Archimedes once said: "Give me a fulcrum and a long enough lever to allow me to shake the earth." In the business world, commodities and commodity power are undoubtedly the fulcrum and leverage. To succeed, Chinese brands must face the power of commodities.
Looking back at the Chinese shoe and clothing industry in the past year, many events and topics were thought-provoking.
Li Ning (02331.hk) 2009 annual financial report showed that Li Ning's product sales increased by 21.1% to 7.69 billion yuan, accounting for 91.7% of the group's total sales. Li Ning surpassed Adidas for the first time in the domestic market and got second only to Nike. The sports brand "second place". Its design innovation and brand innovation practice has been effective in recent years. In addition, in the second half of this year, Li Ning's move to change the standard based on the younger people's strategy has made people place high hopes on this leading Chinese sporting goods market.
The famous luxury brand PRADA rejected the acquisition of Chinese businessmen. In March 2010, Lu Qiang, chairman of Shanghai Fu Kesi Industrial Co., Ltd., declared that he had invested 20 million euros to acquire an Italian business consulting company and planned to acquire PRADA shares. Then, PRADA Public Relations quickly issued a statement to deny it, saying that the news was unfounded and false reports, and that "to the Chinese people will make quality and style worse."
Not long ago, an article titled “When will China be able to create a clothing brand with an annual revenue of more than 100 billion yuan?†singled out a series of topics: “When will China be able to create a shoe brand with an annual revenue of more than 100 billion yuan?†, "China's shoes and apparel companies with what create a century brand?" ... ... For the Chinese shoes and apparel brand, the annual sales of more than 100 billion yuan *** What is the concept? Li Ning has crossed 7 billion yuan, and Anta has touched 6 billion yuan. In contrast, Youngor, who has ranked in the top five in terms of income from the main business of China's textile and clothing industry for several consecutive years, in 2008 had gross revenue of only 10.78 billion yuan, of which only 2.17 billion yuan came from the retail of “Younger†branded apparel in China...the distance was far away.
All of the above, the direction of the problem can not be avoided: in the face of the trend of a hot market, China's shoes and apparel industry rely on what to force?
In fact, Chinese companies that are good at learning are exploring every possible way out every day, but we must face the essential difference between “doing things right†and “doing the right thing.†The author's point of view is that whether it is a realistic goal to win with a multinational brand's indigenous PK, or to create a world-famous brand or reach a dream of reaching 100 billion more distantly, Chinese companies need to prove that Made in China's goods are not due to the price of access to the world. But the value has swept the world.
Returning to the essence of Chinese enterprises, whether it is the shoes and clothing industry or other industries, the current core issue is to make products well and to study how to make their own products valuable and competitive.
The corresponding incident with PRADA's refusal of Chinese merchants' acquisitions is: Since this year, more and more international luxury goods brands have taken over Chinese companies' agency rights in the Chinese market. If HugoBoss plans to set up a joint venture company in China in the second half of 2010, HugoBoss has signed an agreement and HugoBoss will occupy 60% of the joint venture company; Burberry also stated that it plans to acquire 50 franchise operations in 30 cities in China for 70 million pounds. Stores, this measure, can increase its 2011-2012 operating profit by up to 20 million pounds.
What is the behavior of luxury brands like “crossing the river� In the eyes of more people, the huge potential of the Chinese market is the real reason for luxury brands to recover their proxy rights. The strong growth of China's luxury goods market and the huge contrast between Europe and the United States in the high-end consumer sector have left luxury brands unreliable. They have to adjust their strategies in China and turn from passive to active to cater to the trend of the global luxury goods market and speed up the rapid development of layout. China's luxury goods market. Repossessing agency rights can not only control profits, but also have more rights to speak.
