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Chapter 11 Section 4 Operation of the three major women's shoes companies in the industrial chain

Mid-to-high-end Chinese women's shoes basically refer to Italian or Spanish styles.Pure Chinese designs can only survive on the low end.Chinese women's shoe designers also refer to international women's shoe exhibitions or magazines to design fashionable women's shoes.Fashion is the most important requirement for design. Generally, women will buy shoes impulsively when they see a style they like.I don’t buy shoes because they are cheap, and I don’t buy shoes only when I need them. After all, ordinary people don’t own more than 10 pairs of shoes in the same season. Product design and development is the first step in transforming a product from concept to finished product. It is the source of all product information and the most important place to process product information.Here, the development team collects and sorts out various information, such as market acceptance, popular elements of the season, technical indicators, etc., into product details.Then use strategies such as technology, system, and work integration to transmit relevant details to other parts of the online industry chain, and then manufacture products with different solutions.The optimization focus of this part is to effectively process all kinds of information, assist the development team to build products, and integrate product design data into subsequent procurement and production work.A pair of shoes with novel design, high quality and reasonable price can naturally satisfy women's desire for beauty and change, and it becomes logical to buy more pairs.

1. Belle's product design (1) Integrate design and development teams Belle regards independent design and development as one of its core competitiveness.First of all, Belle cooperates with the fashion design center in Italy, allowing its design team to exchange design ideas with each other, strengthen design capabilities, and capture the fashion trends of each season at the central point of fashion trends, and master the main elements such as style, color, Changes in materials, etc., make the products closer to the mainstream fashion of the season.In addition, Belle is also focusing on R&D at the leather product center in Spain to improve technological update capabilities and lead more different elements, so as to make the products more marketable.For example, Belle introduced the Insoelia technology in 2003. This technology was invented by Dr. Dananberg. It reduces the pressure on the forefoot by changing the center of gravity of the soles of the feet when wearing high heels, so that wearing high heels is no longer painful!This technology not only improves the comfort of the product, but also increases the design tolerance of the product, thus adding more different styles to the product and making the product more intimate.


Figure 2-5 Belle Insoelia technology
Belle owns multiple brands. In order to meet the personalized and fashionable needs of consumers to the greatest extent, each self-owned brand of Belle will launch more than 1,000 new shoe styles every quarter, and provide diversified styles in a large amount of coverage to meet different needs. customer needs.The design team of each Belle brand is composed of designers and product R&D teams. Such team integration enhances the circulation of product information and ensures that various technologies that are beneficial to products can be applied in the most appropriate way to achieve the best results.

(2) Rich and varied product lines In order to launch thousands of different products every quarter, Belle not only has its own designer team, but also introduces a large number of ODM products and outsources different designs.Because if you put the design of each season on your own designer, the risk will be very high. By expanding product changes through outsourcing design, Belle can not only guarantee its own research and development advantages, but also respond flexibly to market demand (Textile Resources 2009 year). Each brand will have 300~400 styles in a season, plus ODM OEM styles and agent foreign styles.Such a comprehensive coverage of style design meets the diverse needs of customers.

(3) Introduce electronic technology to expand the productivity of the design team Advanced computer-aided design (CAD) system, the database of which can integrate a large amount of foot shape and shoe last data, can quickly apply the design to each size, and help the design team quickly complete the design of a single product.In addition, the 3D simulation of the system can display real shoes in real time, which shows that designers can quickly change and change designs, greatly improving productivity.Design a series, from the toil of several weeks before, to 10 days now, more and faster!Belle produces a large number of different designs every season, but under the same fashion trend, the styles of each line are similar. The CAD system integrates the data of various small accessories, and it is faster to design similar styles. Several different series, A design team can do it.

(4) Small batch production to speed up product launch The first batch of orders for any product of Belle is always 50%, and the rest of the orders will be completed through supplementary orders based on market feedback.The designers of each brand will personally go to the front line to investigate and track after the first batch of products are put on the market, and decide whether and how to change the product according to the actual sales of the shoes and the feedback of consumers (Villian Clothing, Year 2009).It is worth mentioning that designers not only play a role before production, but still play an important role in the subsequent 50% of production.

