Three Aspects Of Shoe Brand Reduction

In the winter of 2014, the leaves were flying, and the fog and haze were heavy. The cold wind penetrated the streets and lanes of the city. The market was bleak, gloomy, and cold, and there were advertisements for sale and discount.

The "golden age" of brand marketing is over, instead of the advent of the great depression.

In the face of a depressed era and facing the icy market, what's the future of Chinese brands? Listen to the suggestion of Tan Ru, the brand observer of Chinese shoes and clothing brands, to avoid the three big losses: price reduction, cross-border control and self control.

Cut down, destroy the commodity value of "weeds"

In the "divine eagle companion", Yang Guo had the poison of love and wanted to poison the poison with the broken grass.

Nowadays, some people think of the cold and depression of the market as "the poison of love", and hope that they can also use the broken grass to fight poison.

As a result, this winter, shopping malls, supermarkets, commercial squares and shops also posted news of discounts and price cuts, as if the price reduction was the only antidote for winter to "attack the poison with poison".

For a long time, many brands regard price reduction as a conventional tactic to cope with the downturn. They hope to reduce the pressure of capital by dumping the backlog of goods in their hands as early as possible.

However, the brand is not the poison of love, but the poison of the market. Sadly, the price cut is the weeds. It will hurt the brand in three ways if it is used for a long time.

1, blind price cuts hurt commodity value.

Although there is a fundamental difference between price reduction and selling price, the price cut is due to the quality of the commodity itself, but the price cut will be long enough to be mistaken for the consumers to reduce the price.

When consumers have this kind of cognition, it is difficult for prices to go down to rise again. This will inevitably result in the profit margins of shoes and clothing brands that only have "razor blade profits".

In order to survive, or opportunistic, or losing their strength, a loss brand can hardly have the strength to ensure product quality and product innovation. This will make brand operation enter a serious vicious circle and unable to extricate itself.

2, the value of merchandise reduces the brand sentiment of consumers.

Commodity value refers to the general interests that consumers can acquire from a commodity including physical attributes and spiritual feelings.

Before deciding to buy, consumers should weigh them in the invisible balance. The two ends of the balance are purchase cost and commodity value. When the commodity value is low, the balance tends to purchase cost, it is very difficult to conclude the paction; only when the balance tends to the commodity value, the paction can be successfully achieved.

The price of goods is reduced, and the value of goods becomes very "light" in the minds of consumers. Consumers who buy this brand face no face and regret, which will surely reduce the loyalty of the consumers to the brand.

Because of the attributes of shoes and clothing products, consumers will not be able to compensate developers for the difference in prices due to falling house prices. But it is probably impossible to convince old customers that they are loyal to the price reduction.

3, price reduction is easy to develop the inert thinking of dealers.

In fact, every shoe and clothing brand has used the way of price reduction, and normal price reduction is a must.

When your product life cycle goes into recession, consumer purchases are significantly reduced, and new products of other competitors are beginning to attract consumers' eyeballs and pocketbooks.

If you are ready to make technical improvements or prepare for the elimination of such products, you may use the way of price reduction to try to clear the stock in the short term, recover the funds, and then make the product fade out of the market.

However, when you are caught up in the cold market, new products without technical improvements follow up, and the normalization of price reduction, in the long run, it is bound to develop the inert thinking of distributors and guide buyers.

In the off-season, the price will be reduced if it is not easy to sell.

When it comes to promotions, the first reaction of dealers is to cut prices. Discount sales, rebates, gifts, bundles, integral points, bonus sales, buy one get first, and so on, are attributed to a focus - price reduction.

Combined price reduction, reverse price reduction, ladder type price reduction and distribution "price reduction" are various.

With inert thinking, dealers and shopping guide members lacked the initiative and subjective thinking ability, and did not take the initiative to think. They felt that "sales in the off-season were small, no effort was useless and hard work was useless". Under the control of such thinking, agents, distributors, and guide buyers would not actively "attack the market" in the cold market, but would slack off, which would only cause the off-season to be lighter and the colder market more colder.

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Blindly crossing the border and destroying the Great Wall

The term "cross boundary" has been widely used and fashionable in the past two years.

Generally, in the face of bottlenecks and poor development, some people will give brands a way to cross the border.

What is cross boundary? How to win across the border? The word "Crossover" in English is originally meant to "pform and turn", but in many fields it has been plated as "cross-border". The extended meaning is "pboundary cooperation", meaning a new industry, new field and new mode spanning two different fields and different ideologies.

Tan Ru, a brand observer for Chinese shoes and clothing brands, believes that no matter how fashionable the concept of cross-border is, if shoes and clothing brands blindly cross the border, it is like destroying the Great Wall.

1, we must not cross the border because of the winter.

Practice has proved that some eager to change the status quo of the boss has not thoroughly understood other formats, and is stuck in other formats.

In 2008, BBK crossed the border to enter small household appliances in a high-profile manner. At the beginning of 2011, the small and medium-sized appliances were quietly removed from the shelves, and the test water in just three years left only a feather; Zhejiang bully.

Group Co., Ltd. is an old brand well-known enterprise in Wenzhou. After winning the title of "China shoe king" in the first China shoes King Cup competition, it also won the title of "China genuine leather logo product" and "China famous brand product".

When Wang Yuejin was rich, he crossed the border to open mines in Guangxi. As a result, he failed and the group went bankrupt.

In August 2013, BELLE acquired 31.96% stake in Barok Japan company for HK $733 million, announces that China's "women's shoes king" formally crossed the border.

Bound.

Although BELLE's cross-border crossing over in the winter is considered a solution, the result is that BELLE's chief executive and executive director, Sheng Bai Jiao, said recently that it expects a negative growth in sales in 2014 and is not optimistic about next year's situation.