However, luxury brands “change their face†cannot avoid the problems of product operations. Some experts pointed out two reasons: First, the problem of the agents themselves. Because the agents are restricted by funds, they can't buy all the brand's products. This has caused a lot of luxury brand stores to have incomplete product categories. Second, the luxury brands pay much attention to the brand image. Reaching the level required by luxury brands, it may also happen that the operation management, staff level and brand development do not match during the expansion process, resulting in damage to the brand image. In this case, only by switching to self-support can we ensure the speed of expansion and balance the relationship between high-speed expansion and store management.
Luxury goods do not hesitate to make such adjustments in order to maintain their own brand image and taste, and their focus has been on ensuring product quality. In contrast, Chinese companies often only see the success of international brands and do not understand the essence of their success. This has also led to a consequence that the management theories of European and American companies have been flooded in China in these years. Chinese enterprises are not anti-dogs in drawing tigers.
Everyone is talking about fast fashion, talking about brand innovation, talking about marketing innovation... lest one’s own “being outdatedâ€, few people think hard about how to make their products more competitive. For a long time, "Made in China" represents a mass market product that lacks creativity and quality needs improvement. There was a statistic showing that 86% of Chinese customers would be reluctant to continue buying or even return because luxury goods were marked with “Made In Chinaâ€.
Marie Jiang, a JLM consulting analyst, said: “In the short term, I don’t think any Chinese luxury brands can compete in international luxury brands in terms of marketing, international influence, brand culture, design and quality.â€
The gap is obvious. However, relevant people believe that the future of China's footwear brand does not lie in the replacement of international brands, but in the discovery of a true self, the development of a unique culture, and the development of footwear companies with Chinese characteristics. From this perspective, in fact, China's shoe and clothing brand is the most difficult opponent to overcome, this is the Chinese shoe brand needs to really face and actively respond to the reality.
In the author's opinion, the most essential feature of excavating features is how to make their own products have unique values, instead of plagiarizing and homogenizing all over the place.
What is the final result of brand competition? When we give pair of goods, we send to the right market and sell to right customer in right price and right form. Everything begins with merchandise and runs through it, and this simple sentence reveals an important truth of branded merchandise. To succeed, Chinese brands must face the power of commodities.
Recognize "goods"
What is a commodity? Commodities are labor products produced for exchange, or commodities are products for exchange, and they are the unity of use value and value. This is the meaning of domestic high school political textbooks for "goods."
However, from the perspective of corporate operations, relative to this basic definition, the chief strategic consultant of Blue Time Enterprise Management Consultants, the most influential commodity planning organization in China, has a different understanding of “commodityâ€: the product is the core of the brand. Carriers, goods carry all the brand. Consumers buy more than just products, and certainly not just brands. Consumers can only buy goods. When you look at it from this point of view, the product has a very clear definition - the product is the brand. Product.
Obviously, the most important thing in rereading “merchandise†is to think about how companies can make their own products in the market, be competitive in the minds of consumers, or be called commodity power.
Archimedes once said: "Give me a foothold and a long enough lever to allow me to shake the earth." In the business world, commodities and commodity power are undoubtedly the fulcrum and leverage.
Commodity power is not a new concept, but the search for “commodity power†on the Internet does not contain much information on corporate practices. One of the interesting points is that the “second law†put forward by Wang Fachang, deputy general manager of FAW Toyota’s sales company, a few years ago: Commodity power is a wheel and marketing power is another wheel. When the two wheels are matched to each other, the company can achieve high speed. development of.
Baidu Encyclopedia gives a systematic description of “commodity powerâ€:
The brand merchandise power, namely the quality personality of branded products, the quantity and types of branded products, the functional changes of branded products, and the intrinsic technological content of branded products. It is the company's strength through product quality, price, design, and diversification. It is the exchange ability and trading ability after the product has become a commodity, and it is also the consumer's perceived appeal of the branded product itself. Commodity power is the basis for the brand to win market competition.
The composition of the brand merchandise force: including corporate image, brand characteristics, brand product quality, brand product after-sales status investigation, brand product major problems and analysis of similar product universality advantage.
