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Your present position: Home > News Center > Domestic Market > How to become a "79 Pair" Big East?

How did Dadong, a "79 pair", become the king of shoes in Wenzhou?

中国鞋网 http://kejietieyiweilan.com/ 2019-12-09 13:13:09 Source: China Shoes Network China Shoes Network http://kejietieyiweilan.com/

[ China Shoes Net -Domestic Market] In recent years, Belle has delisted, Rich Bird has gone bankrupt, Daphne closed the store ... The head of Chinese shoe companies seems to be covered with a dark cloud.

In the depression of the footwear industry, a shoe company from Wenzhou, Zhejiang, went up against the trend. In 2018, Dadong has quietly opened more than 8,000 stores and sold 100 million pairs of shoes a year. Its founder also shouted a goal of 100 billion revenue in ten years.

Because of its cheap price, it is known as "79 One Pair" and specializes in the second and third tier markets. Due to its positioning as "14 days fast fashion", it is also known as "Uniqlo".

Its name is Dadong, a new generation of shoe king in Wenzhou, and it is also known as China's "underground shoe king".

Who is Dadong?

In 1995, Chen Guangmin was 25 years old and founded Dadong in Wenzhou, Zhejiang. At that time, Wenzhou was popular in the small workshops of the shoe industry, and Chen Guangmin joined their team. After finding five or six people in his yard, he began to take orders for shoes.

Although he is only 25 years old, Chen Guangmin already has three far-reaching professional experiences: beekeeping, shoe apprenticeship and shoe sales business.

Chen Guangmin once said, "Beekeeping is to follow the flowering season and run around the country. The flowering period of locust flower is only one week. If you miss it, labor and energy are wasted." Later in Dadong, he insisted on "14 days fast fashion" The new standard shortens a pair of shoes from design to store to 14 days.

He also said, "If the queen bee cannot tour the territory within 16 days and cannot have excellent reproduction ability, it will be replaced. Dadong will make a bee queen." Dadong opened 9,000 companies in the "sinking market" Stores, mothers are also nurturing a large number of sub-brands.

With his insight and touch on the footwear market, he soon made his first bucket of gold. At that time, the hottest selling on the market was a rich bird's pullover. Chen Guangmin made his own way and changed it into women's shoes. Unexpectedly, this shoe was sold out as soon as it was introduced to the market. After tasting the sweetness, Chen Guangmin also began to figure out a way-whatever fire is on the market, develop what.

In fact, the manufacturing process of pullover shoes is not complicated, but Chen Guangmin made the first attempt.

In addition, Chen Guangmin knows that if he wants to go far, he must not only understand the market and design, but also the cost control.

At that time, one of Dadong's best-selling shoes was priced at 79 yuan. At this terminal price, the cost of making shoes has to be controlled to about 35 yuan. In the case where raw materials and production cannot be saved, Dadong chose one way to reduce the link and cost on the channel.

"Everyone who has the money makes it together, and loses it as mine!"

Before 2008, like many shoe companies, Dadong implemented a provincial agency system. In this model, a pair of shoes that cost 40 yuan, after the agent increases the price, even sell for two or three hundred yuan.

Chen Guangmin felt that "selling so expensive is not reasonable." After 2008, Dadong entered the "direct selling" model.

Shopping malls are like battlefields. One of the most important reforms in the history of Dadong is the "release of military power through glass of wine."

Since 2008, Chen Guangmin has made a decision to "snap over the dealer's business autonomy" and carry out "self-managed transformation" and "joint-owned transformation".

How to make agents obediently surrender their rights? Chen Guangmin's approach is: exchange of shares for rights.

Specifically, it is to change the discount of the original agent's branch company into the shares of the head office. Even if the performance of the branch is lost, Dadong headquarters will still give a "minimum return" at 10% of the share price; if the branch makes money, the agent will receive a 49% dividend.

To lead a war, the general needs to take risks and give the soldiers more security and benefits in order to boost morale. Chen Guangmin said, "Everyone who has money makes it together.

