Three Thinking Analysis Of Channel Transformation Of Shoes And Clothing Brand

In the cold winter, what should shoes and clothing enterprises do? Is it a tug of warm or a short-term hemostasis? Is it quietly waiting for spring or against time? Is it transformation and upgrading or sticking to rules and hibernation as a whole? Tan Ru, a Chinese shoe and clothing brand observer, interviewed in Zhejiang and Jiangsu, found that the thinking of channel operation of shoes and clothing brands in Jiangsu and Zhejiang is changing.

　 AOKANG Thinking: learn to swim in winter in winter.

"For enterprises, in the cold winter of this economy, how should we choose? Hibernation may never wake up again; choosing winter swimming may be painful for a while, but it can strengthen our health and build up momentum." In May 19th, Wang Zhentao, chairman of AOKANG group, explained AOKANG's thinking in the speech at the AOKANG international 2014 cooperation conference.

Wang Zhentao believes that the current economic situation is still relatively grim: small and medium-sized enterprises are facing difficulties and will face a new round of reshuffle. In the past, small businesses can hold together for heating, and now they are holding together to die. Fierce competition in big enterprises, before there are pacesetter, after the pursuit of soldiers, big fish eat small fish, fast fish eat slow fish, traditional enterprises are difficult to manage, and emerging enterprises are hard to make profits. Under such a big background, we must learn to "winter swimming", charging learning, practicing hard work, and saving operating costs of internal channels.

AOKANG group was founded in 1988. After more than 20 years of development, it has become one of the largest private shoe making enterprises in China. It has AOKANG, Kanglong, beautiful beauty, red Firebird and other private brands. AOKANG brand is the symbol brand of China's leather shoes industry, and the first brand of men's shoes. AOKANG's brand value has exceeded 10 billion yuan. AOKANG international clock rings at nine a.m. on April 26, 2012. According to AOKANG's 2013 annual report, in 2013, the company achieved operating income of 2 billion 796 million 209 thousand yuan and realized a net profit of 274 million 234 thousand and 700 yuan. Faced with this report card, Wang Zhentao felt the chill of the wind. He realized that in such a cold winter, AOKANG had no strong physique and could not resist the cold current.

Thus, under the guidance of AOKANG's thinking, Okan Jon Nekorn launched the fashion line, set up an industrial innovation alliance, pushed the new intelligent shop without shoes, and longed to make AOKANG play a leading role in the footwear industry. This year, AOKANG brand positioning: fashion, mainstream, younger. Officially launched the "A+ experience plan", aiming at upgrading R & D strategy, product strategy, brand strategy and channel strategy, and gradually realizing the comprehensive transformation and upgrading of the terminal to bring better shopping experience to consumption.

At the same time, in order to better adapt to the "bad climate" changes, AOKANG launched the International Pavilion model, striving for its five major changes: first, from single brand to multi brand changes; two, from single category to multi category changes; three, from selling products to selling services; four, changing from small shops to big shops; five, from single stores to urban agents.

　 Hai Lan's home thinking: light assets

Obtaining the maximum return with limited assets is the highest level pursued by all enterprises. Light assets are the essence of Hai Lan's home thinking: only cling to their core values and outsource non core businesses.

In twenty-first Century, there were two main modes of clothing brand operation in China's footwear industry: first, the entity brand operation mode, from design, purchase, production, wholesale and retail, to a one-stop operation, such as "YOUNGOR" brand operation. Two, the virtual brand operation mode is mainly based on design and sales, and basically does not have its own processing plant. Such as "Metersbonwe" brand operation.

　　这两种模式都有弊端：实体型品牌运作模式虽然环环相扣，但如三国赤壁之战曹操用铁链连起来的几千条战船，联系太坚固，战线拉的太长，环节太多，哪个环节出问题都会影响整个销售链条的断裂，抑或只需“黄盖放一把火”就会全军覆灭;虚拟型品牌运作模式实际上是以订货制为导向(品牌商—总代理—加盟商)的传统渠道模式，所以没有从根本上解决总代理商“肠梗阻”的现状，在这种运作模式下的终端则以总代控制店铺为主，代理商就成为厂家库存的中转站，代理商的实质就是终端店的配货中心，从品牌商到代理商，再到终端店，则是以逐层压货、转移库存为运营手段，品牌商要看总代的脸色，因为总代掌握着终端资源。

Hai Lan's home suddenly awakens in the trend of "going to join", upgrading the operation mode of the virtual brand. In the whole product production and marketing process, Hai Lan's home controls the "product planning, brand management" and the downstream "supply chain management and marketing network management", while the "product design, garment production, transportation and distribution" links are outsourced. According to Zhou Jianping, chairman of Hai Lan's home, "do not earn tailoring money and take the road of brand".

