Commodity Does Not Give &Nbsp Strength; What Support Does Chinese Shoe And Clothing Brand Rely On?

Archimedes once said, "give me a fulcrum and a lever that is long enough, and I can pry the earth".

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Looking back on the shoe and garment industry in China over the past year, many events and topics have been thought-provoking.

Lining (02331.hk) 2009 annual report shows that sales of Lining products increased by 21.1% to 7 billion 690 million yuan, accounting for the group.

PRADA, a well-known luxury brand, rejected Chinese businessmen's takeover.

In March 2010, Lu Qiang, chairman of Shanghai's PRADA, announced that it had invested 20 million euros in acquiring a business consulting company in Italy and plans to buy shares in the company.

After that, PRADA's public relations department quickly denied the statement, saying it was a false report without foundation, and said that "giving to the Chinese people will make the quality and style worse."

Not long ago, an article entitled "when will China be able to produce a clothing brand with an annual income of more than 100 billion yuan?" the article picked out a series of topics: "when will China be able to produce shoes and clothing brands with an annual income of more than 100 billion yuan?"

What is the concept of Chinese shoes and clothing brands with annual sales exceeding 100 billion yuan? Lining has crossed over 7 billion yuan, Anta has touched 6 billion yuan, and YOUNGOR, which has been ranked the top five of the main business income of China's textile and garment industry for many years, has received only 10 billion 780 million yuan in 2008, of which only 2 billion 170 million yuan comes from "YOUNGOR" brand clothing retail in China.

The distance is far away.

Above all, the direction of the problem can not be avoided: in the face of the market which tends to be white hot, what can China's shoe and clothing industry rely on?

In fact, Chinese enterprises who are good at learning are doing their best to explore the way out every day, but we must face up to the essential difference between "doing the right thing" and "doing the right thing".

The author's view is that whether it is in the real goal of winning the local PK with the multinational brand, or even more distant to create world famous brand or achieve the dream of 100 billion, Chinese enterprises need to prove that the commodities of Made in China are not only popular in the world because of the price, but are global in value.

Returning to nature

Chinese enterprises, whether footwear or other industries, the core issue of the current is to do well in products, and to study how to make their products valuable and competitive.

The corresponding incident with PRADA's refusal to buy Chinese businessmen is that this year, more and more international luxury brands take back the agency of Chinese enterprises in the Chinese market.

If HugoBoss plans to set up a joint venture in China in the second half of 2010, it has signed an agreement. HugoBoss will have a 60% stake in the joint venture company. Burberry also said that it plans to buy 50 franchise stores in 30 cities in China at 70 million pounds, which can raise its 2011-2012 operating profit by up to 20 million pounds.

What is the behavior of luxury brands? In the eyes of more people, the Chinese market with huge potential is the real reason for the luxury brands to recover their agency rights.

The strong growth of China's luxury goods market and the contrast between the high-end consumption sectors in Europe and the United States have made it impossible for luxury brands to sit down and have to adjust their strategy in China, from passive to active, in order to cater to the trend of the global luxury market and speed up the layout of the rapidly developing Chinese luxury market.

The withdrawal of agency power can not only control profits, but also have more voice.

However, the luxury brand "face changing" can not avoid the problem of commodity operation.

Some experts pointed out two reasons: first, the problem of agents themselves.

Because agents are restricted by financial factors, they can not buy all kinds of products of the brand, which leads to the incomplete commodity category of many luxury brand shops. Secondly, luxury brands attach great importance to brand image, and most of the agents' services can not meet the level required by luxury brands. In the process of expansion, there may also be a mismatch between operation management, personnel level and brand development, resulting in the damage of brand image.

Under such circumstances, only by turning to self employment can we ensure the speed of expansion and balance the relationship between rapid expansion and store management.

Luxury goods do not hesitate to make such a big adjustment in order to maintain their brand image and taste. Their focus is focused on ensuring commodity strength.

In contrast, Chinese enterprises often see only the appearance of the success of international brands, but do not understand the nature of their success.

This has also led to a consequence. In recent years, the management theories of European and American enterprises have been overrun in China.

Everyone is talking about fast fashion, talking about brand innovation, and talking about marketing innovation.

For fear that they are "outdated", they rarely think seriously about how to make their products more competitive.

For a long time, "Made in China" represents the mass market products lacking originality and quality.

A statistics show that 86% of Chinese customers are reluctant to continue buying or even return products because of the word "Made In China".

"In the short term, I don't think any luxury brand in China can compete with international luxury brands in terms of marketing, international influence, brand culture, design and quality," said Marie Jiang, an JLM consulting analyst.

The gap is obvious.

However, it is believed that the future of Chinese shoe and clothing brand is not to replace the international brand, but to find the true self, develop the unique culture and explore the growth path of shoes and clothing enterprises with Chinese characteristics.

From this perspective, in fact, the most difficult opponent of Chinese shoes and clothing brands is themselves. This is the reality that Chinese shoes and clothing brands need to really face and actively respond to.

In my opinion, the most essential thing is to make our products unique, rather than plagiarism and homogenization.

What is the brand competition in the final analysis? The right commodity, when it is right, is sent to the right market to sell to the right customers in the form of the right price and the right form.

Everything starts and runs through commodities, and this simple sentence reveals the important truth of a brand commodity.

To succeed in China's brand, we must face up to the strength of commodity.

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Remark "goods"

What is a commodity? A commodity is a labor product for exchange or a labor product used for exchange. It is a unity of value and value.

