Shoe Companies Are Good At Worrying About Foreign Brands.

When foreign brands enter the domestic market to implement localization, seeking agents can shorten the breeding cycle of new markets, and local enterprises can also save the cost of self created brands, and at the same time get benefits from premium, technology and channels.

However, the accompanying concern is whether this will cause embarrassment to "helping others raise children".

Saving: time cost, brand cost, and the phenomenon of a large number of foreign brands Acting for Quanzhou enterprises. Ye Shuangquan, a veteran in the industry, believes that every brand entering a new regional market will face the problem of localization. Even if the international brands such as P & G, Coca-Cola and so on have been investing and growing in China for more than a decade, they will have today's market success.

The most convenient mode for foreign brands to enter later is to cooperate with local enterprises with experience and market channels, so as to save the cost of cultivating new markets.

According to the analysis, Quanzhou has concentrated most of the sports brand in China, not only has the brand cluster, the huge manufacturing base, and the various marketing talents, but also brimming with the entrepreneurial passion of daring and daring, naturally becoming the favorite place of the international brand.

"HI-TEC" company global CEO Martin (MARTIN) told reporters that China's rapid economic growth is a new growth market in the global consumer market.

With the approaching of the 2008 Beijing Olympic Games, the economic growth and enthusiasm of sports will bring the market wider.

It is the easiest way to find local agents in order to make the brand enter China quickly and integrate into the Chinese market at a faster time.

From the "LeeCooper" British company responsible person, and the first 5 years of cooperation with the company did not put forward specific figures in the market sales requirements, for them, the brand's future promotion and development in China.

The choice of cooperation with billion can be regarded as the beginning of the incubation period in the Chinese market.

Regarding this, Hong Jie, executive director of the Standing Committee of the China Marketing Association, believes that China is the largest consumer market in the world and the "big cake" of the brand dream of foreign countries. Foreign brands want to enter the Chinese market and are faced with the problem of localization first. Finding the cooperation between domestic enterprises and enterprises that are familiar with the Chinese market is the first choice.

At the same time, for local enterprises, acting overseas brands can save some of the operating costs necessary to create their own brands.

Earnings: premium technology channels choose to cooperate with domestic companies to jointly develop the domestic market, and foreign brands have taken account of the problem of resolving the problem of not being familiar with the local market. Domestic enterprises choose to cooperate with them, in addition to reducing the promotion cost and gaining profits from brand agents. Learning from foreign brands' experience in management experience, technology and channels is also another purpose of many enterprises keen on agency.

"Disney is a very good international brand, acting as" Disney Sports ". Apart from gaining premium from its brand added value, we also learn from other people's brand management and develop a brand new channel resource, which is also a harvest.

"Disney Sports" marketing director said that he did not know much about the authorization system before, but through the cooperation with Disney, he gained great benefits and knowledge in the licensing management of international big brands.

For holding two international brands at the same time, XTEP's vice president, ye Qi, believes that XTEP's cooperation with Disney, in addition to seeing the economic benefits, sees another point, that is, the team is a good opportunity for training and upgrading, and enterprises can accumulate operational experience from the cooperation with international excellent brands.

"Cooperation with Disney is an obvious boost to the internationalization of XTEP brand.

There are many rules of commercial game that we are not familiar with in international competition.

Disney, as the world's top 100 brand, has rich experience in international business. Therefore, it is a rare cooperation for XTEP, and it is also a rare learning opportunity.

Ye Qi said, "XTEP used to be a torpedo boat, just a near shore operation, and Disney is an aircraft carrier. It has strong ocean fighting capability.

Working with Disney will enable XTEP to upgrade from Torpedo speedboats to higher level destroyers.

The agent "HI-TEC" also brings impetus to haatai (China) Garments Co., Ltd., which absorbs "HI-TEC" advanced management and design research and development experience.

Martin, global HI-TEC CEO, said the company's overseas headquarters will help design, technology and quality management of products.

Martin said that the "HI-TEC" world-class R & D team was brilliant, winning hundreds of technical and design awards, and creating many industries.

In addition to providing technical support such as design, R & D, "HI-TEC" will also give hatai guest China more cooperation, guidance and supervision on production.

Martin also affirmed the production capacity of the footwear industry in Quanzhou.

He said that China has developed into a big shoemaking country in recent years. Many international sports and outdoor brands have been processed in China, and management level and production technology have reached international level.

"In fact, enterprises are the integration of resources, and the final integration is the ability of enterprises."

The industry believes that for enterprises, through proxy brand re integration of resources is another important purpose.

Whether an agent brand enterprise or a company with its own brand, the entry of a new brand may lead to a new integration of market channels and management teams.

"Just one more friend, one more road.

More than one brand is an opportunity for more resources, and finally can be integrated to see a company's integration capability.

Therefore, every company must have a purpose when doing a thing. When deciding to act as a foreign brand, an enterprise must have a clear idea of what new resources it wants to develop.

Worry: there are people in the industry who help others raise big children. Many famous international brands now adopt agency system or short term brand authorization. Through the operation of Chinese enterprises in the domestic market, it is easy for brands and agents to cause short-term market behavior.

"After all, there are two kinds of risks in short-term market behavior: children who raise others, and eventually children will be taken away; the right to use the brand may be withdrawn halfway."

The source said.

What is the extent to which a business agent will make a profit in a foreign business?

In fact, there are successful experiences in the domestic market for reference.

