Brand Strategy Saves Labor Intensive Footwear Industry

In the face of the new business environment, there are not only crisis but also business opportunities.

Although it has been in spring, the shoe industry, which is labor-intensive, is going through a cold winter.

Since the end of last year, some small and medium-sized shoe enterprises have been closed down due to the pressure of rising costs and labor shortages.

In the face of changes in business environment, some strength shoe companies began to accelerate multi brand strategy, and have accelerated the expansion of channels to enhance corporate profits.

Wu Wenbin, assistant general manager of AOKANG group, one of China's largest private shoe making enterprises, told reporters yesterday that the company will convene more than 200 agents in the Pearl River Delta region to conduct marketing mode pformation in Dongguan, Guangdong on the 20 day, and speed up the Pan Pearl River Delta regional market.

We will accelerate the operation mode of "1+N" in the economically developed areas of the Pearl River Delta. The "1" is to run a multi brand famous space store. "N" stands for many stores, and completes the resource integration of "shoe industry supermarket + chain Monopoly".

AOKANG group currently has more than 3000 stores, and is expected to open to 4000 this year, with plans to reach 1 in 2010.

Wu Wenbin said that one of AOKANG's important strategies is to actively promote large flagship stores and complete the pformation of flagship store products from single brand to multi brand business mode.

AOKANG recently launched a large shoe store in Shandong and Wenzhou with an area of 2300 square meters and 1000 meters respectively, including 5 brands of footwear and AOKANG leather products, including AOKANG, Kanglong, beautiful beauty, red Firebird and wanwade.

Wu Wenbin said that because of the price of raw materials and the implementation of the new labor law, the cost of shoes products has risen by 20% to 30%, and shoe manufacturers are facing unprecedented pressure.

Under such circumstances, it is difficult to develop continuously by reducing production costs. A better way is to integrate resources and scale expansion to save costs and increase profits.

"From the beginning of this year, we won the global brand management power of Italy Wanli Wade, and AOKANG group has 5 shoe brands in operation. Next, we will accelerate the acquisition and merger of international brands or cooperate with international brands.

AOKANG's sales channels will pform from single brand to multi brand business.

After fierce competition in the appliance industry, terminal sales are basically monopolized by Gome, Suning and other major electrical chain retail giants, and the development trend of footwear industry is expected to be similar to that of the electrical appliance industry.

Wu Wenbin said.

BELLE, AOKANG and Anta, which are integrated with production and sales, are focusing on sales and brand. The competition for market share is becoming more and more intense.

BELLE, China's largest footwear retailer with 8 footwear brands such as BELLE, Teenmix, Staccato and so on, is also accelerating its market. After acquiring last year's purchase of Miu Li and San Da, BELLE also bought Hongkong's beautiful treasure at a price of HK $6 per share, with 262 million 300 thousand shares of all the issued shares of MB, and the value of MB is HK $1 billion 574 million.

BELLE pointed out that the price of shoes sold and distributed by its brand is between $60 and $300. BELLE believes that this part of the market has great potential in the mainland and will complement the company's business.

Anta sold its 18 million 300 thousand pairs of shoes last year in the mainland industry.

Lai Shixian, chief operating officer of Anta, said in an interview that 600 stores continued to open in the mainland this year, with a total number of stores up to 5300.

At the same time, he also expressed the hope of acquiring more high-end international brands.