Rebirth: My dad is too obedient

Chapter 332 Burning Ice 001 Champion Edition

Restaurant, quiet private room.

After finishing the meal, Xu Chen asked the waiter to clear away all the dishes and served a pot of the best ripe Pu'er tea.

While drinking tea, Xu Chen and Nie Fei discussed the general operation ideas of "Ranbing Sports".

Each of them had some ideas, and when they compared them with each other, they were very surprised.

At least in terms of core brand strategy, the two people's thinking paths are consistent, and the differences in individual operational ideas happen to form a perfect complement.

Nie Fei held a cup of Pu'er tea and drank it gently, her smile unable to hide her surprise:

"Every time I chat with Teacher Xu, I get a lot of surprises...

I am really curious about how you have these business framework ideas at such a young age. "

Xu Chen helped Nie Fei add more tea: "I just work harder."

Nie Fei: “There are many people who work hard, but only a few succeed.

You’re still different.”

……

Just as Nie Fei analyzed at the beginning, competition in the current domestic sports brand market has become fierce.

Foreign brands such as Nike and Adidas have built a solid moat with huge operating costs, top product quality, and cutting-edge design, and have dominated the high-end and part of the mid-range market.

Domestic brands such as Li Ning and Anta, relying on their early start and established user awareness, as well as relatively affordable prices, occupy the mid- and low-end product lines...

Under such circumstances, it is not easy for a new sports brand to gain momentum.

But it’s not easy, but it’s not completely without chance.

In this regard, Xu Chen and Nie Fei have the same thinking.

Taking sports shoes, the core category of sports products, as an example, international brands such as Nike and Adidas have a very high brand premium, and the prices are often five to six hundred or seven to eight hundred yuan, which makes many domestic consumers stay away.

In their cost structure, the largest proportion is actually brand premium, which also has to cover high brand promotion investment, offline stores, etc.

The actual cost of the shoes may be only tens or hundreds of yuan...

Domestic brands of shoes do not have much of a brand premium, but since they cannot afford high prices, they cannot "stack up" on product quality.

At the same time, there is still a big gap in product design compared with international brands.

……

However, at the time of 06, several core domestic brands had not yet begun to truly invest in the development of mid- to high-end product lines.

Or there have been some shallow attempts, but they all ended in failure.

This provides space for "Ranbing Sports" to enter the market.

The core operating idea of "Ranbing Sports" is to have product quality and design standards comparable to those of international brands, but at a relatively affordable second-tier price, coupled with the brand bonus of the three words "Xie Bingran".

In terms of overall brand positioning, Xu Chen gave the four-character definition of "national trend sports".

In 06, the concept of "national tide" had not yet emerged, and domestic footwear and clothing brands were still mainly imitating and referring to Europe, the United States, Japan and South Korea.

Xu Chen's idea is to leverage the national sentiment aroused by Xie Bingran's "championship" to create a "sports fashion brand with national feelings."

With avant-garde and trendy designs, integrated with some design elements of the Chinese nation, we were the first in the industry to define and shape the concept of "national tide".

"National trend sports, a trendy sports brand with national sentiments..."

Nie Fei pondered over this sentence, unable to contain the excitement in his heart:

“This idea is indeed unique, at least no domestic sports brands currently do this.

Everyone still mainly imitates and copies...

Even though some red-themed products were launched, they did not have any influence..."

Xu Chen: “The requirements for product design will be relatively high.

I have seen several products made by Li Ning and Anta in the past two years. They have some ethnic elements, but they are somewhat rustic and the design has too much patchwork feel.

If we want to define the word "national trend", we need to come up with truly eye-catching designs."

Nie Fei nodded: "There is a design studio in England, and Chen Youjian in Hong Kong...

But it will be more expensive.”

Xu Chen: "This money is worth spending."

Nie Fei smiled and said, "I feel relieved when you say that.

In fact, after I left Jiaduobao, I also received a job offer from a domestic sports brand.

I was thinking about going there, but after talking to their boss, I found out that they were very reluctant to spend money on design..."

Xu Chen smiled and said, “Anyway, what my dad and I can do is to try our best to ensure the starting capital.

How to split it specifically is up to Sister Fei.”

……

When it comes to product entry, Xu Chen and Nie Fei have the same idea.

In the early stages of the development of "Ranbing Sports", its flagship products focused on "professional sports running shoes".

Sports running shoes are a natural fit with Xie Bingran’s image on the track.

At the same time, running shoes are much stronger than apparel in terms of technological accumulation and brand premium.

Whether it is a domestic or foreign sports brand, the product line of "sports running shoes" is the foundation of the brand.

Nie Fei also agrees with Xu Chen on marketing strategies.

Currently, whether it is Nike, Adidas, or Li Ning and Anta, their distributors still rely on a large number of distribution stores covering the whole country.

