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    Can Multi Brand Operation Open Up A New Profit Model For Retail Industry?

    2014/2/12 9:06:00 52

    < p style= "text-align: center" > img border= "0" alt= "align=" center "src=" /uploadimages/201402/12/20140212090820_sj.JPG "/" < < > >


    < p > < strong > phenomenon, seize the market in all directions, < /strong > /p >


    In order to seize more market share and cover all kinds of consumer groups, retail enterprises have sprouted the idea of making more brands. < p >

    < /p >


    < p > for multi brands, on the one hand, it can be understood as supermarket, department store, Oteri J and many other formats.

    Guo Zengli, director of the China Federation of purchasing industry information center, said that most of the large enterprises with retail origin already have the advantage of scale, and they can eat resources upstream and downstream through multiple formats to avoid the systemic risks brought by a single format.

    "Bailian Group in the development of department stores, supermarkets and outlets three formats, will be based on market changes to strengthen different formats."

    < /p >


    < p > on the other hand, multi brand strategy can also be formed through mergers and acquisitions, so as to enrich the product line.

    Most of the well-known luxury brands belong to LVMH group, Li Feng Group and Kai Yun group.

    < /p >


    < p > in addition, there are many sub licensing concepts, such as sports, leisure, a target= "_blank" href= "http://www.91se91.com/" > clothing "/a", fast fashion is on the wave of the market, and the introduction of multi brands to occupy a more niche market.

    After Monki entered the mainland market and launched the COS brand franchise store, H&M also launched &Other Stories, its price will be higher than H&M, but lower than COS.

    UNIQLO parent company, Japan Xun marketing group also introduced GU, PLST and other brands to China.

    The 2013 Chinese shopper report released by Bain management consulting firm shows that consumers are more inclined to try multiple brands. Only by establishing strong brand clusters can the future consumers increase their brand buying chances.

    < /p >


    < p > < strong > reasons: a href= "http://www.91se91.com/" > market > /a > /strong > /p >


    < p > "every subdivision can produce a leading industry. Relatively powerful retail enterprises will develop their sub brands to expand other markets in order to break through the bottleneck of existing development."

    Yu Jie Qi, general manager of retail chain consultant and conservative consulting company, believes that multi brand operation is the need for enterprises to "do business".

    < /p >


    < p > in fact, many foreign brands have subdivided different customers into different brands in the early days of China, expanding their market influence and share.

    In the view of Lai Yang, Secretary General of Beijing commercial economics society, if a single brand is used as a whole guest layer, it will easily lead to confusion of brand image. This also speeds up the brand image of different brands, product lines and positioning.

    < /p >


    < p > Huarun Wanjia CEO hung Jie believes that during the 20 years of modern supermarket development in China, consumers have undergone tremendous changes, the most obvious of which is the pursuit of individuality and gradually diversified demands.

    In the face of such changes, Huarun has been working hard in recent years.

    < /p >


    Chen Liping, Professor of Capital University of Economics and Business, said that multi brand operation is also a way to avoid risks when enterprises enter new markets. P

    "When a new type of shop enters the market, the enterprise has little prospect of the future.

    If the original brand is used, mistakes in operation will damage the value of the parent brand, so new sub brands will be adopted.

    Once the foreign brands entered, and once washed to less than 2% profit margins, Yu Mei Jing believed that when the consumption demand of the market became more and more rich and stratified, the single product would mean extinction.

    Since then, Yu Mei Jing has rapidly adjusted the advantages of traditional children's products, developed adult skin care and beauty products, and developed deep-sea pearl dew, snow beauty, biological whitening and moisturizing products.

    < /p >


    Zhou Peng, general manager of Chaoyang Joy City, said that the multi brand is actually the pformation of consumers from fragmentation to major concern in P.

    Behind many brands is the differentiation of product lines, which hides the pformation of the profit pattern of enterprises.

    Zhou Peng believes that the current economic environment accelerates enterprises to adjust their cost structure and business mode in the form of multiple brands.

