Daphne, Irkang's Most Fearsome Opponent: Dadong: A Pair Of Shoes, 79 Yuan, 8000 Stores.

What are the landmarks in Wenzhou? 8 of the 10 taxi masters will be the first to push the five Horse Street. "Not to go to the five Horse Street does not count Wenzhou!"

A commercial pedestrian street in Lucheng District, nearly 400 meters long on both sides of the street sells shoes, more than half of which are Wenzhou shoes.

There are more than 3500 shoe factories in Wenzhou, and AOKANG, red dragonfly and so on are all Wenzhou brands.

However, many people do not know a big brand called Wenzhou brand.

This is a magic shoe business - thirty or forty square meters of stores, red and white decoration, "79 yuan and 2 pairs", "clearance sale, sale 50 percent off" discount slogans do not seem to have taken off.

Surprisingly, such a rustic brand has more than 8000 stores in the whole country. How does big east sweep the low shoe market?

Reporters and Chen Guangmin sitting face to face at this moment may be the closest to the real answer.

Previously, this low-key founder of the Great East almost never appeared at the stage.

When Chen Guangmin was 17 years old, he came out to "go to the rivers and lakes". He worked as a shoe factory apprentice and kept bees, and later returned to Wenzhou to be a shoe salesman.

In the 80s and 90s of last century,

Shoemaking shops are everywhere, and Dadong is also a small family workshop.

Cover the yard with a shoe machine, and 35 people can support a small factory.

Chen Guangmin laughs at this as a Chinese "garage business".

Chen Guangmin's real first barrel of gold comes from the bag shoe, which is a process that seams the upper to the sole and sets it into the oven.

In the age of men's shoes in Wenzhou, only when male shoes came out.

Compared with similar men's shoes, PU shoes have relatively low requirements for manufacturing process and materials and low market access threshold.

Chen Guangmin thought that instead of going to grab a bite of the men's shoes market, it would be better to bet on it and turn it into a female model to see the market reaction.

Chen Guangmin, a Wenzhou businessman who runs the market, is very keen on the market.

As soon as the women's shoes were launched, the order volume of Dadong increased sharply, attracting others.

Factories have followed suit.

It's not difficult to make women's shoes in bags, but not everyone can think of the innovation of men's shoes to women's shoes.

From this incident, Chen Guangmin suddenly came to realize that imitating blindly could not go out, and we must constantly seek novelty and change to form its own differentiation advantage.

When Wenzhou shoe companies were in a second tier city, Chen Guangmin chose to take root in the 456 tier cities and even some remote towns.

Chen Guangmin drew an analogy: cattle, sheep and horses eat grass in the same field, and sheep eat the most tender grass tip.

And Dadong is the ox that eats grass roots.

Dadong did not make age subdivision to its target customers, but directly targeted at the 18-60 year old crowd, and divided the use scenarios into work, sports, leisure and other labels.

Chen Guangmin hoped that no matter what age people, they could find their own shoes in Dadong.

Surprisingly, no matter the TV or the Internet, almost no big east brand is exposed. The only advertisement is the celebrity spokesperson on the shoebox.

How did big east attract so many franchisees and customers?

"Professional brand only sells the price of the stalls". The high cost performance is the image that Dadong has always molded for itself.

Stores are constantly selling discount activities and constantly attract passers-by to go for a stroll.

For many customers, the average price of a pair of shoes is only 80 yuan.

Dadong tends to shop in crowded pedestrian streets and small business areas, first mix up "familiar".

Often seen such a strange phenomenon: a big east gate shop opposite is another big east, 100 meters apart and a family.

This is not to grab their own business? In fact, on the contrary, in fact, this is a franchisee opened, seemingly to fight each other, but in fact can form a partial advantage, squeezing the survival space of the competitive brand.

Whether it is products, pricing or target customers, Dadong is very clear about its low and medium market position from the very beginning, and takes 456 line cities as its base, and gradually moves closer to the two or three tier cities.

For Chen Guangmin and Dadong, 2012 is the most crucial year.

At first, the operation mode of Dadong was the same as that of most shoe enterprises. The headquarters wholesale goods were given to provincial agents, franchisees, and then to the provincial agents.

At this time, Dadong has not yet formed a standardized franchisee management system, nor does it have unified pricing in the whole country. This leads to confusion in terminal price and vicious competition.

