choose the cheapest and most effective.

It takes a lot of time and lots of time to make a brand, so we must consider not to spend too much money on it.

It is understood that the registered capital of Lai do industry is 10 million yuan.

Liu Zhansheng shares with other four companies in a certain proportion of capital contribution.

Liu Zhansheng accounted for 40% of the shares and acted as the legal representative and possessed absolute control power.

"Now is still in the stage of investment, and more investment is needed in the future.

When the brand is mature and profitable, it will be divided according to the proportion of investment.

The reporter understands that Lai do not restrict or prohibit the possibility of the development of other private brands in the future.

In other words, if some future shareholders are interested in investing resources to create other brands, this will affect their additional investment and business development.

In the long run, this is also a risk.

Liu Zhansheng believes that the "An Mufen" brand management and management problems may arise after the establishment of a physical store.

"At present, we haven't made a physical store yet, but we should do it in a year, because the main market in the future will still be placed in China.

Next year we will start looking for agents, and then we will be a model of offline agency. We will open some exclusive stores ourselves.

We have the industrial chain from raw materials to finished products. Most of the products are produced by ourselves, which is the advantage of our brand.

But after being a physical store, there may be some difficulties in management.

In addition, from the external market environment, the clothing industry is already in the Red Sea market stage, and An Mufen is not easy to break through in the endless clothing brand.

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Replication needs to be cautious.

The newly established Lai do industry is mainly committed to building new brands. Meanwhile, the processing trade business of Liu Zhansheng's original Han Yang clothing is still operating as usual.

The independent operation of processing trade enterprises and brand enterprises complement each other and support each other, and begin to "double track" operation.

"The piece of processing trade will continue to be retained. There is no way to do that.

In processing that piece, we only have to change our business philosophy, and we can't discard it for the time being; we must definitely focus on processing trade at present, because we need to take this profit to support the development of brand enterprises.

After the brand has been established, it will gradually focus on its own Brand Company, but this time span is relatively long, and it may take 35 years before it will be effective.

Liu Zhansheng believes that his own test of water will take at least a couple of years to see the effect.

In Liu Zhansheng's view, the joint creation of brand models is very useful and worthy of promotion.

"Other industries can also sell on the Internet, and different industries can cooperate with each other if they have common needs.

In terms of investment, it will be larger when doing physical stores.

If the first thing to do is e-commerce, investment is not very big, I believe many enterprises can bear it. "

According to the analysis of the insiders, because export to domestic sales is not a simple way to open up the domestic market for enterprises. In fact, it is the pformation from the processing workshop to the brand provider or even the industry chain manager. It is the process of the enterprise from no brand to self created brand, and it is a reengineering and upgrading of the enterprise.

For many reasons, many export oriented enterprises can not completely abandon the export market and devote themselves wholeheartedly to the domestic market. Instead, they choose "two legs" to walk.

However, this does not mean that walking is steady and stride forward, because there are too many differences between the "one leg" and "two legs" in walking.

Xue Shengwen, a senior researcher at CIC, said that the establishment of a brand can become a replicable mode of processing trade enterprises pformation, but the specific operation needs to be cautious.

As a form of cooperation, Baotuo helps to concentrate on major events and achieve optimal allocation of resources. The establishment of brands by small and medium-sized enterprises has some reference significance for other trade enterprises to achieve pformation and get out of difficulties.

But at the same time, we should also realize that in the process of cooperation, enterprises will encounter conflicts or frictions in the ratio of capital contribution, corporate culture and management mode, so we need to take some reasonable strategies to deal with them.

Domestic sales spoil international brand acquisition tide

At the 112nd Canton Fair, Roman Jeronok, a merchant of Italy, sold or hired Italy's old brands to Chinese enterprises. As a result, nearly 800 Chinese businessmen were received in 15 days, and there were more than 100 purchase intentions or rental brand intentions.

According to Xinhua report, the price of Italy brand for sale at the exhibition is different.

In Roman Jeronok's brand list, there are 10 thousand euros worth of brands, and a brand price of more than one hundred thousand or even a million euros.

