Traditional garment enterprises, by the plant, equipment, production workers and other hard conditions dragged down, unable to profit and the market, "light" flex its muscles. This issue may not have much discussion value nowadays when the discussion between OEM and OBM is all over the sky. However, Zhou Chengjian, who first thought about this issue 15 years ago, has made it a major event, Bangwei this year's annual sales of 5 billion yuan in large enterprises. For 15 years, Metersbonwe has leveraged the "light model" to lean on "heavy assets" and walked between light and heavy weight as a brand legend. Smith Barney costumes: walk between light and heavy Light array: brand strategy trap multiple puzzle Zhou Chengjian Metersbonwe created in 1995, did not know the famous scholar Roger Nagel proposed "virtual management "Concept, but with an entrepreneurial intuition he has been making good use of this" virtual business "philosophy. Since its inception, Zhou Chengjuan has outsourced the production-related heavy assets business of the Smith Barney production chain to various processing enterprises and at the same time, has passed the sales of products to the chain operation channels all over the country while concentrating its resources and energy mainly on the products Design R & D and brand marketing, to avoid the risk of production and sales. In 2008, Smith Barney went public in the Shenzhen Stock Exchange, marking the great success of its "asset-light strategy". Zhou Chengjian's family also became the richest man in the "Rich List of Fortune Hospitals" with a total assets of 17 billion yuan. However, in the same year, "Light Asset Model" also suffered a "Waterloo" dramatic - this year, Smith Barney introduced a new brand Me & City higher prices. More than a year later, Zhou Chengjian invited Hollywood celebrity endorsements, while wide acceptance of commercial real estate across the country, Me & City "store." However, Zhou Chengjian may not have expected that the first quarter of 2010, Smith Barney hand over a net profit fell Jiucheng notice. The company explained that multi-brand strategy has just started, the decision-making team and business team are inexperienced. In addition, there was obviously insufficient planning, the overall cost control was not good and some resources were not used efficiently. Admittedly, Me & City consumes significant costs in all aspects. The end of 2008, the company made drastic adjustments within the Metersbonwe and Me & City into two divisions, operating independently. Marketing practices also try to differ from Metersbonwe. Metersbonwe early spokesman is Aaron Kwok, the successor is Jay Chou. Me & City turned to overseas from the very beginning. In addition to the earliest spokesman Wentworth Miller and supermodel Brunner Tenorio, and later signed "Wizard Prince" Orlando Bloom, looking for internationally renowned photographer. However, the most embodies the management of Me & City care is that all stores in 2009 are out of direct way, not open to join. Metersbonwe has long been the mainstream franchise. As of the end of 2009, Smith Barney costumes a total of 2863 stores, of which 523 directly managed stores, joining 2340 stores. International celebrity endorsements, a large number of publicity and promotion, but a huge investment in the tip of the iceberg. More time in a year, the company spent the most cost is in commercial real estate. The company's annual report disclosed that in 2009, Smith Barney spent 820 million yuan on store purchase and leasing and over 50 million yuan on the renovation of its shops. Or buy or rent, Smith Barney a lot of "store", and most shops in the incubation period of loss status. For the full year of 2009, Metersbonwe's sales revenue was 4.8 billion yuan while Me & City was 350 million yuan. Me & City needs Metersbonwe blood transfusion. Zhou Chengjian's dream of marching into the high end may not be hard to understand, yet "going up" is more difficult than "going down." In response, Yuan Yue, chairman of Zero Research Consulting Group, said that some low-end brand started their own businesses, in order to create high-end brands, take the "isolation" approach, from the outset do not let the outside world know the new brand and the original brand contact . Under normal circumstances, the high-end brands to promote low-end brand easy, and in the low-end brand to do the high-end, consumers will be excluded. Mighty mashups: Innovative brand cited transformation Smith Barney in recent years, a very compelling change is: quickly speed up the pace of shop. Since May 2009, Smith Barney opened three flagship stores all over the country with an area of ​​5,000 square meters, which greatly exceeded the area of ​​most flagship stores of about 2,000 square meters in the past. The Zhou Chengjian said that Smith Barney will be opened in the country such a 50-100 flagship store. At the same time, Smith Barney by the franchise-based model into a shop-based model. From the data point of view, from 2001 to 2007, Smith Barney outlets CAGR of 33.44%, significantly faster than the franchise stores 29.95% CAGR. Whether the channel "grab dealer jobs" or directly in the storefront entity, this series of moves apparently does not meet the Smith Barney has always been adhering to the "asset-light" strategy, its assets seem to be slowly "heavy." Perhaps, a "mix and match" model that is different from purely light assets while incorporating the "fast fashion" brands such as ZARA, H & M is slowly shaping. Analysts pointed out that in recent years, the channel of "light asset" growth model in the presence of powerful corporate groups, there has been no market. On the one hand, franchising is just a low-cost start-up market for many small and medium-sized start-ups, and attempts to maximize the benefits of "channel financing" through "investment". For