361° tapping the children's wear market to create a low-end brand

At present, China’s children’s clothing industry has a market size of RMB 100 billion and an annual production of 5 billion pieces. The average annual compound growth rate is 10.09%, which is one of the fastest growing clothing categories. Non-brand clothing currently accounts for the children’s wear market. 75% of the brand children's clothing market share is only 25%, so a good market space, so that 361 °, Metersbonwe, Pacific Bird, Baoxi Bird and other companies have invested huge amounts of money to compete in the children's wear market.

Excavating the children's wear market

A few days ago, at the news conference of 361° Children's Wear and CCTV Kids Channel's strategic cooperation, Chen Zhicheng, the general manager of the 361° Children's Wear Division from Taiwan, China, which has passed through 450 cities in China and engaged in children's wear business, told the “clothing time” reporter : "At present in China's children's industry, if this market is said to follow the industry's product life cycle, it has not yet entered the growth period, because this industry has a period of birth and growth, as well as a period of rapid development. China's children's clothing It has been in operation for a very long period of time, but it has not yet begun to really enter the growth period.The domestic children's clothing industry market is roughly divided into two echelons, one is in shopping malls, and the most basic price of a piece of clothing is about 180-350 yuan. Between the other echelon in our so-called relatively low-end market (gear), the most basic price of a piece of clothing is between 25 yuan and 30 yuan, among which there is a market gap of 80 yuan to 150 yuan. For 361 ° children's clothes and other places to leave a lot of room for development."

Chen Zhicheng stated that 361° children's wear is going to create this market and it is necessary to lead this industry to do this market. At present, during the expansion phase, the price of 361° children's wear products will always remain at the mid-range low standard, and R&D and design will be done in accordance with the terminal display in order to maintain full competitiveness.

Since entering the children's wear field in 361° in February 2010, the first goal of the 361° Children's Wear Division was to achieve an annual sales income of 200 million yuan in five years. Chen Zhicheng believes that this target can be increased by "0" after "2" to 2 billion yuan. At present, the sales income of 361° children's clothing, which was founded two years ago, has already reached 400 million yuan in 2011. In 2014, he hopes that this figure will become 1 billion yuan.

At present, 361° children's clothing stores in China have reached 1,400 stores, and this figure is expected to change to 2,200 next year. After that, it will at least maintain the speed of opening 500 stores every year, and gradually expand the market in third-tier cities. In Chen Zhicheng's view, through the expansion of stores in recent years, it is to occupy the market first and do a good job of channel distribution.

According to the rules of children's clothing development layout

Children's clothing is a “low threshold”, but it is necessary to sculpt a well-known brand that requires “big investment”. Chen Zhicheng recalled: “Before the nine months of business, only 361° children's clothing was placed in 200 stores, and sales growth has been relatively weak. This is because consumers’ understanding of a brand of children’s clothing has only just begun. Indeed, just At the beginning, some consumers said that 361° actually did children's clothes, and later said that 361° was made of children's clothes in the cottage. A year later, 361° children's clothing was gradually recognized by the market because of its bright colors and main sports functions.”

Chen Zhicheng believes that one of the reasons for the rapid development of 361° children's wear is due to the fact that children's clothing is in accordance with the law of development. For example, it takes 4 months for a new store to get approval from the surrounding population. The period of maximum sales revenue for the store is from Christmas to Spring Festival.

In addition, 361° dared to invest large sums of money for publicity. For this reason, 361° Children’s Wear and CCTV’s Children’s Channel reached a cooperation agreement. Chen Zhicheng said: "Strong cooperation is necessary. 361° sportswear used to rely on CCTV's five sports channels to fight out of the market. This cooperation with children's channels, our cooperation should be five years, I believe that can make 361 ° children's clothing' More than once loved, more than one concept of the future in the country." He also said that 361 ° sports children's clothing every six months will have a new advertising film out, the content of the advertising film reflects the children's life style, not Just talk about merchandise.

Chen Zhicheng believes that the current biggest rival of 361° is Balaball children's clothing under the Wenzhou Sima Group. At present, Balabala's sales in 2011 have reached 2 billion yuan, and it is the first brand of children's wear in China. However, Chen Zhicheng recently observed that Balabala is expanding toward the direction of baby clothes. He does not agree with this.

Chen Zhicheng told reporters: “Bala Bara was founded nearly 20 years ago, and 361° children's wear was founded only for more than two years. At present, Bala-Bala children wear is a casual style, 361° children's wear is a sport style. Their respective positions are different.”

For the future development goals, 361° Group Chairman Ding Jiantong asked Chen Zhicheng to lead the Children’s Wear Business Unit to become China’s number one in the next few years. The group took out 9% of the listed funds, which was nearly 180 million yuan, to support the development of the Children's Wear Division. According to the plan, the number of terminal stores in 361° children's clothing in 2015 will reach 3,000.