Vanke Eslite Brand Crisis

"Great Leap Forward" Brings Guests to Crisis

Vanke has maintained a very rapid pace of development since its establishment until 2010, and its sales have grown from zero to two billion in a few years. The rapid expansion of enterprises coupled with the buoyant capital has made the management of the company generally inhospitable. This point can be seen from the formulation of sales targets for 2011 by Vanke. At the 10th Annual Conference of Fanke, the 11-year sales target announced by the aging is 4 billion. Just after New Year's Day, the target is raised to 6 billion. In March, it increased to 10 billion, which was a full five times that of the previous year! Ageing even shouted a goal of 30 billion yuan in 2012 and 100 billion within five years.

I suddenly thought of the Zhuhai Giants Building in the 1990s. Giants initially planned to build 18-storey office buildings for personal use. But later Shi Yuzhu, who had a feverish mind, changed the construction plan of Giants Building to 38-storey, 54-storey, and 64-storey buildings successively. On the 70th floor, the capital problem caused by the construction of the giant building eventually dragged down the giant company, and the building construction became less than three floors. Shi Yuzhu once recalled that the act of building the giant building was like a kindergarten group of children filming there.

Returning to Vanke, we will increase our annual sales target three times within three months. This is similar to Shi Yuzhu's continuous change in the construction plan of the Giant Building! The reason is the expansion and impetuousness of leaders. Mistakes in decision-making always have to pay a price. The sales target is increased by several hundred million yuan. Not only is the change in numbers so simple. For customers who had a sales volume of only 2 billion in the previous year, if they want to reach a sales target of 10 billion yuan, production and warehousing , logistics and even after-sales require a great deal of investment and improvement. Unfortunately, Vanke's sales in 2011 are far away from the target. As we have seen, the high inventory and deep layoffs of passengers can be said to be the inevitable consequences of the Great Leap Forward.

Brand devaluation pushes guests to the abyss

If the business strategy of blindly expanding brings heavy burdens to all customers, then the brand crisis faced by customers may push it into the abyss. Because of the excessively high sales target, if the existing categories cannot be achieved, the customer chooses blind category expansion to not only sell commodities such as general merchandise, but also to launch V+ brands, and to start an apparel e-commerce platform. . I am an old customer of Vanke, but after seeing all customers selling mops and even kitchen knives, I understand that this guest is not the Internet fast fashion brand.

In addition, in order to increase sales volume and solve inventory problems, product pricing continues to decline and discount activities continue. Low prices not only lead to lower product quality, but also directly eroded Vanke's brand value. One of my friends once commented that “Where customers are good, a lot of clothes are cheaper than children”. In my opinion, this is simply an insult to the Vanke brand. Today's Vanke has become synonymous with low-priced products. Although low prices can increase sales, we all know that price-based consumer stickiness is extremely low.
The strategy of changing the sales at a low price makes it difficult for the customers to make profits. It also directly leads to the devaluation of their brands, which makes the customer's brand premium ability weaker. I was very optimistic about Vanke. To a large extent, it was because the aged had created a “Internet Fast Fashion” brand positioning for all passengers. I remembered three years ago, my friend took 300 pieces and bought a belt from Vanke. I also highly praise the services of Vanke and highly recommend it to me. And now when I asked him again, he said, “Where the guest is now positioned too low, the new graduates of the company are all buying customers. It's cheaper. How can I be more embarrassed to wear it?” Where the brand's devaluation is visible One spot.

The development of passengers from 2008 to 10 years is a perfect "star" in the field of e-commerce, but with the problems brought about by the "Great Leap Forward" last year and the wrong brand strategy, Vanke faced Unprecedented crisis, although the aging has taken a lot of measures to try to reverse the decline, but the rebranding can not be completed overnight. Lei Jun said that e-commerce companies are like high-speed cars. No matter how fast they are, as long as they do not overturn, you will win. Where passengers do not roll over, but can not be accelerated after a sudden brake, but also whether the front road is open.