I Am the President of the University
Chapter 771 Does Fengguo need his own luxury brand? (2 in 1)
"Join Guanghua University?"
What kind of divine expansion is this?
"Yes, I learned that Guanghua Intelligent Clothing Co., Ltd. is recruiting a general manager, and I would like to recommend myself." Xu Wan said seriously.
Since Guanghua does not cooperate with LV, it is better to take this opportunity to join Guanghua.
If you can't beat them, just join, it's not shabby.
"Do you think you can do it?"
"able!"
Seeing the other party's resolute attitude, Chen Hao smiled.
“Then can you tell me what kind of development strategy Guanghua’s smart thermostatic clothing should develop?”
Xu Wan perked up and knew that Chen Hao was inspecting her.
Only by satisfying the other party can he serve as the general manager of Guanghua Intelligent Clothing.
Fortunately, she was not idle yesterday. She already had an idea in her mind and spoke it out slowly.
“I think smart thermostatic clothing can follow the model of own brand + self-production and self-sales. In terms of production capacity, we first acquire some domestic garment manufacturing factories to solve part of the production capacity, and at the same time build a super factory with high standards and high efficiency;
In terms of sales, it is directly operated stores + online sales. Directly-operated stores are set up in 1-5 locations in key cities around the world, with the purpose of displaying the brand and after-sales function; the official website is the real main sales platform, so in this area... "
Actually, Xu Wan feels that there is no need to be responsible for the production capacity by herself. It would be more convenient to directly find the foundry.
There is a view that economic globalization has entered version 3.0, that is, version 1.0 is colonial globalization, version 2.0 is trade globalization, and the current version 3.0 is the globalization of supply chains.
The classic example of version 3.0 is Nike. Since its establishment, it has not established a factory of its own. All production relies on outsourcing and is supplied globally.
If you are responsible for production yourself, it will inevitably increase a lot of workload and labor costs. Nowadays, many companies like to outsource.
Even luxury brands are no exception. In recent years, many luxury brands such as Prada and LV have produced a considerable part of their women's bags in Chinese factories.
A women's bag priced at 12,000 yuan in China has a real production cost of less than 1,000 yuan, only a few hundred yuan.
Just to put an end to her information collection, Guanghua doesn't seem to like OEM and prefers self-production and sales?
The same is true for photonic screens, the same is true for optical cores, and the same is true for today’s smart thermostats.
Is Huaxing rich?
have!
However, Huaxing is only involved in chip design, and its Kirin chips are also produced by TSMC. After all, chip manufacturing is too expensive, and tens of billions of dollars are spent on it to make a sound.
As for the optical core, Guanghua not only designs and manufactures it independently, which is really arrogant...
After Xu Wan finished speaking, Chen Hao shook his head and smiled.
"I'm sorry, Director Xu, you made a mistake."
"Principal Chen, please tell me." Xu Wan was calm and composed, but she couldn't guess where she went wrong.
"Lushu Intelligent Thermostatic Clothes will only focus on the domestic market. It will not be too involved in foreign countries. It will only set up direct-operated stores." Chen Hao directly described the cooperation with Anta and Jiumu Wang last night.
Within two months of the launch of the smart thermostat, the official website will be open to markets around the world, just to build Guanghua’s reputation.
Two months later, the offline sales networks of various domestic brands in various countries have almost been established. By then, the official website will stop selling smart thermostatic clothes. In addition to supplying directly-operated stores, other smart thermostatic clothes will be sold by Jiumuwang, Anta and other brands. in charge of sales.
MR smart glasses will not follow this model. Of course, they are all self-produced and sold. The reason why smart thermostatic clothes are made in this way is because the properties of clothes and wearable devices are different.
After all, clothes need variety, such as various patterns and patterns.
Moreover, there are cultural barriers between different countries in this regard, and you have to have a deep understanding of each country's culture, which is too time-consuming and energy-consuming.
If he does this, he will make a lot of money, and the charge will be left to twenty warriors.
Moreover, domestic clothing brands can also benefit and survive. As for the life and death of foreign clothing brands... it has nothing to do with him?
Xu Wan listened as if listening to a book from heaven, with a look of disbelief on her face.
Especially when I heard that the purchase price and selling price of each brand are the same, this, this is too impressive...
The image of each brand has become a scalper, which is slightly processed and then sold at a higher price.
Of course there is some profit, but the bulk of it is still with Guanghua.
I quit my job and became a shopkeeper, but in the end I still made the same amount of money.
The more they sell, the more Guanghua earns.
This trick is absolutely amazing!
Xu Wan originally thought that Chen Hao was a scientific genius but didn't know much about business. Now it seems that she underestimated him.
"Does Director Xu have any other ideas?" Chen Hao said lightly.
Xu Wan got a whiff from it, probably because her views failed to attract Chen Hao.
