Chapter 588: Decision
After listening to Ouyang Yuanfang's opinion, Wang Yuanchao did not express his opinion, but asked Hu Wei:
"Boss Hu Wei, what's your opinion?"
When Ouyang Yuanfang was answering Wang Yuanchao's question, Hu Wei began to think about how to answer. When she heard Wang Yuanchao's question, she answered directly:
"Boss, there is always competition in the money-making business.
With the progress of global industrialization, the world is crowded with various clothing manufacturers and clothing brands. I think the operating methods of some women's clothing brands in Europe and the United States are worth learning from for our company.
For example, brand packaging.
Many European clothing brands now use various stories, fashion shows, and their own public opinion guidance to package clothes that cost less than $1 into luxury brands. The same piece of clothing can be sold for hundreds or thousands of dollars. This is something our company should learn from.”
Wang Yuanchao suddenly interrupted and asked:
"How do you think we should position our Victoria's Secret brand if we want it to become a global best-selling brand?"
Hu Wei blurted out: "Boss, this brand should definitely be positioned as mid-range clothing."
"Why?"
“Because high-end luxury brands are famous and give people a high-end feeling,
But the number of rich people in this world has always been the smallest.
In addition, the economic environment in Europe and the United States is good now, and there are many middle-class people.
Our clothes are expensive, but without sales, we can't make much money. It's better to position ourselves as a mid-range brand and rely on sales to make more profits. As for the low-end position, I suggest you don't consider it.
This is entirely based on low labor costs to seize the market and engage in low-price dumping.
Most of the garment factories in Hong Kong adopt this model, quickly occupying the market and gaining orders through low prices.
However, the profits earned by these manufacturers are very low. Once the labor costs in Hong Kong rise, the competitiveness of these garment factories will decline.
Or they will lose their price advantage compared with their peers and be eliminated by their peers.
At that time, it will be a competition among the internal competitiveness of Hong Kong's garment industry. The competition will be about who can better maintain high-quality and low-priced products, and who knows better how to squeeze the blood and sweat of employees and make money from them.
Therefore, I think the positioning of low-end brands is totally unacceptable.
I personally think that the best positioning for our company’s clothing brand is the mid-range brand.”
Wang Yuanchao nodded silently. In the past, the Victoria's Secret brand relied on the early mid-to-low-level brand positioning to make its owner rich and make a lot of money, becoming a billionaire in the beautiful country.
As a result, after making money, the boss was not satisfied with the positioning of Victoria's Secret as a mid-range brand, and wanted to develop Victoria's Secret into a high-end luxury brand.
It also created the world-famous Victoria's Secret Fashion Show and Victoria's Secret models.
Victoria's Secret has indeed been developed into a high-end luxury brand by this boss, and Victoria's Secret brand clothing and brand awareness are indeed popular all over the world.
However, it is no exaggeration to say that the sales volume of high-end luxury brand clothing has been halved compared to the previous sales volume of mid-range brand clothing.
The customers that were previously accumulated through mid-range positioning are not buying into the high-end luxury brand created by Victoria's Secret.
Victoria's Secret brand clothing can only expand its global market by leveraging its brand influence and raising funds through financial markets.
But the poor Victoria's Secret boss, after investing all the money he earned over the years into building the Victoria's Secret high-end luxury brand,
It has enriched these Victoria's Secret models, allowing them to gain global fame and earn a lot of money in signing fees.
As expected, Victoria's Secret quietly went bankrupt and everything became a mess.
Although high-end luxury goods in the garment industry are very profitable, a piece of clothing can generate hundreds or thousands of times the profit.
However, the extra money and energy required to maintain the brand status and sales of high-end luxury brands is a bottomless pit.
Therefore, Wang Yuanchao would not consider creating a high-end luxury brand.
"Mr. Hu Wei, I agree with your point of view, which is to build our Victoria's Secret brand into a mid-range clothing brand in the market.
How to build it, what are your ideas?"
Hu Wei thought for a moment and said:
"Boss, there are many ways to build a clothing brand, such as using media advertising, telling a good story about the clothing brand, and exaggerating the production process and material selection.
We will create a high-end mentality among all consumers, and then add our mid-range pricing strategy to our products.
I think it’s a good idea.”
"General Manager Ouyang, what do you think?"
"Boss, I think we can add one more thing, that is to invite celebrities from various countries to endorse our products."
Wang Yuanchao responded with a “hmm” and thought for a while before speaking: “If that’s the case, then to deal with the impact of A-grade goods, we need to take a multi-pronged approach and make arrangements in advance.
General Manager Ouyang, I plan to let you be in charge of the monopoly of production materials, and General Manager Hu Wei will cooperate.
Try to reach cooperation with upstream raw material suppliers as much as possible. Our company needs the priority supply rights of these raw material suppliers.
Secondly, it is to intensify the public opinion war caused by the opening of the Victoria's Secret flagship store, attract the attention of all Hong Kong citizens, arouse everyone's curiosity, and detonate the sales of the Victoria's Secret flagship store.
At the same time, I am preparing for the opening of the flagship stores in Causeway Bay and Kowloon. I don’t plan to wait a month before opening each store one by one.
Now the Victoria's Secret flagship store is already popular enough in the Hong Kong market.
I plan to take advantage of this popularity and prepare a date in advance to open the two flagship stores at the same time.
Finally, there is the issue of Victoria's Secret brand positioning and building.
We have reached a consensus on positioning the brand as a mid-range brand.
As for subsequent celebrity endorsements, brand stories, advertising promotions, etc., the general direction can be determined, but the specific implementation plan is still unknown.
Which of these plans can you give me? Is there any problem? "
Ouyang Yuanfang and Hu Wei nodded at the same time. These were all things that everyone had discussed in the meeting just now. What could be wrong with that?
After recording the meeting in their notebooks, the two said, "Boss, please rest assured that there is no problem.
The opening of the Causeway Bay and Kowloon flagship stores, brand building, and the early layout of the A-grade goods that impact the company's brand, we will strictly follow your instructions and complete the task. "
Wang Yuanchao nodded, and without caring about the two company executives' attempt to shirk responsibility, he waved his hand and asked the two executives to leave and went back to work.
(End of this chapter)
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