recently, it is reported from Chengdu that the first 1talian shoe brand “Yishang mingpin” will be opened on September 28. The appearance of this store, which includes nearly 100 pure 1talian brands and is completely directly operated by brands, may mark the beginning of overseas “midstream” brands exploring a new mode of entering China, And the scale of foreign second-line brands set foot in China. Chengdu model
this shopping mall, which is about to open, will focus on nearly 100 1talian first-line and second-line brands to explore the Chinese market, including Lara, Garda, Zodiaco and ability & amp; Style and other famous 1talian brands. As the first “group” expansion of 1talian footwear brands in the Chinese market, “Yishang brand” is not selected in the first tier cities, but in the second tier cities. 1t is also an important production base of women’s shoes in China – Wuhou of Chengdu opened its first store, which is intriguing
according to relevant channels, the investment and operation organization of the first “Yishang mingpin” shopping center is composed of four units, namely, 1talian Footwear Association, Hong Kong Footwear Association, Hong Kong cordis 1nternational Co., Ltd. and Sichuan western footwear Capital Co., Ltd., according to the statement from the investor, Chengdu “Yishang mingpin” will be its first model store in China
“Chengdu is the first step for us to expand the Chinese market. We will build Chengdu, a famous 1talian brand, into a model store in China.”” Wang Wei, chairman of Hong Kong cordis 1nternational Co., Ltd., the main investor and operator of “Yishang mingpin”, declared that “Yishang mingpin (1FG)” plans to invest in five 1talian brand alliance direct sales centers in mainland China, and Chengdu is the first choice for four reasons: first, Chengdu’s leading position in the western cities; second, it plans to invest in five 1talian brand alliance direct sales centers in mainland China2. Chengdu people’s strong consumption power and consumption demand; 3. “China’s women’s shoes capital” – the economic focus and policy support of Wuhou District of Chengdu City; 4. Wuhou direct marketing shoe city has a mature shoe industry economic environment and great development potential. “
Wang Wei’s explanation that “Yishang mingpin” preferred Chengdu did not win the full approval of the industry. From the brand composition of “Yishang mingpin”, many practitioners also found different explanations: “the brand composition of” Yishang mingpin “is mostly composed of 1talian second-line brands unknown in the domestic market, Perhaps these brands will be more attractive to the domestic second tier market. “< 1t is understood that "Yishang mingpin" currently adopts the business model of combining "brand flagship store" with "direct sales center" in China, which means that the expansion of these 1talian brands in China has no intermediate procurement and agency links, and is completely direct marketing although the official explanation is to adapt to the purchasing power of the Chinese market and let the once unattainable “1talian design, made in 1taly, 1talian brand” fly into the homes of ordinary people. However, as most of the brands joining in “Yishang mingpin” are second tier brands in 1taly, their direct expansion is considered as a forced move due to the relative lack of brand influence relevant analysts said that without the strong influence and capital strength of the first-line brands, the risk faced by these second-line 1talian brands in expanding the Chinese market is that they may encounter the cold reception of the market in the short term by adopting direct marketing, so they are difficult to gain a firm foothold. The choice of agent mode is easily controlled by agents, and then lose control of the Chinese market “overseas brands with relatively limited influence tend to rely on local franchisees when they explore an emerging market, because direct marketing mode requires more promotion costs and operating costs (weak bargaining power in terms of store rent, etc.). However, excessive reliance on local agents is easy to be controlled, and the market is completely controlled by local agents. Especially in such a huge market as China, the rapid growth of agents may even lead to anti acquisition of parent brands. ” The analyst said, “therefore, this time, the” 1talian brand “store, which is mainly composed of 1talian second-line brands, may be trying to get rid of the disadvantages of the previous second-line overseas brands’ expansion mode in China. 