Not surprisingly, her self-recommendation will also fail.
She took a deep breath and exhaled a thick breath.
"Principal Chen, I have another idea."
“I think [Lushu] should find a brand that should not be limited to the smart thermostatic clothing series. It can also develop into a luxury brand, develop limited-edition smart thermostatic clothing with unique designs, upgrade its customer base and then promote other products, such as women’s bags, Belts, watches, shoes.”
"Luxury brand?"
Chen Hao raised his eyebrows and said disinterestedly: "I'm not interested in this. Luxury brands and smart clothing are two different things."
Xu Wan was not surprised by this reaction. She asked: "Do you know how big China's luxury goods market has been in recent years?"
"I don't know." Chen Hao shook his head.
“The Prime Minister said that 600 million people in China earn only 1,000 yuan a month, and Li Xunlei said that 1 billion people in China have never flown. However, as China’s economy grows, the proportion of Chinese consumers in the luxury goods market is also increasing year by year. "
“According to Bain data, from 2011 to 2016, the compound annual growth rate of my country’s domestic luxury goods market was only 2%, but starting in 2017, this growth rate instantly increased to more than 20%.”
"In 2018, China's domestic personal luxury goods market continued the astonishing growth rate of 20% in 2017, with the market size reaching 170 billion yuan."
"In 2019, domestic sales of personal luxury goods reached 234.1 billion yuan."
"In 2020, affected by the epidemic, the global luxury goods market fell, and China was the only major luxury market in the world to grow. Domestic luxury goods consumption reached 346 billion yuan, and the growth rate rose to 48%!"
"Many institutions predict that the size of my country's personal luxury goods market will double this year compared with 2019 and will reach nearly US$73.6 billion."
In fact, this only refers to domestic consumption. my country has about 100 million mainland tourists going abroad every year, spending more than 700 billion yuan, equivalent to 40% of global luxury goods consumption.
Xu Wan looked at Chen Hao with an extremely serious attitude.
"Principal Chen, judging from China's position in the global luxury goods industry, Chinese consumers are one of the main driving forces of the global luxury goods market and will become the world's largest luxury goods market in the next few years."
Xu Wan looked at Chen Hao with an extremely serious attitude.
"Judging from China's position in the global luxury goods industry, Chinese consumers are one of the main driving forces in the global luxury goods market and will become the world's largest luxury goods market in the next few years."
"But, do you know? Our country does not have a real luxury brand! Is such a large luxury brand market going to be completely ceded to foreign brands?"
"There are often netizens claiming that China is a socialist country and that China needs mass brands, mid-range brands, and high-end brands... but it does not need luxury brands."
"But I think this statement is wrong. China should have its own luxury brands!"
"If there is a luxury brand in China that is more famous than Hermès and Chanel, and consumers all over the world are keen on it, isn't this a kind of cultural export?"
Chen Hao was still thinking about it. He didn't expect that the domestic luxury goods market would reach this level.
He thought for a while and asked somewhat strangely: "Director Xu, hasn't there been some domestic luxury brands in such a large domestic market?"
"Not really." Xu Wan smiled bitterly. As a person in the industry, she deeply regrets this aspect.
"For example, in the area of clothing, there is a gap in domestic brands. Septwolves, Jiumuwang, Xiangningniao, and Youngor are all mid- to low-end brands. In recent years, some high-end brands have also emerged, such as Zhihe, Shanghai Tang, Shangxia, etc., but they are far from luxury brands. The brand is still far away.”
Back then, Evergrande’s boss Xu wore a Hermès belt to go to a BJ for a meeting, and was photographed by reporters and posted online. Netizens criticized Boss Xu. Later, he changed the belt to Septwolves...
Boss Xu is China’s top business elite. It is obviously inappropriate to wear Septwolves, but netizens disagree when wearing international luxury brands. There are no domestic substitutes.
Xu Wan sighed and continued to ask: "Do you know how Hermès, Chanel, and Dior became luxury brands?"
"Say." Chen Hao asked.
Xu Wan explained: "At that time, the main sales force of luxury brands were European royal families and aristocrats. To become a luxury brand, you need to have the endorsement of the royal family and aristocrats, and they also need to take the lead in consumption."
“The founder of LV is an expert in luggage used by the royal family, the founder of CHANEL is a woman of an aristocrat, and the founder of LV is the son of an aristocrat. They are basically ‘relatives of the royal family’.”
"Then this does not apply to our country." Chen Hao frowned.
"Yes, but also no."
Xu Wan's eyes sparkled and she said passionately: "The royal family and the nobility were things of that era. In this era, with the country's endorsement of the brand and the support of political and business elites, a brand new luxury brand can be created. !”
Why didn't it appear in China?
Take a look at the names of domestic high-end brands.
