The Confrontation Between Property Right And Brand Is A Difficult Problem Left Over By History.

Wang Hai and Qingdao double star are China's reform stars.

Since the beginning, controversy has been growing. Now, the dispute is getting bigger and bigger. This is mainly a dispute within the camp.

Therefore, the direction of "shoes" of Wang Hai and Qingdao binaries is in the right direction, and people are very concerned about it.

We can think from several factors or angles such as industry, operation, organization, property right, brand and so on.

Of course, these elements or angles are also theoretical delineation and abstraction. In the actual process, all elements and angles are integrated together.

In the final analysis, the contradiction is concentrated on the choice of property right and brand.

First, industry: sports shoes and tires are known by many people. Qingdao double stars make shoes.

The construction of a double star to the Shandong border area, with a high profile, is to support the three line border area. A person's salary is 400 yuan a year, which means that 10 indicators of difficulty relief have been achieved. In fact, the high cost of Qingdao has been lowered, and the Korean Enterprises will be left behind after the expansion of the scale.

But then Qingdao double star began to pform, not only for shoes, but for shoes.

This is the five round of financing and acquisition to strengthen the tire industry.

This industry diversification should belong to the diversification of related industries, because shoes and tires belong to the rubber industry, so it is more reasonable.

From the actual results, Qingdao's double star revenue and profits have mainly come from the tire industry, and shoemaking accounts for only 1/10 of its annual revenue, so this pformation is basically successful.

In contrast, some enterprises may have two extremes in the adjustment of industrial structure. One is to stick to the rule and dare not break through. When the adjustment is not adjusted, the opportunity is lost. The other extreme is the blind expansion to completely unrelated fields, and the result falls into the expansion trap.

Second, business: production and sales, if the footwear industry chain includes R & D, manufacturing and marketing three links, then the first two steps are more concentrated, and the last one is more dispersed.

Nike is focusing on R & D and sales and outsourcing.

In fact, any household appliance product will encounter a similar sales channel problem. An extreme mode is completely handed over to wholesale retailers for sale, such as selling to GOME stores; the other extreme mode is completely selling itself, that is, setting up its own brand store.

The two have their advantages and disadvantages.

Double star is shrinking to R & D and manufacturing two links, the sale will be liberalized, but still consider the development of brand stores.

Now, the more than 3000 double star stores across the country have all been private-owned in 2003, although the brand is the same, but the owner has changed completely.

Third, organization: with the adjustment of the industrial structure and the adjustment of the management mode, the organizational structure of the two stars has also undergone radical changes. For example, the strategic goal of the professional enterprise group -- the double star group is to further develop the three major industries of shoemaking, tires and machinery, and to realize the collectivization of the major industries. In particular, the twin stars have already included two subsidiary companies of the double star listed company and the Twin Star Industrial Company, each of them should strengthen their main business, and they can not fight "civil war".

Terminal network chain - in order to reverse losses, double star began to pfer chain stores in 1998, all sold out, a total subsidy of nearly 3 hundred million.

Of course, this step also leaves behind a hidden danger. In fact, there is a serious out of control.

Therefore, double stars are now planning to reclaim the national sales channels.

It looks as if we have completed a cycle and back to the original starting point.

But there will always be changes.

Joint-venture cooperation alliance - the company with the first batch of domestic farm vehicle production in Shandong Gaotang County wind group cooperation, set up a double star wind tire company, production of agricultural tires, light truck and radial tire; hosting Dongfeng Tire assets and the establishment of double star Dongfeng Tire Co., Ltd.; invest in Henan Ru'nan County tire project, and so on.

Obviously, in the process of organizational change, there are both changes in property rights and brand considerations.

The most complex is the connection between the two.

Fourth, property rights: state owned and public owned enterprises, like other state-owned enterprises, solve the problem of ultimate ownership.

Shoemaking is a light industry, and the state-owned economy should be gradually withdrawn.

In 2006, when the Qingdao double star pferred the footwear assets to the famous star company, Wang Hai was once questioned as "state-owned assets".

Although the celebrity industry is a subsidiary company under the double star group, but the celebrity industry is dominated by natural persons, Wang Hai is the largest shareholder, and the Qingdao municipal Party committee decided to give Wang Hai a 21.88% stake in the form of reward.

So far, the business of "double star shoes" has been "controlled by Wang Hai".

The key issue is not only here, but more importantly, the pfer of the terminal sales network, that is, the property rights of the store.

Therefore, the essential characteristics of the double star property right reform are two separations: the separation of the group from the state and the separation of the exclusive store and the group.

Fifth, brand: after all the empowerment is clear about the context of property rights change, let's take a look at the brand.

First, when the group is separated from the state, the two star brands belong to the group; secondly, when the franchised stores are separated from the group, they also say that they are authorized to use them.

Now, the problem is between the franchised stores and the group: when the Group invested the brand and the store invested money, who should be the brand?

Can other stores sell other brands?

Can you sell double star socks or trousers?

How to share advertising fees?

Wait.

In particular, in order to strengthen control, the group has to "recover" equity, and the group and the store finally showdown.

In theory, property rights and brands do not necessarily have to be one. Direct stores are the extremes of integration. The other extreme is that there is no property right connection at all. That is franchising.

For example, Japan's TOYOTA automobile produces about 4 billion yuan in China, and a 4S franchise store has invested about 35 million yuan, and 200 stores have 7 billion yuan. This 7 billion yuan is entirely Chinese, rather than TOYOTA.

It looks like a trick of "empty handed White Wolf".

Therefore, in some areas, intangible assets are actually driving tangible assets.

Now it seems that when the double star sold the exclusive store, the management of the brand may be too extensive, and the terms are not strict enough.

Until now, if I want to pick up again through equity, I am afraid it is not theoretical in theory, and will also encounter great resistance in practice.

The best way is to sit down and negotiate and find the key to moving forward.

Double star has contributed a lot to the development of Chinese enterprises, and is still exploring and paying tuition fees.

This is also to accumulate experience for other enterprises.

I wish the two stars a good journey.

(author: Institute of management science, Chinese Academy of Social Sciences)