"Compared with the previous OEM processing, after owning our own brand, the total output of socks has decreased, but the profit has gone up." Chen, chairman of Zhejiang Hemengsheng Hosiery Co., Ltd., is full of memories and regrets. Since the establishment of the "upgrade" brand, which mainly focuses on functional sports socks, it has opened up a new market in the market, and it no longer needs to work hard for mass production as before, and still does not make money.
Before establishing an "upgraded" brand, Chen Ye took a detour. Since 2006, we have been producing socks and doing OEM business for nearly 10 years.
In that experience, what made Chen most helpless was that the OEM had neither pricing power nor bargaining power. How to set the price is entirely up to the customer. It's not bad that a pair of socks can earn 50 cents.
"Ordinary socks can be produced by manufacturers, and customers naturally hope that the lower the price, the better. You ask me, and I'll ask others. I quoted 4 yuan and others quoted 3.8 yuan. Maybe the customer signed a contract with another company directly. Even if this is not the case, it will be the other way around. Someone quoted 3.8 yuan. Do you do it or not? " In this case, Chen can only lower the price and accept the meager profit business.
The vicious circle of price war made Chen very "hurt". In order to increase income, we can only find ways to continuously increase output. Even so, orders are still decreasing year by year, and revenues are affected one after another. "I still earned it in the past few years, and I really earned hard-earned money in the next few years." Chen has the idea of transformation.
Reform requires courage, which really makes Chen determined to build his own brand, and also benefits from a special rectification action of "promoting transformation through governance" carried out by Datang Town.
20 14 facing the new normal of economic development, the comparative advantages of traditional industries are weakening day by day, and a series of problems such as overcapacity, disorderly competition and declining benefits are becoming increasingly prominent. Datang Town has concentrated on six special rectifications ("three certificates in one" enterprise rectification, elimination of coal-fired boilers, management of floating population, standardization of rental housing management, banning unlicensed operation, and standardization of tax collection and management order). More than 3,000 small and medium-sized enterprises were closed.
Transformation is imminent. After more than half a year's investigation and thinking, Chen finally decided to specialize in functional sports socks. In August, 20 15, Chen went to the town and put forward his own transformation idea, which was supported by the town leaders. Two months later, Chen became the first enterprise in Datang Socks Town.
"We now have more than 20 patents!" Chen casually took out a pair of high socks for playing football from the office.
"You see, the ankle part, we specially designed a new knitting method. This place has both thickness and ankle protection, and it is very comfortable. " After introducing the design of the ankle, Chen immediately pointed to the calf and asked, what do you say these bars are for?
Chen was the first person to reveal the secret. This design can reduce the shaking of the calf and reduce the lactic acid produced during running. With less lactic acid, athletes' leg acid will be much lower.
It is reported that this sock takes 3 months from design to completion. In the office hall, designers are busy, some bow their heads to design patterns, and some study knitting methods against computers.
"The most difficult thing is the knitting process. Because this market is blank, we first broke through the technical barriers, so if other businesses want to have corresponding effects, they can't do without our knitting methods and they will get my patent authorization. "
What is the market price of such a pair of socks? "128 yuan is our own price!" Chen proudly said that the situation of OEM production has long been different. He has a brand, a patented design, and can price his own goods. No longer have to spend half a day with customers for a pair of socks for a few cents.
In addition to making his own brand sports socks, Chen also provides a set of designs for other businesses, including ppt scheme, brand building, design style positioning, packaging design and production. Merchants only need to be responsible for marketing.
"Now the minimum profit is also around 20%." Chen Lizhi builds the most professional brand of functional sports socks in China.
From the end of 20 14 to the beginning of 20 15, Datang Town shut down more than 3,000 small and medium-sized enterprises in just five months. In order to help enterprises transform and upgrade, Datang Town has built a sock design center, a proofing center, an inspection and testing center and a new product release center with the construction of characteristic towns as the carrier, providing public services for the sock industry.
Today, Datang Town is taking the opportunity of creating a "national famous brand demonstration zone for socks industry" to vigorously implement the brand strategy. Through "holding an international socks Expo every two years, investing nearly one million to establish a VI visual identification system for regional brands, and organizing key enterprises of socks industry to participate in important exhibitions at home and abroad", the visibility and reputation of regional brands of Datang socks industry will be improved as a whole.
Biao Xiaomei has something to say: China does not lack good enterprises, but brand awareness. It is a welcome change from being satisfied with branding to registering your own trademark and making your own brand. I hope that more and more business owners can be more confident in creating their own brands like Chen, and also contribute to the bright future of national brands.
(Part of this article comes from the Internet)
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