Let us look at the homework of Belle's opponents in product design! 2. Daphne's product design Daphne emphasizes independent design, with popularization and fashion trend as the leading factor, through the special design of individual series, to attract the attention of the market, and to make up for the impact on sales caused by the long delay in product launch caused by the mass production model.Daphne has two brands, one for the affordable market "shoe cabinet", with popular price, suitable for different ages and genders as the selling point, even if the economic downturn still brings growth opportunities (Zheng Yaozong, 2009).The other is Daphne's "D28" and "D18". Through Taiwanese movie star Liu Ruoying and popular girl group SHE, they acted as the spokespersons of "1328" and "D18" respectively, targeting women aged 20-45 and 15-30.At the same time, the store image was redesigned and divided into Daphne D28 Classic Store and Daphne D18 Youth Store.

Daphne follows the low-end popular route. The consumption power of the eastern and western markets in mainland China is very different, and the needs of the northern and southern markets are quite different. Its women's shoes design attaches great importance to the survey of women's feet and needs in each province: people in the north have big feet, People in the south have small feet; for the same riding boots, female customers in Beijing have to wear real cowhide with a plush lining to keep them warm, while women in Shanghai emphasize good looks and high heels, and the difference in temperature also affects the delivery time... (China Investment Consulting Network, 2007 In addition, Daphne specially invited designers from Italy to help out and lead the direction of shoe design.Basically, Daphne's women's shoes keep up with the fashion, with a certain texture, streamlined shape and certain taste, and the price is reasonable (China Investment Consulting Network, 2007).

In terms of R&D and design, Daphne also uses a large number of CAD/CAM technologies to improve the coordination between design and production.Different from Belle's integration to speed up design and launch, Daphne's purpose of introducing technology is mainly to integrate raw materials and the commonality of components from design, improve the efficiency of mass production, and minimize costs. Daphne's independent design has attracted a certain amount of attention in the market, and its brand design has also won two international design awards, which once became the focus of the market at that time.However, in terms of daily operations, the styles that the two brands can carry are also limited to a certain extent. They cannot provide customers with a variety of choices, and their product designs cannot cover most market segments.

3. Product design on Saturday Saturday's brand R&D is centered on the chief designer, who decides the style of each brand, adopts the "trinity" R&D model of designers, marketers and marketing personnel, and uses the directly controlled terminal sales network to obtain fashion trend information . On the other hand, it cooperates with Italy Delmar International Fashion Design Co., Ltd. in technology and product research and development.The Italian company provides the design and development concepts and ideas of fashion trend products and accessories (including hardware accessories) in the four seasons every year.Four times a year, the Italian company will send people to submit plans and drawings, put forward design requirements such as popular elements, materials, colors, last shapes, etc., and then local designers will develop product lines.