Commodity strengthening: mainly through the determination of the product's target consumers, product positioning, concepts, in addition, the quality of goods, appearance, designation and even packaging should reflect the "concept", so that consumers feel the effectiveness of the product, To truly be consumer-centric.
Whether enterprises can survive in the market, whether they can establish their own brands in the competition, and have a strong brand power, the fundamental point is whether the products produced by enterprises can enter the market smoothly and get consumers' recognition in the market. Therefore, for the creation of a brand, the product is its material basis. At the same time, a successful product does not equate to its own perfect product, but it should be a market-recognized product.
......
“To be truly consumer-centric†and “successful products should be products confirmed by the marketâ€, Baidu Encyclopedia has clearly pointed out the importance of focusing on the market and consumers' commodity power. In fact, this seemingly old-fashioned point of view precisely pointed out the shortcomings of Chinese companies.
Concerned about consumers, “a luxury brand sells only one symbol.†This phrase was once considered a canon by the domestic clothing brand, so it put a lot of money into propaganda and increase awareness. Even so, it is still difficult to resist the pressure of the international famous brands. It is of course important to increase the popularity and reputation of a brand. However, the winning point of an international brand is not exactly here. The cultural connotation and the accurate grasp of consumer demand are considered as the reason for the classic.
Once upon a time, in the face of the offensive of international brands, domestic companies or their own shoes and clothes to take a French or Italian foreign name, or in accordance with the internationally renowned brand logo to register, or buy off the use of international brand trademark rights in their own factory Mass production of "international brand shoes and clothing." However, these practices only focus on the imitation of the brand image, but neglect the absorption of brand culture and the excavation of the brand connotation.
When it comes to how to win over consumer preferences, it is true that Chinese consumers’ loyalty to national brands is not high. This is especially true for the consumption of shoes and clothing. However, domestic brands are conscious of the fact that they are respected by foreigners and they are conscious of their giving. Isn't enough consumer attention and love enough? Some experts have said that the reason why international brands can gain a foothold in the Chinese market is that they believe that Chinese people should wear more comfortable and stylish clothing.
Everything is consumer-oriented, which makes international products have unique personality and competitiveness. However, the situation of the Chinese market that is in the process of reform is relatively complicated. Chinese brands need more effort in this regard. Tripod designer He Chuang believes that there are mature segments in the European and American markets, the consumer category is very clear, and the fixed customer base is very clear. The situation in the Chinese market is just the opposite. Consumers are very unclear. In addition, companies do not have enough research on the market and consumers, causing serious homogeneity. Therefore, Chinese companies can't wait to take the initiative to study consumers.
Fortunately, there are already some Chinese shoes and apparel brands now on the right path.
For example, Shang hai Tang has a theme of traditional Chinese elements and is uniquely colored and unique. In stores around the world, this international brand has always played the role of Chinese cultural interpreter, and gradually established its position as the world's largest Chinese luxury brand.
Belle, for example, not only has a strong presence in the channel, but also has an excellent ability to operate its merchandise. Belle's widely known "vertical integration" model is actually a powerful consumer-oriented commodity management system that not only ensures the efficiency of operations, but also achieves rapid response to market information and consumer information.
It can be seen that as long as the consumer psychology is deeply and accurately studied and valuable products are provided, a distinctive innovation style and a new marketing concept are used to allow consumers to appreciate the personality culture of the brand and provide the brand target consumer groups with a thoughtful service that is close to their lifestyle. Consumers will naturally buy it.
In short, from the perspective of improving sales rankings and providing personalized services to seize the commanding heights of the market; from attracting consumer groups with celebrities, to building a lifestyle museum will be down to the depths of the hearts of consumers - the Chinese footwear brand these respect consumption The initiation of those practices is undoubtedly a good trend. The power of commodities also has the opportunity to exert energy.
Japan's well-known grocery brand MUJI once fell into bankruptcy, but they have strengthened their merchandise through research on customers, not only reviving, but also creating market miracles in recent years. It is foreseeable that one day, Made In China will be able to disseminate unique values ​​through the enhancement of its merchandise, and it will truly lead the market.