In the end, franchisees can't earn money and close their stores. Agents can't manage, and some even owe about 10000000 yuan to headquarters.

Everything is forcing Dadong to innovate itself.

Chen Guangmin knows well that if the chain from factory to store can not get through, the situation will happen again and again, and there is no future for Dadong.

In the final analysis, the distribution of money, power and responsibility of companies and franchisees will be solved.

After careful deliberate, Chen Guangmin decided to take two steps: the first step is to get through the branch company, that is, the provincial agent; the second step is to get through the store.

In June 2012, the reorganization of Dadong was carried out by 18 provincial-level branches controlled by the agents, and the "self pformation" was replaced by the head office. The shareholding ratio was 51% and the subsidiary company accounted for 49%.

In the 7-8 month, Dadong carried out "joint pformation" to various franchised stores, and became a joint store. The company unified pricing and unified distribution.

The franchisee has to pay 50 thousand yuan to 200 thousand yuan for the company's deposit, and the daily revenue must be pferred to the company's designated account the next day.

However, it is difficult to seal a king.

For those franchisees who make money, there is no need for "pformation".

They are worried about whether the new model is right and how far it can go. In doubt, only 4 of Guangdong's franchisees opt out.

Chen Guangmin was a little nervous, but he quickly stabilized.

For the interests of the franchisee and the company's distribution, he is very simple, "all the money together to make money, lose count of me!" earned money, we are divided into proportions; if the loss, the company still shares the price of 10% "minimum dividend", franchisees rebate according to the results.

Although franchisees need to pay a deposit to the company, the value of the goods issued by the company is far more than the deposit.

Chen Guangmin's words have been reassured by some franchisees, who are one of the franchisees left behind by Guangdong province.

What he encountered were some commonplace problems - the pursuit of high gross profit and high unit price, which led to the storage of goods.

In the past year, the "money" earned in the warehouse is not available.

In fact, no matter how the company does it, franchisees have only one request and can earn money.

"Self renovation" and "joint pformation" have greatly reduced the pressure of franchisees. They only need to be responsible for the facade rents, the guide staff salaries, the deposit of goods, and the daily operation of the stores, and everything else is arranged by the company, including shop distribution, personnel training, etc.

Although the gross profit has not been higher since the unified pricing, the corresponding sales volume has been raised, and the scale advantage of small profits but quick turnover has come out.

At present, there are 25 stores in the pipeline, with an annual turnover of 30 million yuan.

In this process, the most significant change is the evolution of the role of the sub company, from the "middleman" to the regional market manager, has really opened up from the factory to the terminal mode of direct sales.

After the "cup wine release", Dadong also gained explosive growth. In 8 years, the store grew rapidly from 1000 to more than 8000.

"Self renovation" and "joint pformation" have successfully solved the problem of profit distribution between the company and the franchisee, but also pferred the pressure that originally belonged to the franchisee to the headquarters of Dadong.

The first thing to bear is the inventory problem, which is a common problem of shoe companies.

For this reason, Chen Guangmin put forward the concept of "zero inventory". There are two reasons: first, backlog of inventory affects the turnover rate of enterprises; second, the PU shoes are the main products of Dadong women's shoes. If left for second years, leather will have a certain degree of oxidation. In order to ensure quality, every season's shoes must be cleared.

Chen Guangmin's way is, "every season can not sell shoes, send to send out!" how to send? When the season cleared, do "buy 1 pairs to send 1 pairs", "79 yuan 2 pairs" and other promotional activities in the store.

Through high price shoes with low price or shoes at the same price, as well as the early step price cuts to balance the profit and loss.

Dadong originally positioned low and medium price. The price of shoes is mostly 59~159 yuan. Even frequent promotions do not need to worry about brand positioning as a high-end brand.

Today, Dadong has basically realized "zero inventory" every quarter.

Chen Guangmin put forward the "zero inventory" of the bottom, largely from the East fast fashion positioning.

To achieve "zero inventory", we need quick response from the rear supply chain, which coincides with the demand of fast fashion.

"Now that companies are bigger, shipments are not as fast as those of small factories."

Chen Guangmin sighed.

In his view, 1~2 day design, 2~3 day production, 3 day logistics, 7 days to the market can be achieved, depends on how to create supply synergy.

At the end of production, Dadong divides the production line into cusp and heel, round head shoes, casual shoes and so on.

