In the context of the global economic downturn, higher operating costs, and increasing competition, many of the city’s traditional labor-intensive industries have been hit. However, Pinghu's luggage manufacturing company, Xinxiu Group, has achieved a converse trend in the crisis. From January to October of this year, the main business of the new show group achieved sales revenue of 1.02 billion yuan, a year-on-year increase of 35%, and net profit increased by 50% year-on-year. The average gross margin of a company can reach 30%.
Why can the Rookie Group resist the cold weather, achieve stability and progress, and rise against the market? According to Shi Jihong, chairman of Rookie Group, all this should be based on the crisis awareness of enterprises. “Entrepreneurs should base themselves on today and see tomorrow. The rookie has transformed from a brand-name company to a brand enterprise, from a brand to a brand flagship team. It's that every time a crisis comes, rookies are ready in advance."
Founded in 1998, the Rookie Bags, like most luggage companies in Pinghu, started from OEM. However, the rookie was not content to be an OEM. "We have always wanted to get rid of homogenous competition and take a differentiated path of development." Shi Jihong said.
Upgrading from a processing company to a branded company is the transition path for the rookie. As early as 2002, the Rookie Group completed the registration of the "Newcom" brand in the country, the United States and the European Union. In 2003, the new show group officially turned the focus of corporate development on brand building.
It is not easy for domestic brands to open the market in the international market. At this time, the rookie group has just completed the construction of a large-scale, standardized manufacturing system in the first five years. The company has sufficient profitability and hematopoietic function to invest in the brand. Operation.
In order to guide the original importer to sell the brand of the rookie group, the independent brand of the rookie group is not limited to order quantity, and a large number of products are in stock. The choice is very large and slowly, and the merchants are interested. By 2005, the sales of independent brands in the overseas market of the rookie had already accounted for 5% of the market.
The Canton Fair is a platform for major companies to harvest orders. The rookie began to focus on playing brands in 2006. Each fair of the rookie has invested over 150 million yuan to promote the brand. A large amount of investment soon saw the effect. With the advent of the financial crisis in 2008, many companies’ orders were greatly reduced, and the rookie’s own brand was welcomed. Today, the rookie has become the only senior partner of the Canton Fair's fashion consumer goods industry.
If you say that your own brand is the first step in the transformation of a rookie, then multi-brand operations, the formation of the brand's flagship team, let the rookie brand short board really become a springboard for corporate take-off. In addition to Newcom, which is positioned in high-end customers, the rookie has also registered its own brand of Around for fashion customers.
In April 2009, the Rookie Group signed a contract with Hobie Corporation of the United States and invested US$30 million to purchase the company's 20-year global franchise of luggage to create a high-end leisure luggage brand. Hobie is a world-class outdoor sports brand popular in Europe and the United States, and has a reputation for sailing and sports equipment.
"Buying ships out to the sea" is another trick for the group to implement its brand strategy. “Tiantian” was originally a well-known trademark of a veteran luggage company in Jiaxing, and it declined due to issues such as system and management. In June 2010, the Rookie Group spent RMB 810,000 on its arms, taking advantage of its long history, high market awareness, and extensive sales channels, and focused on creating "everyday" bags suitable for mass consumption.
At this point, the rookie centered around leisure travel luggage products and formed a brand flagship team targeting different levels of consumer groups.
Currently, rookie brand products have distributors or sales companies in more than 30 countries and regions such as the United States, Europe, Russia, Japan, and the Middle East, and have established business relationships with more than 40 countries. The implementation of the brand strategy has also expanded the rookie's domestic market. The “Yueke” chain brand under the Xinxiu Group has currently built more than 300 retail terminals nationwide.
With the help of the brand effect, currently, the sales ratio of the independent brands of Xinxiu Group in overseas has risen to 40%, and the gross profit rate is as high as 50%.
After the successful transition of the rookie, Shi Jihong, president of the Pinghu Luggage & Luggage Industry Association, is also committed to helping companies in the entire industry to develop and support the traditional manufacturing enterprises of luggage to upgrade and upgrade both sides of the smile curve. To this end, the rookie teamed up with other investment partners to invest 1.5 billion yuan in the construction of international luggage city in Pinghu. Its goal is to assist local businesses in developing their own brands and markets and enhance their position in the global value chain.
International Luggage City sets brand bags and showcases trade center, international purchase and distribution center and original accessories trading center. It is understood that the project will be officially opened in September next year.
Shi Jihong said: "This industry will be fissile in the next five years." At the same time, he also has a greater dream is to integrate resources more extensively, making Jiaxing become a fashion capital like Milan. “Jiaxing has a series of advantageous industries such as leather, sweaters, clothing, bags, etc. If it is integrated into a large fashion industry, its development potential is unlimited,” said Shi Jihong.
Earlier this year, Shi Jihong launched a charity project called “Love Bags” to launch outstanding enterprises in the luggage industry and other industries, donate schoolbags and other life packages to children in poor areas, and provide other public services. To jointly and continuously improve the learning conditions of children in poverty-stricken areas. This summer, "Love Bags" cooperated with Jiabao Group for the first donation event, donating 3,600 schoolbags to 7 schools in poverty-stricken areas in Xinjiang.
Enterprises must fulfill their social responsibilities and create better social benefits. "Shi Jihong said:" We hope that through our meager efforts, we will guide companies in the industry to do more meaningful and valuable things. ”