Infant and children's clothing transformation funds into the largest person

Originally, Xing Jiquan, who was in the CMBE Shanghai international pregnancy and baby exhibition held in a mood of “soy sauce”, was unexpectedly rewarding. “On the first day of the first day of the show, we received more than a dozen overseas customers in succession. They all came to us for orders,” he told the China Business News.

The company founded by Xing Jiquan, Qingdao Bear Tom Home Co., Ltd. (hereinafter referred to as “Xiaoxiong Tom”) is a manufacturer of baby furniture. However, unlike some of its peers, this company was only founded in 2004 at the beginning. In Japan and Europe and many other countries, the company manufactures baby furniture for infants and young children. Since last year, the company has decided to transform its business and create its own brand, Tom Bear. Talking about the reasons for this "single flight", Xing Jiquan emphasized that this is for the development of companies in the next decade or even more than two decades and they should take the initiative.

Xing Jiquan's fancy is actually the “gold rush” that continues to set off in the domestic baby market.

According to data released by the Baby and Baby Industry Research Center, the total market size of baby infants aged 0 to 12 in China last year was about 1.15 trillion yuan. In recent years, the baby and baby market will maintain a high growth rate of around 15%, and it is expected that baby baby market will reach a market size of RMB 2 trillion by 2015.

Fu Jingqiu, chairman of Goodbaby (China) Trading Co., Ltd., told reporters that the high gross profit rate of the baby industry has attracted a group of companies to enter. Now international brands want to enter the Chinese market, while domestic companies are like ants. As a result of besieging this industry, this trend has only increased in recent years.

Independent research and development is the key behind the transformation. Just as Fu Jingqiu said, behind the scrambling, the high gross profit margin of the baby industry is the biggest reason for many OEMs. After asking the exhibitors at the above-mentioned exhibition, the reporter found that the gross profit margin of the baby industry is high. An exhibitor told reporters that the domestic ex-factory price of a crib is 2,400 yuan, but the terminal price can be sold for 5,000 yuan. The ex-factory price of a children's dining chair is 300 yuan, and the terminal price is higher than 800 yuan. Some imported baby clothes are even worse. The price of a children's clothing that is produced in the country, relabeled in the United States, and then imported into the country can be five to eight times higher than the ex-factory price.

Obviously, these are simply unassigned roles as foundry workers. There are also many people who share the same feelings with Xing Jiquan. Fukang Toy Products Co., Ltd. Board of Directors** Luffman has also deeply felt the dilemma of this supporting role.

In 2002, when Lao Fuwen wandered around a shopping mall in Shenzhen, he discovered that a baby bottle of a foreign brand sold for 49 yuan, and this cup was the product of the enterprise OEM that was at the time, but this cup was only shipped from the factory. 5 yuan, "wearing abroad 'clothing', a name can be worth another 10 times." Lao Fuwen humorously made such a metaphor, and the retail price and the ex-factory price difference of nearly 10 times the gap also made him feel deeply The importance of creating your own brand.

After this, Lao Fuwen started preparations for the establishment of his own brand. In 2007, he registered and established Dongguan Dongguan Pro-Industry Co., Ltd. (hereafter referred to as “dear and kiss me”), and launched his own branded product the following year. .

Recalling the days of OEM production for overseas customers, Xing Jiquan also frankly stated that OEMs at that time could only follow orders and were often passive. For most manufacturing companies that make a living from OEM, they have very little ability to research and develop products and design, but this is precisely the key to the transformation of their own brands.

Roverman also feels the same way. “This requires the courage to venture out from factory thinking. Most of the previous product rotation around foreign customers provided a blurred brand concept. Once a brand is created, its way of thinking is completely different. R&D, functionality, packaging design, etc. Everything needs to be considered."

Xing Jiquan, who was originally interested in design and has developed an independent design product, is confident. He pointed to a reporter who had independently developed a shaking bed to demonstrate to reporters that he had changed the bed part and supporting part of this product slightly. This shaking bed became a round table. "As long as you have your own design capabilities, do not worry about the future there is no market." Xing Jiquan said with great joy.

Talents and funds are indispensable. Lao Fuwen was introduced. When considering the transition in 2002, there existed a group of such infant and baby products manufacturing foundry companies in Dongguan. At that time, the industry even circulated such a saying: “To be a brand is to find death. Do not wait for the brand to die, because at the crossroads of transformation and transformation, talent and capital are the biggest problems encountered by companies.

“Although funding is the threshold, many companies that have transformed themselves into self-owned brands will initially think of investing heavily in advertising to open the market. However, this market that is out of money is not stable.” Kissed CEO Zheng Zifeng pointed out: “On the contrary, it is more important to find where the team is.” According to Zheng Zifeng, since 2005, the company has invested 5 million yuan for the establishment of an internal training system, hired corporate consultants to create talents for enterprises to adapt to business development plans, and currently kiss me. 70% of the backbone personnel come from the original talent training system. In his opinion, the only way to establish a brand is to use professional talent.

Compared with Lao Fuwen's rooting in the baby industry for 30 years and accumulating sufficient funds, Xing Jiquan was not so fortunate. Due to limited resources, Xing Jiquan’s team is currently spending 10 months each time developing and designing a new product, from the concept to the final launch of the market. From the beginning of last year, funds became the biggest pain in his mind. Xing Jiquan admitted that this was his biggest "short board."

"**We can't make it, we don't have it. We have spent most of our money on product research and development, and we don't have any extra funds in our channel layout," he said frankly, which also made his company Currently it is impossible to fully open the market. “Although our own R&D products have applied for patents, we still fear that they will be counterfeited by other peers. If we cannot seize market opportunities, we may be overtaken by latecomers.” Xing Jiquan expressed rather helplessly.

In September 2009, Fosun Pro Run and Carlyle Group injected RMB 902 million into Yashili, a mid- to high-end infant formula company, and became the largest private equity exchange in the industry in the past five years. In July 2009, Rongxin Capital was established. 100 million yuan investment in children's clothing business doctoral frog, promote the industry in 2009 VC / PE ** scale set a record. Since 2012, the domestic maternal and child industry has completed 3 transactions and disclosed ** scale of 630 million yuan.

In fact, behind the picky of capital, there are also their own concerns. “Industrial concentration is low, market opportunities and gaps are numerous, resulting in insufficient industry competition. Small, low, and scattered are the basic features of the industry.” A VC investor told reporters that the entire industry chain of the baby industry To be a real one is a market segment. Although the market size of each segment is small, it has survived a large number of companies.

In his opinion, some baby companies have a high turnover, but careful analysis shows that their source of profits is to rely on agency channels, not their own core brands, and the competitiveness of such companies will obviously be insufficient. "It is possible that companies that take the brand channel or the industrial chain layout will emerge in the end," he said.

According to the reporter's understanding, the current sales of own-brand products accounted for only 20% of the total sales of “Xiaoxiongmiao”, and for “keep me off”, it has occupied half of the country’s total sales. The above two companies have emphasized to reporters that shrinking the OEM's share and expanding sales of its own brand is an inevitable development direction for the future.