A Pformation Shortcut For Dongguan Foundry Shoe Enterprises

There is not enough time for the market to pray, or to occupy the market through expansion, or to die before the market shrinks.

Li Mei is the Northern District Manager of Dongguan Yisheng shoe industry Co., Ltd.

In the past three days, she has had a fierce encounter with other women's shoe brands in 50 Ginza mall in Shandong province.

In the past three days, she had to shuttle to and fro in these shopping malls, constantly monitoring the sales situation of Chch, a brand of women's shoes.

In 2007, Li Mei also resisted the "sales promotion" activities of the mall, because the silver shoes industry always made little profit from it.

But Li Mei is getting used to it now.

"Competitors are taking part. You have no reason to give all market opportunities to them."

Li Mei said that although manufacturers almost no profit, but considering the market ranking and annual sales target, she decided to let praying women shoes to participate in the war.

The record is not satisfactory, and the sales rank is in the middle reaches.

Take Guo Lu's Ji'nan Bayi Ginza mall as an example. "From nine a.m. to three p.m., there are more than ten thousand yuan in praying revenue, and many brands only sell three thousand or four thousand yuan."

Guo Lu told reporters.

She only started selling prayers in the mall in June this year, after she sold Lining sports shoes.

The market performance of praying prayers did not relax Qi Yaochang, chairman of the silver shoe company, who was thousands of miles away.

Although it has been praying for more than three years and has a small brand base in the market, Qi Yaochang clearly realized that "what we are praying for is the increasingly fierce brand war in China".

The intensity of brand competition appeared in the second half of 2007.

Praying for sales increased by 20% in 2006 compared with 2005, and increased by 30% in 2007.

But the profit growth is not ideal, only about 20%.

On the face of it, Qi Yaochang has almost retired from the export orders market, but that does not mean that he can outshine himself in Dongguan's thick street.

As the situation changes, many export processing enterprises are likely to enter the domestic market and compete with prayers and other brands for the domestic market.

"Daphne's boss told us last year that there are thousands of brands in foreign countries to negotiate with him, and he wants to use his platform to enter the Chinese market."

Li Peng, Secretary General of the Asian Footwear Association, told Chinese entrepreneurs.

He predicted that "China's brand competition is just beginning. Under the background of global economic recession, the Chinese market will become the main competition place for global mainstream brands."

For the prayers of brand cultivation and growing up, the challenge is self-evident.

"Sixty or seventy of the brands currently operating are in a state of capital preservation or loss. In the future, brands will continue to enter and eliminate, and see who can persist."

Qi Yaochang was also aware of the tragic competition.

Another character of Qi is the vice president of leather shoes Association of Dongguan.

Dongguan leather and Footwear Association estimates that in 2008, Dongguan will have 10%-20%'s shoe enterprises closed down, and more than 30% of enterprises will be struggling in a loss and flat state, and only 30%-40% enterprises will be profitable.

To explore the brand, in the thick street of Dongguan, which produces 1 billion 500 million pairs of shoes annually (1/4 of the total output and 1/10 of the world), the silver shoe industry is definitely an alternative.

Qi Yaochang was born in Houjie, and was longer than Houjie.

After graduating from high school in 1980, he went to work in a shoe factory in Hong Kong.

In the past 28 years, Qi Yaochang has gradually made the production supervisor from workshop workers to professional managers until he became the "working emperor" with an annual salary of 300 thousand on Houjie.

In 1997, he resigned from the shoe factory and set up a more than 100 person foundry.

In 2000, faced with the increasingly thin profits of the processing enterprises, Qi Yaochang started the road of independent design, and designed and OEM the brands of Goldlion, crocodile, grand Paul and BELLE.

At that time, Qi Yaochang had owned two factories, including nearly 2000 employees, and produced 800 thousand pairs of high-end shoes.

In the process of developing products and OEM for domestic brands, Qi Yaochang has had contact with and understanding of domestic brand operation and chain selling.