garment enterprises operating on light assets, the differences in chain management are vanished and the competition is getting fiercer. To Smith Barney, for example, its 2007 sales of yuan, joined the weight of up to 87.16% of the franchise system, sales contributed only 62.2%. Obviously, the control of the franchise chain is not as good as the direct chain channel. On the other hand, as for the direct sales chain, with the rapid development of the commercial real estate industry, the rents of domestic shops have continued to grow while the major outlets in the industry have opened up. The flagship store or image store has become the mainstream. Large store decoration has been put into operation and the operating period Long, by leasing business risk. With the development of enterprises and the continuous expansion of financial strength, the enterprise resources and business focus will inevitably shift to the "heavy assets" growth mode, and powerful enterprises will adopt the mode of purchasing property rights in order to obtain stable store resources. Such as ZARA and other large foreign garment enterprises, are generally direct sales stores as the main sales model, and in order to obtain a stable store resources. However, what needs to be pointed out is that Smith Barney is only going to take the road of "partial re-assets." From the perspective of the entire production process, Smith Barney still upholds the "light asset" strategy model, but through advanced information technology, the entire supply chain has been better integrated. According to incomplete statistics, the cost of the development and construction of software used by the Smith Barney for information platform and management system in these years will not be less than 100 million yuan, mainly covering the manufacturing resource management system (MBFAC-ERP) and the group's internal resource management system (MB-ERP) And Agent Resource Management System (MBAGT-ERP). Zhou Chengjian said: "When we all do the virtual business model, I will begin to change, requiring industrial upgrading.And the future competition in the apparel industry will be the competition throughout the supply chain." However, on the basis of "industrial upgrading" The essence of "outsourcing" has not changed. At present, the United States in the fabric, accessories and production of clothing links, all still use outsourcing OEM approach, a total of 96 fabric suppliers, accessories suppliers 84 and more than 300 garment manufacturers, mainly in the Yangtze River Delta and Guangdong Province. At the same time, in the logistics, Smith Barney did not change the nature of its outsourcing. "Mutation" and "invariance" complement each other, bringing the Smith Barney a "mix and match" path of partial asset-heavy survival. Marriage Movie: Brand Marketing opens a window If Metersbonwe's partnership with Transformers 2 is just a matter of testing water, the strategic agreement with DreamWorks opens up another dimension for Metersbonwe's brand marketing Fan window. On March 8, 2010, Metersbonwe announced the signing of a three-year strategic agreement with American DreamWorks Animation, the first Chinese company to partner with Hollywood in brand marketing. At last, with the goal of "Investing 1 Yuan and Revenue 1 Yuan" for "Transformers 2" project, this time, instead of just satisfying one film, Smith Barney achieved the exclusive cooperation of all DreamWorks films. Produce more interaction and resource cooperation with film companies. Signed strategic cooperation with DreamWorks, Smith Barney is only the first step. According to reports, the company also signed a five-year strategic cooperation agreement with the Shanghai Art Film Studio and obtained a three-year license from Hello Kitty, the Sanrio company in Japan. Jeffrey Katzenberg, founder and chief executive officer of DreamWorks, said they were impressed with the meme grace of Metersbonwe because this maxim also applies to DreamWorks; the image created by DreamWorks encourages people not to follow suit Large stream, publicize their own personality, go their own way, these characteristics fit Metersbonwe corporate slogan, so that the two sides seem seamless cooperation. Also, Metersbonwe's lively showcase of fun and imagination infused them with cartoon characters through their costumes, making them extremely excited. Smith Barney expects the cooperation with DreamWorks, product sales will reach 200 million yuan, and will be more than 2,000 shops to do the appropriate promotion. As the authorized party, DreamWorks hopes to come into contact with Smith Barney's domestic platform and let the famous role image "Kung Fu Panda 2" released next summer release from the big screen into the tens of thousands of households. According to reports, in order to better showcase the strategic partner's products, Smith Barney has also launched a series of MTEE, nearly 10,000 products, defined as the company's most creative series, as a platform in the series of apparel, animation, Trend events, environmental protection, illustrations and other topics. Smith Barney has to Ma, Han Han, Tan Yuanyuan and other invitations, please them as a brand of dream figures. Smith Barney stressed that MTEE is not an independent brand, only a series of the company, the future will develop other product lines. In addition to constantly injecting new cultural connotations into the Metersbonwe brand, ME & CITY, another brand, is also moving toward ZARA and H & M. At Smith Barney's phased development expectation, its market share can reach 3% -4% in the next 5-10 years. By then, Smith Barney will truly usher in the internationalization of its brand, the era of market internationalization, will also wash away the "asset strategy" brand traces, transformed into a benchmark for capital-driven brands.
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