Outsourced Footwear And Clothing Enterprises Hit The Net To Develop And Achieve A Blowout Of Orders
In the reality of generally sluggish foreign trade business and declining international orders, traditional OEM enterprises have begun to participate in the new supply chain of e-commerce. For OEM enterprises, there are two directions for their transformation: first, follow the development of Internet brands and take orders from some major e-commerce companies; The second is to create its own brand and use e-commerce to achieve domestic sales. Whether the former or the latter, the incremental business brought to OEM enterprises is very considerable.
Orders brought by Internet brands
Shanghai Shanghong Shoes was originally a branch factory of Warrior Shoes. In 2000, Huili General Factory went bankrupt. Shanghong Shoes had to be restructured.
After restructuring, Shanghong Shoes caught up with the good year of foreign trade orders and began to receive some foreign trade orders. At that time, Shanghong Shoes and more than 40 other enterprises producing vulcanized shoes and rubber overshoes in Shanghai had a relatively good life. However, the good times are not long. After 2008, the financial crisis, the appreciation of the RMB, the rising labor costs and other factors led to the closure of these shoe enterprises in Shanghai. "At present, there are only five enterprises like us in Shanghai that produce vulcanized shoes on a large scale and have good product quality," said Hu Qilong, chairman of Shanghong Shoes.
Brand strategy of transforming domestic sales
In addition to the transformation of OEM enterprises, there is also a way to transform into brands. For many OEMs, branding has always been an elusive dream. They usually face two major challenges: marketing and channels. The difficulty of marketing lies in that the factory has not contacted domestic users and does not understand users, so it does not know where to start marketing; The difficulty of self built channels is that they need huge investment.
It seems that e-commerce can solve these two problems. On the one hand, the Internet makes users and products infinitely close; On the other hand, after years of development, there have been mature platform channels such as Taobao, Jingdong, Dangdang, etc. online.
As a result, some foreign trade enterprises began to create their own brands online. Spotika is an example of this. Before 2007, it was mainly engaged in OEM for foreign first-line brands; Since 2007, as foreign manufacturers began to cancel or reduce orders, Chairman Wu Shihui began to consider transformation. He first opened an offline store and planned to use traditional channels as a brand, but he failed. Later, he began to explore independent official websites, but the results were not very optimistic.
Later, Wu Shihui decided to make use of the existing platform, first to open a shop on Taobao, build himself into a "Taobao brand", and take the opportunity of promoting the brand on Taobao to obtain a lot of support from the Taobao platform. Then, Wu Shihui began to settle down on various platforms to carry out whole network marketing. According to Wu Shihui, compared with the original gross profit margin of 10%~20% in foreign trade, Spotika has obtained a gross profit margin of more than 30% after transforming into an e-commerce brand.
Coincidentally, Kyle garment making is also a case of successful transformation. Ten years ago, when Seven Wolves started to make their own brands, Wu Zhichao, the general manager of Kyle Garments, missed the opportunity. After 2008, when the foreign trade OEM industry is going downhill, if you want to transform the brand with the traditional brand path, it is difficult to make a big achievement.
In the second half of 2010, after two months of preparation, the online brand Gemini created by Kyle Garments was officially launched. Since Kyle's strong point in making clothes is autumn and winter clothes, the online store chose to launch in autumn. At the same time, Wu Zhichao also adopted a strategy of borrowing strength - recruiting network agents. Since most sellers on Taobao do not have their own factories, their usual practice is to look for goods everywhere, and then slowly expand. So Wu Zhichao went to these big sellers to talk about agency distribution. Wu Zhichao said that this kind of borrowing method is very effective. In three months, Ge Nanshi achieved sales of more than 10 million yuan.
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