Brand Building History Of Shoe Enterprises

Unlike the controversial "Jinjiang model", Ding Jiantong, chairman of the 31st degree, focused on the accurate positioning and high quality distribution network. "If there is no high-quality product and sales network support behind the brand, it will be difficult for the brand to stand out.

"He said that Ding Ding Jian himself admitted that" 31st degree "took the ride of the 2004 Athens Olympic Games.

In the 15 days that brought the world around the clock last summer, Li Yongbo, the coach of China Badminton national team, shouted at the 5 prime time of CCTV every day - "brave to be himself", so that tens of thousands of Chinese sports fans remembered the fashionable name which sounds contrary to convention.

It's a brand new brand, but the 31st sporting goods company, headquartered in Jinjiang, Fujian, is not a new entrants in this fast developing industry.

Its predecessor is the Buick shoe industry. It has been 20 years since the founding of chairman Ding Jiantong, but the previous brand Buick is in conflict with the brand registered by the United States.

"Disputes continue", Ding Jiantong said, "arms are not thighs, and even affect our access to China's well-known trademarks.

"No matter how hard it is to change the brand, it will no doubt cause any enterprise to be battered.

In 2004, its sales not only declined but increased by nearly 60% over the previous year.

Although it is less than the growth rate doubled in previous years, it is still two times the industry's 30% average growth rate.

At the same time, the share of the market in the domestic market has increased from 8-10% in the Buick era to 11% now, which is close to the average market share of several sports shoes trump cards.

"The three provinces of the Northeast are our world, and their possession is nearly 20%."

"Ding Jiantong said.

On the eve of last year's national day, the 31st national flagship store was located in Shenyang.

It is easy for people to attribute the sales miracle of 331 degrees to the "brand building movement" of the Jinjiang Corps.

Chen Dai Town, which is located in Jinjiang, is known as the capital of China's sports shoes. There are more than 3000 shoe manufacturing enterprises, with an annual output of nearly 800 million pairs, with an output value of about 15 billion yuan.

In 1999, Anta company, also located in Chen Dai Town, was famous for hiring world table tennis champion Kong Linghui as image spokesman.

Since then, more than 40 Jinjiang local sports brands have captured all the popular stars, occupying a set of hot spots of CCTV and five sets, and the total annual advertising input exceeds 200 million yuan.

The company is one of the most radical companies.

In 2004, its advertising was up to 40 million yuan, and it only invested nearly 10 million during the Olympic Games.

"But the added value of the domestic sports brand is generally not high. If there is no high-quality product and sales network support behind the brand campaign, it will be difficult to stand out in dozens of brands.

"31st degree marketing director Yang Feng said.

The AQSIQ report shows that the failure rate of the product is controlled at 1.5, which is far below the national standard of 3 of the standard line.

Currently, there are 3000 sales outlets in the country, with an average area of more than 50 square meters and a single store sales of more than 1 million 600 thousand yuan.

The average of the top 20 domestic brands is 30 square meters and 600 thousand yuan.

"The entire Chen Dai Town, only 360 degrees and Anta have such a big hand.

"Ding Jiantong, 64, was still excited when he talked about his own family business.

In 1983, he built a hand-made workshop with 2000 yuan, producing only 5 pairs of shoes a day.

"At that time, I often followed the heels of others, walking two kilometers away, and coming back at night to draw shoes and do it on the second day," he recalls. "But at that time, I thought I could not follow behind others, and I would go ahead one day.

"With this mentality, Ding Jiantong's sneakers always have their own brands.

In the beginning it was called Huafeng, and in 1986 it was called "everything joy".

After 90s, in order to allow the government to grant lots of land, Ding Jiantong changed everything into Buick, so that it could sound like a Sino foreign joint venture.

In fact, the development of the 31st degree is a vivid history of the development of the footwear industry in Jinjiang.

The difference is that Ding's shoes are mainly domestic, while most of the Jinjiang shoe enterprises began to shift to the domestic market after the international market in the late 90s.

At present, the proportion of domestic and OEM exports of sports shoes in Jinjiang is half, 70% of the enterprises are still concentrated in the production of medium and low grade shoes, and 60% of the domestic high-end market is still the world famous brands such as Nike, Adidas and Puma.

Ding Jian Tong is not very satisfied with the current ranking in the domestic sports brand. Yang Feng is more frank: "our opponent is Anta.

"Lining's strength in sales of clothing and sports accessories and sports shoes is only half that of 360 degrees, while the other famous brand Qingdao binaries are mainly canvas soles, which belong to different product lines.