Similar to Belle, Saturday uses five main brands to divide the market, referring to Belle's design and development model, and citing the European design direction. Mooffy is designed by Italian designer Gian Pietro Papa (Gibi GP), while ST&SAT, SAFIYA and FONDBERYL are designed by Chinese designers under the guidance of Italian designers (China Shoe Industry Internet, 2009). In terms of independent technology, Saturday is relatively backward. Its development center has yet to be established, and it has not been integrated in design and output. Therefore, its ability to control online design, raw materials, and finished product output is relatively poor. Saturday's product design is mainly mid-to-high-end. Most of the products are vertically lined up in one style area, only for price segmentation, and failed to differentiate and cover the market. 4. Comparison of product design among the three major women's shoe companies In terms of product design, Belle has a strong and efficient design and development team. In addition to self-development, it also introduces ODM OEM products to make up for the lack of self-design and further meet the diverse needs of customers.In terms of product design, Belle has more than 1,000 new products every season, far exceeding Daphne's 100 or Saturday's 300.Belle wins in both product design and quantity. The procurement of raw materials is based on the raw material requirements, auxiliary material requirements and accessories specifications provided by the design department, and according to the scheduled production schedule, various materials are accurately allocated to their respective production points, and then assembled into finished products.How to obtain materials that meet product specifications with the greatest cost-effectiveness and deliver them to the production point at an appropriate time is the focus of procurement work optimization. 1. Raw material of Belle Purchasing Wenzhou is a traditional leather material processing industry base. The leather industry is a highly polluting industry to the surrounding environment. In recent years, with the increasing calls from all parties to enhance pollution control, the environmental protection department has focused on the leather industry in Wenzhou. It also affects the output of related industries.Taking advantage of upgrading their production lines, many business operators have moved their production lines to other areas with lower costs, and set up sales outlets in some industrial raw material centers to receive orders.Belle's procurement center is located in Shenzhen South China International Industrial Raw Materials City, one of the major supply and marketing centers in South China, so as to contact various material suppliers more quickly and directly (Zhou Sen, Liu Wenying, 2004).In terms of production, Belle has mastered the self-production capacity of each main component. In terms of material procurement, it only needs to purchase a few main raw materials in a centralized manner. Generally, there are not many semi-finished products purchased. In addition, it concentrates on the production of genuine leather shoes, so the types of purchases can be reduced. It is also convenient to integrate procurement operations and their suppliers, increase quantitative procurement of raw materials and enhance their bargaining power.After integrating procurement suppliers and practicing quantitative procurement, the top five suppliers have reached 56% of the total procurement amount, thereby reducing raw material prices and increasing gross profit margins. 2. Daphne's raw material procurement Daphne uses a large proportion of non-leather materials, which can greatly reduce material costs and facilitate the launch of products at lower prices.After all, women's loyalty to shoes is low, and the price is often the first front in the low-priced market. Strong cost control capabilities are the survival elements of enterprises.Daphne's parent company has a huge OEM production line. It has three production bases and can produce more than 20 million pairs of shoes every year.In addition, they have eight factories producing different shoe parts, and most of the various shoe-related parts can be self-sufficient.It has integrated all raw material procurement and has strong bargaining power.We also cooperated with several suppliers, and the top five suppliers accounted for more than 50% of the total purchase volume. Through the concentration of purchase varieties and purchase volume, the production cost was reduced.In addition to quantitative means, it also introduces the concept of advance procurement, adopts futures system procurement, purchases materials during the production off-season, and then organizes the production of some popular basic shoes. 3. Raw material purchase on Saturday The main raw material used in the production of Saturday's footwear is leather made from animal hides.Other raw and auxiliary materials include semi-finished products (such as shoe uppers, heels, soles, etc.), nylon, rubber, glue, nails, etc.Raw materials and auxiliary materials are mainly purchased from the domestic market, most of which come from various leather manufacturers in the province, and a small part come from Henan, Hebei, Anhui and other major leather provinces.In addition, it also outsources some production links by purchasing finished shoes from suppliers OEM or purchasing semi-finished products (shoe uppers, soles). Before 2008, suppliers purchased leather materials for finished shoes and semi-finished products by suppliers themselves; since 2008, some leather materials originally purchased by suppliers will be purchased by themselves on Saturdays, and then sent to suppliers Carry out entrusted processing.Unified procurement of leather materials can ensure the consistency of color and texture of finished products, thereby improving product quality, and at the same time can reduce procurement costs through large-scale procurement, but the corresponding price is to increase the capital occupation of the company's production process.In addition to the main raw materials, a large number of semi-finished products are also required to be purchased on Saturday.Because semi-finished products are difficult to adapt to style changes, it is difficult to quantify their procurement to reduce costs, and because of the large number of changeable procurement items, the variables of procurement work are increased. As a result, Saturday's procurement network is larger than that of Belle and Daphne. The top five suppliers only account for about 35% of the total purchase volume, and their bargaining power is lower than that of Belle and Daphne. 4. Comparison of the raw material procurement of the three major women's shoe companies In summary, Belle integrates procurement suppliers in raw material procurement, quantifies procurement to reduce costs, and the top five suppliers have reached 56% of the total procurement amount.Daphne's five major raw material suppliers also account for more than 50% of the total purchase volume, with high bargaining power.Due to the high cost of buying semi-finished products on Saturday, it is not as good as Belle and Daphne in this aspect. Manufacturing is to assemble the purchased materials and accessories into finished products according to the designed details and specifications, and deliver them to consumers in the offline industrial chain.The optimization of the manufacturing part focuses on the integration of various production units to achieve the goal of flexible deployment and low operating costs. 1. Manufacturing of Belle Belle factory adopts the method of mixed production of small production lines, that is, shoes of uniform order can be produced in one production line even if the styles are different, so the flexibility and speed of manufacturing leather shoes are greatly increased. From production to sale of a shoe, It only takes 20 days at the fastest (China Logistics Tendering, 2009).Belle generally does not purchase OEM products. It invested 500 million yuan to build an industrial park in Longhua, Baoan District, Shenzhen, covering an area of ​​130,000 square meters and a construction area of ​​252,000 square meters.With an annual output of 10 million pairs of shoes, the products radiate to China (including Hong Kong), the United States, Europe and other countries or regions.After the acquisition of Senda, its production base in East China was further integrated, and its production capacity was doubled.

