Depth Analysis Of Baocheng'S Domestic Marketing Strategy

From Taiwan Lukang town to Dongguan Gao Gao, from the mainland to the inland, from the Pearl River Delta to Southeast Asia, China's foundry industry produces more than 1/5 of all sports shoes in Taiwan.

The International Group has been running on the production line for more than 40 years. It seems to feel tired and boring and tries to change this single situation.

"We have to arrange a Jiabao shoe shoemaker in every town in Dongguan."

Baocheng group's new channel brand

A new pawn in Houjie, a strong consumer town in Dongguan, is the fifth store in Dongguan. In two years, there will be a Bao Yuan shoemaker store on 32 towns in Dongguan.

Over the past 3 years, Bao Yuan shoemaker has been expanding all over the territory to extend the tentacles to the main towns in the Pearl River Delta.

According to the plan, Baoyuan shoemaker will radiate to the Yangtze River Delta and Bohai Bay Economic Circle on the basis of deep ploughing the Pearl River Delta, and rely on Baocheng group's strong manufacturing strength to pform from manufacturing to creation.

"A new domestic Empire led by Taiwan enterprises is gradually taking shape."

According to the analysis of the industry, Baocheng Group vigorously captured the retail market of Dongguan town street shoe industry, which is a new signal for its "rural encircling the city" to deepen the town channel and accelerate the establishment of a huge domestic empire.

Analysis of Pathfinder's way to win

Baocheng group, known by the outside world, has attracted much attention due to the world's most famous sports brands such as Nike (Nike), Adidas (Adidas), Reebok, New Balance and so on.

In September 4, 1969, Baocheng Industry Co., Ltd. was established. In 1979, Baocheng got the first order of Adidas, and then opened it as the prelude to the foundry of famous brand sneakers.

In the industrial chain of famous brand sports shoes, Baocheng group, which is mainly represented by OEM, is in the low end of the industrial chain.

An insider who declined to be named told reporters that Nike, Adidas and other pnational sports apparel brands had been "where the cost is low."

This makes Baocheng group's production base with Nike.

Equal pfer and continuous migration.

Since the 90s of last century, the comprehensive cost of footwear production in Taiwan has risen, and Yuyuan group of Baocheng group has established its main production base in the mainland of Dongguan in the Pearl River Delta region to maintain the advantage of low cost manufacturing.

In fact, Baocheng group has already realized the risk of single OEM mode. "After all, the foundry is at the lowest end of the smile curve with the lowest added value."

A person in charge of Baocheng group once said.

At the same time, as an OEM, at any time may face a systematic risk of customer withdrawals.

As an OEM, Baocheng group is well versed in the principle of "keeping the best points", so it has adopted a win-win model with the international brands of the OEM. That is, Baocheng group helps Nike, Adidas and other international brands successfully layout the mainland market, first by Baocheng group as an international brand manufacturer, and then sells shoes to Nike, Adidas and other brands, and then buys shoes from branding companies to sell them in Baocheng's victory road store.

Cai Qiongwen, director of Baoyuan shoemaker brand analysis, told our reporter that through the domestic sales channels, he helped international brand sales products, on the one hand, he could quickly develop the domestic market for these international brands, and on the other hand provided new fashion information for Baocheng group's shoe industry design, and produced more marketable products.

Therefore, the exploration of Sheng Dao has realized the win-win situation of Baocheng group's foundry and branding.

Baocheng starts reform and innovation mode

Cai Qiongwen told reporters that Baoyuan shoemaker's products include famous sports brands such as Nike, Reebok and Lining, which are commissioned by Baocheng group, including Baocheng's own brand: sports life footwear brand FOOT SPORTS (Fei Shibao), fashion shoes brand RYEE (Rui) and so on.

And Baocheng's own brand is the real starting point for Baocheng group to start domestic sales.

"In the past, our foundry was passive and blind. Now we must strive to stand at the two ends of the smile curve, create our own brand, and further enhance our core value."

Cai Qiongwen said that the added value of self created brand is much higher than that of OEM, gross profit margin is much higher than that of OEM.

However, as Baocheng group, the more than 60 global brand of Nike, Adidas and other global brands, to create their own brand is precisely the industry's big taboo.

Cai Naifeng, general manager of Baocheng group, even interviewed in the past, even said, "to develop our brand, the risk is very high.

If Baocheng develops its own brand, the first problem is how to maintain partnership with Brand Company.

Famous world brands share their entire design secrets and Know-how with Baocheng without reservation.

If Baocheng creates its own brand, it is likely to become the enemy of the brand, and the enemy of the number one, so that the cooperative relationship with the brand can not be maintained.

