Timberland'S New Leap To Seize The Chinese Market

There are always some brands around us. You've heard the name, but what exactly does it do? It seems that there is no impression.

Despite its six years in China, Timberland is such an embarrassing situation in the minds of most Chinese consumers: it has a certain reputation, but its position is blurred.

Few people have made it clear that it was originally from the United States.

。

However, Stewart Whitney, vice president and executive director of Timberland Asia, intends to make good use of this fuzzy location method. Stu Venning

"I think the best way to describe it is that we are a Outdoor Lifestyle brand."

The concept of "outdoor recreation" was not invented by him.

In the 1990s, American rappers turned Timberland's waterproof boots into the hip hop world.

Yellow Boots has also become a pioneer in bringing outdoor clothing into urban life.

However, since 2006, the brand has lost its way, and with the heavy blow of the subprime mortgage crisis, Timberland net profit plunged nearly 60% in 2007, and has been depressed since then.

Today, after being bought by the world's largest garment maker VF group (VF's brand including Lee, The North Face and many other brands), it relies on big trees.

We plan to regain the Chinese market.

China's outdoor market has quietly increased by nearly 50% per year.

According to the survey report of China Textile Association outdoor products branch, in the past ten years, the total retail sales of outdoor products in China increased by 47.33% annually, and the total retail sales in 2010 reached 7 billion 130 million yuan.

In order to allow Chinese consumers and their agents to accept the concept of "outdoor recreation", in May 2012, Timberland opened a direct store in Meilong town square, Shanghai.

Before that, the brand has already opened nearly 150 stores in China relying on 20 agents.

"I think there must be direct outlets in China.

We can put the new products and new Idea that agents do not want to touch and put them in the test, then get feedback from the market.

Situ Weining explained.

Therefore, this store is more like a huge Showroom, and every detail is carefully designed to convey a unified brand image: "Yellow Boots" are placed in the most prominent position as the treasure of town stores; every poster in the shop is designated as new England because of the location and model, because it is the birthplace of the brand; on the shelves, unlike those professional outdoor brands, it does not look like technology.

And the assault suit, but the fashionable sailing shoes with the brightly coloured Polo shirt.

But if we observe carefully, we will find that the outdoor elements have not disappeared, but are cleverly hidden in scattered details.

For example, the surface of the leather boots with special waterproof treatment is lined with a mesh of breathable and fast drying fabrics. The sneakers can be folded into the pockets.

"Our products look very casual, but in fact they can withstand the test of extreme outdoor environment."

Situ Weining picked up a pair of yellow boots and pointed to the metal rings on the shoelace holes. "Can you imagine that even a small piece of copper should be treated with rust protection and salt water corrosion resistance?" in fact, there is market logic behind this cross-border positioning.

The reason why Timberland is outdoors is that waterproof fabrics and rust proof shoelace holes can sell a pair of yellow boots to thousands of prices.

In other words, outdoor elements allow Timberland to continue to maintain a more high-end price and positioning.

According to the statistics of China business information network, four of the top six brands of sportswear in 2010 ranked as professional outdoor brands, and the price level was at least 70% higher than that of the overall brand.

"We find that Chinese consumers value the unique fabric and technology of outdoor products, and are more willing to give generously to good products, even at higher prices."

Columbia Bill Tung, Asia Pacific and Latin America regional vice president, told reporters.

Another important factor: the style and design of leisure make Timberland better than professional outdoor brand products.

In China, good-looking seems more important than anything else - professional outdoor sports are just emerging here, and still a small hobby.

More people may simply need a pair of boots that will not be soaked on rainy days. They will not be surprised to wear into the office as if they are wearing hiking shoes. Most of the companies who work in cities for a long time may not go hiking to the mountains and lakes frequently. The more realistic choice is probably the outing in the suburbs.

This "Outdoors" characteristic determines that outdoor products must meet people's daily collocation needs, and it is fashionable enough.

Timberland found that the three elements that influence Chinese consumers to make purchase decisions are style, performance and green.

Sometimes good-looking in China also means brighter colors.

What surprised Stuart Weining is that American men are much more conservative in this respect than Chinese male consumers.

Therefore, Timberland has more diversified colors for men's wear in China, while in the United States, traditional cool colors still dominate the mainstream.

This sequence, which is summarized by master Weining as "SPG", has become the criterion of Timberland's R & D, design and marketing for all products in China.

"We choose to add the function and technology of outdoor products to fashion items, so that it can take into account two aspects simultaneously."

However, such a "cross-border" positioning also means that Timberland's competitors in China are not just outdoor brands.

Perhaps inspired by VF group's other casual wear brands, Timberland is determined to choose women's clothing instead of footwear that has always been good at it as a breakthrough.

This is indeed a potential buying group that is often overlooked, especially in the field of outdoor sports.

According to the Taobao index, 61% of all outdoor products purchased on Taobao in the past year are men.

Although almost every outdoor brand will introduce women's clothing, too tough design can't arouse women's desire to buy.

In fact, women are the real decision-makers of household clothing consumption, and will also affect men, especially in Asia.

"I know there is an outdoor brand, and when a woman walks in, she won't buy any product inside."

Situ Weining said, "women's logic is completely different.

Women look for good clothes, even if the size is not very suitable, they are willing to buy.

They are very fussy about style. "

This seems to coincides with the new orientation of Timberland's "outdoor recreation".

{page_break}

But that does not mean that VF will directly put its brand Lee or Wrangler's women's shirts and jeans directly into Timberland's shop.

VF has never tried to make two independent brands "mashup" after the merger.

Efforts are all behind: optimize the brand support system.

Since its acquisition in the third quarter of 2011, Weining has almost talked with VF group's brand leader in China, sharing management experience and looking for opportunities to complement each other in procurement, supply chain and logistics.

This advantage will soon emerge.

After the completion of the acquisition, Stuart Weining led the Asian team: directly docking with Timberland headquarters designers, and quickly designed four autumn and winter women's clothing series which belong to the Asian region.

"I admit that after joining the VF, if our team has a good idea to help the company, then it will be more likely to get enough money."

Within a few months, the four series doubled the sales of Timberland's women's clothing.

Even dealers in the European and American markets are willing to spend money on their best sellers and sell them in their own stores.

In the spring of 2012, there were four new women's wear series, including shoes, bags and other accessories specially designed for them.

Even the details of product display design are taken into account.

Although the women's clothing area is not large in Timberland's shop, some small posters and decorations create a more soft and refreshing style compared with the men's wear area.

"Selling women's clothes is not a corner, and a pile of clothes and shoes is finished on the shelf.

This is a completely new operation system, from product design to shop display, even when the shop assistants are in contact with female customers, they need special training.

Said Stuart Weining.

Despite the reluctance to disclose the specific revenue figures of Timberland in the Chinese market after a series of consolidation since September 2011, Stu Venning said that this is a two digit growth, which is much faster than that of the brand in other markets.

Judging from any category, China is the fastest.

Of course, in China, if the brand can not grow to two digits, it is too much to say.

Its rival, Columbia, has opened nearly 600 retail outlets in China on the strength of its general agent, Swire Group.

A shopkeeper who monopolizes Timberland and Columbia on behalf of Taobao has also confirmed that Columbia products sell better there.

With the support of VF, at the beginning of 2012, Timberland launched a large-scale market research plan in the world, of which China is the largest sample city.

These interviews will be collected in the summer of 2013 as first-hand information on the Chinese market to help Timberland make more efficient decisions in the future.