Shoe Enterprises Explore Diversification Strategy And Play "Smile Curve"

The famous economic theory "smile curve" has always been

Diversification of cocoon and butterfly make the brand market "smile up".

What is the diversified operation of footwear enterprises? That is, a development strategy for shoe enterprises to develop brands and expand their market in a number of related and unrelated industries in order to create benefits and maintain lasting competitiveness.

It includes brand diversification of shoe companies, diversification of footwear market and diversification of relevant investment areas.

Admittedly, looking at the current shoe industry market, it has become one of the most popular shoe business strategies in the industry today.

After all, for many brands of shoe companies that are growing now, the "unfamiliar" business rule has become a thing of the past.

There is no doubt that shoe manufacturers are committed to developing brand research and development markets both at home and abroad. They are also willing to work hard in other fields, looking for other suitable investment projects, and trying to diversify their strategic management so as to occupy the two ends of the "smile curve" tightly and gain the biggest profit point and market point with greater input.

Especially with the increasing expansion of footwear consumption in recent years, the professional single brand strategy can no longer satisfy more market segments.

Therefore, the shoe enterprises at this time broke the cocoon and turned the butterfly into a diversified strategy, which undoubtedly formed a synchronized and progressive trend with the market trend, which is conducive to improving the market competitiveness of the shoe enterprises.

It is also because in the post crisis era, the footwear industry is suffering from a series of factors such as the appreciation of the renminbi and the rise in labor costs. The pressure it faces cannot be underestimated.

And in the face of such a situation, shoe companies are making great efforts to explore new ways to find new benefits growth points.

As a result, brand diversification or brand crossover is widely adopted, which is also reasonable.

At the same time, we also need to bring brand new spring to shoe enterprises.

A double-edged sword of good dance creates the most high-end smile curve.

As for the diversified operation of shoe enterprises mentioned above, it is no doubt that it is a very fashionable business strategy. The industry has generally given it a more appropriate analogy: diversification strategy is to scatter eggs in multiple baskets, one-way operation is like putting eggs in one basket, obviously the first is safer than the second.

This argument also verifies that shoe makers do not fully understand the risks of diversification.

Diversification can, to a certain extent, resist the risk of shoe business, but the premise is that such strategy must be operated properly, otherwise it will also face unforeseen risks.

To put it simply, diversification strategy is actually a double-edged sword, and good dancers are going through the thick and thin, with a bright future.

It is obvious that the choice of brand development strategy and location choice of shoe enterprises is the key to the diversification of shoe enterprises.

Of course, we can not deny that diversification strategy is indeed an option for the development of footwear enterprises at present. But what we need to pay more attention to is whether the content of diversification strategy embodied by shoes enterprise brand is compatible with the strategy resources of shoe enterprises and brand, so as to create the brand value of the most high-end value of shoe enterprises.

Admittedly, the choice and orientation of diversification strategy is very important, but it is also very important to choose new brand or new field with great potential.

After all, shoe enterprises only develop other new brands or enter the new "sunrise industry" only when their own brand breaks through the limits, and can bring more long-term profits and benefits for shoe companies.

Therefore, shoe enterprises should choose their own diversified strategies based on their actual main brand market, and expand the influence of other brands through the core competitiveness of the main brand itself, and even extend the new market points, so as to successfully achieve the highest end of the "Smiling Curve" in the integration of resources.