Double Star: Successful Practice from Name Brand Management to Operating Famous Brands

For a labor-intensive state-owned enterprise, how to carry out deep-level reforms? How to maintain strong momentum? The leading company in the footwear industry in China, the Double Star Group, has successfully implemented brand name management and operating brand names.

Creating a brand is wealth
In the early stage of development, Double Star was a “four backward” company with backward technology, backward management, backward products, and backward concepts. However, they always adhered to the “market-based line, brand-name as the core, and innovation as the theme” and used the brand strategy. Achieved a successful leap.
Twenty years ago, when most of the others didn't really understand what was a brand name, President Wang Hai of the Double Star Group proposed to “create China’s own national brand” and established a strategic plan for the three stages of brand development. Brand name development stage and brand advanced stage. In the past 20 years, the Double Star Group has been implementing its own brand strategy down-to-earth - initial stage: updating the existing old products, from the initial follow-up to the later innovation; the development stage: the establishment of a specialization The product development team has enabled the product to achieve "development of a generation, production of a generation, development of a generation, reserve generation"; advanced stage: the "specialization, high-grade, tree image" as the main target, began to compete with the world famous brand. In particular, it is worth mentioning that double-star shoes have been the No. 1 sales nationwide for 15 consecutive years, becoming China's first batch of recognized "China Top Brands," and Double Star Tire was named China's "Top Ten National Brand". As early as 2000, the Double Star brand The value will reach 10 billion yuan. However, in the new era, the Twin Stars have not satisfied with this. For many years, Double Star has achieved less investment and more output through brand extension, brand operation, brand expansion and other means, and achieved the purpose of creating profits through chickens and eggs. , entered a new era of brand management.

Use brand for strength
After a company establishes a brand, it must be good at planning from a strategic point of view and strategizing for the battle for brand management. "Double Star" owns the sole well-known trademark of China's footwear industry. Brand name means wealth, fully exerting the brand-name effect, using famous brands to develop brand names is the shortest path and the only way for the company's development. With the use of famous brands, Binh Sing, the first beautiful trick in the southwest, was to rescue the Chengdu Red Flag Rubber Factory in Sichuan, which was close to failure. Double Star took over the factory, equipped with management production personnel, organized the production according to the concept of Double Star, and made the company that year. After achieving profit, they expanded their business with brands, used the reputation of the famous brand market of Double Star, merged with peer companies that were on the verge of collapse, and successively merged and established Double Star Zhongyuan Company, Double Star Zhangjiakou Company, and Double Star Guiyang Shoes Company. Since 1998, Double Star has absorbed and merged with the original Jiaonan Huaqing Tire Industrial Co., Ltd. to form Double Star Tire Co., Ltd., which achieved the leap from “giving people shoes” to “making shoes for cars” and found new economic growth points. , Formed a new pattern of footwear industry, clothing, tires, machinery, thermal power and the five pillar industries together to make bigger and stronger. Wang Hai said that the operation of the brand, in essence, is the problem of capital operations, use the intangible assets of the Binxing brand name to find tangible power and tangible capital, and then use tangible capital to promote the development and expansion of enterprises and promote the increase of tangible assets. The two complement each other and promote each other.

Banking funds
Today, DoubleStar has formed the largest marketing service system for the Chinese footwear industry in China with 3,000 chain stores nationwide. To speed up the accumulation of funds, speed up the pace of development, and take advantage of DoubleStar's brand marketing to attract social hot money into the ranks of Double Star Products Chain Monopoly, and to sell or select the best package, rent, and recover large amounts of funds from the Double Star Stores that were established and funded by themselves. Build stores and resell stores to achieve rolling development and continuously expand market size and brand influence. On the other hand, Doublestar has signed licensing agreements with some companies with a good production base but weak market awareness to inject management and production into new expansion lines. Personnel, seeking greater advantages of brand-name products.

