Product Development And Marketing: Shoe Giant Lining Playing Dumbbell Mode

Pressure.

Impetuous.

Anxiety.

Messy.

Question.

Jealousy.

Panic.

Hung up.

Irresolute and hesitant.

Run like a wolf and rush like a boar.

Be nonplussed over sth.

Be kept constantly on the run.

Under the pressure of rising cost of living, enterprises and individuals are faced with a dilemma and a dilemma.

Lining's victory in marketing after the Olympic Games of "Kuai Fu chasing sun" was magnified by snowflake reports.

In fact, Lining's victory is not just Olympic marketing. Reporters studied Lining's earnings and its development track over the years. He copied the Lining of the international shoe giant very early, and attacked the brand with a strong attack.

The sale of the Olympic Games is again enlarged by the Olympic flame. Reporters learned that Lining's sales network increased to 5676 last year.

Manufacturing links are mostly outsourcing.

A brand Lining and a sales network "two big" brand, gradually in the "dumbbell mode of operation", presented in front of the world.

Nearly four adults mistaken Lining for sponsoring the Olympic Games. CCTV market research firm CTR recently found that in the sports apparel industry, up to 37.4% of respondents believe that Lining is a sponsor of the Beijing Olympic Games.

Li Zhiqi, chairman of CBCT brand marketing organization, said Lining is the most successful brand operation of local enterprises. Lining's home court advantage and its irreplaceable position make it impossible to replace its advantages.

He also believes that from the point of view of "cost performance", Lining should be better than his competitors.

In fact, looking at Lining's development trajectory, Lining is also a learner of Adidas, NIKE and other international shoe giants.

The most obvious way is to learn foreign light assets strategy, that is, only invest a small amount of hard assets, gain profits through output management, technology and brand, and focus on R & D, sales, service and brand promotion.

Lining, a senior consultant in garment industry, told reporters: at present, the production of 90%-95% has been outsourced by AMT, and the factory in Foshan is mainly a sample development product. "Its operation mode is based on NIKE and Adidas."

Li Zhiqi analysis, Lining "the largest investment in product development and marketing," the long-term trend may be, like Adidas, all outsourcing production.

He believes that Lining's business model is to concentrate his efforts on design and channel, enlarge his own advantages, and brand management is the most successful.

"On brand building, we have successfully pformed from individual brand to public brand, and marketing is based on professional sports routes to help the mass market."

Lining's "dumbbell" mode of operation has also made Lining "live well" in the face of the impact of the imported "alternative position" from the heavy impact of other domestic garment enterprises, such as rising raw materials, rising labor costs and the appreciation of the renminbi.

According to statistics, the gross margin level of China's clothing and footwear industry in 2007 was 14.19%, and the profit margin level was 4.32%.

Yang Yelin, Deputy Secretary General of the Guangdong shoe industry chamber of Commerce, said that export includes a number of generation enterprises, obviously more impact than Lining, Lining is still the main domestic market.

Lining's 2007 financial report shows that the annual turnover reached 4 billion 348 million yuan, an increase of 36.7%, and the contribution of Lining to the Chinese market reached 99.2%.

Yang Yelin said that the pressure on export oriented enterprises is the change of exchange rate and export tax rebate, and Lining is still playing the main role in the domestic market. Obviously, it will not be significantly affected.

Two, domestic raw materials have risen by about 10%, and some analogies are more than that. With the increase of wages, labor-intensive export and OEM enterprises have been more severely affected.

The bigger problem is that the OEM companies have no bargaining power. If they want to raise prices, the state firms will not place their orders and turn to other parts of the mainland or abroad for cooperation.

Ge Hui said that Lining's mode of operation gave Lining a cushion time. "First, outsourcing factories bear pressure first, and two, Lining has time to pass the cost to the market price."

But he also believes that inflation suppresses some consumer enthusiasm, which will affect Lining's sales.

Lining is still coping with domestic and current international brands active in the Chinese market.

An analyst who declined to be named said that Lining mainly formed a certain brand in the country, seeking to replace foreign brands, squeezing out market share, and this type of enterprise was also less affected by this macro condition.

Lining's brand, network, product and supply chain management are the four major strategies of Lining.

Li Zhiqi thinks that design and channel are the important fulcrum of clothing brand.

Ge Xing also said that the above four points constitute the core competence of enterprises, and the focal points of different time are different.

"For the current Lining, network construction is the focus of recent years, and is also the focus of competition in the industry."

Lining's financial report shows that its sales network is expanding. By the year 2007, the total number of retail outlets has totaled 5676, which has increased by 1343 in the past year.

Among them, the Lining brand retail store in China has reached 5233, an increase of 936.

And committed to create flagship store and the fourth generation of image shop, in 2007, there were 724 shops for the fourth generation of image shops.

Lining will continue to expand its sales network across the country and open more retail outlets.

Strengthen the penetration of sales network in two or three tier cities.

Yang Yelin said that Lining, who started in Guangdong, attached great importance to dot building. As early as 1997 and 1998, when Lining made clothes, she was already building stores.

"Now clothing and footwear industry is already very obvious" channel is king ".

It is understood that before the rapid rise of the red dragonfly, it has benefited from the use of the franchisee mode, making the network spread all over the country.

According to Yang Yelin, after many years of development, the differentiation of clothing specialty is becoming more and more detailed. Under the premise of product quality assurance, with the increase of outsourcing proportion, the space of product alienation in production is getting smaller and smaller, so it still depends on channels.

Lining also needs to become more "cultural". Although Lining is slightly better in brand marketing, reporters interviewed many experts that Lining is still hard to match with other giants such as ADI in building brand culture.

Lining is still a company based on China's local market development, and can not export its brand culture and values to foreign markets.

"And Adi, they are built on strong sports spirit, values and ideas output, and the US market and overseas market are equally important for them."

"It does not have its strongest personality and unique culture.

This is the biggest problem in the future. "

Dumbbell dumbbell mode of operation will focus on the design, development and marketing network of products, leaving large and complex production links (intermediate links) to other factories.

In this way, a dumbbell mode of operation will be formed.