Erdos' "multiple habitat changes" to become an international brand name

As a strategy for brand operations, the role of apparel brand extension is to expand brand influence, achieve brand margin, increase brand equity, extend brand cycle, and meet consumer demand.

　 Transfiguration - not only cashmere king

Today, the main body of investment in Ordos' full range of apparel (excluding cashmere sweaters), Shanghai Erdos Garment Holdings Co., Ltd., has six professional companies: men's, women's, sweaters, underwear, leather and down companies.

At present, the number of terminals in Erdos' full range of clothing has reached more than 1,700. The "Ordos Olympic Group" woolen sweater, which took the mid-range public line as a sub-brand, entered the top three in the industry after one year of operation, and became the second Chinese famous brand of the Ordos Group.

In 1989, Ordos started to sell domestically. With the high quality of products, the advertising of CCTV, and the efficient development of sales channels, the “Ordos” brand has grown rapidly. Many small manufacturers have already joined the spoils with their rich profits. Cashmere The shirt market quickly shifted from supply shortages to oversupply. The limitations of a single product have become a burden that Ordos cannot afford. “The brand value of more than 5 billion yuan is only reflected in the cashmere sweater as a single product, which cannot reflect its value.” said Chi Benyang, general manager of Shanghai Ordos Garment Holdings Co., Ltd.

Brand extension - not blindly diversified

In general, companies must have three necessary conditions before they can do brand extension: First, the status of the main business is stable, and the market cultivation process is basically completed. Second, the brand is strong enough to fully occupy the mind of consumers. Third, capital and technical research ability is strong. Ordos’ share in the cashmere industry has exceeded 20%, and the industry’s leading position has long been established. At the same time, cashmere products in the domestic market have accumulated a group of loyal customers, which are favored and sought after by consumers. The brand “Ordos” has become synonymous with high-end cashmere products. Therefore, for Ordos, the first two necessary conditions for brand extension are already available. Ordos, which started with cashmere sweaters, has the brand concept of “warming the world” and has the space to further expand into other apparel areas.

For the third condition, after more than 20 years of development, Ordos has strong independent research and development capabilities and has a national-level technology center. In the capital market, through the issuance of A-shares in 2001, enterprises have sufficient funds to extend to other areas.

In the process of brand extension, Ordos mainly relies on the following rules: formulating brand strategy, correctly tapping the connotation of brand value, making achievements in brand extension, and doing something wrong; making full use of social resources, using its own brand advantages and having Partners who have rich experience in the market are joint ventures. It is not yet mature to recognize that domestic companies simply take the brand licensing road. Therefore, they always grasp the controlling shareholding of the joint venture company; grasp the lifeline of the joint venture company from the three perspectives of brand image, product quality, and financial control; Partner experience, resources, and enthusiasm.

Shanghai Erdos Garment Holdings Co., Ltd., established in October 2004, is responsible for the specific operation of the Erdos brand extension strategy. On the one hand, the holding company establishes a joint venture with a partner to establish a professional clothing company and masters the controlling share of the joint venture company; and then authorizes a certain brand series to be run by the professional company through brand authorization. The professional company sets up a new management team and is composed of professional managers with rich industry experience. The holding company supervises each professional company by delegating property rights representatives and financial directors. On the other hand, the company's holding companies in the design, production, and sales sectors have been spun off and concentrated on brand maintenance and quality control.

Brand Quality - Escort Clothing Carrier

Brand value-added is the most profitable and competitive key chain. Erdos resolutely outsources the design, production and sales of its network and focuses on brand marketing. “The holding company fully authorizes the 6 professional companies under its subordinates to allow professional people to do professional things. In the entire value chain, design, production, sales, access road construction, logistics, and service are managed by professional companies, but The management of the two aspects of brand image maintenance and quality control is highly concentrated in the holding company.” The words of President Erdoga Garments Holding Co. revealed firmness.

In 2005, Ordos passed the “Large Apparel Strategic Plan”. The strategic goal it formulated was to build a non-velvet series garment industrial platform that goes hand in hand with cashmere through brand extension and market expansion to maximize market share and operating efficiency. . We will continue to do more efforts for a long time, gradually expand the Group's influence in the entire textile and apparel industry, and gradually build "Ordos" into an international brand name.