This is the meaning of "political goods" in Chinese secondary school political textbooks.

However, from the perspective of enterprise operation, relative to this basic definition, the most influential commodity planning agency, the chief business consultant of blue time and space business management consultant, Rui Li, has different understanding of "commodities": the product is the core carrier of the brand, but the product carries all the brand.

Consumers are not only buying products, but they can not be just a brand. Consumers can only buy products. When you look at it from this perspective, the commodity has a very clear definition - the product is a brand name product.

Obviously, Rereading "commodities" is the most important thing to think about how enterprises can make their products competitive in the market and in the minds of consumers.

Archimedes once said, "give me a foothold and a lever that is long enough, and I can pry the earth".

In the commercial world, commodity and commodity power is undoubtedly the pivot and leverage.

Commodity power is not a fresh concept, but searching for "commodity power" on the Internet is not much about enterprise practice cases.

What is quite interesting is that a few years ago, Wang Fachang, deputy general manager of FAW TOYOTA sales company, put forward the "two round of laws": Commodity strength is a wheel, and marketing power is another wheel. When the two wheels match each other, the enterprise can develop at a high speed.

Baidu encyclopedia gives a systematic description of the "commodity force".

Brand commodity power is the quality and personality of brand products, the quantity and type of brand products, the functional changes of brand products, and the intrinsic technological content of brand products.

It is the strength that the enterprise shows through product quality, price, design, diversification and so on.

It is the exchange capability and trading ability after the product becomes a commodity, and it is also the attraction of consumers to the brand itself.

Commodity power is the foundation for brand to win market competition.

The composition of brand commodity power includes: enterprise image, brand characteristics, brand product quality, brand product after sale condition investigation, brand product's major problem spot and similar commodity universal superiority analysis.

The enhancement of commodity strength mainly depends on determining the target consumers, positioning and concepts of products, and in addition, the quality, appearance, naming and even outer packaging of goods should reflect the concept of "consumers", so that consumers can feel the effectiveness of products, and truly take consumers as the center.

Whether an enterprise can survive in the market and whether it can establish its brand in competition has strong brand power. Its fundamental point lies in whether the product produced by the enterprise can enter the market smoothly and be recognized by consumers in the market.

Therefore, for the creation of a brand, products are the material basis.

At the same time, successful products are not equal to their perfect products, but should be products recognized by the market.

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"Truly consumer centric" and "successful products should be products recognized by the market". Baidu Encyclopedia has clearly pointed out the importance of focusing on the market and consumers for commodity power.

In fact, this seemingly cliche view points out the short board of Chinese enterprises.

Focus on consumers

"Luxury brand is only a symbol", which was once regarded as a treasure by the domestic clothing brand, and invested a lot of money in publicity and promotion.

Even so, it is still hard to resist the international brands.

It is important to improve brand awareness and reputation, but the winning points of international brands are not entirely here. Cultural connotation and precise grasp of consumer demand are regarded as classic reasons.

Once upon a time, in the face of international brand attacks, domestic enterprises or their own shoes and clothing to take French or Italy's foreign name, or to imitate the logo of internationally famous brands to register, or to buy the right to use international brand names, and make "international brand shoes and clothing" in their factories.

But these practices only focus on the imitation of brand appearance, ignoring the absorption of brand culture and the excavation of brand connotation.

Speaking of how to win the preference of consumers, it is true that Chinese consumers' loyalty to national brands is not high, especially in the consumption of shoes and clothing. But when domestic brands complain about Chinese people worshipping foreigners, they also realize whether they have given consumers enough attention and love. Some experts have said that the reason why international brands can be based on China's market is that they believe that Chinese people should dress more comfortably and fashions.

All consumer oriented, this makes the international brand unique personality and competitiveness.

However, the situation in the changing Chinese market is relatively complex, and Chinese brands need more efforts in this regard.

Travel law designer ho Chuang believes that there are mature subdivisions in the European and American markets, the consumer category is clear, and the fixed customer group is very clear.

The situation in the Chinese market is just the opposite. Consumers are not very clear, and the lack of enough research on the market and consumers causes serious homogenization.

Therefore, Chinese enterprises can not wait to take the initiative to study consumers.

Fortunately, there are already some brands of Chinese shoes and clothing on the right path.

For example, Shanghai (Shang Hai Tang), with traditional Chinese elements as its theme, is colorful and unique.

Throughout the world, the international brand has always played the role of an interpreter of Chinese culture and has gradually determined its position as the largest Chinese luxury brand in the world.

BELLE, for example, is not only strong in its channels, but also good in its ability to operate commodities.

BELLE's widely known "vertical integration" mode is actually a powerful consumer oriented business force operation system, which not only ensures the efficiency of operation, but also achieves rapid response to market information and consumer information.

It can be seen that consumers will naturally buy the brand with a deep and precise study of consumer psychology and valuable products, with a distinct innovative style and a new marketing concept, so that consumers can appreciate the brand personality culture and provide a brand targeted consumer group with a thoughtful service that is close to their lifestyle.

In short, it is no doubt a good trend to improve the rankings from increasing sales volume, to provide personalized services to seize the commanding heights of the market, to attract consumers from celebrities, and to create a fashion lifestyle museum to the hearts of consumers.

Japan's famous grocery brand Muji has fallen into bankruptcy. But they have been strengthening their commodity strength through studying customers, not only resurrecting, but also created market miracles in recent years.

It can be predicted that one day, Made In China can also distribute unique value through the strengthening of commodity strength, and truly lead the market trend.