This also pushes up the entry threshold for sports brands...

In the early stages of Ranbing Sports’ development, the amount of funds it had was not enough to support a large number of offline stores.

At the same time, without strong brand awareness, opening a large number of offline stores is almost a pure waste of money.

But at this moment in 06, the rise of e-commerce just happened to provide a convenient starting channel for the market distribution of "Ranbing Sports".

Taobao's Dau has now exceeded nine million, making it the largest shopping website in Asia.

Nie Fei’s suggestion was to open an offline experience and display store in Shanghai while opening an official online store.

After "Ranbing Sports" reaches a certain scale, we will decide whether to roll out a larger offline distribution network.

As a person who has been reborn, Xu Chen still has some ready-made ideas for operations and hype to provide.

“With the help of Xie Bingran’s popularity, coupled with top-notch product quality, design, and gimmicks, the first product will definitely have a lot of highlights.

We can do something like a limited edition of 1000 pairs.

Official online channels, reservations and purchases, etc...."

In his previous life, Xu Chen had experienced the scams of shoe speculation, futures, and F code.

Using it in 2006 can be considered a dimensionality reduction attack.

Xu Chen roughly talked about some operational ideas, and Nie Fei couldn't help but exclaim in amazement:
“It’s obvious that we have insufficient production capacity and are doing market verification, but you turned it into a nationwide rush to buy it, and you also managed to create some marketing hype.

You are such a little genius..."

Xu Chen pondered for a moment and said:
“The time for the launch had to be chosen specifically, a time when Bing Ge won the championship and was popular.

The first product is called [Ranbing 001, limited to 1000 pairs of champion edition].

Nie Fei pondered these words:

“Ranbing 001…limited to 1000 pairs, champion edition.

Good, it's going to make you go crazy the moment you hear it!"

Regarding the product differentiation of "Ranbing 001", Xu Chen also directly gave the core ideas.

"Feeling of stepping on shit", "soft and elastic midsole".

In the past, the most successful sports shoe marketing concept was the "feeling of stepping on shit" concept launched by Adidas in 2013.

After Adidas' "popcorn" shoes became popular, the concept of "stepping on shit" became deeply rooted in people's minds and had a profound impact on the entire sports shoe category.

In the following decade, brands such as Nike and Li Ning followed suit and launched sports shoes with soft and elastic soles, which became a trend.

At this time in 2006, no brand had really started to focus on the concepts of "stepping on shit" and "soft bounce", which provided a great market opportunity for "Ranbing Sports".

Ranbing Sports not only has to define "national trend sports", but also has to define the "feeling of stepping on shit".

……

Xu Chen stated the core idea, and Nie Fei frowned, as if he was thinking about it seriously.

“This idea is quite novel…

In fact, all companies are making soft bullets, but they have not been specifically used as a marketing concept.

Although the three words "feeling of stepping on shit" are a bit vulgar, they are very communicative.

I think young people will like it." As a "professional" in the sports category, Nie Fei also shared some professional knowledge with Xu Chen.

Just like electric cars have three major components: "motor", "electronic control" and "battery", sports running shoes also have "three major components":
Upper, midsole, outsole.

The upper is responsible for wrapping, support and breathability.

The midsole is responsible for foot feel, elasticity, and shock absorption, and is the key to comfort.

The outsole is responsible for wear resistance and anti-slip...

The "feeling of stepping on shit" and "soft bounce" mentioned by Xu Chen are mainly solved by the "midsole".

The midsole is the core component of professional running shoes and determines the competitive performance of sports shoes.

Nie Fei is worthy of being called an "industry professional" and he has a very good understanding of the mainstream technical principles in the industry.

Midsole technology is currently divided into two categories.

The first type is "mechanical structure", which includes Nike's air cushion and Asics' Gel.

The mechanical structure is stable and durable, but the disadvantage is that the material mass density is high and the shoes are generally heavy.

The second is "foaming technology".

The Boost popcorn launched by Adidas later is actually an iterative foaming technology.

Foam materials have excellent resilience and are lightweight, which can meet the demand for lightweighting, but their disadvantage is that they are not very stable and durable.

The current foaming technology in the industry is mainly EVA foaming, which has been used since 1975. Some mid-range shoes of domestic brands also use EVA foam...

If Xu Chen remembers correctly, Adidas' Boost popcorn technology was first used on midsoles in 2013.

But this foaming technology actually came into being as early as the 2000s.

At the same time, EVA foaming also has iterative "secondary foaming" technology...

Xu Chen said, “Sister Fei just mentioned the two midsole technologies.

My suggestion is to go with the foam material route. On the one hand, it can meet the demand for lightweight, and on the other hand, it does not involve the patents of large manufacturers like mechanical structures.

The only problem is that we need to find the best and most advanced foam materials in the industry.”