Youngor, Bosideng, Dickoni, Vicodo, Vignas, Masfil... Look at these names, do they look like Chinese brands? How can the state endorse it? How to fight for the country?
[Lu Shu] is different. It is taken from "The Classic of Mountains and Seas" and has very Chinese characteristics, with good meaning and strong style.
"With your relationship with the capital, there is absolutely no problem with national endorsement! As for the political and business elites to bring goods, it will be even simpler. Aren't you one of them?"
“Not to mention the popularity of smart thermostatic clothing, [Lushu] can definitely be upgraded to a luxury brand!”
Listening to Xu Wan's words, Chen Hao hesitated.
Indeed, according to what the other party said, the brand [Lushu] is indeed expected to become a luxury brand in China, but... is it really necessary?
Previously, he positioned [Lushu] only as smart clothing, similar to smartphones. The flagship phones of Dami and Huaxing cost no more than 3,000 yuan, but many people still bought them.
If it upgrades to a luxury brand, it is destined to launch a high-priced series.
This is inconsistent with his original intention.
Moreover, as one of the target groups of luxury brands, he understands this aspect.
Students who have gone to college should know something about brand management.
The customer structure of most brands is that there are fewer "qianduoduo" and "qianshaoshao", and there are more people in the middle layer. In the process of brand operation, some "qianshaoshao" can be eliminated by raising prices to achieve brand upgrade; it can also be achieved by reducing prices. Prices or discounts will attract more "money a little" to drive volume, but will filter out some of the "money a lot".
"Qian Shao Shao" is happy to dress the same as "Qian Duo Duo", so ZARA can sell the princess's pants on the streets; "Qian Duo Duo" is not willing to compete with "Qian Shao Shao", so Hermès is expensive and difficult to buy.
Real luxury brands are very good at taking care of the emotions of "Qian Duoduo", and will use "price increase", "queuing up", "distribution" and other means to drive out "Qian Shao Shao". As long as "Qian Duoduo" is willing, luxury brands Will raise the price all the way to the sky.
Therefore, a Hermès Himalayan Birkin bag can sell for 2.6 million.
It can be seen that luxury brands have never been IQ taxes. They are "power badges", "money certification", "identity cards", "circle tickets", "stepping stones", and integration into the power circle. A little threshold with the money circle;
What luxury brands sell is not bags, but the worship of power and money. If you want to integrate into a circle that does not belong to you, you will naturally have to pay a price. People in power circles and money circles will not allow a large number of civilians to influx. They will raise the threshold for integrating into the circle. This is why luxury brands raise their prices. , the reason why business is actually better.
China's luxury goods market has surged in recent years. Behind it is actually a bad trend, the prevalence of money worship and vanity.
Back to the original question: If this is the case, does China still need its own luxury brands?
Chen Hao hesitated.
Xu Wan knew the answer.
"Principal Chen, I know what you are thinking. As I said before, China needs its own luxury brands! "
"China's economy will only get stronger and stronger, and the market for the same luxury brands will also get bigger and bigger. In China today, only [Lushu] meets the two major elements to be promoted to a luxury brand."
"Becoming a luxury brand is not a bad thing. At least the domestic wealth will remain in China instead of flowing overseas!" Xu Wan said sadly.
After a while, Chen Hao shook his head helplessly.
"Director Xu, I didn't expect you to have such eloquence. I admit that I was persuaded by you."
When the conversation changed, Chen Hao's expression became serious.
"Lushu can become a luxury brand, or you can be the president, but I have a request."
"Please tell me."
"Lushu Group must return 20% of its annual net profits to the country and the people. For example, it supports education, rural revitalization, nursing homes and welfare homes, etc."
“Take it from the people and use it for the people!”
If he doesn’t make this kind of money, it will indeed be made away by foreign capital.
But after making money, he still had to part with it so that he could feel at ease with it.
Xu Wan was in awe. This 20% net profit was not low, at least tens of billions of yuan every year.
There are many entrepreneurs and celebrities doing charity now, but how many of them are actually doing charity rather than avoiding taxes?
"No problem! A special charity foundation will be established by then. Every expenditure will be disclosed to the public and I will personally supervise it," Xu Wan promised.
Before, she only admired Chen Hao. After all, he was very talented, patriotic and responsible.
Now this level of admiration has been upgraded to worship.
I would like to ask how many people in the country and the world can do this?
"Then let's continue talking about [Lushu]'s positioning and development strategy." Chen Hao rubbed his brows, guessing that he would have to be busy today.
While the two were discussing, the popularity of [Lu Shu] smart thermostatic clothing had spread all over the world.
There is a state of depression within the world's major luxury brand companies, especially after being rejected by Guanghua and receiving a top-secret message...
Totally panicked!
ps: There is one more chapter, please vote for recommendation and monthly votes! !
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