Looking back at the Chinese shoe and clothing industry in the past year, many events and topics were thought-provoking.
Li Ning (02331.hk) 2009 annual financial report showed that Li Ning's product sales increased by 21.1% to 7.69 billion yuan, accounting for 91.7% of the group's total sales. Li Ning surpassed Adidas for the first time in the domestic market and got second only to Nike. The sports brand "second place". Its design innovation and brand innovation practice has been effective in recent years. In addition, in the second half of this year, Li Ning's move to change the standard based on the younger people's strategy has made people place high hopes on this leading Chinese sporting goods market.
The famous luxury brand PRADA rejected the acquisition of Chinese businessmen. In March 2010, Lu Qiang, chairman of Shanghai Fu Kesi Industrial Co., Ltd., declared that he had invested 20 million euros to acquire an Italian business consulting company and planned to acquire PRADA shares. Then, PRADA Public Relations quickly issued a statement to deny it, saying that the news was unfounded and false reports, and that "to the Chinese people will make quality and style worse."
Not long ago, an article titled “When will China be able to create a clothing brand with an annual revenue of more than 100 billion yuan?†singled out a series of topics: “When will China be able to create a shoe brand with an annual revenue of more than 100 billion yuan?†, "China's shoes and apparel companies with what create a century brand?" ... ... For the Chinese shoes and apparel brand, the annual sales of more than 100 billion yuan *** What is the concept? Li Ning has crossed 7 billion yuan, and Anta has touched 6 billion yuan. In contrast, Youngor, who has ranked in the top five in terms of income from the main business of China's textile and clothing industry for several consecutive years, in 2008 had gross revenue of only 10.78 billion yuan, of which only 2.17 billion yuan came from the retail of “Younger†branded apparel in China...the distance was far away.
All of the above, the direction of the problem can not be avoided: in the face of the trend of a hot market, China's shoes and apparel industry rely on what to force?
In fact, Chinese companies that are good at learning are exploring every possible way out every day, but we must face the essential difference between “doing things right†and “doing the right thing.†The author's point of view is that whether it is a realistic goal to win with a multinational brand's indigenous PK, or to create a world-famous brand or reach a dream of reaching 100 billion more distantly, Chinese companies need to prove that Made in China's goods are not due to the price of access to the world. But the value has swept the world.
Returning to the essence of Chinese enterprises, whether it is the shoes and clothing industry or other industries, the current core issue is to make products well and to study how to make their own products valuable and competitive.
The corresponding incident with PRADA's refusal of Chinese merchants' acquisitions is: Since this year, more and more international luxury goods brands have taken over Chinese companies' agency rights in the Chinese market. If HugoBoss plans to set up a joint venture company in China in the second half of 2010, HugoBoss has signed an agreement and HugoBoss will occupy 60% of the joint venture company; Burberry also stated that it plans to acquire 50 franchise operations in 30 cities in China for 70 million pounds. Stores, this measure, can increase its 2011-2012 operating profit by up to 20 million pounds.
What is the behavior of luxury brands like “crossing the river� In the eyes of more people, the huge potential of the Chinese market is the real reason for luxury brands to recover their proxy rights. The strong growth of China's luxury goods market and the huge contrast between Europe and the United States in the high-end consumer sector have left luxury brands unreliable. They have to adjust their strategies in China and turn from passive to active to cater to the trend of the global luxury goods market and speed up the rapid development of layout. China's luxury goods market. Repossessing agency rights can not only control profits, but also have more rights to speak.
However, luxury brands “change their face†cannot avoid the problems of product operations. Some experts pointed out two reasons: First, the problem of the agents themselves. Because the agents are restricted by funds, they can't buy all the brand's products. This has caused a lot of luxury brand stores to have incomplete product categories. Second, the luxury brands pay much attention to the brand image. Reaching the level required by luxury brands, it may also happen that the operation management, staff level and brand development do not match during the expansion process, resulting in damage to the brand image. In this case, only by switching to self-support can we ensure the speed of expansion and balance the relationship between high-speed expansion and store management.