This will change the role of franchisees from "agents" to "partners." At the same time, the pressure and risks of the operation were completely transferred to Dadong headquarters.

Now it seems that Chen Guangmin has won. The original cost budget of 40 yuan shoes dropped to more than 30 yuan, sales increased all the way, inventory problems improved, scale effect was prominent, gears began to rotate forward.

"If you ca n’t sell it every season, you have to send it out."

The inventory problem is the biggest headache for shoe and clothing companies, but Dadong has realized "0 inventory". According to Chen Guangmin, "If you can't sell it every season, you have to send it out."

The red and white Dadong store always advertises a large discount of "79 yuan for two pairs" and "buy one get one free"; at Dadong Tmall's flagship store, the lowest price of shoes being sold is as low as 19 yuan. You can also send autumn shoes.

Chen Guangmin once said: cattle, sheep, and horses eat the grass of the same field. Sheep eat the tenderest grass tip and horses eat the middle part. Only the bitterest grass roots are left for cattle.

Dadong, then, is going to make that grazing cow. Dadong is walking the hot sinking market.

Shoes like hot pot, shoes like seafood

Consumers will have the need for cheap, but never lose the pursuit of quality and fashion. What Dadong seizes is not "low prices", but "cost-effective".

While maintaining a low price, Dadong has positioned itself as "14 days fast fashion", with the goal of "7 days fast fashion". Among them, the four links of research and development, production, logistics and sales are indispensable. Chen Guangmin's idea is to make shoes like hot pot and sell shoes like seafood.

"It's like making a hot pot. First of all, you need to create a stylish bottom of the pot." The hot pot that can be eaten for a few seconds is the bottom of the speed. To increase the speed of Dadong shoes again, you need to design it General "standard parts".

Dadong maintains a sensitive sense of market wind. Once you feel the pulse of the market, make this shoe in the fastest time.

Dadong's approach is to make the "bottom" of each category of shoes in advance. When a certain shoe becomes popular in the market, it only needs to be designed and processed on this basis. Suddenly reduced the process of a new shoe from two or three months to half a month.

"Only break fast" is the eternal motto in the mall. In addition to R & D, production, and sales, logistics cannot be left behind as a bridge of communication. Dadong chose to build its own intelligent logistics warehouse. Behind Dadong headquarters, a logistics warehouse covering an area of over 14,000 square meters and a height of 34 meters is in full swing. After the completion, Dadong's shoes will be shipped directly to stores across the country. Dadong will also become the first domestic shoe company with a "one warehouse for the whole country" intelligent logistics system.

What can support 100 billion ambitions?

On one occasion, Chen Guangmin talked about Dadong's competitors. Surprisingly, there is no one shoe company in his list, but two Internet companies-Xiaomi and Pinduoduo.

"Do mobile phones and stereos today, sell clothing tomorrow, and raise a pig in the middle. Maybe I will go to the shoe industry to create a" big west. "Chen Guangmin knows that competitors may not only be peers, but may also be Herd of wolves.

Dadong's "Yili Women's Wear" Taobao Store

"Offense is the best defense."

Chen Guangmin didn't sit back and wait for others to be a "Daxi". He has already made "Yili", "Da Shitu" and "Daba"-women's clothing brands, leather brands and children's clothing made by Dadong in recent years Brand. On the Great East website, it introduces itself as a fast-fashion brand with a full-category layout covering women's shoes, men's shoes, children's shoes, leather bags and accessories.

Dadong is building a "life hall" and "experience center". Chen Guangmin is called "Dadong Life Circle". Here, there are convenience stores, bookstores, tea houses, and living payment points. Consumers can not only shop, but also relax and entertain, and even have "social" attributes.

From 2013 to 2016, Dadong's sales increased 12-fold. According to Chen Guangmin's plan, the goal of 100 billion yuan should be reached by 2030.

"From 0 to 1, we have the amount now, we haven't had time to wear a suit and tie, and have been busy doing farm work. After the farm work is done, the suit can afford it, but we will not tie it. Next, we have to ourselves Put on your suit and tie, and do it step by step. "Chen Guangmin said.

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