Pros and cons of multi-brand strategy

After P&G performed a successful case of a multi-brand strategy, many companies in China began to learn or follow suit. P&G currently has a number of brands such as Head & Shoulders, Rejoice, Pantene, Sassoon, and Olay in the field of daily chemicals, each of which has a certain influence. This has created a successful template for Chinese companies to achieve multi-brand strategy, but not all areas have implemented this multi-brand strategy, and not all companies have the conditions to use multi-brand strategy, and some companies have painstakingly multi-brand strategy. The lesson, as well as the company has gained a lot of experience in the pain. In fact, multi-brand strategy is not available in every industry, nor is it available to all companies. There will always be people on the road to step on it. There will always be people to explore. The following pathfinders will give you some new ideas.

Background information: When reporters interviewed Xie Qiuhe, chairman of Zhuhai Weissman Apparel Co., Ltd. two years ago, he said: "The seven or eight brands in a street are mine. No matter which brand you choose, we can get higher. Market share."

Time has passed, when the reporter once again entered the Wesman clothing exhibition hall today, there was a lively multi-brand scene, only one brand left in the exhibition hall. Miss showroom told us that other brands did not do it, and now only one brand can order. In only two years, Xie Dong’s voice was still in the ear. Faced with the prospect of the eyes, the reporter’s emotions, how about Wesman?

Multi-brands in the apparel industry must work together

Zhuhai Weissman Garment Co., Ltd., which is committed to the development of women's wear brand, has a history of more than 20 women's brands. It has created a myth of multi-brand strategy in the clothing industry and pioneered federal management in the clothing industry. The system has also become a pathfinder for the innovation and development of the clothing industry. In August 2005, it was rated as "2005 China 500 More Valuable Brand" by the World Brand Lab. In 2006, it was awarded "Top 50 Brand Competitiveness in China's Wool Knitwear Industry".

The reporter saw only two girls sitting quietly in the exhibition hall on the first floor of Wesman waiting for the arrival of the guests. This is quite different from the scene where the crowds surged two years ago and many sales people were distributed in the exhibition halls to receive guests. The other two exhibition halls are "Love Her" and "Alni". Because the reporter carries a large laptop bag, one of the salespersons who received me mistakenly thought that the reporter was a merchant, and worried that it would cause inconvenience when ordering the goods. Introducing the two brands “Love Her” and “Alien” are not done now. Currently, there is only one brand of Wesman. When asked if he will do it later, the girl said that this is not clear. Two years ago, there were at least seven or eight brands in the Weissman showroom. It was the first floor. Now this exhibition hall has "Century White Horse, Love Her, Aleni, Wesman, Harry Mocha, Sheris, Baiyamon." "After many brands are waiting for the guests to review, it is now a brand, which is equivalent to returning to the beginning stage of Wisman's ten years ago. What kind of difficulties did the company that created the industry myth because of multi-brand strategy?" What is the reason for him to return to the single brand route.

At the third floor exhibition room of Weisman, Cai Wenzhong told the reporter about the ups and downs of the brand strategy of Wesmando.

First, the birth of multiple brands and federalism

Because to make people's potential come out, to let the people of the same level race, it is necessary to establish the same track and run the same number of laps. This is the original intention of Wesman to establish a federal system, just like the US continent. The competition is the same, so the name is federal. Because of the idea of ​​completing the federal system, a multi-brand strategy was born. The multi-brands here are athletes representing different brand titles. The assessment mechanism is the length of each athlete's run. Every month, the PK competition is held, so that people with similar levels can go to PK. After that, whoever sits on the main position becomes the target of everyone's pursuit. Then all of them from the procurement, production, and sales are all in an independent position, all decided by the general manager of the brand. This is the reason for the birth of federalism and multi-brand.

According to this idea, it should be a better way to achieve multi-brand strategy in the apparel industry. It is both a bold attempt and a multi-brand strategy innovation based on P&G. However, Cai Wenzhong, who is responsible for the overall operation of Westman, has pointed out four shortcomings of this vision.

Second, multi-brand and federal system

Cai Wenzhong, who was seen by the reporter in the third floor office, is a middle-aged man who is highly praised by Chairman Xiu Qiuhe of Weisman. The slightly thin face is a kind of wisdom, and the eyes are slightly tired. Because of two scheduled interviews, today is the last time I met, and Mr. Cai’s calm talk shows that he is ready for this topic.

According to Cai, the Wesmando brand strategy has gained some lessons and experience after several years of tempering. Frankly speaking, the brands we have done in previous years are not impossible to do, we will still stick to the multi-brand strategic route. In the future, when implementing a multi-brand strategy, it will be determined that one brand is the core, and other brands will serve around this brand. From the perspective of the apparel industry, especially in the women's wear industry, this market space is very large. It is more difficult to use a brand to meet the needs of consumers. The segmentation market for women's wear is special. First of all, from the age group, she also has a psychological age, and they also have different needs according to their own mood changes. When the mood is very bad, her mood is very rebellious, demand There will also be changes, and only one brand can't meet market demand, so we insist on the idea of ​​multi-brand strategy.