"I see both the unlimited business opportunities, and I realize that the bigger the business is, the higher the risk is, and the last is almost led by others, which is not conducive to long-term stable development of enterprises."

Qi Yaochang said.

After SARS in 2003, Dongguan was confronted with a very difficult shortage of migrant workers.

Qi Yaochang thinks that sooner or later, his enterprises will face the bottleneck of shortage of human resources and begin to think about making their own brands.

In 2005, when Qi Yaochang was trying to create his own brand, his friend told him that praying was looking for partners.

Qi Yaochang used to pray for him to be a foundry, and he knew his position and style very well.

Pray that women's shoes are not unknown.

In 1970s, Italian Palladio opened the "Chch" shoe art shop in Paris, and designed fashionable women's shoes and classic leather handbags for upper class women.

In 1987, a businessman from Taiwan introduced it to Taiwan.

In 1997, the Taiwanese businessman started the promotion in the mainland and opened stores in Sichuan and Shandong.

However, because of the early positioning of "avant-garde fashion", praying has been running poorly.

Qi Yaochang felt that prayer was a good choice, so he found the other side to talk about cooperation.

In June 2005, Qi Yaochang worked with Taiwan businessmen to set up a silver footwear industry. Qi served as chairman of the board, and the original brand operation team was basically retained.

In July 2006, Taiwanese businessmen withdrew from cooperation for various reasons, including the backbone of the sales system, and even more than 200 workers in the workshop were taken away.

The silver shoemaking has almost become an empty shell, but the praying brand has stayed in the silver shoemaking industry.

The bigger trouble is still behind.

Knowing that after the withdrawal of the partners, the shopping centres will be forced to remove the prayers from the mall.

The original partners even publicized "praying not to do" and "praying for no reason".

The shoe industry of Yin Sheng suddenly fell into a situation of internal and external difficulties.

At that time, Qi Yaochang was still a layman for brand marketing.

Fortunately, at that time, he rushed to another factory worker to pass the production difficulties, but he lost millions of dollars.

In order to restore the unfavorable situation of marketing, Qi Yao Chang studied and worked at the same time.

He began to "visit" shopping malls throughout the country to understand the location of the store in the mall, the brand and pricing of the next door, and communicate with each franchisee individually to understand their needs.

Qi Yaochang even took designers to two or three trips to France and Italy to learn from the designers and industry associations there.

Qi Yaochang is a prudent, vigilant and flexible person.

"All this is just for groping, what is brand and how to make brand."

Qi Yaochang said.

In 2007, after the praying began to stabilize, Qi Yaochang began studying the marketing course of EMBA in Zhongshan University to improve his theoretical level in marketing.

After owning its own brand, Qi Yaochang gradually reduced the scale of OEM production, reduced dependence on OEM processing, and focused on brand building.

The number of enterprises has dropped from two thousand to five or six hundred.

Nearly 400 thousand pairs of shoes are produced annually.

We sell nearly 200 thousand pairs of brands in China.

Praying for prayers originally had a certain market base, coupled with the training of these three years.

Just a few days before the interview, Egyptian agents found the silver shoe industry and wanted to represent their products in Cairo.

"Fortunately, our pformation started earlier.

If this situation is going to be pformed, it will be very difficult.

Qi Yaochang congratulated himself for having worked for three years earlier than other shoe makers on thick street.

However, in some industry circles, although praying prayers avoided the most intense competition among women's shoes such as BELLE, 100 degrees and Saturday, competition for women's shoes with price ranging from six hundred to one thousand yuan will become increasingly fierce.

"The market is only two years away from praying. It can either occupy the market by expanding, or the market will shrink and die."

Chiang Kai Shek, who has just become an agent for Jiangsu, said.

The limited acquisition of relatively mature brands is less risky and less difficult than new brands.

Qi Yaochang is a shortcut to his own brand, which avoids the construction and exploration of the brand from scratch.

But Qi Yaochang also has new problems: it is easy to buy brands, difficult to integrate brands, and harder to develop brands.

