Deli group: three moves to break through the "glass ceiling"
Lou Fu'an, general manager of Deli Group Co., Ltd., holding the freshly released financial statements, felt a "cool wind" blowing. From January to June this year, deli group's enterprises in Ninghai region achieved a total sales of more than 700million yuan and a profit of 31.17 million yuan, an increase of 53% over the same period last year. 1% and 27%. Among them, the export volume of stationery increased by 150% year-on-year
since the beginning of this year, Ninghai stationery manufacturing industry has been suffering from an unprecedented "cold wave": in the leading quarter, 38 of the 92 Enterprises above Designated Size included in the statistics of the county have suffered losses, and the profits of the rest have also decreased significantly. Under such survival pressure, how did Deli group break through the "glass ceiling" on its head
independent channels control the market
explore the reasons for the current difficult situation of processing enterprises. Many people will mention that "enterprises do not have independent channels, and product sales are subject to buyers and middlemen". To this end, some economists have prescribed a prescription to "extend to marketing and promote the transformation of enterprise organizational structure from olive type to dumbbell type". Deli group explored this as early as 11 years agoIn 1997, deli group set up three branches in Shanghai, Hangzhou and Tianjin. Since then, the company has continued to deploy in Shenzhen, Qingdao, Guiyang, Nanning and other provincial capitals or cities specifically designated in the plan
in 2006, deli group made the strategic deployment of "rooting in China", aiming to "find Deli products in every stationery store in China". To this end, the company has comprehensively started the construction of secondary and tertiary marketing networks. Up to now, the company has set up 30 branches and 60 offices throughout the country, completing the three-dimensional network coverage of the Chinese market
the transformation of sales channels has made Deli group a winner. Last year, a dealer of office supplies in Ningbo City interrupted the agency relationship with Deli group due to problems in terms of cooperation. Soon, the dealer took the initiative to find Deli group and hoped to continue acting as an agent for the company's products because he could not afford the pressure of a sharp drop of 800000 yuan in monthly sales
after opening up domestic channels, deli group has actively established an international marketing network and carried out various forms of cooperation with a large number of influential retail enterprises in the world, such as Wal Mart, Metro, Carrefour, kokuyo, etc. Moreover, the company has set up a branch in Thailand, which is directly responsible for the warehousing and logistics, finance, vendor management and other affairs in the local market. Deli Indonesia branch is also under preparation
the establishment of independent channels reduces the intermediate links and makes "Deli" products directly face consumers. Therefore, the company controls the pricing power of products. In the first half of this year, the company adjusted the price twice on the basis of the 5% increase last year, with a cumulative increase of 12%
extending to the high end of the industrial chain
the lack of independent design and brands is an important reason why Chinese stationery has long been at the low end of the international industrial chain. Deli group has made a breakthrough by extending to the high-end of the industrial chain and taking the road of R & D
to this end, the company has established six R & D centers in the production base of Ninghai, including pencil sharpener, stapler and comprehensive stationery. It has also established an industrial design institute and a graphic design studio in Shanghai and Seoul, South Korea
in the second half of 2007, with the support of designers in Shanghai and Seoul, Korea, deli group launched the student stationery "yocoo" (Youku), which is in line with the international trend. There are more than 20 kinds of products in the first batch. These products have novel designs and bright colors, and are deeply loved by customers in Southeast Asia. At the 103rd Canton Fair held in April this year, a transaction of US $300000 was made in one day
at present, deli group has more than 500 control function design patents with the same appearance, and launches more than 100 new products every quarter, which gives the enterprise an advantage in the stationery market with obvious homogeneous competition. For example, a new correction fluid product launched by the company last year has been designed to add the function of placing photos. The shape is quite cute, especially popular with female consumers. Of course, the price is also more than 20% higher than that of traditional products
relying on independent channels and independent design, deli group has strengthened its own brand promotion. This year, the company will invest nearly 30million yuan in product promotion, accounting for about 2% of the total sales, and promote the "Deli" series brands to enter the consumer terminal market. According to reports, deli stationery exports this year will reach 400million yuan, of which the export of independent brands accounts for 50% of the total export volume
win win with upstream and downstream enterprises
in an interview with Deli group, we found a strange phenomenon: many products of the company have special production workshops or professional manufacturers to support them. Loufu'an attributed it to "win-win situation of upstream and downstream enterprises in the industrial chain"
Ningbo Tianhong Stationery Co., Ltd. is a stationery enterprise specializing in the production of long tail clips. Last year, it supplied more than 40million yuan of products to deli group. Zhengchongting, general manager of the company, told the author: "we have formed a strategic partnership with Deli. We are like 'brothers' on a ship."
in recent years, deli group has made active use of its extensive sales channels and brand advantages to integrate resources with many small enterprises around it and give full play to their respective advantages to achieve industrial intensification and brand sharing. At present, the proportion of stationery products purchased by the company from outside has increased from 5% - 10% in previous years to 25%. There are hundreds of suppliers, of which 60% are distributed in Ninghai County and Ningbo City
it is reported that these supporting enterprises have been selected by Deli group to join the cooperation network. In order to unify the product quality, the company has specially set up the first and second OEM (OEM) procurement departments to formulate product standards with suppliers. After the staff of Deli group designed the products, they handed them over to the collaborators for production according to the standards, and unified the trademark, so that Deli clinical and biosensor materials and other brand stationery products can cover all over the world and become a brand trusted by consumers
"production is not the ultimate core competitiveness of 'Deli'. We will gradually expand the proportion of entrusted OEM and product sales, and support Ninghai small and medium-sized enterprises. Each business and manufacturer needs different test data, so that enterprises can get out of difficulties and seek common development."
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