McKids McDonalds Lost in China

Following the opening of the first McKids children's clothing store in China in 2004, McDonald's children's clothing has been tepid and not known to the general public. Recently, there is news that the McKids series will increase sales in department stores in China in the near future. The person in charge said that in business, McKids will set up counters through large shopping malls and will establish its own independent stores. Although it is separate from McDonald's, it also uses McDonald's restaurant for interactive promotions.

In 2004, McDonald's entered the global market with children's wear-led children's products and unified use of sub-brands extended by Mcdonalds. "McKids" is a clothing brand created by McDonald's company in 1987.

As a world-class brand name, McDonald's children's clothing at the beginning of the listing, has caused domestic rave reviews. However, the practice in the past two years has proved that "McKids" did not create a huge profit for McDonald's as expected, but was submerged in China's large and small children's clothing market. Its operations failed to pass on McDonald's development strategy. The research and analysis of relevant market experts believe that McDonald's is doing wrong diversification in the wrong direction, and that brand masters have lost their direction in brand operations.

Mckids diversification choose wrong direction

Some people think that China's children's wear market can not dig out "Gold baby." There are 300 million children in China, and 10 million newborns will be added every year. There are about 6,000 children's wear enterprises in China, which is less than 10% of the total number of garment enterprises in the country, and children's wear only accounts for about 6% of the total national apparel production. Children's clothing is much lower than adults. In the children's wear market, there are only 200 domestic and foreign branded products, occupying 30% of the market share. The other 70% are divided into many unnamed brands. Although many well-known foreign brands have already entered China, they do not have a leading brand leading the way. The well-known brand in the children's wear market has a much lower brand influence than adult clothing. It can be seen that the children's wear market is a primary market with low production and business concentration. The price of high-end clothing is around 200 yuan. The price of mid-range clothing is between 100-200 yuan. Most children's clothing prices are below 100 yuan. From the price point of view, children's clothing is difficult to have a high added value, and from the cost point of view, according to experts, the difference between the cost of clothing for adults and children is very small, mainly reflected in the fabric, the cost difference of 5-10 yuan gap. Therefore, the profit margin of children's wear is very limited, so it is not difficult for us to understand why children's wear brands rarely see brand promotion on a large scale.

"Kids" don't earn well. Although the child is the center of the family, parents are fully committed to the child's healthy growth. However, parents’ care for children is mostly in nutritional supplementation and intellectual development. Children are consumers of children's clothing but policy makers are their parents. Due to the rapid development of children and the rapid elimination of garments, the choice of children's clothing mainly depends on whether they are comfortable and durable. The manager of a children's clothing store in a large store in the North had rejected the proposal for a provincial agency for Pierre Cardin's children's clothing. He said that unlike the purchase of toys, children's decision-making participation in purchasing clothes is very limited, and brand promotion for children's promotion has no effect on parents. In addition, because parents are relatively young, the pressure on consumer spending is relatively large. Buying clothing for children is more about the physical aspect than factors such as taste style and brand image.

Sub-brands don't benefit McDonald's

According to the analysis of experts, according to the brand positioning and extension theory, the brand influence of the sub-brand with the parent brand can easily cause consumers to pay attention to the initial contact with the product, that is, it is easy to create popularity and recognition, but it is difficult to establish the degree of preference and reputation. . Therefore, it is not difficult to understand why many well-known brands of extended products began to enter the market, often attracting investment hot, smooth channels, but after a short lively terminal is attributed to silence, and finally to end.

McDonald's is a chain service provider of fast foods. Its brand identity system is not only its trademark, but also its standardization services, specific dining environment and atmosphere, and traditional food. Mckids is a series of children's wear-based products. Children's products, the brand attributes between the two are very different, it is difficult to natural over, so McDonald's support for the sub-brand is very limited. The birth of extended products will inevitably be accompanied by the establishment of new product efficacy and image self-positioning, and in the process of extending the extended brand, the mother brand will inevitably cause the positioning of the brand in the mind of the brand audience to dilute the confusion and confusion.

Mckids is inherently inadequate and grows hard

The key factors that determine the success or failure of apparel competition are the selection and development of fabrics, the advance of design style and the establishment of a unique brand image. Although McDonald's began to explore the operation of children's products since 1987, it has not been the main target of promotion, and its mode of operation is mainly in the form of commissioned outsourcing brand. Obviously, the object of outsourcing is obviously not a giant in the field of clothing industry or children's products. Therefore, Mckids cannot expect to start to surprise people with the reform of fabrics and clothing styles.

Although Mckids has a "blood" relationship with McDonald's, it can get more attention at the beginning of the listing, and it is easy to gain the favor of agents, and then get the success of the channel, but in the terminal because of the brand has encountered a great deal Sales resistance. The McDonald's has a huge influence. After several decades of proactive dissemination and the result of its own steady growth, McKids cannot inherit. The common use of advertising to quickly establish a brand is due to the limited awareness of the object and the immature market itself, apparently not to bring much actual profit to McDonald's. The use of cartoon characters in the children's products market seems to be a multiplier. However, it is actually more difficult to operate. Getting a literary work that can cater to the child's psychology and can lead to an upsurge is often a matter of a lot of luck.

In the children's wear market, Mckids is undoubtedly a younger brother. There are too many competitor rivals such as Mickey Mouse, Snoopy, Cherry Crusher, Piggy Banner, Ant Arnold, Crayon Shinchan, and Piggy. These international brands are unsurpassed. In the children's wear market, the following types of opponents will compete fiercely with Mckids: First, famous foreign children's brands such as Mickey Mouse, Snoopy, and Cherry Crusher will directly attack it. They are in the minds of children. More brand influence; Second, world-class clothing brands use brand extensions and channel clothing to develop children's clothing. Such brands have deep-rooted influence in the minds of parents. If they look at the performance level and identity, no doubt the parents are more aware. Like this kind of traditional world brand. Finally, it is the original domestic children's clothing brands and local brands such as children's products giants such as children and Wahaha. They will use the advantages of channels to weaken the market influence of Mckids.