In the cooperation with these factories, doing a good job of product quality is the basis and guarantee of brand operation. To this end, Double Star concluded a complete set of double star quality management theory, put forward the "three" quality "big quality" viewpoint, pointed out that the company's quality includes "product quality, work quality and service quality." In the process of quality management, the first is to strengthen the quality management of raw materials so as to prevent them in advance. The designated processing factory purchases from fixed material suppliers and shoe soles factories are not allowed to purchase it casually. Resident personnel must follow the scene to prevent shoddy and affect quality. The inspection and control system for raw materials, semi-finished products and finished products, and the complete licensing and processing management system have been added. The implementation of the product technology, the color and quality of the raw materials used for the products, including the color pictures, tongue labels and box labels of the packaging shoe boxes Strict regulations were implemented. The second is to cultivate the moral quality of the factory. The main factories under orders, through regular and irregular visits, are gradually guided by the twin-star market theory, communicated and communicated with the concept of dual-star management, and used double-star corporate culture to educate them. “The best product quality is the best The quality management concept of Jide was desensitized and gradually allowed them to sublimate the quality of their products to the level of moral management, and to change the quality of products from passive to active. At the same time, it strengthens the production planning management. During the production process, the Double Star Group dispatches factory quality supervisors to track the entire production process of the orders, supervises the production and product quality, and returns the quality shoes to the market according to the product number and order number, and implements it in each processing plant. And the factory quality control personnel, easy to take different measures to control and implement the responsibility, making this year's quality shoe replacement rate dropped significantly. The third is to do a good job of product development and do a good job of service quality. New products with new materials, new styles, many colors, good quality, and fine workmanship have been introduced. Double-knit sandwiches are used on the helper materials. Three DMD soles are used on the soles, and the rubber self-adhesive PU soles are used to make the uppers more flexible and flexible. Lightweight wear-resistant soles, insoles comfortable, breathable, deodorant, led the market trend. They also set up an online sample room to solicit the opinions of agents in a timely manner. Not only did the agents earn money, they also promoted sales.

By borrowing “chicken” and “egg”, the company borrows money from the license and gets a good grasp of quality, so that Double Star continues to expand its market share and influence. For example, in March 2003, two employees of Binhai established the Double Star Slipper and signed a contract with the Double Star Group. In the case that Twinstar did not invest a penny, the Slipper Department used the value of the intangible assets of the famous Starstar brand, borrowed social power, developed its own market network, made orders for its own factories, sold itself, and achieved sales revenue from zero to good. A historic leap and overfulfilled the contracting indicators. In 2004, on the basis of the successful operation of the Ministry, the Department of Children's Shoes and Men's and Women's Shoes were established, and all of them signed contract with contractors. This "chicken" under the "egg", "egg" was born "chicken" approach, so that the operation of the dual-star brand in the short term has been rapid development.
At present, there are more than 100 companies that have set up processing and processing facilities under Double Stars, and only 15 factories in southern China's Wenzhou and other places have set up processing facilities for Double Stars. Under Double Star's cultural philosophy and strict management, many factories rely on Double Stars to go on. The road to development and growth, some international brand-named companies are also optimistic about the double star, and have double star "married (pro)." For example, in Guangdong, a shoe-making factory that gave Nike processing and production also joined Double Star at the same time, becoming a double-star shoe-making factory.

The implementation of a strategic shift from brand management to brand management has led to a successful road for Double Star to adapt to the brand competition requirements, enhance the brand level, and strengthen the brand market advantage. Recently, Gu Xiulian, vice chairman of the Standing Committee of the National People's Congress, Yuan Baohua, former director of the State Development Planning Commission, and other leaders of the relevant state departments, and experts and scholars from the Development Research Center of the State Council and dozens of people in the business community attended the "Double Star" at the Great Hall of the People in Beijing. When the Group entered the 20th Anniversary Seminar of the Market, it believed that the practical experience of Qingdao Double Star Group's 20 years of active entry into the market and the brand operation mode of Double Star had important implications for exploring how state-owned enterprises can deepen reform under the new situation.