Chen Guangmin described the process as a hot pot. As long as the bottom of the pot is ready, no matter how the dishes change, the cooking process will not change.

Similarly, making shoes is also the same. Each production line is a single category incubator. As long as the material is waiting, the command can start immediately, ensuring that fashion information is rapidly pformed into technology.

Besides developing and producing fast, the most troublesome thing is logistics.

The biggest cost for Da Dong's middle and low grade brand is not its raw material cost, but its planned cost.

Many stores will encounter such a situation - the shoes that are sold are not enough to sell, and there are many shoes that can not be sold well.

It took 1 months for the company to get the goods and missed the gold sales period. The shoes that could be sold for 139 yuan 1 months ago can only be sold for 59 yuan. The waiting time in the middle of 1 months is wasted.

Shoes are not seafood. It's okay to arrive a few days later.

In fact, if logistics is slow, it will directly affect the product's new cycle, promotion cycle, and even miss the gold sales period.

So all the previous efforts were done, not to mention "zero inventory".

Therefore, logistics lifeline must be in their own hands.

In the past two years, Dadong began to test water intelligent logistics, and the sorting process in logistics and distribution was unmanned and intelligent, similar to Jingdong's intelligent logistics warehouse.

Today, Dadong dismantled the previous intelligent logistics pilot, and is now building an intelligent logistics warehouse with a height of 34 meters and an area of 14000 square meters.

Chen Guangmin said this would be the first intelligent logistics system for the shoe industry in China.

The "7 day fast fashion" is the next goal Chen Guangmin set for Dadong, which tests the linkage ability of the whole supply chain from buyers, design, production, logistics and stores. Chen Guangmin takes the "7 day fast fashion" as the starting point, and goes back to upgrade the supply chain.

At present, the production line of Dadong 80% has achieved the "14 day fast fashion". It seems that it is not far away from "7 days".

There are quite a lot of shoe companies that walk the same way as Dadong.

For example, the shoe factory, which was originally a family workshop, has no one to remember; Zhuo Si Ni positioned the middle market, and the opponent turned into shoes cabinet and Yi Kang.

In the past two years, the women's shoes giants Daphne and BELLE have successively fallen into a performance dilemma. Chen Guangmin has three points of view: first, the rise of the electricity supplier and the dispersion of the drop off stream; second, the best stores of Daphne and BELLE are located in a second tier business circle, the rate of rent decline is not faster than the speed of dispersal of the crowd, the profit mode can not go out, only stores can be closed; third, the number of closed stores has increased sharply, the scale has decreased, and the cost has increased correspondingly.

In Chen Guangmin's view, this is a very natural process.

Anyway, shoes are just needed, just to see whether you wear your shoes or your competitors' shoes.

Everyone is talking about consumption upgrading. What is consumption upgrading? Consumption upgrading is not only the upgrading of brand and price, but also the upgrading of consumer demand.

For example, consumer demand for "brand" in 456 tier cities.

They may not be willing to buy four hundred or five hundred yuan of shoes, but there is demand for fashion and fashion. Dadong just meets their demand for cost performance, design and brand.

Last year, Dadong launched the red label store and black label store with larger size and more categories, and launched the concept of "shoe super" one-stop shopping.

The main position of Dadong is in the 456 tier cities, and the response to the Internet is not as fast as that of a second tier city.

From this point of view, Chen Guang Min congratulated himself on choosing the right track.

On the other side, Chen Guangmin is also anxious.

When it comes to Dadong's competitors, the outside world may think of such shoes as Zhusi Ni and kraft, but Chen Guangmin is not particularly worried about them. He is more worried about such Internet Co as millet and spoil.

They are not limited to tradition, and do not draw boundaries for themselves. Today they make mobile phones, sound equipment, and sell them tomorrow.

In the middle, to raise a pig, maybe one day, run into the shoe industry to create a "big west".

Chen Guangmin knows that competitors are not only in the industry, but also always pay attention to the wolves outside.

Customer demand is constantly changing, but the essence of their pursuit of price performance has not changed.

Although the quality of Dadong is not as good as the high-end brand, it has always been deeply rooted in the consumption soil of the 456 line cities, and the strategy is based on the same things.

"From 0 to 1, we now have quantities, and we have not enough time to wear suits and ties, and have been busy doing farm work.

After the farm work is finished, a suit can be bought, but not a tie.

Next, we should wear our suits and tie together and do it step by step.

Chen Guangmin said.