In the environment of shoe and garment industry's operating cost increasing rapidly, production is no longer the initiative of enterprise growth. Hai Lan's home has started the thought of Hai Lan's home with light assets, and implemented the "brand + platform" mode. "Lian" and "lock" have solved the problem of "Lian" instead of "lock" of many brands of shoes and clothing chain, unified image, unified price, unified management, unified procurement, unified distribution, unified recruitment, unified training, unified settlement, and unified chain operation and management nationwide. Hai Lan's home has truly been "Lian" and "lock", "Lian" has lived in the brand, "Lian" has lived in the image, "Lian" has lived in the product, "Lian" has lived in the service, and has "locked" the management so that every store can operate in accordance with the standardization mode of the company, and every department in the company can also serve the store according to the standardized business process. Already

Six years ago, Tan Ru, an observer of Chinese shoes and clothing brand, wrote "the ten characteristics of the model of" Hai Lan's home ". He has explored the advantages of Hai Lan's home asset, which illustrates the shrewdness of Hai Lan's home -- light assets. Light assets thinking, at the front end, can transfer risk to OEM manufacturers, without paying the huge amount of money in advance, and avoiding the risk of rising production costs; at the terminal, the sea lane house excludes "intestinal obstruction", no longer needs to adopt the traditional way of pressing goods, nor does it need to use bullsticks or sticks to force the general agent to increase orders, no bubble, and has the final say, and the funds are fast and fast.

In recent years, Hai Lan's home thinking has triggered a new revolution in the market of China's footwear and clothing industry, and has brought a lot of benefits to the family of Hai Lan. In 2009~2013, the compound growth rate of revenue and net profit reached 50.8% and 45.6% respectively, and the number of stores increased from 655 in 2009 to 3210, among which 2900 were Hai Lan's home, 280 were AI Ju rabbit, and 30 were obedient. In 2013, Hai Lan's family business income was 7 billion 150 million yuan, an increase of 57.9% over the same period, with a net profit of 1 billion 470 million yuan, an increase of 58.2% over the same period last year.

Big east thinking: self renovation

In June 2012, Zhejiang Dadong shoes industry Co., Ltd. resolutely took the step of transformation. All the 18 provincial branches that were originally controlled by agents were all self operated and transformed to be controlled by the company. This is the practice of Dadong thinking, "to seize the military power of all the princes and firmly control the brand's fate in their own hands".

After twenty-first Century, China's shoes and clothing brand channels began to break through, transforming from the traditional wholesale and retail mode and the chain monopoly mode to the regional agent system mode. The brand dealers rely on local tyrants to represent the provincial level, and then invest in the first level and one level, and wholesale and circulation.

On the face of it, brand operators enter the regional market through agents' channels, which saves time and effort, and can quickly open the sales situation. But when they are rich, they will gradually save their vested interests and put their interests in order. They will bring in products at a lower price, and then they will lower their prices and set a huge cash flow. The agents default on the money of the brand, and invest in some transactions that are not related to the brand by winning the cash flow. This makes the brand business very angry, but it also takes no action.

In order to ensure the safety of the market and funds and exclude the "intestinal obstruction" of the market, Dadong has the thought of "self transformation", and tries to make "all the lords" and "go to the military power". In the process of transformation, Dadong must avoid the suspicion of "going to join", ensure the interests of agents and franchisees, and mobilize the enthusiasm of all parties on the premise of regain market control power. Why is this easier?

Dadong brand was founded in 1995. Before 2012, it was also the most common agent system in shoe and clothing industry. After 2012, under the influence of Dadong, Dadong carried out "self renovation".

According to the insider, the agent branch of a large eastern province has a discount of 20 million yuan. After the transformation, the 20 million yuan accounted for 49% of the shares. Great Eastern Company headquarters held 51% of the shares. The capital investment and shoe distribution of the branch were all held by the head office. The most important thing is that even if the branch loses money, the headquarters will also take the 10% yuan of the original 20 million yuan as the "minimum income" every year, and if the branch profits, the agent will pay dividends at 49%.

At the same time, Dadong reorganized all the franchised stores originally invested by distributors into joint stores. Each store owner handed over the company's headquarters 200 thousand yuan as a cash deposit to pay the store rent and the guide clerk's salary. After this "self renovation", Dadong's more than 1000 stores in the whole country will be remitted to Dadong headquarters account tomorrow. Remove the transfer link, the retail price of shoes is more affordable, and sales are bigger. Through self transformation, the rights of the franchised stores are maximized, pricing and sales has the final say. In the present day, the stock pressure is increasing. Dadong tries to achieve "zero inventory", and "the shoes that are not sold every season, and send them out!"

It is reported that at present, the turnover rate of Wenzhou shoe enterprises is only two or three times a year. In 2013, the capital turnover rate of Dadong has reached five or six times. This not only increased the utilization ratio of funds, but also made the Dadong stand out and enhance the market competitiveness.

Ideas determine the way out. In the severe winter, the brand of shoes and clothing should grow healthily, first of all from the change of thinking, because thinking is the special logical analysis ability of a single life form peculiar to our subjective consciousness, and what kind of thinking determines our actions. The result of AOKANG's thinking, Hai Lan's home thinking and Dadong's thinking illustrates this point.