Luxury goods do not hesitate to make such adjustments in order to maintain their own brand image and taste, and their focus has been on ensuring product quality. In contrast, Chinese companies often only see the success of international brands and do not understand the essence of their success. This has also led to a consequence that the management theories of European and American companies have been flooded in China in these years. Chinese enterprises are not anti-dogs in drawing tigers.
Everyone is talking about fast fashion, talking about brand innovation, talking about marketing innovation... lest one’s own “being outdatedâ€, few people think hard about how to make their products more competitive. For a long time, "Made in China" represents a mass market product that lacks creativity and quality needs improvement. There was a statistic showing that 86% of Chinese customers would be reluctant to continue buying or even return because luxury goods were marked with “Made In Chinaâ€.
Marie Jiang, a JLM consulting analyst, said: “In the short term, I don’t think any Chinese luxury brands can compete in international luxury brands in terms of marketing, international influence, brand culture, design and quality.â€
The gap is obvious. However, relevant people believe that the future of China's footwear brand does not lie in the replacement of international brands, but in the discovery of a true self, the development of a unique culture, and the development of footwear companies with Chinese characteristics. From this perspective, in fact, China's shoe and clothing brand is the most difficult opponent to overcome, this is the Chinese shoe brand needs to really face and actively respond to the reality.
In the author's opinion, the most essential feature of excavating features is how to make their own products have unique values, instead of plagiarizing and homogenizing all over the place.
What is the final result of brand competition? When we give pair of goods, we send to the right market and sell to right customer in right price and right form. Everything begins with merchandise and runs through it, and this simple sentence reveals an important truth of branded merchandise. To succeed, Chinese brands must face the power of commodities.
Recognize "goods"
What is a commodity? Commodities are labor products produced for exchange, or commodities are products for exchange, and they are the unity of use value and value. This is the meaning of domestic high school political textbooks for "goods."
However, from the perspective of corporate operations, relative to this basic definition, the chief strategic consultant of Blue Time Enterprise Management Consultants, the most influential commodity planning organization in China, has a different understanding of “commodityâ€: the product is the core of the brand. Carriers, goods carry all the brand. Consumers buy more than just products, and certainly not just brands. Consumers can only buy goods. When you look at it from this point of view, the product has a very clear definition - the product is the brand. Product.
Obviously, the most important thing in rereading “merchandise†is to think about how companies can make their own products in the market, be competitive in the minds of consumers, or be called commodity power.
Archimedes once said: "Give me a foothold and a long enough lever to allow me to shake the earth." In the business world, commodities and commodity power are undoubtedly the fulcrum and leverage.
Commodity power is not a new concept, but the search for “commodity power†on the Internet does not contain much information on corporate practices. One of the interesting points is that the “second law†put forward by Wang Fachang, deputy general manager of FAW Toyota’s sales company, a few years ago: Commodity power is a wheel and marketing power is another wheel. When the two wheels are matched to each other, the company can achieve high speed. development of.
Baidu Encyclopedia gives a systematic description of “commodity powerâ€:
The brand merchandise power, namely the quality personality of branded products, the quantity and types of branded products, the functional changes of branded products, and the intrinsic technological content of branded products. It is the company's strength through product quality, price, design, and diversification. It is the exchange ability and trading ability after the product has become a commodity, and it is also the consumer's perceived appeal of the branded product itself. Commodity power is the basis for the brand to win market competition.
The composition of the brand merchandise force: including corporate image, brand characteristics, brand product quality, brand product after-sales status investigation, brand product major problems and analysis of similar product universality advantage.
Commodity strengthening: mainly through the determination of the product's target consumers, product positioning, concepts, in addition, the quality of goods, appearance, designation and even packaging should reflect the "concept", so that consumers feel the effectiveness of the product, To truly be consumer-centric.
