Zhou Dafu: Pyramid Products + Franchising Channels

Dazzle mode

Zhou Dafu: first line brand breakthrough in the three line

Pyramidal product system assists in the next strategic highland.

In China, there is a unique market phenomenon: front-line brands, including international brands and Hongkong and Taiwan brands, have the advantage in developed areas such as "North Shang Guang" and so on. But entering the two or three tier market, they often fail to win local brands.

Zhou Dafu, the first Chinese jewelry brand, also started its three line breakout battle.

In the two or three line market, consumer demand and brand appeal are different from those of the first tier cities. Zhou Dafu is trying to break the fate of the past brands in the three line market by using its pyramidal multi level product system and the channel strategy of the pformation chain.

10 years fast horse mode

Zhou Dafu jewelry and gold row was founded in 1929, in 60s, Zhou Dafu took over by Zheng Yutong, and officially entered the mainland market in 1998.

Huang Shaoji, managing director of Zhou Dafu jewelry and gold company, revealed that in 2008, the sales volume of Zhou Dafu jewelry and gold company in the mainland exceeded 10 billion yuan, ranking first in the jewelry industry sales market. In 2007 and 2008, the average sales of Zhou Dafu jewelry sales increased by 30%, which was higher than the industry average.

Even in the 2009 of the financial crisis, the growth of jewelry sales in Hongkong was negative, and Zhou Dafu jewelry remained 15% growth over the same period last year.

In just 12 years, Zhou Dafu jewelry can be a fast horse, ahead of the development of the industry, thanks to its innovative business model:

Pyramid product structure.

From the silver price of more than 300 to the average price of more than 800 gold, to the average price of about 1000 gold, to tens of thousands, hundreds of thousands, millions of accessories, from low-end to high-end, forming a suitable product structure from the public to the new rich and other consumer groups.

The marketing strategy of "one price".

The prevailing discount in the jewelry industry and the very low discount rules make consumers feel like they are in the wholesale market, bargaining in large quantities and not knowing the true value of the products.

Over the years, Zhou Dafu has implemented the "one price" strategy of product cost plus reasonable profit, which has established unquestionable quality impression and value for money in the minds of consumers, and has become a synonym for genuine goods.

Vertical integration of vertical supply chain management.

Processing, cutting, grinding, hair germ making and ore purchasing, Zhou Dafu formed his own vertical chain.

Jewellery diamonds and other resources are scarce resources. Whoever has a stable supply chain and a stable price will have great market control power.

In order to ensure the supply of upstream ore, Zhou Dafu has worked hard for many years to establish cooperation with large suppliers. He is an international DTC merchant and has also become the third largest mining operator in the world in 2010.

The direct channel chain is the main channel to join.

In 1990s, Zhou Dafu pioneered the jewelry industry chain operation mode in the mainland, and in order to control the quality and standard of operation, it has always been the main way of direct operation, but also maintained about 20% of the franchisees.

Self driven long-term win-win professional manager development system.

The first few points are easy to imitate by competitors, but competitors are not easy to copy.

The quality of "sincerity" and "kindness" emphasized by Zheng Yutong, the head of Zhou Dafu, has made the company's harmonious and progressive corporate culture.

Zhou Dafu, managing director of jewellery and gold company Huang Shaoji, has been in the company for more than 30 years from the grass-roots level.

He said, Zhou Dafu has 80 years of history, I am the third generation of managers, I can work in the company for decades, because I as a professional manager positioning is very clear.

My mindset is to do well in my own business and do things well for the company and shareholders.

To create the greatest benefits, it is not only money efficiency, but also the benefits of sustainable development, and for employees to develop, improve their living and development space, and more importantly, to honor them.

The next 10 years will be a battleground for the military.

Looking forward to the next 10 years, many first-line brands have realized that the big cities in the first tier are already basic.

Zhou Dafu, who stood at the juncture of economic recovery in 2010, also saw this business opportunity.

"By 2020, we should develop the chain store from about 950 in early 2010 to 2000."

Zhou Dafu jewelry and gold bank put forward the next 10 years development goals.

"Team goals have been determined, there is no way out."

Huang Shaoji said categorically.

The two or three line market has always been China's local brand.

Has Zhou Dafu been able to take the lead in the industry in the past 10 years and continue in the 234 line market? Zhou Dafu management team, accustomed to running the first-line market, can control the two or three line market well and continue to walk ahead of the industry?

Pyramid products + franchising channels

In the 10 year, 1000 stores are opened, and 3 new shops are open. The vast central and western regions have different levels of consumption, which are difficult to grasp and difficult to manage.

Relying solely on Zhou Dafu's own operations management team is clearly difficult to open up in the vast Midwest market and ensure success.

What should I do?

Zhou Dafu, who has always been prudent in operation, has formulated the policy of "first tier cities to consolidate development, second tier cities to increase market volume, and three line cities to focus on", and to abandon the previous development mode of direct chain based development in the first tier cities, which has changed to the main chain of franchising.

From direct battalion to franchisee pformation, some analysts believe that Zhou Dafu can effectively mobilize franchisee funds and diversify the risk of developing the three line market.

Huang Shaoji responded that Zhou Dafu mainly hoped that the franchisees would help develop the relationship between local department stores and shopping malls and make supplements in the three or four tier cities.

He pointed out that Zhou Dafu has had 20% of the chain stores in the past 10 years.