The Reasons of Initiating Reform And Innovation

In 2008 year the financial storm changed the situation of
international sports trademark in the Chinese mainland bazaar. It was
said by the Bao Cheng Group Annual Report 2009 that pattern that Nike,
Adidas was prevailing in mainly market, which was shaped in Chinese
sports requisite field for many years, was altering and the continent’s
trademark was increasing. In this context, Nike, Adidas must seek more
fine and deep sales in domestic market channels. At this time, Bao Cheng
group took advantage of an opportunity to create a new brand in
domestic sales market-Bao Yuan shoemaker. In 2009, Cai Qi ,who is the
managing director of Bao Cheng International Group and the president of
Yu Yuan Industrial Group, announced the Bao Cheng group would take the
long-term strategy of diversified management to change a single foundry
pattern and they would start a company with the concept of Bao Yuan
shoemaker to sell their own products.

Cai Qiongwen told reporters that the products of
BaoYuan shoemaker included both famous sports brand such as Nike,
Reebok, Lining that manufactured by Bao Cheng Group and its own brand
name, such as movement life footwear brand FOOT SPORTS, fashion female
shoes brand RYEE, etc.

It is the true origin for Bao Cheng Group
to create its private trademark of native sale. The added value of the
products under its own brand name is much higher than OEM, and its gross
margin is higher than OEM many times.

However, the action that
Bao Cheng Group intends to create their own brand is just a big fear of
sporting goods field. The risk will be very high to develop their own
brands. If Bao Cheng evolves its private trademark, the primary problem
is that how to keep the fellowship with brand firms. The world famous
brand all put the whole confidential design to share with Bao Cheng
without reservation. If Bao Cheng creates its own brand name, the brand
will probably be the enemy of brand firms, and may be the number one
enemy, and thus brand relations of cooperation can not keep going.

Then how Bao Yuan shoemaker step over the business dangerous line between a trademark customers and foundry business?

Based
on the industry professors, the Bao Yuan shoemaker and Sheng Dao
biggest distinctiveness is that Sheng Dao is a single-product stores,
and the Po shoemaker is the number of international brands and brand
integration multi-brand stores. So the agency and international brands
under its own brand name not only don’t conflict but also can be
complementary to each other.

Transnational trademark and private
trademark have different characters. There is no competition, instead
they meet a family of consumer one-stop needs through various product
lines combination and achieve win-win way. After a joint cooperation
with transnational trademarks such as Nike, Adidas, and doing a market
survey deeply, the first flagship store of the Bao Yuan shoemaker
started in Shanxing Town in Zhongshan City on the summer in 2010.

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