2, it is like blind people to feel easy to enter a strange industry.

The most obvious achievement of cross-border achievement is the design field, not the brand operation.

Design is inherently interdisciplinary or interdisciplinary, and pboundary design can constantly generate the classic of astonishing world.

But cross-border is not a pformation.

Such as former US President Reagan, from actor to President, that is pformation, not cross-border.

If he is an actor and a president, he must have crossed the border.

There is no doubt that the "crossover" of shoes and clothing brands to the fast food industry is obviously "bad news".

How can we "graft" different channels, different customer groups and different advantages? How can we integrate?

In recent years, the cost of shoes and clothing industry has been rising, the industry overcapacity is serious, and the profits of enterprises have been declining.

Many brands earn money from the real economy for cross-border sectors such as real estate, stocks and capital operations.

As a result, most of them were dragged down by cross-border activities. YOUNGOR was exposed to the "real estate dependency syndrome". Shanshan wanted to cross the border in the new energy and financial field, and was exposed to four unqualified shares in 3 years.

3, without detailed planning, blindly entering the industry will only lead to confusion among brands.

Many brands of shoes and clothing brands still use the idea of shoes and clothing as investment and other new fields. Just like many traditional enterprises are now pforming into e-commerce, the success rate is too small, so the burden on enterprises will only become heavier.

The best way to extend the industry to the upstream and downstream of the industrial chain is to adopt the same brand strategy; to cross the industry of irrelevance and span, the brand will lose the common core, so it is difficult to share the resources of the brand and make scientific use.

Self control, a knife for castration of brand strategic alliance

When the market is cold and the performance is declining, franchisees continue to need preferential policies to try to shift the loss of sales to brand players without giving them concessions. At the same time, the backbone of the market calls for higher wages, not creating enough conditions to create gray income. The market has lost control. Gao Jun, a famous woman shoe brand owner, has come to think of "artificial knife, I am a fish" classic, miserable, and looks at the brand that only has razor blade profits.

How did it happen? Someone told Gao Jun mysteriously two words -- automatic control.

The first step in automatic control is to study BELLE and Daphne's "going to join", increasing the proportion of Direct stores. The second step is to strictly control the persons in charge of the direct store, and the third step is to rely on the electricity supplier to digest the inventory.

After listening to Gao Jun, his heart was clear and cheerful.

Gao Jun continuously cut the number of franchisees, originally more than 2000 stores in the two quarter to reduce more than 100, in 2013 reduced the number of franchisees to 300.

Gao Jun's net sales increased to more than 100 in 2013.

The refund is fast and the cost is increasing rapidly, but the overall sales revenue is running to a large extent.

At the beginning of 2014, Gao Jun and dealer had been unhappy because of the change of affiliate policy. The franchisers not only criticized Gao Jun for "going to join in" but also found the reason for arrears of High King's shoes.

Some agents and dealers who have not been "franchising" feel that they will be abandoned, in the Cao camp heart in the Han, start to the embrace of other brands, while the "bullwhip effect" appears.

However, the mode of direct store which Gao Jun hopes for is due to the passing of talents and entering the low efficiency stage.

In order to prevent the agent becoming the "intestinal obstruction" of brand expansion and enhance the self-control of marketing, Gao Jun expands the direct battalion area and directly replaces the area of agent right, and sends excellent staff to manage the direct store.

In order to better monitor the front-line employees and let the front-line outlets create higher value for the company, Gao Jun adopted the strategy of the senior man, introduced the GPS positioning system of the telecom, installed the smart phone of every salesperson, and tracked and positioned the daily trip of the salesperson. Not long after, the manager of the direct branch company offered to resign, and some of the employees who had not resigned were also mediocre and lost their fighting passion.

Why? A resigned manager told Tan Ru: "no fun!" all said, "will be out there, not handsome". I was clearly led by thousands of miles away. No matter what I did behind, I had a pair of eyes staring at me. There was no sense of security.

Since you don't trust me at all, you can do it yourself.

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Do not think that GPS positioning can monitor employees, although Gao Jun knows the whereabouts of employees outside, but do not know what the employees are doing in concrete. Some people are using the open shop as an excuse to carry out the Yin and yang contract for Gao Jun to do the rental shop. Some people are carrying Gao Jun to Gao Jun's competitors to develop new markets, but later smart Gao Jun found out the "little moves" of the employees outside, the employees resigned, and the pain of the rotten market could only be borne by Gao Jun.

In order to make up for the offline sale vacancy, digest inventory, Gao Jun set up his own e-commerce company and extend it to the online depth. Gao Jun believes that the electricity supplier is the most important sewer of shoes and clothing brands in the case of shrinking entity channels.

The agent not only threatened to extort money from the extradition, but also used it as an excuse for arrears of payment.

Gao Jun reluctantly, in-depth study of the electricity supplier found that if the electricity supplier become a stock of sewers, will inevitably damage the brand image, we must develop another stock.

However, the development of e-commerce products, online sales are not as beautiful as imagined.

Gao Jun also hoped that the "double eleven" would throw the goods away, but the preparations for the "double eleven", "online shoes" and "double eleven" were only half sold out, and the rest of the goods would not be sold out at any time.

In the autumn of 2014, when he saw Gao Jun, he looked very depressed. Gao Jun told Tan Ru: "self control is very good, but it is actually a suicide trick.

Any business needs cooperation and can not be controlled blindly. Nowadays, not many people are fools. Only a unilateral business can never be done.

Besides, their ability is limited. It is best to do what they can and do not do something weak.

I will never make a brand again, just do the production, and I will not do it in a few years. I will rent out the factory premises and get some rent. "

Tan Ru comforting Gao Jun said, making shoes and clothing brand is still very promising, do not be too pessimistic.

When winter comes, spring will not be far away!