Wenzhou Shoe Companies Have Returned To Their Banks To Seek Breakthroughs.

After a wave of "diversification", in recent years, shoes and clothing enterprises in Wenzhou have tried to "integrate the retail terminal mode", return to the old bank, and look for the "blue sea" in the industrial chain. In the first half of the year, Mr. H, a civil servant working in a certain department of the urban area, saw a media friend who had seen the one-stop consumer brand "Ji marriage square" in the media. Mr. H, if he wants to save labour, he may have to wait at least two months in Wenzhou if he wants to purchase the items he wants to marry from the "Ji marriage square". "Ji marriage square" is a new brand pushed by Chuang Ji group. Unlike its previous shipbuilding and mining investment, the brand is serving the wedding area, which can be regarded as an extension of its main garment industry chain. Chen Min, President of the Limited by Share Ltd and chairman of the "Ji Fang Fang" business organization, said that Zang Ji did "Ji Fang Fang", mainly seeing the big cake of the wedding market. At present, it is still in a mess in the country, and Shang Wuyi has a complete retail brand of wedding items. According to the statistics of the national wedding industry survey and Statistics Center of China International Marriage Expo, the total consumption of Chinese wedding market in 2007 was 18382 billion yuan, and the annual growth rate exceeded 28% in recent years. At the same time, about 100 million of the "80's" in the country will enter the marriage age stage. The peak marriage period is expected to last for more than 10 years. Besides, Chuang Ji Group operates "Ji marriage square", which is based on a lot of connections with the main business of the company. "The Jilin wedding shop" is all designed by our clothing research and design center in Shanghai, "Chen Min said. The relationship between Ji Ji Fang Fang and the main business of Chuang Ji group is evident from its management items. Apart from bedding, curtains and a series of wedding room layout items and tableware and various wedding gifts, wedding gowns, brides and parents' dresses are also their selling items. "Men's dresses don't have much difference from Western-style clothes," one person in the clothing industry said. In the September 2006 Milan international fashion week, the Chuang chi group made a high fashion show for women. Although Chuang Ji's suit is positioned in the middle and high grade, the women's dress that was originally planned to do is also taking the high-end route, but the "Ji marriage square" takes the popular route. "The goods sold in Ji Ji Fang, in addition to the high-end ones, we also run low and medium grade," Chen Min revealed. It is understood that although the "Ji marriage square" will have as many as hundreds of different products, but the scale is not large. The area of stores is controlled between 100 square meters and 150 square meters. According to Chen Min's plan, the "Jiji marriage square", which is based entirely on Shanghai, will open a direct store in five or six provincial capitals this year after launching the first direct store in Shanghai. Chen Min said: "at present, there are no big brands in the wedding market in China, and we have already formed a mature business model in the chain store operation of clothing stores." Therefore, Chuang Ji Group boldly budgeted 20 million yuan for the development of "Ji marriage square". It is understood that the funds invested by Chuang Ji Group will account for half of the expansion of stores and the development of products. From another perspective, Chen Min thinks that "Ji marriage square" has a good market prospect. It can open a store only 2.3 million yuan except rent. This low threshold way can quickly copy "Ji marriage square" to all major cities in the country. In fact, people who are careful will find that there is another advantage of Ji marriage square when the threshold is low, that is, the items sold in the shop are not just a few different styles of the same category, but a collection of hundreds of different categories of items. "Selling more products in a certain area of the store actually reduces the unit sales cost of the product," an industry source pointed out. In the industry, the sales terminal mode adopted by Ji Jiong Fang is considered to be an upgraded version of the retail outlet of this traditional store. The Chuang Ji group is not the first attempt of Wenzhou enterprises. Before that, the clothing and footwear enterprises in Wenzhou went ahead, including Metersbonwe, good bird, red dragonfly and AOKANG. According to a reporter's investigation, it is found that the most comprehensive reform of the retail terminal of this traditional retail shop is red dragonfly. Unlike the Chuang Ji group, the red dragonfly group chose the most powerful red dragonfly brand for the transformation of the retail terminal of the traditional franchised store. The modified retail terminal mode was called the brand integration store mode (GT). At the same time, it chose to test the water at the Jie Jie street, Wenzhou commercial street in October 2007. "Our brand integration store is divided into two categories: the integration store area is more than 100 square meters, and there are four kinds of clothing, shoes, leather goods and accessories four kinds of male and female products in the store. The small integrated shop area is generally only tens of square meters, only selling three other products besides clothing," said Wang Bin, the news manager of Zhejiang Red Dragonfly Footwear Limited by Share Ltd. It is understood that two years ago, Qian Jinbo, chairman of the Red Dragonfly Group, set up a plan to open 500 brand integration stores in 3 years. Today, the brand integration shop seems to be one of the main selling ways of the Red Dragonfly Group. "At present, we have 54 large integrated stores and about 500 small integrated stores," Wang Bin said. However, Wang Bin also said that many integrated stores were transformed from the original traditional stores. The red dragonfly group quickly copied the retail terminal of the brand integration store, mainly because this mode increased significantly compared to the traditional franchised store chain mode in the single store efficiency. "After changing into an integrated store, the efficiency of our store has increased by 25%. The number of transformed stores has increased by 300%," Wang Bin said. In this regard, Wang Bin also gave an example of the advantages of integrated stores: the traditional stores, if only 300 pairs of shoes can be placed, transformed into integrated stores, the store can put the original number of shoes, but also can put 50 packages and 100 accessories, so that the volume of shops can be greatly improved. Based on this, in 2009, after the 2008 global economic crisis, the Red Dragonfly still plans to accelerate the replication of the retail terminal of integrated stores. This year, the total number of integrated stores will exceed 100, and the total number of small integrated stores will reach 1000. However, even after