Figure 2-6 Belle's production line
Belle has fully integrated its own production line and is able to produce the main components of various leather shoes by itself. The production workshops of each component are located in one factory area to reduce the transit time; in addition, a large number of data-based design, small batch production facilities and equipment are applied to illustrate Shorten the production cycle and realize rapid small-batch production and go to market as soon as possible.By integrating the online production supply chain, Belle has accelerated the production cycle, controlled production costs, and achieved a gross profit margin of over 60%. 2. The production of Daphne is up to Furney has 6 shoe factories and 44 joint venture material factories, but 40% of the production is now outsourced, dominated by the OEM production model.When the production line of the group company cannot meet the market demand of Daphne, Daphne will integrate resources, join hands with the strong, use other people's production plant resources for my own use, and step up development and production, completely breaking the previous time-consuming consumables of the same industry. Management of self-built factories and self-built assembly lines.

Figure 2-7 Gross profit margin of Belle
When Daphne chooses a manufacturer, it establishes a stable and long-term cooperative relationship based on whether the other party has good product design and development capabilities, stable product quality and production capacity, and establishes a professional department to connect with the professional department of the manufacturer.Such a long-term and stable cooperation ensures that all Daphne's outsourced styles, regardless of the order quantity, the manufacturer can guarantee "special supply".Daphne uses OBM (Original Brand Manufacturer), that is, the manufacturer cooperates with the company to design and design the products, and then pastes the company's trademark for the company to sell.Before the development of new products every season, Daphne's team will carefully analyze market trends, market trends, marketing indicators, historical sales records, changes in sales channels, existing inventory structure and competitive brand information, and calculate the group of products to be developed in the new season. type, sample quantity and the total amount of the expected order.Different developers are responsible for different product styles and product categories, and are responsible for managing different cooperative factories.Daphne adopts the most advanced information management system in the industry. Through the seamless connection of B2B, Daphne's rich market information and sales dynamics are opened to the main cooperating manufacturers, providing manufacturers with accurate market information, timely formulating countermeasures and adjusting directions. Daphne has changed from the "cost plus price method" to the "retail pricing method". According to consumers' recognition of the brand and brand positioning, the retail price location is determined and adhered to, and then the profit of each link of circulation is reversed from the retail price, and the cost of production and procurement is reversed. . Although Daphne has integrated various production parts, they only focus on reducing costs, and their products cannot be launched quickly. 3. Production on Saturday Before absorbing and merging Liyuan Footwear, Saturday did not directly produce products, and mainly entrusted external processing factories to process and produce through OEM. The OEM production mode is mainly that the company provides styles, samples and processing requirements, and the OEM manufacturers organize specific shoe design, purchase raw materials and organize production, and the products produced use the Saturday trademark.Exclusive purchase after sale by Saturday.After absorbing and merging Liyuan Footwear, it adopts a production mode combining centralized procurement of raw materials, outsourcing of semi-finished products and self-production molding.Implementation of two-line parallel production mode (OEM and self-production).In order to achieve a small amount of diverse large-scale production, to meet the needs of various brands of products. The design is mainly on Saturdays. The company decides the product style, highlights the product brand style, and grasps the design standards and requirements. Material selection under OEM production mode: put forward standards and requirements for material selection of OEM manufacturers, conduct quality inspection on purchased materials, or designate suppliers, designate products and submit inspection reports to conduct material quality control. Product quality control under the OEM production mode: during the production process, the company sends inspection