"After the withdrawal of partners, brand promotion and progress slowed down, and capital constrained the rapid development of brands."

There is a general situation in the shoe market where the turnover is over 100 million and the profit margins are only a few million.

After more than 10 years of entrepreneurship, Qi Yao Chang's capital accumulation was not strong enough to start up as a foundry.

Since starting a business, Qi Yaochang has not had dealings with banks.

"The short-term liquidity of the factory is very fast. The real lack of funds is sales, from input to recovery, and the cycle is very long.

Short term loans from banks are of little use. "

Qi said.

Qi Yaochang thought he could not afford to spend money in CCTV advertising, nor did he need to put on TV commercials. Instead, he could advertise in some fashion magazines better.

So far, he has only put four advertisements in the fashion magazine "Ruili".

Moreover, the cost of building a self operated network is also a great investment, usually around 500 thousand yuan.

At the beginning of its establishment, Yin Sheng had planned to build 200 sales outlets nationwide in three years, but now there are only more than 60 outlets.

In 2008, Dongguan Houjie was identified as the pilot town of characteristic industrial upgrading. The government issued the "Houjie Town's industrial structure adjustment and pformation and upgrading pilot project", and 38 enterprises, such as silver shoes and footwear industry, were listed as key supporting pformation and upgrading and creating famous brand private enterprises.

Houjie private office staff said that these 38 enterprises will give priority to Dongguan's financial support.

However, Qi Yaochang did not plan to apply.

When the Ministry of Commerce went to Dongguan to do research, Qi said, "some of the government's support time is too long, and the procedures are too complicated."

The difficulties of brand integration, lack of funds, lack of talent and loss are the direct constraints on Qi Yaochang's own brand. The biggest constraint is his own limitations.

Li Guangdou, founder of the brand marketing organization of Dongguan, analyzed that many problems will arise in the process of upgrading and upgrading the brand of Dongguan's manufacturing industry.

"Upgrading is not as simple as opening a shop.

I used to do it myself, others sold it.

Now we do it by ourselves and sell it by ourselves.

The four stages of product, brand, marketing and communication need upgrading.

In this process, enterprises lack ideas and talents. "

Li Guangdou thinks.

Why do people in Wenzhou and Fujian make brand success?

The owners of AOKANG, Kangnai and red dragonfly are all market players. Anta Ding Zhizhong also sells shoes.

There are two completely different concepts of doing foundry and doing brand marketing.

In Dongguan, many people have tried to make their own brands.

(they) failed to make use of the model of the factory to do marketing.

Li Peng believes that Dongguan footwear enterprises lack the relevant experience of brand and channel.

Qi Yaochang has his own understanding of brand.

"We don't put marketing strategies and concepts first.

Our first priority is product development and quality improvement. "

"Manufacturing is the money saved."

Changing an assembly line can reduce the labor cost of ten workers, which is a manufacturing orientation.

The brand is spending money strategically, and then making money.

Sun Keqiang, director of joint brand operation in Dongguan, believes that Houjie shoes enterprises have first-class talents and first-class R & D, but can not produce brands. "The key is the problem of thinking."

Sun Keqiang thinks.

However, Qi Yaochang is realizing the importance of talents for praying.

He has started looking for professionals from the market to run prayers.

In November 23rd, Sun Shouming from Nanjing to Dongguan, he will become an assistant to Qi Yaochang.

Sun has the marketing experience of domestic brands such as Qian Baidu, Saturday, kissing cat and so on.

Compared with thousands of stores in China, BELLE has an annual turnover of more than 10 billion, or even 600 million of its annual sales. On Saturday, A, which is preparing for listing on the A-share market, can only be regarded as the initial stage brand.

Behind Li Mei, Guo Lu and Sun Shouming, "made in China" is striving to overcome all its limitations and grow up in a stubborn manner.

"What I did was processing and manufacturing. What I do now is brand sales. I need to add more knowledge."

Qi Yaochang is working hard to break through himself, and what he really needs to overcome is the long-term Street constraints.