In Yang Feng's view, the sports industry in Europe and the United States occupy 1% to 3% of the GDP of the country, while China has only 0.1%, and there is great room for growth in the future.

The company has clearly identified the target customers of sporting goods, and 70% of the products focus on 14 to 23 year old middle school students, college students and university graduates.

In 2008, the Beijing Olympic Games became a booster for the sporting goods industry. It greatly stimulated young people's leisure and fitness needs, and more and more business suits also tended to be relaxed and comfortable.

"This is a natural consumption group. At present, 70% of the domestic sporting goods market is also concentrated in this age group.

"Yang Feng said.

In addition to using sports shoes as its main business, 316 degrees also set up a clothing operation center. The newly recruited design team plus original footwear designers exceeded 50 people.

"This is quite the same as Lining's design team," said Meng Xianfang, director of costume, who graduated from the Central Academy of fine arts. "In the past, domestic sports brands were mainly based on imitation. Now we really understand the needs from the market, and then design our own products.

"In the current sports shoes market, international and domestic brands are keen to subdivide their products in basketball, running shoes and outdoor sports venues.

But in the 2004 new year, a multi-functional shoe was introduced, claiming that this style is suitable for the professional needs of various sports.

It emphasizes the tearing resistance and breathability, and the coarse lychee stripes and the popular TPU sequins.

Yang Feng said that this is to cater for the needs of students and workplace newcomers for fashion, while taking into account their spending power, these people are often reluctant to buy various sports shoes according to their functions.

Yang Feng has a very keen market sense. In order to maintain the same discourse system with young target consumers, Yang Feng has worked hard in Internet marketing.

Since 2003, it has bought a QQ ad box for the whole year, and has set up a 360 degree sports community on the company's website.

Now, 360 degrees have invested millions of internet promotions every year, with more than 100 thousand Internet members.

The carefully planned promotional activities have greatly helped the distributors in 20 provinces. The sales cost of each store is controlled at 2000 yuan in each promotion activity. The company promised them that the activity would at least get 3 times earnings.

At this stage, 31st degree is willing to allow dealers to enjoy a relatively high profit margin, the retail price is generally 2.5 times the factory price, while Nike and Adidas average 1.5 times.

In 2004, the marketing center began sending marketing managers to sell weak cities to help them set up teams and networks.

At the end of the year, the market share in Yunnan increased from seventh to the top 3, and also increased significantly in Shanxi and Anhui.

Although 70% of the company's business is concentrated in the economically developed two or three tier cities, it is inevitable to attack first tier cities in order to enhance brand reputation.

"Beijing, Nanjing, Shijiazhuang and Wuhan have been selling well, and each city can sell about 500000 pairs in a year.

"Ding Jiantong said.

Now, Shanghai and Guangzhou have become the soft spots. Last year's sales were only 100 thousand pairs and 200 thousand pairs, while Ding's goal was to sell 1 million and 800 thousand respectively in the two cities.

"In addition to designing products that are specifically designed for the road, advertising purchases may focus on local media.

"Yang Feng said.

Ding Jiantong said that the company has even made up 10 million in Shanghai.

To raise the brand with this kind of input, let Ding Jiantong have some alternative in the extensive Jinjiang mode.

After the domestic sports market entered a period of rapid growth, many Jinjiang enterprises began to purchase international authorization.

Assuming that you need 20 million to create your own brand, it will cost you only half the cost to buy an international second-line brand.

After obtaining the international authorization, the enterprise can, according to its own production standards, affix authorized brand to sell in the domestic market.

"Enterprises are unwilling to invest their money and energy in maintaining others' brands, but at the same time, they can sell low-quality goods to domestic consumers at the price of three or four times the cost of international brands," Yang Feng said. "This inevitably leads to short-sighted psychology of enterprises.

Ding Jiantong has also taken a special way in management.

Ding Jian Tong is not eager to enjoy 20 years of hard earned wealth.

He drove to Chen Dai town every day to buy raw materials for the biggest sports shoe material market in the country. His son and daughter-in-law would go to the workshop in person and receive a fixed salary of only 1800 yuan a month. Besides Yang Feng and Meng Xianfang, there were few professional managers introduced.

"Family businesses also have the construction of corporate culture.

"Ding Jiantong said.

His style of management is like a great parent, especially for the workers from Hunan and Sichuan, who make more than 4000 workers living in 4 neat dormitories.

"A lot of employees are family members who have worked for 20 years," he said. This is also a knowledge. "Workers have loyalty and will grow together with the technology of enterprises. This is the secret of product quality stability."

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