    < /p >


    P > < strong > the risk management is not clear or the loss of "/strong > < /p > > < < /p >


    < p > > a href= "http://www.91se91.com/" > brand < /a > strategy has broken the original management mode and system, and has different requirements for commodity combination, price, strategic layout, brand promotion, supply chain, environmental design, service and so on, and tests the operational strength of the enterprise.

    < /p >


    < p > Chen Liping said that taking supermarkets as an example, many enterprises have developed high-end supermarket brands, but only blindly imported imported packaged foods, but they can not match the high-end positioning in fresh and service.

    Yu Jie Qi believes that the operation of multi brands should prevent the right hand and the left hand from beating each other.

    In many cases, the two brand departments of the same enterprise have no difference between the channel and the supplier.

    < /p >


    < p > a person in the industry told the Beijing Commercial Daily reporter that profitability is outstanding, but debt paying ability is slightly insufficient and tight funds are the main problems facing multi brand businesses.

    At the same time, whether talents, ideas and management can synchronize "cross boundary" is also a serious consideration for enterprises.

    "Multi state business is only a way of development. It also enriches the business mode of enterprises and promotes the competitiveness of enterprises."

    < /p >


    < p > traditional < a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > clothing industry is an old hand in multi brand management.

    BELLE, which has the reputation of "footwear giant", owns 17 brands of Belle and Teenmix, Staccato, Senda, Basto, Hush Puppies, BCBG, Merrell and so on. At the same time, it sells brand names such as Nike, Adidas, Nike, and so on, occupying the share of Chinese women's footwear market.

    In the industry view, the shoe clothing market at present is very low concentration, and the replacement is very fast, will not produce monopoly phenomenon.

    However, there is also a view that the emergence of multi brands will scatter the consumption power, and even form a "same door and disabled" situation. ONLY and VERO MODA, which belong to the silk clothing, are often adjacent to the major shopping malls, but there is no obvious difference between the two styles and consumer groups.

    Zhou Peng believes that many brands are not simply creating a secondary brand, but also a consumer's sense of brand belonging.

    {page_break} < /p >


    < p > < strong > strategy to suit local conditions to maximize resources > /strong > /p >


    < p > although there are many challenges in adopting multi brand strategy, no enterprise will stop the strategic layout of multi brands because of risks.

    Diversified market environment also requires enterprises to make use of Multi Strategy and multi brand to give full play to their resource advantages.

    Zhu Lin, general manager of Huarun colorful city, said that the current market environment needs more brand strategy. Many brands are helpful to brand maintenance and project development. If only a single brand can easily cause confusion in location.

    < /p >


    < p > it is understood that the original intention of Huarun commercial real estate developing multi brands is strategic layout on the one hand. On the other hand, because of entering different cities and different locations of the same city, the image and location of multi brands will be clearer and clearer and complement each other to cover the whole guest group.

    Huarun's the Mixc is mainly located in the central area of the first tier cities. The multicoloured city is mainly located in the sub center of the first tier cities and the city center of the two or three line cities.

    < /p >


    < p > according to Zhu Lin, Huarun group headquarters has set up different brand management groups for different product lines. The headquarters will conduct unified control over brands such as multicolored City, the Mixc, joy song and neighborhood centers, and then assign them to departments in various districts.

    "Huarun generally adopts the three level control mode of listed companies, large cities and city companies, and the headquarters set up unified product standards, costs, unilateral costs, and large-scale business investment schemes."

    < /p >


    < p > Guo Zengli said that unlike shoes and shoes, Huarun's multi brand strategy services have different audiences and regions, so that more resources can be implemented more comprehensively through different strategies. However, enterprises need to take full consideration of the real needs of the service crowd and make sure that they are suited to local conditions.

    "To carry out multi brand operation of retail enterprises, we need to make an accurate analysis of the needs of the target group, while supporting the commodity line should also be long-term and stable."

    Chen Liping said.

    < /p >

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