According to industry experts, the biggest difference between Bao Yuan shoemaker and Sheng Dao is that Sheng Dao is a single store, while Bao Yuan shoemaker is a multi brand shop with multiple international brands and self created brands.

The key lies in the different positioning of international brand and self created brand, different customer positioning and different market positioning. Therefore, the international brand and the self created brand of the agent are not only clash but also complementary.

For example, the products of Nike and other brands are mainly functional, while Baocheng's own brands are mainly recreational and comfortable; the main target customers of Nike and other brands are young men, while the main target customers of independent brands are women aged 25 to 39, especially housewives.

The expansion mode of Baocheng layout

"When the new model starts, the key is to take the first step."

Cai Qiongwen said that the establishment of Baoyuan shoemaker near the factory of Baocheng group, first of all, is that the property management belongs to the group, although it will pay rent, but in general, the cost is relatively low. Secondly, the more important reason is that Baoyuan shoemaker is easy to integrate resources near the factory area.

"We have tens of thousands of employees at each production base, which naturally form a certain purchasing power.

After their consumption, more consumers in Hong Kong and Taiwan even residents around the factory have come to spend.

Cai Qiongwen said that this multiplying factory pattern has made Bao Yuan shoemaker quickly win fame in Dongguan, Zhongshan, Zhuhai, Jiangmen and other places in the Pearl River Delta.

To this end, Baocheng group adjusts the strategic choice of the economically developed towns in the mainland as the focal point. The layout is different from the multi brand Baoyuan shoemaker of Sheng Dao single store.

Cai Qiongwen said that the rent of developed central cities is too high, while Bao Yuan shoemaker shops are generally more than 250 square meters, so the cost is very high in the central city.

At the same time, the central city brand stores are dense, and the market competition is fierce. It can only find a market in a crowded market, which is not conducive to the subsequent fighting in the Red Sea.

Finally, Bao Yuan shoemaker identified a new round of expansion strategy of "encircling the city by the countryside".

"The strength of China's cities and towns must not be underestimated."

Cai Qiongwen said, "in the top 1000 towns in China, the average town population is 71000, with a fiscal revenue of over 400 million yuan per year, and the per capita income level exceeds the average level of county-level cities."

At present, Bao Yuan shoemaker has opened 5 shops in Dongguan, including Huang Jiang, Gao Gao, Changping, Nancheng and Houjie.

"Dongguan is our base camp. We plan to realize the layout of 32 towns, one street and one shop in two years."

Baocheng Group official said.

Deep excavation of domestic sales as the main channel

With Baoyuan shoemaker forming a new layout in the whole country, Baocheng group's self created brand has gradually been promoted and sold in domestic markets, especially in the Guangdong Pearl River Delta's domestic market.

Some Taiwanese businessmen in the Pearl River Delta began to contact Bao Yuan shoemaker, trying to open a way of domestic sales through the channel of Bao Yuan shoemaker.

Cai Qiongwen has received many phone calls from Taiwanese businessmen in Dongguan.

"I was still on vacation in Taiwan," said a Taiwanese businessman. "He made a brand by himself, but he suffered from no road sales. Could he borrow a treasure shoemaker?"

Cai Qiongwen recalled that the Taiwanese businessman was very anxious at that time.

But what kind of brand the Bao Yuan shoemaker represents is not determined by the top brass, but by the market and consumers.

However, Cai Qiongwen has learned that many Taiwanese businessmen trying to sell their products domestically still use the European and American models, the European and American shapes and even their styles formed by their OEM.

But these are not completely in line with the needs of consumers in the domestic market.

Bao Yuan shoemaker also faced similar problems at first.

According to Cai Qiongwen, when the shoe cobbler was established, the product line was mainly based on its own brand, and the proportion of international brands was relatively small, so consumers' awareness of Bao Yuan shoemaker was not high.

Later, Bao Yuan shoemaker found that consumers still buy most of the international brand shoes, so the shops adjusted the product line and increased the proportion of international brands.

The increase of the international brand product line and the passenger flow brought by the rich products have promoted the sales of the whole brand.

With the gradual deepening of domestic sales of Taiwanese businessmen, more and more Taiwanese businessmen realize the complexity of domestic sales, and begin to optimize their product lines and production lines systematically and produce products suitable for the mainland market.

According to Cai Qiongwen, Bao Yuan shoemaker not only acts as an international brand, but also acts as a brand to pform Taiwan enterprises into domestic brands.

At present, Taiwanese shoe manufacturers in Dongguan and other places have produced their own brands, which are sold by Bao Yuan shoemaker agents throughout the country.