personnel to the factory to conduct process inspection and quality inspection of the final product. Products that do not meet the quality requirements will not be purchased. Product delivery guarantee under the OEM production mode: When selecting an OEM manufacturer, consider its production capacity, agree on the delivery date when the specific production order is signed, and notify one week in advance of production deployment in case of delays in the construction period to ensure product sales and supply. Cost control under OEM production mode: OEM order price mainly refers to the production cost under the company's own production mode, and adopts cost plus method to determine the price. Most of the components are outsourced, and the final assembly production capacity is centrally controlled. Because the final assembly work is relatively fast, the product launch is faster than Daphne. 4. Comparison of the production and manufacturing of the three major women's shoe companies Summary Belle has introduced a large number of electronic design and production coordination tools in the field of manufacturing, which has increased production efficiency by up to 200%.It also limits the production of the first batch of orders to only 50% in order to reduce product production and waiting time, so that products can be launched earlier, and they can be sent from the production line to the point of sale in 20 days, which is better than Daphne and Saturday, which take more than 30 days.Belle beats Daphne and Saturday in production. The warehousing and transportation link distributes the finished products from the production center to the sales point.The focus is on delivering the product at the lowest cost within the required time frame. 1. Belle's warehousing and transportation Belle canceled the finished product warehouse, eliminating the link of picking up and picking up the finished product warehouse, reducing inventory costs and increasing delivery speed.The products are packed directly from the factory and sent to the distribution centers in the top ten sales regions, and all brands (including various agent brands and sports products) are stored in the unified warehouse and shipped through the unified logistics center. The third-party logistics company distributes the goods ordered by each store, delivers multiple times in small batches, and uses the volume of multiple stores to increase the delivery rate and accuracy (multiple stores in large cities, large stores in small cities), realize large-scale distribution, and reduce costs and time. Because Belle has many stores and is concentrated in shopping malls, one car can go to multiple locations at a time, so Belle's transportation and handling costs are relatively cheap, and Belle can dispatch products to various stores in real time and quickly. 2. Warehousing and transportation of Daphne Daphne's logistics distribution system includes 3 national logistics distribution centers, 5 large regional logistics distribution centers, and 28 regional logistics distribution centers.They cover more than 30 provinces, regions, and cities across the country, forming a logistics distribution system with long-distance delivery to cities and short-distance delivery to stores. It achieves two deliveries within 24 hours at the first-tier retail stores, and one delivery within 24 hours at the second- and third-tier retail stores.After the completion of the logistics system, the company's overall inventory turnover rate increased from the previous average of 3 times per year to 8 times per year on average.The delivery system can make up the shoes sold today within 24 hours. In addition, it has set up zero-size shoe processing centers in second-tier cities. Since the styles of shoes required by second-tier cities are not as popular as those in first-tier cities, shoes that do not sell well can be moved to second-tier cities to avoid inventory. Too much pressure on capital turnover. However, Daphne relies on the OEM production model to ship in large quantities. The cost of mass storage of finished products in warehouses is relatively high, and most of the sales points are scattered street single stores. The distribution costs are also high. The storage and transportation costs are the highest among the three, and the total distribution costs accounted for more than 70% of gross profit. 3. Storage and transportation on Saturday All products will be produced in Guangdong on Saturday, and will be stored in the central warehouse in the production base after completion.The transportation of products from warehouses to distribution centers across the country is mainly completed by entrusting third-party logistics.From each regional distribution center to each marketing The outlets are mainly equipped with vehicles for transportation by the company.

