Chapter 526 New business model
Mr. Wu is really here for vacation, but he actually called you out for a run at less than six o'clock. Xiao Xiaoxiao asked, "What did you say after running for two hours in the morning?"
Wang Yiyuan briefly explained the matter discussed in the morning. He mocked himself, where can I find this "cannon" in Beijing now? Maybe Mr. Wu and the others have to figure out their own solutions.
Xiao Xiaoxiao has some understanding of Mr. Wu and this great god in Beijing, and said with a smile, but your idea is quite interesting. If it is held in a gardening field, it will be a good advertisement for vacation here.
How could it be so easy to operate? Wang Yiyuan smiled and asked, Have you ever called your eldest and second aunts?
They arrived on the afternoon of the third day and came with Xie Dong and the others. Xiao Xiaoxiao said, "I want to leave the company's business car in Shanghai in the future, so it will be more convenient for our family to go in and out."
Xiaoxiao's mother said, I think so. Anyway, it is not used a lot in the factory now.
During this National Day holiday, Wang Yiyuan wanted to use this relatively free time to hold a small meeting with the heads of the company's business and design and R&D departments. There are two main purposes: one is a summary of the stage, and the other is existing problems and countermeasures.
The most important task is to review and repair the company's early business work. Judging from the current development trend, since the company's three professional management centers were established, the business centers were the best developed.
Of course, this has something to do with Wang Yiyuan's more attention to the business center. More than half a year has passed, and the current business expansion, especially the online business development speed, has greatly exceeded Wang Yiyuan and the company's expectations, and it can be said that it has developed rapidly.
At present, the focus of the business center can be basically divided into two major parts: one is OEM, and the other is the online private brand business. Both businesses are doing well, especially in the current situation of the overall economic situation, which is particularly rare to achieve.
However, the focus of this phased business meeting is another matter: whether to buy white cards from well-known brand clothing companies, which is commonly known as "tags" in the industry, and come back to produce and sell them by your own company.
This matter has to start with Taobao and "Tmall".
At the beginning of this year, it was the time when e-commerce was booming. In order to ensure the quality of online products, Taobao Mall was renamed Tmall Mall. Tmall Mall has higher requirements for brands and has also given brand e-commerce a lot of traffic support.
At the beginning, the clothing company did not pay special attention to this. However, to the present, the scale effect of large and small has gradually emerged, and its ferocious edge has begun to appear.
Some unknown small brands are gradually in a dilemma under the double-layer attack of big brands and Tmall systems. The brands of clothing companies are also small brands, so they naturally feel more and more obvious difficulties and increasing pressure.
What to do? If you want to survive, you have to hold on to the big brands and get the authorization letter from the big brands. Clothing companies also encountered such problems.
Zhou Wanqiu and Yang Ran had a deep understanding of this, and Wang Yiyuan also had a deep understanding of this. After several efforts, Wang Yiyuan and the others found a secret that was not a secret.
It turned out that at this time, many well-known brand clothing companies in Shanghai felt the hot momentum of the online market, quickly seized this opportunity, and promptly sent olive branches to clothing manufacturers of small and medium-sized brands, began to develop authorized businesses, and initiated public investment.
The best examples of these are the Polar Bear Company.
When the brand "Polar Bear" was first established, it not only had its own brand, but also its own factories and sales channels. At the beginning of its establishment, it also invited famous movie stars to endorse it through overwhelming advertisements, and quickly occupied China's thermal underwear market.
But everything went smoothly. The financial crisis broke out, the textile industry was affected, and the market was seriously homogenized by underwear products. The market size of the polar bear company was squeezed and its production capacity was overcapacity. So they implemented the "brand authorization" business model, closed the factory they had operated for ten years, and only retained the three words "polar bear".
Without production lines, where do these brands of products on the market come from?
It’s very simple. They all made a low-key transformation and started selling tags. That is to say, they only do wholesale "tags" business, and started charging manufacturers with brand authorization fees and entrusting sales business to dealers, implementing asset-light operations.
On the one hand, Polar Bear Company grants suppliers that meet the authorization standards the right to produce products of specific brands and charges them a comprehensive service fee; distributors that meet the authorization standards the right to sell products of specific brands and charges them a dealer brand authorization fee.
On the other hand, Polar Bear Company provides a number of effective supply chain services such as resource promotion, quality control, R&D design, traffic management, data analysis and application based on the needs of authorized suppliers and authorized dealers, to improve the operating capabilities and profitability of partners, and thus increase the stickiness of partners to the company's brand and services.
It has to be said that due to the overcapacity of traditional manufacturing factories, Polar Bear Company decisively cut off its production lines and transformed into brand authorization. They are lucky. Many factories have been killed in the huge waves of the financial crisis because they did not have time to transform.
Instead, polar bear companies now basically do not produce their own clothes. They authorize their own brands to some dealers and some unknown small factories.
Open any Tmall store of polar bear brand online, and the word authentic appears on the introduction page of each product, implying that it endorses its brand. What most consumers do not know is that these so-called authentic tags are bought by merchants.
However, according to the information obtained by Wang Yiyuan and his team through various channels, the current development momentum of Polar Bear Company is even stronger than that of Alibaba and Tencent. I heard that an employee of their company sells tags for a year is more than one million. From a profit perspective, it has to be said that Polar Bear is a successful company.
The company does not produce goods by itself and only licenses the trademark to the OEM factory. This model is not uncommon. Internationally renowned companies such as Nike, Adidas, Philips, etc. all expand their product lines through brand authorization. In a sense, a brand is an endorsement of a company for products.
There are many well-known companies like Polar Bear that have "brand authorization" in Shanghai. Wang Yiyuan and others think that this business model can not only save production costs, but also obtain a certain brand premium. It is a new way of business expansion that is worth a try.
Chapter completed!