Of course, through several years of multi-brand strategy, we have learned a lot from it. The lessons are mainly reflected in four aspects. First, the system planning is not clear. Whether it is a seven-star or a month, or a hundred flowers, there must be a clear system plan to avoid detours. Second, there are conflicts between brands, and repetitive positioning leads to internal competition. Third, the talent pool is not sufficient, and the talent structure is not reasonable. Fourth, there is no synergy, and it is independent from procurement, production, channels, and marketing. This causes resources to be shared. If multiple brands are implemented, the same platform can be implemented.

In fact, the early federalism and multi-brand strategy of Wesman is unclear in terms of brand positioning. This kind of mutual competition and development has caused huge waste of resources, especially from procurement, production, channels and marketing. No resource sharing. There is no synergy between them, which obviously saves the cost of expenses and causes waste. While a company forms competition in its internal development, it is actually a waste of comparison. Mr. Cai has also pointed out that the company should pay attention to the development of multi-brands in the future, and it is also an experience summary of the failure of multi-brand strategy in the past few years.

Failure is the mother of success. After Cai Wenzhong firmly believes that he has learned the lesson from failure, Wesman’s next-round multi-brand long-distance race will run faster and better.

Multi-brand strategy is difficult for SMEs

——He Deqiang, Managing Director of Zhongshan Chuangano Garment Co., Ltd.

He Deqiang said: To be a brand must be single-minded, when you do not have too much money, focusing on a brand will save time, effort and money compared to doing multiple brands.

Founded in 1989, Chuangano Company is located in Xiaolan Town, Zhongshan, which is awarded the “China Famous Underwear Town”. It has more than 1,500 employees, covers an area of ​​more than 50 acres, and has a construction area of ​​over 30,000 square meters. It has thousands of machines and has a one-stop production line from weaving to garment. The products are sold well in Europe, America and more than 30 provinces and cities nationwide.

Mr. He talked about whether to take the multi-brand strategy, he is always thinking, and has not dared to try the old subject so far, although some clothing companies are also doing multi-brand strategy, he is not tempted, although the company is high He has repeatedly mentioned that he wants to engage in multi-brand strategy, but he has always insisted on the development of a single brand. The experience of brand management for more than ten years has taught him that a small and medium-sized enterprise without strong financial support cannot afford multiple brands.

When He talked about multi-brand strategy, he said that many garment companies are implementing multi-brand strategy. There is an underwear company in the same industry. They are mainly women's wear brands. After several years of successful work, the company launched another Men's wear brand, this new brand has not been recognized by consumers, and sales performance is not up.

This failure example has aroused everyone's attention and thinking in the industry. I also thought about it for more than a year, and determined to insist on pushing only one brand. He Deqiang believes that when a brand has just accumulated some brand reputation elements, focusing on the combination of brand culture and product innovation is a better way to integrate multi-brand ideas into a brand performance, such as the market segment we are now launching. Many styles, the same as the majority of consumers love, we for young consumers, in the style and color to maintain a synchronization with young consumers, so do not need to create a new brand. Why not use the credit accumulated by the original brand to extend, and run a new brand, which is a long-term extension of the brand front, can not concentrate on one battle. Especially in the current market, there are a variety of brands, but how many of them can be recognized by consumers and remembered? Moreover, multi-brand strategy requires huge marketing investment, which is unbearable for small and medium-sized enterprises. There are no companies with strong strengths like Procter & Gamble. Be careful when taking multiple brands into the route.

Multi-brand strategy should be combined with the actual situation of the company

Liu Yueping, President of Guangdong Garment Industry Association

Regarding the pros and cons of the multi-product strategy, the reporter called Liu Yueping, president of the Guangdong Garment Industry Association, to let him talk about the advantages and disadvantages of the multi-product strategy with Zhuhai Weissman as an example. His secretary, Miss Lu (harmony) first told me Wesman Company is their vice president unit. After asking the president for this interview topic, I will reply to me. When the reporter called President Liu for the second time, his secretary, Miss Lu, said that the president of the theme said that he could not make any comments. As the president of Wei Siman from the multi-brand strategy to today's outstanding Liu Yueping, he has always actively supported the media interview. At this time, he chose not to say a word. Liu Xiaochang’s Chong Xiaowei has told us that he is the vice president of the industry. Such a big business reflection, his remarks may touch Weisman, can not be against the vest willing to tell lies, and can not touch the pain of Weisman, this theme does make the bold and blunt Liu president .

Reporter's notes: In fact, brand strategy can be in a variety of ways, there are many brands, there are unified brands, there are brand extensions, there are sub-brand strategies, there are joint brand strategy, no matter which brand operation strategy It must be combined with the market and the actual situation of the enterprise, and must not be copied. Sticking to the original model, not seeking innovation is also the embarrassment of development. We must seek innovation in development, sum up experience in the process of advancement, avoid the time cost after detours, leave too much regret for the advancement of the enterprise, and leave the brand accumulation. Too many scars! Whether it is a failure or a success, Westman has made a great contribution to the Chinese garment industry.

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