expansion, the integration shop is still only about 1/4 of the traditional store of Red Dragonfly Group. In addition to the red dragonfly, Metersbonwe and AOKANG shoes and garment enterprises, the transformation of the traditional sales terminals has also made some progress. However, unlike the red dragonfly, they sell a number of different grades of brand products at a transformed sales terminal, and the area of the store is much larger, with a large area of up to several thousand square meters. Like AOKANG, the transformed sales terminal is called "famous brand space", and sells its series of brands including AOKANG, Kanglong, and red Firebird in the store. Wenzhou's clothing and footwear enterprises will sell multiple brands or a brand of different categories of products in a monopoly store, which is very much related to the substantial increase in the cost of opening traditional stores in recent years, "said Zhang Qiongyao, Secretary General of the Wenzhou clothing trade association." the increase in the cost of opening stores is mainly due to a substantial increase in store rents. " Wang Bin also said that the increase in the cost of traditional stores is due to the sharp rise in store rentals. "At present, the rent of the shops in the commercial streets of the provincial level cities is generally more than 1 million yuan per 100 square meters of annual rent, and the annual growth rate is 20%." In fact, not only the rents of commercial shops in provincial cities are increasing year by year, but the rents of the two tier cities such as Wenzhou are also rising. In February 10th this year, just 110 auctions of Jiefang Street No. 5 (located at the five Horse Street junction) were sold, and the annual rent of the 150 square meter area was as high as 1 million 180 thousand yuan, and the annual rent of the shop was only 500 thousand yuan two years ago. In addition to the rising price factor, the rent of shops in all parts of the country is rising. One of the fundamental reasons is that the retail terminal mode of a traditional retail store is rapidly copied by enterprises. In recent years, enterprises in Wenzhou regard this traditional sales mode as the most important sales terminal, especially shoes and clothing enterprises, such as red dragonfly, AOKANG, Kangnai, news bird, and French school. "Due to historical reasons, the shoe and clothing enterprises in Wenzhou seldom enter department stores such retail terminals, and more often take the form of direct battalion or franchising to develop a traditional retail store terminal with one product and one store," the relevant personages of the two industry associations of Wenzhou clothing and shoe leather coincidentally indicated. On the current situation, people in the industry say that this is due to the simple structure of a traditional store, which is easy to replicate and develop. Therefore, when Wenzhou's enterprises grow to a certain scale and need more sales network to support, they often follow suit. It is precisely this point that a few of the more powerful enterprises have made efforts to decorate their own stores in order to highlight their characteristics. However, I did not expect that many Wenzhou enterprises still follow suit, resulting in a substantial increase in the cost of decoration. It is understood that at present, some shoe and clothing enterprises in Wenzhou have invested a maximum of 10 thousand yuan in the decoration of their stores, and the mid-level level has reached 5000 yuan / square meter. "A 100 square meter store, with rent plus decoration costs, will need 67 million yuan a year for sales, so there are not many stores that can sell such a high volume of sales. Therefore, under the pressure of high cost, enterprises have to consider maximizing the efficiency of the franchised stores and increasing the types of sales products, "one shoe industry pointed out. Will Wenzhou produce a kind of ZARA? "Our brand integration store mode is based on a sales model abroad." Red Dragonfly Group official said. Wenzhou apparel and shoe leather two Industry Association's stakeholders refer to this integrated retail terminal mode and compare it with the famous Spanish clothing brand ZARA, which has more than 1000 stores in the world. In the industry, ZARA, the reputation of DELL computer in the fashion industry, was only a small shop in a small town in Spain 30 years ago. Now it has grown to be a giant in garment industry. To some extent, it has also benefited from adopting the integrated retail terminal mode, thus forming its unique "fast fashion mode". According to relevant information, researchers have summarized the secrets of ZARA's success, mainly focusing on customer orientation, vertical integration and efficient organization and management, emphasizing the speed and flexibility of production, and the unique marketing strategy of advertising without discount. The shoe and garment enterprises in Wenzhou take the integrated retail terminal mode, and are gradually approaching it in the aspects of design, management and logistics. "We will implement the total warehouse plan, establish a special logistics warehouse, serve the brand integration store, so as to improve the speed of product listing and reduce inventory, and further improve the efficiency of the stores," Wang Bin said. "At the same time, we invested huge sums of money to build an information center to improve the reaction speed to the terminal information." In China, the ZARA mode has already had models, including commercial terminals such as Hai Lan's home and ITAT, all adopt a similar mode with ZARA. "From the current commercial terminals such as Hai Lan home, this mode has also been well done in China," Zhang Qiongyao pointed out. It is understood that, like Hai Lan's home, since its launch in 2002, there are now more than 600 stores. However, more successful domestic enterprises, including Hai Lan's home, have adopted the ZARA like model. Insiders pointed out that it is not possible for Chinese enterprises, including shoes and clothing enterprises in Wenzhou, to learn ZARA completely, because ZARA is a business mode based on fast fashion clothing and the whole control of supply chain. However, even if Wenzhou's shoes and clothing enterprises can not learn the quality of ZARA mode, it will be a breakthrough for Wenzhou shoes and clothing enterprises. Many people in the industry say that after the transformation of the retail outlet of the traditional store of "one product and one store", shoes and clothing enterprises are not easy to form a trend. Because it seems that just adding more products in the traditional franchised stores actually needs the support of the enterprises. On the one hand, it needs the diversified development of enterprises, or the strength of creating many brands. Otherwise, simply increasing the product styles will only increase the cost and bring no additional benefits. On the other hand, it is necessary to keep up with the management of enterprises, including the independent design and development of logistics and products, which generally require greater investment.