Figure 2-8 Warehousing and transportation methods on Saturday
Saturday invested more than 40 million yuan to re-plan, integrate and expand the logistics distribution system, speed up inventory turnover, enhance the logistics and distribution capabilities of the headquarters, reorganize the regional distribution centers, and build a logistics information management system.The existing warehouse area is 14,122 square meters, with a production capacity of 4.5 million pairs; after the construction of the logistics distribution center and related fundraising projects are completed, a warehouse area of ​​29,433 square meters will be formed, with a production capacity of 10.5 million pairs.In Beijing, Shenyang, Shanghai, Wuhan, and Chengdu, where the company's marketing outlets are relatively dense, five newly-built regional distribution centers are equipped with large warehouses. Saturday is also a large number of shipments in the OEM mode, and the storage cost is relatively high, but because the shipment volume is small, the total cost is also lower than that of Daphne.Like Belle, it operates in a store-in-store model, and its distribution costs are relatively low, with total distribution costs accounting for 62% of its gross profit. 4. Comparison of storage and transportation of the three major women's shoe companies From the perspective of the cost of porters, generally small shops have to pay for each delivery; Belle and Saturday have multiple brands in the same shopping mall, and multiple stores share the cost of porting.Daphne's establishment of street stores has increased transportation and storage costs. In conclusion, Belle and Saturday are better than Daphne in storage and transportation. In actual operation, the order processing part sends finished product orders to the production point or goods storage point according to the demand of the point of sale and market conditions, so that the relevant links can make production or distribution arrangement.This part is the brain of the offline supply and marketing operation, and its focus is on how to cooperate with the marketing strategy and specific arrangement of the sales part to achieve the distribution plan in the most effective way.The sales department finally launches the product and transmits its related information, so that customers can receive product information in an effective and convenient way and pay a reasonable price to purchase the product.It includes work such as formulating prices, promotion, exhibitions, and receiving feedback information. 1. Belle's order processing, sales and promotion Belle places orders in stages and distributes the goods to the point of sale. First, it makes 50% of the goods and sends them to the market to test the reaction. After seeing the market reaction, it adjusts the supply by replenishing the supply, thereby reducing the risk of misestimating fashion trends.The POS system in the point of sale is connected to the central ERP system to reflect the sales status of each store in real time; the central government arranges the release of new styles and ordering of goods on a quarterly basis, and each store uses the POS system for replenishment. In addition, Belle has also developed a topshoes.cn portal website for electronic Channel distributors place orders.

Figure 2-9 Belle's order processing method
Belle was able to realize the model of "calculating rent based on the percentage of monthly sales revenue" in the same shopping mall, reducing the risk of capital chain breaks.More than 97% of its products are sold domestically, and its self-operated network of more than 8,000 stores in more than 200 cities makes it almost unaffected by the shrinking demand in the international market.Large cities open more stores, while small cities open large stores.Belle achieves fast order placement, early listing and flexible replenishment. (1) Analyze the strategy of first matching 50% orders Suppose a manufacturer has two products, one is a successful product (all units will be sold) and the other is a failed product (only 20% of the units will be sold).In traditional production, the manufacturer will make 100% of the goods for sale.Of course successful products will be sold out completely.But only 20% of failed products will be sold, so there will be 80% of unsalable products.Although Belle's 50% order strategy only sells 90% of successful products due to replenishment problems, it can greatly reduce the inventory caused by slow sales.Failed product inventory is 30% (50%-20%).In this way, Belle's 50% order has 50% (80%-30%) less inventory than the traditional 100% order method.But in terms of sales, Belle can achieve 73% of expected sales, which is 13 percentage points higher than traditional methods.See Figure 2-10 for details. Belle's 50% order strategy allows Belle to seize the product pricing power first.Because the production is only half of the order, the production can be completed within 20 days and the goods can be shipped.While the competitor is still in the production process, Belle’s products are launched early to gain market share and pricing power first. Soon after the competitor’s similar products are on sale, Belle starts to promote sales. Its replenishment strategy allows new products to catch up with the sales of best-selling products. Peak period.

Figure 2-10 Belle's 50% order strategy
In 2008, China's urban population doubled compared with that in the 1980s, and the per capita clothing consumption increased five times compared with that in the 1990s, creating a huge market.When the market is large, enterprises can be subdivided and further cultivated; when life improves, people's life can be demanded.Please see Figure 2-11. Belle divides the deep market space by brand, covering a large number of high-end markets.

