How Did Dadong Go Against The Trend?

In the past few years, the "shoes kings" have been having a bad time. BELLE has been delisting, the rich bird has gone bankrupt, Daphne has lost 4 consecutive years, and there are only more than 2000 shops left.

In a depression, there was a shoe company named Dadong against the trend. At present, it has opened about 9000 stores nationwide, with annual sales volume of 100 million pairs, and plans to achieve a target of 100 billion sales in 2030. It has been awarded the new generation of Wenzhou shoe king by the media.

Unlike other shoe companies in Wenzhou, Dadong chooses to dig deep into the four or five line city, and you can see the shadow of the "sinking market" commonly referred to by the Internet. But the success of Dadong is far from cheap and simple. This ambitious enterprise has begun to test water intelligent logistics besides working with IBM, Ogilvy and other first-class companies.

Chen Guangmin, the founder of Dadong, also said that he was more worried about the Internet Co such as zunni, kraft and other similar shoe companies. Like Chen Guangmin, he did not set boundaries. "

At the age of 17, Chen Guangmin, who was born in the countryside, began working as an apprenticeship for shoemakers. But at that age of many possibilities, he did not go straight to shoes at first, but kept his bees for 3 years with his cousin.

Beekeepers need to follow the flowering period. In Chen Guangmin's memory, January February belongs to Yunnan soybean flower. In March April, it was rape flower in Sichuan. When bees went to pick sunflower, it showed that it had arrived in Inner Mongolia. This experience has benefited Chen Guangmin greatly, and his vision has also expanded. Later, the "sweet cause" was interrupted because Chen Guangmin wanted to go home to get married and have children.

In the 80s and 90s of last century, Wenzhou's small commodity economy flourished under the reform draught, and small factories in front of shops such as leather shoes, lighters, clothing, electrical appliances and so on. Chen Guangmin, who came home, chose to sell shoes wholesale. At first, he did not own a store. Because he had a good business, Chen Guangmin opened a store in Zhengzhou in second years.

In 1995, Chen Guangmin opened a small workshop in his own yard. Because of its small size, he worked as an employee and a boss, making orders for shoe stores in the market. It was also in this year that Chen Guangmin earned the first pot of gold in his life.

At that time, the most popular selling product was a man's bag shoes of rich birds, and a lot of counterfeit people. Chen Guangmin and other people changed the shoe into a woman's shoes. In Chen Guangmin's opinion, it's not complicated to make women's shoes. It's hard to try.

Chen Guangmin's second bold attempt took place in 2008. Chen Guangmin abandoned the "provincial agent system" of shoe company general use instead of direct selling mode. The choice was inevitable for Chen Guangmin. The original system had to go through the hands of the company, the provincial agent and the distributor. The shoes to the consumers were already 4 times the cost, so that everyone could earn money. But when consumers are no longer willing to pay the bill, the road will not work. At that time, every branch and agent in Dadong was unable to manage and owed Chen Guangmin about ten million.

But all changes did not take place overnight. Since 2008, it took 4 years for Dadong to formally explore its own path. Through the "self transformation", the 18 provincial branches under the control of agents were replaced by the head office, and the shareholding ratio was 51% and the subsidiary company accounted for 49%. It also carries out "joint transformation" for all franchised stores, which is unified pricing and unified distribution by the company.

Through the reform, Dadong has completely dredged the industrial chain from raw materials to selling, and made its products remove intermediate links and appear in the market with a high price performance ratio. At this point, 79 yuan pairs of Dadong women's shoes were born.

Dadong is famous for its 79 yuan pair of women's shoes. In fact, the price of the Dongmen store is much lower than that of the imagination, passing through the stores in the East, 59 yuan a pair, 100 yuan /2 double discount and so on, so that people who go shopping can walk into the shop without psychological pressure.

This kind of low price is also related to Dadong's subdivision of customer age. In big east, from children to old people, they can choose the shoes they want. Although the gross profit is not high, it pays much attention to small profits but quick turnover. It is said that consumption is a psychological battle. Chen Guangmin clearly knows this.

For his own low price strategy, Chen Guangmin once made a simile: "cattle, sheep, horses eat the same grass, sheep eat the most tender grass tip, and the horse eats the middle part, leaving only the most bitter grass roots for the cattle. And Da Dong is the one who eats grass roots.

The other two characteristics of Dadong's rise are zero inventory and "14 day fast fashion".

As a fast fashion product, shoes inventory will not only dilute profits, but also degrade products. For shoes that need to be processed, Dadong will even buy one to give a hard plug to the customer. The so-called "14 day fast fashion" is 14 days from design to store, although it is much faster than other peers, but Chen Guangmin is still not satisfied. "We have been working hard to change the 14 day to 7 days. "

In Chen Guangmin's view, the biggest cost of taking a low-cost brand is not the cost of raw materials, but the cost of time and planning. Take the capital turnover rate as an example, suppose that one hundred million yuan of funds can be traded two or three times a year, and it can make two hundred million or three hundred million yuan business. If the turnover is five or six times a year, it can do five hundred million or six hundred million yuan business. As early as in 2013, when other shoe companies in Wenzhou could only do two or three times a year, the capital turnover rate of Dadong had reached five or six times.

Chen Guangmin understood that if he wanted to be replaced, he needed to keep pace with the times. In addition to creating a nearly perfect industrial chain, he also took the initiative to introduce advanced technology and management. Over the past four years, Dadong has carried out a number of projects with IBM, covering ERP implementation and consultation on commodities, supply chain, human resources and financial management.

No one wants to buy a one-off deal, and deeply participating in the daily life of consumers has become the first choice for many businesses. Whether it is WAL-MART, a foreign layout life service, or a millet that has made efforts to build an ecological chain in recent years, it reveals the ambition to become part of the life of ordinary people.

Chen Guangmin is also interested in this. He announced in March this year that he will strive to build a new business model of "life circle" in the next three years. In the big east life circle, you will be able to see projects including smart home, convenience store, bookstore and so on. Smart people all know how to borrow power. In order to create a big east life circle, Chen Guangmin also signed a strategic agreement with Ogilvy, which is a professional company built by the brand. In Chen Guangmin's view, this is conducive to the building of the big east brand.

On the other hand, in order to fully realize the "big east speed", Dadong's intelligent logistics is already in preparation. In the past, the experience of beekeeping made Chen Guangmin understand that if he wanted to be a queen bee, he must have excellent reproduction ability or he would be replaced. He said, "Dadong wants to be an excellent queen bee. "