How Can We Enhance Our Brand Competitiveness In The Fierce Competition Between Domestic And Foreign Brands?

Over 80 years old national brand.

In 2015, it sold 60 million pairs of shoes, with sales exceeding 3 billion 500 million yuan.

As a matter of fact, the shoes that are sold in the above sales are not all related to the shoes of the brand.

Real owner Shanghai Rally

Ltd is directly related, but is jointly completed by Huili and its twelve big distributors.

"The actual sales volume of our company is about 800 million."

Yang Weidong, general manager of Shanghai Hui Li Shoes Co., Ltd., revealed to reporters.

This group of figures has surprised many people who have put the brand back to the grandparents' consumption group. What is supporting the vitality of the Hui Li brand? Hoping to realize the strength of the new branches of old trees, how can we enhance our brand competitiveness in the fierce competition between domestic and foreign brands?

The contradiction between brand and sales volume

As we all know, as early as 8 years ago, the photos of Hollywood star pedal shoe were spread around the Internet, which triggered a wave of nostalgia.

Because of the popularity of Huili in Europe, this old brand of China is revitalized again.

It is found that this may be China's most "ancient" sports brand. Wearing big stars is not old-fashioned. Instead, it has a different fashion.

However, as the upsurge receded, the voice of Huili brand returned to its previous silent state.

"Actually not, people are still buying back shoes."

Yang Weidong told reporters, "on Taobao alone, there are about 8000 private shops opened by individuals."

In addition, there are more than 100 flagship stores in Tmall stores.

Online sales are becoming more and more important for Huili.

The sale of the Internet now occupies an important share in the overall sales of force, which is 50% of the total, and the company even expects to adjust the ratio of 6 to 4 below the online and offline levels in the next two years.

To sum up the reasons, in addition to the popularity of the old brand, we can win the trust endorsement for it, and the price close to the people is also a major advantage of the effort.

A casual search on the Internet shows that the price of the shoe will not exceed 100 yuan a pair, and the main price will be around 50 yuan.

"Nostalgia" seems to be the most conspicuous label attached to old Chinese products.

The excellent quality of the old goods is another advantage relative to the new brand, and the price of old Chinese goods is generally low, which is a high price choice for price sensitive consumers.

Wang Xin, President of Greater China, Sullivan, believes that

In the past 5 years, a total of 200 million pairs of shoes have been sold in the market. This huge number reflects not only the commercial value and brand vitality of the "back force".

What is more worth considering is that when we have huge sales volume, when will we be able to get the brand status and recognition matched with the quantity? And how to make the old brand with national trust endorsement have new vitality in the new era?

Continuation of brand vitality

At the end of 2014, the company announced that Zhang Enqi, the 80's, will be the managing deputy general manager of the company.

The addition of fresh blood has accelerated the adjustment and upgrading of the brand in the past year.

Recently, Zhang Enqi's team has done a series of big moves: on the one hand, we should expand and upgrade the product's design, quality and marketing.

For example, they invited the international designer who worked with ADI and Nike to make new designs for Huili, and in supplier selection, they also introduced factories for international big players to be responsible for production and processing.

"The low-end shoes of the back force are vulcanized before, and now the products will be used for cold bonding after upgrading the quality of products, and the leather will be more used in the material."

Zhang Enqi told reporters including reporters.

At the same time, Hui Li also aimed at the function of the market.

For example, almost extinct rain shoes are currently a market blank, but in real life people are very much in need of such functional shoes, Huili has developed a new type of rain shoes reverse system; for children's shoes, joined the satellite positioning and alarm system's anti crutch design; even the built-in balance car function shoes are being developed, and plans to launch around 2018.

Add a lot of technology elements to the function of shoes, and try to create a breakdown in the field of subdivision.

In the promotion of channels, Huili is still planning a "one day arrival plan for the same city". New logistics warehouses have been built in Hangzhou, Shijiazhuang and other places. The purpose is to speed up the process of receiving orders on the consumer line.

"We have more than 100 Tmall franchises on the Internet across different provinces and cities throughout the country. We hope to place orders in the morning and receive goods in the afternoon," he said.

Zhang Enqi revealed that Huili is still doing a 1 hour door-to-door project in the 3 km area.

Yang Weidong told reporters that the biggest challenge facing the company is dealer channel integration.

At present, there are more than 2000 stores in the whole country, 12 big distributors and several small and medium-sized distributors. The channels are chaotic.

"From the beginning of this year, the company plans to take about two years to carry out nationwide channel integration and strengthen management. On the one hand, we should straighten out the distributors' channels, and on the other hand, we should strengthen our control over the channels. At the same time, we hope to change the confusion and uneven situation of the current channels."

Yang Weidong said.

"The continuation of the vitality of old brands can be done in many ways, such as diversifying and innovating product lines, designing standardized visual images, adopting more daring and innovative ideas, and utilizing environmentally friendly and concise packaging design."

But Wang Xin also pointed out that some domestic brands of domestic goods are becoming more and more weakened because the enterprises are at the lowest end of the industrial value chain and are hard to turn over.

"After more than thirty years of market economy baptism, consumers are more and more mature and rational.

Many old businesses are mostly single products with thin profits and low added value.

Despise design, do not pay attention to packaging and publicity, so that many old brands become low-grade, cheap pronoun.

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Enhance product added value

Huili is also aware of the above problems. Low end products have low gross profit and low added value. Even if they have huge sales volume, they may not really bring profits to the company.

"The future rally will be a derivative, from a low gross margin, low added value of low-end brands, derived from a more high-end products that are more responsive to consumer demand, fashion trends and high added value."

Zhang Enqi told reporters.

The reporter learned from the force that the new product price system of the company in 2016 is: the price of its low-end products will be below 99 yuan in the future, the middle end products will be around 200 yuan, the high-end products will be higher than 369 yuan, and a small number of products will be priced at more than 600 yuan.

However, the price system is not based on the age of Chinese consumers. "Today's consumers are hard to decide what age to buy clothes and shoes, and the boundaries are vague."

Zhang Enqi said that in accordance with income, Huili identified the purchasing power of buyers. "For example, we will judge that the per capita income of households below 3000 yuan is the main force to buy our low-end products, while 8000 yuan per capita is the target group of mid end products, and more than 10000 yuan is the target group of high-end products."

For Hui Li, the upgrading of the brand is not a complete abandonment of low-end products.

"It is clear that those products with lower prices are one of the elements that support the long life of the force.

We just hope that on this basis, we can enhance the value added of the brand and rely on the middle end.

Zhang Enqi said, according to the plan, the future product structure is 4 (low): 5 (middle): 1 (high), "at the high-end, we can not compete with those big international brands, so the main energy will be in the middle market."

For an old state-owned enterprise, remodeling brand and product promotion is not an easy task.

The company that needs the brand itself has a well functioning management system, and a group of creative and executive managers and staff teams.

In Zhang Enqi's view, the middle and long term planning of Huili has its limitations and its own characteristics.

It is worth mentioning that, as a company under Huayi Group, the plan for the future is backed by the parent company, which will form an industrial linkage with Huayi's tire company (dual money, back force) and battery companies (white elephants), which may be another powerful support for the pformation of the supply chain.