Roman Jeronok said that Chinese enterprises are interested in Italy brand, including not only familiar furniture, clothing, textiles, etc., but also a large number of Chinese enterprises in Italy sports goods, small appliances, cutlery and other fields.

He said that Chinese businessmen buying Italy brand is not just to expand the international market, but also expand their share in the domestic market.

Reporters interviewed found that many processing trade enterprises need to help brands in pformation, and they are or are already buying international brands to pform themselves into existing ones and expand domestic sales.

TTI Chuang Ke group takes the brand as the sword of pformation.

The group was set up in Hongkong in 1985. In 1988, the first processing trade enterprise in Dongguan Houjie Town, Dongguan Houjie technology and electric power plant, was set up in Houjie Town in 1988, and 6 other enterprises, such as Dongguan Chuang electrical and Mechanical Products Co., Ltd., were made OEM processing for foreign brands.

In recent years, with the help of the Dongguan municipal government, the company has successfully completed the pformation and upgrading of the on site production and pformation from three to one to foreign invested enterprises.

Wu Wenbing, director of government affairs of China's electrical and mechanical industry, told reporters that the creation of mechanical and electrical industry began in 1999 to acquire overseas brands and speed up the integration of brands. At the same time, it also accelerated the R & D investment of free brands.

"After buying a brand, the most direct impact is the increase in sales, which means that we have entered the sales market of the original brand."

It is understood that since 2000, Chuang Ke group has been actively implementing its own brand strategy, acquiring many high-end brands in Europe and the United States, and taking this as a breakthrough, vigorously introducing related technologies and talents to open up the international market and creating multiple independent brands.

At present, Chuang Ke group owns more than 10 independent brands.

Formerly known as the Dongguan Fenggang bamboo tail toy factory Dongguan Mei Chi Tu Industrial Co., Ltd. (hereinafter referred to as "Mei Chi Tu"), in the process of expanding domestic sales, has also acquired the brand.

Wu Kehan, director of the factory, told reporters that before the international financial crisis came in 2007, the United States made a move to reduce its competitors and now it has become an important turning point in the development of enterprises. It invested 450 million yuan to acquire the famous brand Bburago of Italy, which has a history of more than 50 years.

This year, it has acquired an American brand "muscle machine".

Wu Kehan said that after the brand was put into the market, the company's exports to the US and South America could also rise by 30%.

Of course, these phenomena are not special cases.

Data show that since 2008, only in Dongguan, where processing trade is relatively concentrated, the city's processing trade enterprises have acquired 397 foreign brands.

According to insiders, the emergence of this international brand takeover has benefited from the global economic downturn and the European debt crisis.

Because the value of many foreign brands has plummeted, the price of the acquisition is relatively cheap.

Insiders also say that processing trade enterprises have been lacking in brand and core technology because of the OEM in the international market, and the development has always been controversial.

In the face of the adjustment of the international and domestic economic structure and the comparative advantage of the domestic comprehensive factor cost, the acquisition of brand and the pformation of domestic sales are, in a certain sense, a strategic opportunity period. The processing trade enterprises should be good at using and grasping this opportunity.

Xue Shengwen, a senior researcher at CIC, also said that under the influence of the financial crisis, the European economy has been greatly affected.

For processing trade enterprises, the cultivation of a well-known brand requires a certain amount of manpower, material resources, financial resources, time and cost, and the direct purchase of purchased brands is conducive to the expansion of sales volume and the improvement of business performance in the short run.

Through the acquisition of brand, the enterprises that pform domestic market can, to a certain extent, exploit the brand effect of foreign famous brands to expand the domestic market, occupy a larger market share and enhance their competitiveness.

However, he also reminded us that the purchase of foreign brands will have a certain impact on China's domestic market, and that the increase of brands will exacerbate market competition and enhance market activity.

But the whole market needs a virtuous circle, and it will still win the fittest.

Market supervision departments should strengthen supervision, and all kinds of measures need to be further promulgated and put in place.

Consumers should also carefully identify the quality and effectiveness of products while meeting more choices.