Analysis Of The Advantages And Disadvantages Of Multiple Brand Operation Modes

Independent research and development

It can make efficient use of the original channel resources, customer information and brand influence of the main brand; the acquisition of existing brands can quickly occupy the market segments and get a new channel network; network based.

The brand carries on the multi brand mode operation, has the natural superiority, can carry on the high frequency trial to the market, quickly finds the truly suitable own brand.

However, each mode of operation is accompanied by its own risks and requires careful consideration of brands.

Self created brand: need to break away from the main brand.

When a single brand has been developing well for a long time, it is a foregone conclusion for the clothing enterprises to subdivide the brand. Establishing a new brand has become the main choice for enterprises to enter other market segments.

Recently, we have come into contact with many garment enterprises with independent research and development and operation of multi brand strategy.

Shenzhen winner Clothing Co., Ltd. has its own brand name NAERSI (nears), which is positioned to dress up the women in recent years. It identifies the brand NAERSI GC, which is located at the demand of women's work conference, and the brand NAERSILING (EN Ling), which is positioned for the leisure life of women in the prosperous years.

"These brands have their own characteristics and are suitable for women of different ages to attend different occasions to meet their different aesthetic tastes."

Jin Mingru, chairman and CEO of Ke Eli Till brand, said.

However, under the shadow group, there are many brands of modern city women's everyday wear, a sense of architecture and a simple English style, and a song specially designed for advanced customization.

Obviously, differentiated positioning is the focus of multi brand operation mode.

"Bo Yang's home clothes brand fruit shell" is one of the more successful projects in recent years.

The shell was originally young.

One of the ideas is that the location is very precise, mainly aimed at young and young artists who like to be young and fresh. After conducting relevant business assessments, the company will eventually put it into practice.

Xiang Jiangpeng, deputy general manager of Ningbo Bo Yang Clothing Co., Ltd., seems to support the development of the shell brand, and is also looking at the development trend that it caters to the current segmentation of the consumer market.

"The sales of fruit shells are still dominated by online platforms, and sales in the first year have reached about 20 million yuan. Next year, the goal of shell is to achieve sales of 50 million to 6000 yuan."

Although the operation mode of independent research and development of sub brands can quickly penetrate into the market with the help of the original resources of the main brand, its shortcomings often lie in the over reliance on the resources and channels of the main brand.

Successful clothing enterprises have their corporate culture and behavior regulations, but these rules have become a hindrance when creating sub brands, so that sub brands intentionally or unintentionally imitate the operation mode of the main brand, thus leading to the same operation mode and style of products.

"Therefore, in carrying out multi brand strategy, Bo Yang is very important for retraining professionals."

Xiang Jiangpeng said that to promote the benign development of multi brand strategy of enterprises, it is equally important to find the market demand and cultivate individual talents. These people often need to develop their own brand group culture at the beginning of the establishment of new brands.

"If it is not necessary, we will not be airborne leaders to the new brand, which will affect the new brand's personalized development path."

Xiang Jiang Peng said.

Acquisition of existing brands: Cultural incompatibility, easy to "break up"

In recent years, the merger and acquisition of China's garment industry has never stopped.

Shenzhen maininu women's wear and Shenzhen Bao Bao women's wear announced the realization of strategic merger. The city beauty bought Ordifen Ordifen. They searched for 3 women's garments, including the special stock, the world and the cloud.

Brand...

Local garment enterprises bid farewell to extensive high growth era, and entered the era of endogenous driving force driven by professional talents and capital.

Because of the lag of endogenous motivation, many brands of high growth clothing need to achieve stable growth or improve their competitiveness through brand merger and acquisition.

Their takeover targets are rookie brands with high growth characteristics but lack of capital base, which also spawned a new multi brand mode of operation -- clothing mergers and acquisitions.

In the interview, President Li Kai Luo, President of Bi LAN International Investment Consulting Co., talked about the main reasons why fashion companies or large enterprises are keen on mergers and acquisitions.

He said,

The acquisition of Kenna and Hunan can not forget the acquisition of super world clothing. They all hope to form a brand tribe, through the different areas involved in the industry, so as to achieve the overall anti risk ability and profitability of the group.