Figure 2-11 Comparison between Belle’s order strategy and traditional methods

Figure 2-12 Belle divides the deep market space by brand
(2) Belle uses multiple brands and multiple stores, and the lack of codes and funds for complementary products Women have low loyalty to women's shoes products, and if there is a lack of size or money, they choose other stores.Belle attaches great importance to the very important link in the supply chain activities - the retail terminal.Since 1995, Belle has tried to develop a retail network; since 2002, Belle has made greater efforts to integrate retail network resources and began to greatly expand the construction of direct-sale retail terminals; in 2007 alone, Belle's direct-sale retail outlets reached 6143 .In this regard, Belle, which is mainly a women’s shoe brand, believes that female consumers are very random. For them, the coverage of stores plays a very important role in promoting their consumption behavior—this is also the same as UBS’s According to the sample survey, clothing consumers have relatively low brand loyalty and pay more attention to style and quality.Therefore, Belle's concept of channels is to "drive the brand through channels".Belle opens shop-in-shops of different brands in department stores in shopping malls, with Belle as the center.If Belle is not suitable, customers can go to Basto and Senda next to the store; if Belle’s taste does not meet customer requirements, they can go to Joy&Peace and Staccato in the same mall. These are Belle’s brands, and different brand stores are the second. Re-net, attracting passing women into the store. (3) Use multiple brands and multiple stores to create space for products Human beings have limited ability to recognize and distinguish similar products at the same time.If a brand operates too many series and too many styles, consumers will not be able to distinguish them, so they will not buy them.Each brand of Belle will only display and sell a dozen series of styles at the same time, and it uses the brand as a tool for differentiation.Customers can first go to Belle to look at shoes for work, and choose a series with not too high heels, which can be worn on a daily basis; series, but both are Belle's fashion styles. Under the effective implementation of the strategy of brand complementarity, the top ten brands with the highest sales in the women's shoes market in 2008 accounted for 38.4% of the entire women's shoes market, of which six brands are owned by Belle. 2. Daphne's order processing, sales and promotion Daphne pays more attention to the distribution of key design products according to market characteristics, such as distribution to North China and Northeast China according to suitability; it also distributes mainstream products according to seasons, such as producing and selling some products that are suitable for all regions.This approach allows it to retain some flexibility. Its regional warehousing can replenish best-selling items for out-of-stock points within 24 hours.For slow-moving goods, it sells them in the form of secondary distribution to other regions, and finally promotes the slow-moving goods, but this will increase the distribution and transportation costs. Because the products are produced in large quantities by OEM, its products are launched late, and the sales of fashion series products are easily affected by Belle. The solution is to attract the attention of the market with its unique brand design and image.Daphne and the shoe cabinet have won the German iF Design Gold Award. In this respect, Daphne has attracted a lot of consumers' attention, and it has also created a lot of exposure for other products of this brand.In addition, it uses street shop marketing and only deeply cultivates one market segment - focusing on the low-price market and winning by volume.As can be seen from the table below, 70% of its stores are opened in the middle and low-end market (cities below the second tier).The main point of sale of Daphne is not the first-tier cities, but the second-tier to sixth-tier stores. 3. Order processing, sales and promotion on Saturday Regional warehousing is too small and too little, and the distribution on Saturday is mainly completed by the central warehousing.The sales points are concentrated in first-tier cities. Due to the high cost, the method of multiple distributions for one style was abandoned on Saturdays.It holds two internal ordering conferences every year to distribute new models, and then rolls out new products every two weeks according to the seasons to control costs, but this fails to accurately grasp and adapt to market changes in real time. Its stores are concentrated in first-tier cities, and they are mainly store-in-shops in department stores. This is very easy to be blocked by Belle's brand network and affect sales.Sat also opened new brands focusing on low-priced products, but it lacks a nationwide network to cover the low-priced market with high demand, and its response to the market is slow.In general, there is no clear marketing route on Saturday, and it is in a passive position. 4. Comparison of three major women's shoe companies in order processing, sales and promotion In summary, Belle has more than 20 brands and 6,050 branches in 2008. The average turnover and net profit per store are higher than the 3,465 branches of the two main brands of Daphne and the 1,293 branches of the eight Saturday brands. In terms of market penetration, Belle is even better!

Figure 2-13 Belle, Daphne and Saturday's average sales per store
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