Is Success Or Failure A Life-Saving Straw?

The well-known names of Chinese manufacturers such as Shan Shan, Li Lang, AOKANG and red dragonfly are buying overseas clothing brands.

Unlike the Lenovo IBM alliance, these enterprises' overseas acquisitions are not "going out" but "taking back" and mining their respective channel sales potential.

For the textile enterprises that often have thousands of Direct stores and franchisees, the idea and practice of "success or failure in the end" has become a life-saving straw for export of the difficult textile industry.

The expansion of domestic brand channels has led to a large number of acquisitions and acquisitions.

Recently, AOKANG, a Chinese shoe maker, formally acquired the global brand management power of Italy Wanli Wade, and said it was the first step in the full acquisition of the brand.

Another shoe industry brand "Red Dragonfly" insiders also revealed: "we are also negotiating overseas acquisitions of brand matters.

Many enterprises in the industry are doing this. "

Before that, Shanshan has opened the curtain of overseas acquisitions of brands, and claims that it is the best time to buy brands overseas.

Reporters learned that he also had plans to acquire overseas brands.

"Most of their overseas acquisitions are second-line brands, mainly for Chinese market demand."

Yang Donghui, vice chairman of the textile industry association, said: "most enterprises buy local brands which are not strong enough to introduce them to China."

"We are not short of the technology of these brands because we are productive, and we need their high-end brand image."

A clothing business person disclosed.

"Now these brands in China have a large number of franchisees and direct stores.

Each store has an area of 400 square meters and is fully capable of bringing in new high-end products and expanding sales with sales.

From the "weeds" to "shrubs", the domestic brands that have acquired overseas acquisitions have built huge sales networks.

At present, there are nearly 3000 stores in Shanshan, which have integrated 9 foreign brands into stores. AOKANG also has nearly 3000 stores, and the number of Red Dragonfly stores is more than 2600, and the number of shops in Lai long is more than 1000.

"Now, we all want to introduce more products into the sales channel to make money, like Gome."

The above sources revealed.

A garment processing enterprise owner in Zhejiang calculates: "once the number of stores exceeds 20, the cost of production will be significantly reduced.

For those enterprises with better channel development, thousands of franchised stores can guarantee the smooth sales of products, the scale of products will be formed, the cost will drop rapidly, and profits will also increase.

Li Dongsheng, deputy general manager of Sly Garments Co., Ltd., described that the era of OEM has passed, that is, the "weeds" period of textile enterprises. Now domestic enterprises are developing their own brand as "shrub period". "Well built sales channels can rapidly increase product sales, and also have the opportunity to promote brand development.

It is understood that chain stores and franchisees can reduce the flow of products to the maximum extent, and invest less and build faster, which is considered as the fastest way to expand channels.

In comparison, the pressure on the brand to enter the mall is greater.

"Several large clothing brands have reflected to me the" twists and turns "they encountered in shopping malls.

Han Jiasheng, project manager of the China Textile Industry Association, said, "the cost of entering the shopping mall is very high, and various entry fees cause the brand profits to be weakened.

We have counted that the profit from franchised stores and direct outlets is only 34% higher than the sales profits of the stores only in terms of sales profits.

The most obvious advantage is that "after entering the shopping mall, there is no way to deal with a large number of stocks. In the franchise mode, each franchisee will digest its inventory itself."