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Bailey And Daphne Were Defeated. The Shoe Company Opened 10000 Stores And Sold 100 Million Pairs A Year

2020/8/13 20:25:00 178

Dadong

Who do you think of the king of women's shoes?

A generation of shoe king Baili? However, this company with a market value of 100 billion has already sold itself at a low price and delisted from the Hong Kong stock market. Before that, the annual revenue of 10 billion was just an intermediary business of "agency".

The first Saturday shoe industry in China has lost the total profit made in the past seven years in one year, but today's Saturday has to gradually spin off women's shoes business and become a shell company.

Daphne, which claims to sell 50 million pairs a year, more people know that this brand closed 941 sales points in 2018, and further closed 2288 sales points on this basis last year.

At this time, a seemingly low brand began to be watched by the public. With smaller stores and cheaper prices, dusto has quietly set up more than 9000 sales outlets across the country (more than 10000 according to the China Chain Store Association), attracting more than 30 million members.

This may be the king of the new generation of Chinese women's shoes.

Women's first pot of gold

Many people have never heard of Dadong. After all, it has no sense of existence.

Dadong's stores are basically only 30-40 square meters, and the decoration is also a mixture of red and white local flavor. Such brand stores are put on the street, and people hardly notice.

Perhaps the most striking is the various promotional slogans posted on the glass wall of Dadongmen store. "79 yuan, 2 pairs", "clearance sale, 50% off the whole venue", etc., which can not help but remind people of the wallet from the yellow crane factory on the stall and the woolen sweater that has been claimed to be "dealt with at a loss on the last day".

It's a store that doesn't seem to survive tomorrow. Compared with Bailey and Daphne in high-end shopping malls, Dadong's brand image is lower than that of urban beauties to Vimy.

This is actually closely related to its founder.

In 1995, Wenzhou's business environment changed greatly. Zhang Guoli, then president of Wenzhou Economic Promotion Association in Nanjing, said that before 1995, the word "Wenzhou" was slightly negative. However, due to Wenzhou People's honest management and continuous improvement of product quality, "Wenzhou people" has gradually become a synonym for honesty, innovation and courage to open up.

This year, Chen Guangming, a farmer who raised bees at home, began to start his own business. With several years of experience as a shoe-making apprentice, he set up a small shoemaking workshop in his old yard.

At that time, there were countless small workshops in Wenzhou and Fujian, but the mainstream was to make men's shoes. We'll show the customers a good sample of the models and models. If the customer is satisfied, they will bring back an order and give it to the workshop for mass production.

One of the representatives is Quanzhou rich bird in Fujian Province. In 1995, fuguio has become the third largest manufacturer of business casual shoes and the sixth largest brand of shoes in China.

At that time, the classic footwear of the rich bird was a popular men's bagged shoes (overshoes).

But Chen photosensitive did not plan to do men's shoes, later if they want to occupy, they have to find a breakthrough contrary to the mainstream. Yes, the women's shoes business at that time was a niche business. You know, at that time, when women wore bright colored skirts, they would be scorned by the outside world.

But Chen photosensitive wants to gamble. He also created a pair of overshoes for female consumers, and it was the one that directly imitated the rich bird.

The result is very clear, Chen photosensitive bet won, this kind of women's shoes is sold. Until now, in the list of social consumption power, women stand in the pyramid of consumption, while men are not as good as dogs.

From that moment, Chen photosensitive seems to bet on the right trend.

The first rule is to sell cheaply

Another trend of Chen Guangming's pledge to the right should be parity.

At the tmall flagship store in Dadong, you can see shoes of 19 yuan / pair at the cheapest price. There are even activities to buy shoes of the current season and give them a season of shoes.

In 2008, Dadong invited big s to speak for the brand, which once made the brand known to all for a short time. At that time, Dadong was a provincial-level agent model, and the development was in full swing. Under this mode, a pair of shoes with a cost of 40 yuan could even be sold to 200-300 yuan after the agent increased the price.

This is not what Chen Guangming wants.

At that time, the financial crisis affected the global consumer market, and young people no longer dared to touch expensive luxury goods, but they had a demand for "fashionable and durable, but not expensive".

This situation is very similar to the depressed economy after Japan signed the Plaza Agreement. Although consumers of that generation visited Ginza when they were children and started playing in Shibuya in high school, they were particularly sensitive to price and quality. Such user characteristics promoted the brand-free movement with the ultimate cost performance.

UNIQLO was born in such a social background.

In a similar economic era, swatch is the triumph of cost performance in Europe; Walmart is the victory of cost performance in America; decathlon is the anti market behavior of cost performance in the luxury market of France.