1t has adopted a new expansion mode to realize collective direct marketing through the grouping of brands at the same level. The advantage of doing so is that it can make up for the lack of influence of a single brand, which makes it difficult to open the market. At the same time, due to the expansion of the overall influence of the group, a single brand can benefit from it, save the promotion cost and difficulty, and then have the opportunity to bypass the agents and realize direct marketing to share the high growth of the Chinese market. “ however, there are certain market risks in the group direct marketing mode adopted by “Yishang mingpin” at present. While solving the disadvantages of “working alone” in the past, “Yishang mingpin” is also faced with internal “competition of the same kind”. Because its brands are in the same level and some brand positioning are very similar, it seems that it is difficult for “Yishang mingpin” to fully realize “unity” internally, There are some doubts about whether these 1talian brands, which are competitors to each other, can effectively produce “joint forces”. Therefore, the promotion mode of “yishangmingpin” will face a test in the “group” itself. How it will coordinate the interests of nearly 100 1talian brands is the key to its success embarrassing pricing the first “Yishang brand” to open in Chengdu, covering a total area of more than 4000 square meters, is positioned as the largest and most abundant pure 1talian shoes direct sales center in Western China obviously, Wang Wei is very confident about the 1talian origin of “1talian famous products”: “all of them are brand shoes from 1taly, which are designed and manufactured in 1taly, and then transported by air to Chengdu for sale.” Wang Wei is optimistic about the promotion of the pedigree advantage of “1talian famous products” to the market sales. 1n fact, this kind of pure “made in 1taly” is also an important competitive advantage of “1talian famous products”, which is in line with the domestic market environment of advocating 1talian quality culture however, the sales of pure 1talian “blood” still need the carrier tool of appropriate pricing” Different from the luxury concept of the first-line 1talian brands, it is difficult to get the price of luxury goods, but it follows the pricing of these mid stream brands in the European market. At present, for the general domestic consumers, the price is still a little expensive Wang Wei said that through direct marketing and eliminating the intermediate links, “Yishang famous products” are very cost-effective, “the price of general products will be around 1500 yuan / pair, and these products belong to the middle and upper grade products in the 1talian shoe industry.” however, it is still difficult for consumers to identify with 1talian brands that they have never heard of before in the domestic second tier market such as Chengdu “for 1talian second tier brands, the price of more than 1000 yuan should be relatively high in Chengdu.” Experts said, “for high-income people, experiencing 1talian culture tends to choose expensive luxury goods rather than second-line brands they have never heard of. For middle-income people, even for 1talian brands, the price of 1500 yuan is still high. Judging from the sales of a single 1talian second-line brand in the shopping malls in the past, products with more than 1000 yuan are not selling fast. “ this is actually an inherent problem of overseas second-line brands in the Chinese market. Different from the status quo that luxury brands have opened up in China, the development of overseas real “middle class” brands in China has always been in a tepid situation. The price of these brands exceeds the psychological price of Chinese general consumers. At the same time, 1t is difficult to bring high-end “vanity experience” to consumers. As a result, the market embarrassment of overseas second-line brands will become the market reality that “yishangmingpin” has to face in the future at present, “1talian famous brand” can be seen as the beginning of 1talian “midstream” brand scale to develop in the domestic market. Through the “collective direct marketing” mode, these 1talian second-line brands hope to join hands to share the high growth of the Chinese market. However, although the “group” direct marketing helps to form scale advantage and promote it rapidly, what these 1talian brands are facing is the embarrassment of relatively lack of purchasing power in the Chinese market. From this point of view, it is not so much “1talian pedigree” as “1talian pedigree” that “1talian famous brand” promotes. The biggest value of “1talian famous brand” is to help 1talian mid-range brands group together, reduce the intermediate and expansion costs, and then it is possible to provide cheaper products in the future to meet the purchasing power status of the Chinese market at the same time, from another point of view, the emergence of “Yishang brand” shows that the structure of overseas brands entering the Chinese market is changing. After the first-line brands “conquering the city and territory”, overseas mid-range brands begin to enter the scale