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    Disadvantages Of YOUNGOR'S Multi Brand Strategic Layout

    2015/7/16 11:35:00 43

    YOUNGORClothingYOUNGOR Clothing

      

    clothing

    In the process of becoming bigger and stronger, multi brand strategy has become an inevitable choice, both at home and abroad.

    Internationally, the world's most famous fashion retailing group, LVMH, has more than 50 brands, including fashion, leather products, perfume and cosmetics.

    At home, YOUNGOR, as a famous clothing enterprise in China, will not lag behind this trend.

    At the 2010 CHIC international clothing festival in Beijing, YOUNGOR's five brands first appeared in a collective way: gold standard (MAYOR YOUNGOR & amp; YOUNGOR), YOUNGOR CEO, green label (GY), hemp family HANP, and the acquisition of the classic American high-end brand HARTMARX (Ho Shih MAI), YOUNGOR entered the era of brand differentiation.

      

    Youngor

    As a famous clothing enterprise in China, it will not lag behind this trend.

    At the 2010 CHIC international clothing festival in Beijing, YOUNGOR's five brands first appeared in a collective way: MAYOR (YOUNGOR & amp; YOUNGOR), YOUNGOR CEO, green label (GY), hemp family HANP, and the acquisition of the classic American high-end brand HARTMARX (Ho Shih MAI), YOUNGOR entered the era of brand differentiation.

    It can be seen that YOUNGOR has taken various strategies in the layout of multi brand strategy.

    One is the market segmentation of the inherent brands, and the deeper penetration of the original market. Among them, the gold standard is for the advanced custom market, the blue label is for the advanced garment market, while the green label is for the young fashion market.

    One is to develop new brands, and the Han Ma family is YOUNGOR's own concept brand in the development of hemp market.

    One is the acquisition of a garment brand that has already been formed. HARTMARX is an American brand. YOUNGOR is buying this brand, and believes that it is intended to enrich its own brand's market layout.

    But from YOUNGOR's annual report released in April 30th this year, 92.63% of YOUNGOR's clothing sector revenue still comes from the main brand YOUNGOR, while all other brands have less than 8% of total revenue.

    It can be seen that YOUNGOR's multi brand strategic layout has little effect.

    The reasons are as follows:

    First, brand segmentation is too rough and lacks pertinence.

    YOUNGOR's gold standard, blue label and green label brand are obviously aimed at the corresponding high-end, middle end and low-end market.

    This strategy is understandable, but lacks originality and foundation.

    YOUNGOR is the middle and low end business men's wear, but in the establishment of sub brand, it is totally puzzling to completely break away from the existing foundation and start a new business.

    At this point, many mature brands are worth learning, for example.

    Uniqlo

    Its main brand is the popular brand, but it collaborate with international designers to launch designer brand every year. The designer brand series is designed by famous teachers, but the price is only slightly higher than the original brand price. There is no breakage between its main consumers and its main brands, which will not cause sales block, but also strengthen the independent image of the brand.

    It is much more effective to develop multi brand strategy on its own advantages than to build a brand strategy for all markets.

    Second, there is a lack of predictive layout among the resources among brands, and basically adopt an extensive business strategy of "how much to sell".

    From the 2014 annual report of YOUNGOR, we can see that YOUNGOR's main resource is still on its main brand, and other new brand investment is rather limited.

    The reason why many brands can rise to the strategic level is because they are related to the future fate of enterprises.

    An enterprise's brand is too single, its ability to resist risks and its ability to deploy itself will be insufficient.

    Therefore, the development of enterprises to a certain stage, the adoption of multi brand strategy is inevitable.

    However, if only the brand is established without effective operation, multi brands can not be regarded as strategic, nor will they help or even become a burden at any critical moment.

    It is foreseeable that if YOUNGOR continues to adopt the current extensive mode of resource delivery, its sub brands will be hard to grow.

    Sooner or later, these sub brands will become a drag on enterprises.

    Third, YOUNGOR brand stores scattered, making the sub brand difficult to shape, the main brand is difficult to enrich.

    YOUNGOR's ground store takes the separate operation mode of each brand, and each sub brand has its own storefront.

    This may be related to YOUNGOR's two years' pioneering efforts in the field of property, but this strategy is not conducive to the operation of multi brands.

    The initial establishment of multi brand structure is based on the original main brand market, and the way of separate store operation makes consumers unable to connect the main brand with all the sub brands. Therefore, the original market of the brand does not play any role in promoting the establishment of the sub brand. It is undoubtedly a great waste of its own resources. Once the sub brand is formed, it can not be connected with the main brand image. The purpose of multi brand strategy is to enrich the main brand image.

    Multi brand strategy has fundamentally lost its meaning.

    From the international experience, multi brand strategy is a long-term development process, and how domestic brands can truly enjoy the profit growth brought by multi brands is a long-term learning process.


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