They are squeezing brand premium, highlighting the ultimate cost performance of products.

Chen photosensitive heart big east, perhaps is such appearance. Until 2012, Chen Guangming made up his mind to change the 18 provincial branches controlled by the agents to the company's holding, abolishing the middleman's profit margin, and realizing self-management at low price.

In order to realize the peaceful transition, Chen Guangming converted the agent branch into Dadong shares. If the branch company loses money, Dadong will give "minimum income" according to 10% of the share price; if the branch makes money, the branch will receive 49% dividend.

After the self transformation of the branch company, Chen Guangming reorganized the exclusive store of the dealer into a joint store. These joint store owners need to put in rent, wages and payment deposit, and then the goods will be distributed one by one by Dadong.

Chen photosensitive said that after the self transformation, the original market price of 300 yuan shoes will be reduced to 180 yuan. However, the original store has a monthly income of 60000, and after the transformation, it can earn 160000.

Of course, Dadongmen store also has cheaper shoes, 79 yuan for two pairs, 19 yuan for a pair

Why is it so cheap?

Although we don't want middlemen to make a difference, Dadong's price is still too low for many consumers to buy.

Why is Dadong so cheap? The main reason is to reduce costs.

Inventory turnover cost is the pain point of Chinese traditional shoes and clothing enterprises. "Love inventory" data shows that at least 2 trillion yuan of inventory is squeezed in the warehouses of major clothing brands, and the annual growth rate is 5%. Even if these clothing factories shut down for three years, they will be enough to support all the people in the country.

But Dadong is also known as zero inventory.

The only company in this industry who dare to say that it can achieve zero inventory is c2m clothing customization company. They sell first and then produce, and every product will not be kept in stock.

Dadong's way is more rough, the shoes that can't be sold are sent out. Buy one get one free, 79 yuan for 2 pairs, buy winter and Autumn Dadong thus benefited customers and solved the inventory problem.

In addition, the cost of capital is also solved. Chen photosensitive previously said that after the self-supporting transformation, the terminal payment collection speed is accelerated, and the payment received by the exclusive store today will be able to call the account of the head office tomorrow.

The essence of commercial development is to reduce cost and increase efficiency. Besides reducing inventory cost and capital cost, increasing production and operation efficiency is the problem that an enterprise should solve.

How fast is Dadong efficient? Once you can see the popular shoes in the market, you can find the corresponding cheap ones in Dadongmen store.

It's a chain behind the market. The most important link is that Dadong has made the last bottom of each type of shoes in advance. When a shoe becomes popular in the market, Dadong can design and process it on the basis of last bottom.

In this way, the production process of new shoes can be reduced from 2-3 months to about 14 days. And the fast fashion brand Zara, design, production, delivery is only within 15 days.

Dadong's opponents are Xiaomi and pinduoduo

Under the efficient market reaction mechanism, the label of Dadong is no longer "low price", but cost performance.

In June this year, Dadong shoes industry was also listed in the "top 100 fashion retail enterprises list of China in 2019-2020" released by China chain operation association. Data shows that the number of stores in Dadong has exceeded 10000. According to Chen Guangming's plan, it will reach the target of 100 billion yuan by 2030.

During this period, Chen photosensitive once talked about Dadong's competitors. Just these competitors, there is not a shoe clothing enterprise, but millet and pinduoduo.

From today's point of view, they are the representative of cost performance, channel brand, ecological brand rather than product brand.

In the previous article "an epidemic, seeing through the real competitiveness of the consumer industry", we talked about "the path trend of consumer goods reaching users is actually the process of establishing a credit system for channel brands."

The influence of channel brand is gradually covering up the product brand, and this trend has already appeared. When channels start to make their own products, they have nothing to do with brands. Yonghui supermarket has launched its own brand "optimization". Since then, Jingdezhen's porcelain bowl brand and Shunde's small household appliance brand have all begun to be labeled with "Yonghui preferred" brand, occupying market share.

If you make shoes with pinduoduo and Xiaomi with shoes, maybe Dadong has no advantage.

Of course, Chen did not wait to die. Women's shoes brands with low image have also launched leather series brand "dastatu dustgo", women's clothing brand "Yili Keely", children's wear brand "Daba Daba" and jewelry brand "Xisong citisolo". Dadong brand has formed a full category layout covering women's shoes, women's wear, men's shoes, children's shoes, leather bags and accessories.

In addition, Dadong is also building "life house" and "experience center", including convenience stores, bookstores, teahouses and living payment points, etc. - Dadong has become an ecological brand.

A few years later, when pinduoduo and Xiaomi's boss are listing their competitors, will they also have Dadong?


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