Chen Jun's Brand "Upgrading" Road

An unprecedented scale of the order, northeast clothing dealer Chen Jun's brand "upgrade" route opened.

In 2010, Chen Jun After the baptism of more than ten years of wholesale market, he set up a more "money scene" future for the clothing brand he founded. To do high-end, Chen Jun said, "to go shopping, we should not stop in the low profit and low price product market."

upgrade

Chen Jun, who has no experience in holding orders, will decide to run his own high-end brand, so in a Top Class Hotel in the northeast, Chen Junbao's next style conference room, a gigantic multi-function studio and more than 30 rooms, he has been invited by the "followers" over the past more than 10 years -- those who are distributing agents across the northeast, and some new friends, representatives from shopping malls in various prefecture level cities in Northeast China are regarded as VIP guests.

Chen Jun has been able to show strength to these new and old friends, a fashion, "noble", and the birth of high-end brands registered in France. Therefore, ostentation and extravagance is very necessary.

Chen Jun, who has more than ten years' wholesale career, wants to say goodbye to the past. So now he has taboo that others say his products are low-grade. Chen Jun, who has run the high-end brand in the first time, never seems to be able to adapt himself to the champagne conversation with his old friends.

Chen Jun's order will be made up of fashion show, display of goods, business negotiations, and thanks dinner. It will be more solemn than the order of general brands, and it will be somewhat rigid in the specific implementation.

A "unprecedented" fashion show is defined by Chen Jun as the core link of the order meeting, which seems to be the attitude of the high-end brand. Chen Jun told this reporter that 2010 will be a very important starting point for him. In the pursuit of the high-end value chain, he wants to enhance the brand's "quality", and the display of design strength is very critical.

Similarly, Chen Jun, who has no experience in fashion show operation, has launched a 1.5 hour, half year preparation and four series of more than 100 sets of costumes. At Chen Jun's view, this is the strength that high-end brands should have. "Let customers believe your market competitiveness, accept your latest price, and show the design ability is necessary." Despite the latter part of the show, his new and old friends have already drowsiness in the enclosed air environment of the multi-function studio. {page_break}

Price increase

Orders will be set up, the strength of the new clothing shows the curtain of Chen Jun's brand operation. In Chen Jun's brand vision, the wholesale market has become the past. In the future, he will use the resources and capital strength accumulated from the wholesale market for many years to search for the market operation of the high end brand.

"Now the wholesale market is not good to do, the profit is getting lower and lower. For us, it is time to do the retail market directly and upgrade the brand." Chen Jun said, "the key problem is the price. After so many years of wholesale, the price of the product has not been raised, and it has been affected by the macroeconomic situation over the past one or two years. This has caused our profits to be lower and lower. Therefore, the initial goal of our transformation is to raise the price of the products and achieve the promotion of product prices by sharing the connotation of the brand so as to share the higher profit returns."

Chen Jun's specific practice is to "change face" to the original product system. In the past, most of the clothing products in the wholesale market chose cheaper fabrics and the quality was general. In order to upgrade the brand, Chen Jun completely abandoned the past product line and unified the use of more high-grade fabrics. At the same time, Chen Jun set up his own design department in Guangzhou, and the 1.5 hour show at the ordering meeting was the achievement of the design department for half a year.

"We can't talk to our customers with the original stuff and say that the brand is upgrading and upgrading. Otherwise, customers will not agree with your price." Chen Jun said, "we can only convince customers that the price increase is worthwhile through the appearance of a new product system, so the upgrading of the brand is based on product upgrading."

Chen Junli chart aims to achieve the high price of high-end brand by subverting the product system in a short period of time. In the second half of 2010, the price rising trend of domestic clothing circulation is typical and representative.