As for where the brand licensing agency will eventually go, scholars and industry veteran have a common view: it should be integrated into the strategic planning of enterprises.

Successful precedent: Kappa experience can draw lessons from the current market situation of agent brand in Quanzhou shoe enterprises, which is different. How far can this mode of operation be authorized through limited time?

Perhaps no one can say for sure what the future will be. However, the success of Kappa, acting in China, has brought confidence to the industry.

Kappa is a brand of Italy BasicNet group.

When Kappa first entered the Chinese market, it was run by Lining group affiliated enterprises in Beijing.

The trend of Beijing was founded by Chen Yihong, the Li Ning Co's original CEO. Among them, the Lining group has a 80%% stake, and Chen Yihong holds an 20%% stake in her own.

At that time, Lining group's expectation of Beijing's trend was mainly to earn more profits through the agency of international brands.

Because only 5 years of authorized contracts were signed, the short period of agency gave Lining group a difficult problem: to make more profits for the company, bigger Kap-pa needed more resources. Once it is big enough, if Italy reclaims the brand agency power and independently opens up the Chinese market, it will be equal to helping the opponent make a "wedding dress".

This worry and loss mentality led to a very confused trend in Beijing.

In 2002, Beijing's sales revenue was about 15 million yuan, reaching 40 million yuan in 2003. However, due to the sharp rise in channel costs, the company was actually in a state of deficit.

Besides, Kappa was suppressed by international brands such as Nike and Adidas outside the Chinese market, and was squeezed by local brands such as Lining and Anta.

Because of the unclear prospect, Lining group decided to adjust its strategy and pursue the long-term value of the brand. In 2005, it sold the 80%% Beijing equity stake to Chen Yihong for 44 million 800 thousand yuan.

Since then, Chen Yihong has wholly owned Beijing's trend equity and reorganized it into China's trend in early 2006.

At this point, the problem that the brand agency contract is about to expire will beset Chen Yihong: if the problem of agency contract is not solved, the company will not be able to let go.

At this juncture, Kappa group's parent company BasicNet group had cash flow difficulties.

After acquiring Morgan Stanley's strategic investment of $38 million with the 20%% stake, the capital backed China trend bought the brand ownership and permanent management rights of Kap-pa in China's main market at a cost of $35 million, and solved the problem of brand continuity in one fell swoop.

At this point, Kappa has around 600 million euros in sales worldwide.

After buying up ownership of Kappa in China's main market, how do we manage it?

This is a problem that Chen Yihong must face.

Chen Yihong resolutely decided to adopt a differential development strategy, to change the course of the past to focus on sports clothes, and then to inject fashion trend into the sports elements.

This year, China's sales rose to 1 billion yuan, 25 times that of 2004.

Subsequently, Chen Yihong began to prepare for China's listing plan, which was listed on the Hongkong stock exchange in 2007.

At 16 o'clock on the same day, the first day of China's listing on the Hongkong stock exchange closed at HK $5.43 per share.

At this price, the total market value of China's move reached 29 billion 870 million yuan, far exceeding that of Lining, an old businessman who was listed in Hong Kong earlier.

What is the future of China?

How long can it last for a single Kappa?

No one can say that.

However, some information in China's prospectus reveals what the next successful enterprise will do next: the 48.0%% will be used to expand the brand portfolio, of which about 33.0%% will be used to acquire the ownership or management rights of one or more brands in China that is not yet determined. 15.0%% will be used to manage the new acquisition brand, and channel construction is another priority.

Can China's success in running Kappa be staged in Quanzhou's foreign brands?

According to the insiders, the trend of China's buying and selling Kappa's right to operate in the main market of China is different from the brand agency mode of many enterprises in Quanzhou. It is difficult to compare and copy, but the market means can be used for reference.

Experts take the pulse: we should integrate the brand licensing agency into the strategic planning of enterprises. Professor Lv Zhenkui of Quanzhou Institute of business and information of the teachers' College of believes that foreign brands entering the Chinese market belong to brand internationalization.

Generally speaking, there are many ways to import brand goods into foreign markets in the process of brand internationalization.

The more popular view is the progressive development model.

The enterprises adopting the progressive development mode will generally or partially experience five stages of pnational operation, namely, irregular indirect export, regular indirect export, direct export, establishment of overseas sales organizations, and establishment of overseas production organizations.

From the perspective of entry channels, the way in which enterprises implement brand internationalization mainly includes direct investment, contract entry, joint venture and strategic alliance.

In the process of implementing international operation, the traditional famous brand enterprises use more direct investment and contract entry methods.

In recent years, foreign enterprises such as joint ventures and strategic alliances have been increasing internationally.

For an enterprise, the choice of the way of entry depends mainly on the target market and the enterprise's own resource conditions.

He said.

In recent years, the local authorized mode of operation of the international two or three line sports brand entering the Chinese market is essentially a contract entry mode in brand internationalization.

The way of contract entry is a kind of cooperation way that does not take equity control as the goal and contract the two sides of the cooperation.

Among them, license management is a common way of entry. One party pfers its brand, technical know-how or other intangible assets to the other party. The latter uses the brand or technical secret to produce and sell related products according to the contract, and the parties enter the target market country through this way, so as to realize the brand internationalization of the enterprise.

Compared with direct investment, this entry mode has three advantages: one is to expand the brand impact of enterprises, the two is to reduce costs, and the three is to resist risks.

The reason why the international two or three line sports brand enters the Chinese market is based on the above reasons.

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