Whether enterprises can survive in the market, whether they can establish their own brands in the competition, and have a strong brand power, the fundamental point is whether the products produced by enterprises can enter the market smoothly and get consumers' recognition in the market. Therefore, for the creation of a brand, the product is its material basis. At the same time, a successful product does not equate to its own perfect product, but it should be a market-recognized product.
......
“To be truly consumer-centric†and “successful products should be products confirmed by the marketâ€, Baidu Encyclopedia has clearly pointed out the importance of focusing on the market and consumers' commodity power. In fact, this seemingly old-fashioned point of view precisely pointed out the shortcomings of Chinese companies.
Concerned about consumers, “a luxury brand sells only one symbol.†This phrase was once considered a canon by the domestic clothing brand, so it put a lot of money into propaganda and increase awareness. Even so, it is still difficult to resist the pressure of the international famous brands. It is of course important to increase the popularity and reputation of a brand. However, the winning point of an international brand is not exactly here. The cultural connotation and the accurate grasp of consumer demand are considered as the reason for the classic.
Once upon a time, in the face of the offensive of international brands, domestic companies or their own shoes and clothes to take a French or Italian foreign name, or in accordance with the internationally renowned brand logo to register, or buy off the use of international brand trademark rights in their own factory Mass production of "international brand shoes and clothing." However, these practices only focus on the imitation of the brand image, but neglect the absorption of brand culture and the excavation of the brand connotation.
When it comes to how to win over consumer preferences, it is true that Chinese consumers’ loyalty to national brands is not high. This is especially true for the consumption of shoes and clothing. However, domestic brands are conscious of the fact that they are respected by foreigners and they are conscious of their giving. Isn't enough consumer attention and love enough? Some experts have said that the reason why international brands can gain a foothold in the Chinese market is that they believe that Chinese people should wear more comfortable and stylish clothing.
Everything is consumer-oriented, which makes international products have unique personality and competitiveness. However, the situation of the Chinese market that is in the process of reform is relatively complicated. Chinese brands need more effort in this regard. Tripod designer He Chuang believes that there are mature segments in the European and American markets, the consumer category is very clear, and the fixed customer base is very clear. The situation in the Chinese market is just the opposite. Consumers are very unclear. In addition, companies do not have enough research on the market and consumers, causing serious homogeneity. Therefore, Chinese companies can't wait to take the initiative to study consumers.
Fortunately, there are already some Chinese shoes and apparel brands now on the right path.
For example, Shang hai Tang has a theme of traditional Chinese elements and is uniquely colored and unique. In stores around the world, this international brand has always played the role of Chinese cultural interpreter, and gradually established its position as the world's largest Chinese luxury brand.
Belle, for example, not only has a strong presence in the channel, but also has an excellent ability to operate its merchandise. Belle's widely known "vertical integration" model is actually a powerful consumer-oriented commodity management system that not only ensures the efficiency of operations, but also achieves rapid response to market information and consumer information.
It can be seen that as long as the consumer psychology is deeply and accurately studied and valuable products are provided, a distinctive innovation style and a new marketing concept are used to allow consumers to appreciate the personality culture of the brand and provide the brand target consumer groups with a thoughtful service that is close to their lifestyle. Consumers will naturally buy it.
In short, from the perspective of improving sales rankings and providing personalized services to seize the commanding heights of the market; from attracting consumer groups with celebrities, to building a lifestyle museum will be down to the depths of the hearts of consumers - the Chinese footwear brand these respect consumption The initiation of those practices is undoubtedly a good trend. The power of commodities also has the opportunity to exert energy.
Japan's well-known grocery brand MUJI once fell into bankruptcy, but they have strengthened their merchandise through research on customers, not only reviving, but also creating market miracles in recent years. It is foreseeable that one day, Made In China will be able to disseminate unique values ​​through the enhancement of its merchandise, and it will truly lead the market.
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