At present, constrained by the rising cost of raw materials and other comprehensive costs, the domestic clothing brand, which has always shown the "low profile" image of "showing people", is seeking to upgrade the product price after the upgrading of the brand image, so as to digest the pressure of rising cost and pursue the greater profit of itself. In the past, those low-end brands devoted to the wholesale market are being "high-end", resulting in the reduction of the low price products in the market, while the "high-end" products are rapidly upgrading their prices, thus forming and boosting the trend of the retail price of clothing at the moment.

Chen Jun threw himself into this trend. As a brand name, he sprouted the idea of brand upgrading even if he wanted to expand his income in 2010 when the pressure of cost rising was constantly highlighting.

He expects to achieve a "safe" price increase and become a winner in the field of clothing circulation at the moment. As a matter of fact, he will also become the first player to raise the price in the field of clothing retailing. The brand upgrading of Shang Mengfa, a brand like Chen Jun, will further increase the pressure of price rising to the next stage of clothing circulation. {page_break}

Challenge

Chen Jun, the main product of men's clothing, was mostly sold in the wholesale market. Most of the products sold in the wholesale market were in the range of 300 yuan. By 2010, the products of 300 yuan were hard to find. Apart from a few single garments, the price of clothing had generally risen to 600-1000 yuan, and some of the coats sold even more than 5000 yuan, up by 100% over the price of 2009 yuan.

These men's clothes, which are positioned as "business casual", are rich in variety, from underwear to shirts to woolen sweaters to their jackets.

"We are no longer the volume of operation mode. Increasing variety is a natural choice." Chen Jun explained.

The increase of species, the decrease of single product output and the promotion of selling price have become the "intrinsic performance" of Chen Jun's brand upgrading. As an external manifestation, Chen Jun hopes that his brand clothing can be displayed in large area stores and shopping malls.

"Only big stores can highlight the brand image." Chen Jun said, "we want agents to open big stores. Why are many brands now implementing big store plans? They are entering shopping malls because they are upgrading their brands. They are very clear that they can sell higher prices only in high-end terminals."

In Chen Jun's view, at the moment, all brand stores and shopping malls are in the final analysis, in order to enhance the price of products more effectively and get higher profits through price increases, not just to enhance the "illusory" brand image.

However, the "big store plan" is also the biggest difficulty faced by Chen Jun's brand upgrading plan since its launch.

Built by Chen Jun Order-placing meeting When his latest product price list was distributed to inviting agent franchisees, almost all of his core partners who followed him for many years were surprised. They didn't expect that the price increase would be doubled.

As a result, the whole business negotiation was caught in an awkward "Silence", and the agent joined in to shrink their cost and risk.

Chen Jun's partners used to be active in wholesale markets or street stores. Therefore, for them to follow Chen Jun's "transformation", they also need to push back the past operation mode. They need to buy more than twice the purchase cost, and at the same time, they need to invest more funds to expand the store area and enter the mainstream shopping mall.

"This is indeed the difficult task of our transformation. We seem to be somewhat hesitant." Chen Jun said, "but I prefer to look at this issue positively. In the face of the new changes, partners need some time to adapt, because we are changing the direction they have never done before, and they need to take some risks. But I believe that change is also very necessary for them. It is urgent to develop to the upstream of value chain, pursue higher profits and gain more competitiveness.

However, what is unfavorable to Chen Jun at present is that the "upgrading" plan, which is different from the previous leading brands, is now becoming more and more common brands moving ahead of the value chain. The total market volume and the limited quality of commercial resources make the so-called "big store high-end plan" facing fierce competition, and the risks faced by any investment carried out by agents are magnified.

"At the moment, like Chen Jun. Brand upgrade The main performance in the market is to raise prices. Many brands are raising prices like this. They are not directly raising the price of the original product line, but upgrading in disguised form. An agent who has followed Chen Jun for many years has revealed his concern. "The price of the brand has risen, and the profit of the single product has been greatly improved, but the total volume of the market has not increased significantly. On the contrary, consumers will reduce the number of clothes purchased because of the rise in prices. Is the middle risk difficult to be borne by our intermediate links?"