When the sales growth of a brand reaches its limit, the way to expand the territory is to have another brand.

In addition, news of local fashion brands buying international brands has also been reported frequently in recent two years. Shandong Weihai Di Shang Group has held 38.96% stake in AVISTA company, one of the three Korean clothing listed companies, as its largest shareholder by way of equity acquisition.

Similar to local brand acquisition of Korean clothing enterprises reported repeatedly, the reason is not only the obvious trend of Korean clothing brand, but also because of its lower purchasing cost.

It is understood that the Korean garment enterprises affected by the economic downturn, sales and profits fell sharply, many of the shares of enterprises also fell to the "cabbage price."

But for big brands, the bottom line is not the ultimate goal.

The acquisition of European and American high-end brands by local brands is also a frequent phenomenon in the industry recently.

If the seven wolves buy Kenna, its essence is the preparation of seven wolves for high-end development.

Although the M & A has achieved remarkable results in the operation of multi brands, the malpractice of mergers and acquisitions is also very obvious. In 2013, Semir clothing claimed that the acquisition of GXG, which was supposed to be settled in the dust, was eventually announced in 2014. It was not only that it did not expand the coverage of its network, but also caused frequent incidents of internal protests such as banner protests by angel city employees. The reason is that the brand culture caused by rapid mergers and acquisitions is not compatible.

"Split silk" as a niche clothing line of the Internet, the merger of popular street style Angel City, the two business concepts are very different.

In addition, the relocation of the angel city headquarters to its own city, causing most of the employees of the angel city to move or give up their jobs, resulting in the loss of a large number of original staff and the increasingly unsmooth management, resulting in a typical case of "mismatch".

Luo Wei, chairman of Zhuzhou seventy-two variable Clothing Co., Ltd.

He said: "pure capital integration can not solve the fundamental problem of the garment industry. If China's clothing brand can not conduct in-depth research and operation in the early stage of the acquisition brand, so as to ensure smooth handover, then the merger can not achieve the goal of 1+1 greater than 2, and even weaken its brand value."

Each brand is looking at the market from different perspectives, so there will be different products, which are corporate culture and brand characteristics.

Under the premise of not being prepared, it is often the lack of brand spirit to integrate the two.

Nowadays, many mergers and acquisitions in China are driven by capital and lack of professional operation, so there are many failures.

Online multi brand: quick trial at low cost

In terms of multi brand operation, the Amoy brand can be said to have a unique advantage.

Offline brands, whether developing new brands or merging original brands, need to spend a lot of financial resources on the subsequent market operation. Once the operation fails, they will be accompanied by a lot of economic losses.

However, the multi brand mode based on network operation can often save a lot in this respect, because the network brand has the characteristics of frequent touches on the market. A small number of products can form a small brand to directly contact the market and get customer feedback. Through continuous market trial, the online clothing brand can find more sub brands suitable for its own multi brand operation.

Here, Han Du Yi house can interpret this brand new multi brand operation mode as a typical representative.

The clothing brand Han Du Yi built on the line was 3 million yuan in sales and 40 in the team. In 2014, the two figures increased to 1 billion 500 million yuan and 2600 respectively.

The core supporting force behind its rapid growth is the multi brand operation system that has been explored for several years by the company as the core.

The key to the establishment of the Korean group is that the Internet provides the possibility of low cost, rapid trial and error.

For offline brands, it is very slow to pfer a decision to hundreds of stores, but online can quickly change decisions based on data feedback, without geographical restrictions, efficiency and cost.

And there are different ways to implement the multi brand operation of the network clothing enterprises. First, each sub brand is made of five zang organs and relatively independent. Besides the correlation degree of the fund is very low, the two is that the sub brands share the underlying infrastructure services, and their independence is limited. They are separated from each other on the product end and the marketing end, and the scale is relatively small.

Han Du Yi chose the latter.

After the establishment of the group system, Han Du Yi house dispersed the opportunity and cost of trial and error.

Only 1 hundred million of the trial and error costs that bosses only dare to take are scattered to 200 groups, with only 500 thousand yuan per person. Not only can they afford to pay, but they can also bring in the growth of front-line staff.

This has laid the foundation for its continuous market efficiency and low cost.