Nie Fei was a little hesitant and said:

"Foam materials are still somewhat weak in durability, so only mid- and low-end products are using them in China..."

Xu Chen: “Don’t worry too much about this.

First, we need to look for the latest and best foam materials and find ways to solve some durability issues.

Second, our shoes are not sold at as high a price as Nike and Asics, so we don’t need to put too much pressure on ourselves.

Third, sports running shoes are consumables after all, so we can directly tell users how many kilometers they have been used and recommend replacement..."

The third point mentioned by Xu Chen also comes from past life experience.

In the past, in the 2010s and 2020s, with the rise of the domestic "horse racing" culture, one or two professional horse racing brands and products were born in the country.

They have made very detailed divisions of products.

For example, a certain product is suitable for long-distance running of 10 kilometers and has a lifespan of 1000 kilometers.

Another product is suitable for long-distance running of 30 kilometers, with a lifespan of 500 kilometers...

This is actually a very "cunning" marketing operation.

On the one hand, it can make users feel very "professional" and it is obvious that technical considerations have been taken into account at a glance.

On the other hand, it also gives a clear explanation for the life of running shoes, turning sports shoes into consumables that need to be "replaced regularly".

Invisibly, it also increased the "repurchase" of sports shoes...

These operational ideas from later generations were of great benefit to Nie Fei. She couldn't help but sigh:

“Your ideas are really novel and brilliant.

You and your father are both born to do business..."

Xu Chen smiled and said, "I don't dare compare myself with my dad, I'm just bragging.

In addition, there are also industry masters like Sister Fei who help me implement and realize my ideas..."

Nie Fei smiled, picked up the teacup and clinked it with Xu Chen's:

"Fulfilling the mission."

……

Just like that, over a pot of tea, the two of them talked about the core implementation path of "Ranbing Sports".

Follow-up work was mainly promoted by "General Manager" Nie Fei.

In terms of finance, Fang Jun and Nie Fei have already started contacting each other. With Teacher Fang Jun keeping an eye on it, Xu Chen hardly has to worry about anything extra.

In addition to the cash currently in Dongchen Advertising's account, Fang Jun will also receive a sum of money from Dongchen Shares as the initial capital for "Ranbing Sports".

In about half a year, we will gradually raise 10 million in cash.

Nie Fei and Xu Chen also did a rough calculation and concluded that 10 million was more than enough as a starting point.

Taking advantage of Xie Bingran's popularity, without making any additional large-budget marketing investments...

In terms of distribution channels, we will focus on e-commerce first, and not pursue too many store coverage...

First, we will focus on creating the first flagship product of "Ranbing 001", and not expand the product line too much...

For these basic operations, 10 million is enough to get started.

Then there is the issue of team building for "Ranbing Sports".

Sun Amy and Gu Xinxin can each devote some of their energy to supporting Nie Fei, but the company still needs to expand the team.

The most important thing at present is the talents in three modules.

First, a product expert is needed to help solve a series of problems on the product side, including supply chain, materials, factory docking, etc.

Second, an e-commerce distribution expert is needed to build the e-commerce system of Ranbing Sports, including an online official store and online promotion.

Third, a design expert is needed to handle the core product design. Of course, this aspect is not urgent at the moment. Nie Fei plans to set aside a budget and find a top design company in the industry to handle the design of "Ranbing 001".

Besides, Sun Amy can still help to some extent.

Then there is the market promotion and marketing module, which can be handled by Nie Fei, Sun Amy and Gu Xinxin, not to mention Xu Chen.

As for opening an offline store in Shanghai, it is not a high priority at the moment and can be put on hold.

……

……

The night wind is somewhat chilly.

Xu Chen took Nie Fei for a stroll around the campus of Tonghai University.

Nie Fei smoked a long thin cigarette and whispered:

"I'm really jealous of you. You've achieved success in your career at such a young age..."

Xu Chen: "I have a successful career, and I have to thank Sister Fei for helping me run it."

Nie Fei: "You and your dad are really a rare father and son in business."

Nie Fei took a puff of cigarette and suddenly said:

"Is your dad single?"

Xu Chen was stunned and looked at Sister Fei with a puzzled look on his face.

Nie Fei laughed and said:

"A bachelor like him is really a hot commodity.

If necessary, I can introduce some female elites to him.

There are many around me, many of whom are returnees from overseas, and are all older and ready to get married.”

Xu Chen: “…”

Nie Fei pondered for a moment, turned to look at Xu Chen, and said with a smile:

"Just ignore what I said. Finding you a stepmother or giving you a younger brother is something you really can't do."

Xu Chen smiled awkwardly and said nothing.

For some reason, Fang Jun and Wu Yue suddenly appeared in Xu Chen's mind.

Inexplicable.

……

……

(End of this chapter)