"When the sock machine of the Tang Dynasty rings, there is a pair of socks in the world." Speaking of the sock industry, Datang Town in Zhuji, Shaoxing cannot be avoided. The most indispensable thing in Datang Town is companies that produce socks. Among the many entrepreneurs in the sock industry, there is a young man born in the 1980s who has taken an unconventional path in the past two years and made the sock business prosperous.
“Compared with the previous OEM processing, after having our own brand, the total production volume of socks has decreased, but the profit has increased.” Chen Renyong, chairman of Zhejiang Hemaosheng Socks Co., Ltd., recalled with emotion that since After establishing the "upgrade" brand to focus on functional sports socks, it opened up a new market in the market. It no longer has to work hard to mass produce as before, and it can't make much money.
Before establishing the "upgrade" brand, Chen Renyong also took a detour. He opened a factory to produce socks in 2006 and has been in the OEM business for nearly 10 years.
The most frustrating thing about that experience for Chen Renyong was that OEM companies had neither pricing power nor bargaining power. How to set the price is entirely up to the customer. Earning 5 cents on a pair of socks is considered pretty good.
“Manufacturers can produce ordinary socks, and customers naturally want the price to be as low as possible. I have asked me, and I will ask other people. I quoted 4 yuan, and others quoted 3.8 yuan. Maybe The customer signed the contract directly with another company. Even if this is not the case, they will turn around and say, "The price quoted by someone else is 3.8 yuan, do you want to do it?" In such a situation, Chen Renyong can only lower the price and accept a small profit. of trading.
The vicious cycle of price war made Chen Renyong very "injured". In order to increase income, one can only think of increasing production. Even so, orders are still decreasing year by year, and profits are also affected. "In the first few years, I still made money, but in the next few years, I really made hard-earned money." Chen Renyong had the idea of ????transformation.
Reform requires courage. What really made Chen Renyong determined to create his own brand also benefited from a special rectification operation carried out by Datang Town to "promote transformation through governance".
In 2014, in the face of the new normal of economic development, the comparative advantages of traditional industries were increasingly weakened, and a series of problems such as overcapacity, disorderly competition, and declining efficiency became increasingly prominent. Datang Town concentrated on carrying out the "Three Integration 1. Six major special rectifications including enterprise rectification, elimination of coal-fired boilers, management of floating population, standardization of rental housing management, ban on unlicensed operations, and standardization of tax collection and administration. More than 3,000 small and medium-sized enterprises have been closed down.
Transformation is imminent. After more than half a year of investigation and thinking, Chen Renyong finally decided to specialize in functional sports socks. In August 2015, Chen Renyong approached the town and proposed his own transformation idea, which was supported by the town leaders. Two months later, Chen Renyong became the first company to settle in Datang Socks Town.
“We now have more than 20 patents!” Chen Renyong casually took out a pair of high-top socks for playing football from the office.
"Look, we specially designed a new knitting method for the ankle part. This place is thick, can protect the ankle, and is comfortable." After introducing the design of the ankle, Chen Renyong then pointed to the calf. Part of the question asked, what do you think these horizontal bars are for?
Chen Renyong was the first to reveal the secret. This design can reduce the shaking of the calf and reduce the lactic acid produced during running. With less lactic acid, athletes’ leg soreness will be much reduced.
It is reported that the socks took 3 months from design to completion. In the office hall, designers are busy individually. Some are designing patterns with their heads down, while others are studying knitting methods in front of computers.
“The most difficult thing is the weaving process. Because of this market gap, we broke through the technical barriers first, so if other businesses want to have corresponding effects, they cannot do without our weaving method. I just need to buy a patent license.”
What’s the market price for a pair of socks like this? "The price of 128 yuan is the price we set ourselves!" Chen Renyong said proudly. Now the situation with OEM production has long been different. With his own brand and patented design, he can set his own price for the products. No longer do you have to spend half a day with customers just for a few cents for a pair of socks.
In addition to making his own brand of sports socks, Chen Renyong also provides a complete set of R&D designs for other businesses, including ppt solutions, brand building, design style positioning, packaging design, production, etc. Merchants only need to be responsible for marketing.
“Now, the minimum profit is about 20%.
"Chen Renyong is determined to build the most professional functional sports socks brand in China.
From the end of 2014 to the beginning of 2015, Datang Town shut down more than 3,000 small and medium-sized enterprises in just 5 months. In order to help enterprises Through transformation and upgrading, Datang Town takes the construction of a characteristic town as a carrier to build a sock industry design center, a sampling center, an inspection and testing center, and a new product release center to provide public services for the sock industry.
Nowadays, Datang Town has taken the opportunity of creating a "National Socks Industry Famous Brand Demonstration Zone" to vigorously implement its brand strategy by "holding an International Socks Industry Expo every two years and investing nearly one million to establish a regional brand VI visual identity system." , organizing key enterprises in the sock industry to join groups to participate in important domestic and foreign exhibitions, etc., to coordinate and enhance the awareness and reputation of the regional brand of Datang Socks Industry.
Biao Xiaomei has something to say: China does not lack good enterprises; It is brand awareness. From being satisfied with OEM production to registering your own trademark and making your own brand, this is a welcome change. I hope more and more business owners can be more confident in creating their own brands like Chen Renyong. Also contribute to the bright future of national brands
(Part of the content of this article comes from the Internet)
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