From an international furniture brand to a local brand, he needs a lot of determination

Some time ago, at a top brand Summit forum, professor Michel Gutsatz, vice president of Marseille Business School in France, takes Tai Ping (Taiping Carpets, hereinafter referred to as "Taiping") as an example to tell the story of how a Chinese local brand has turned into a high-end brand and successfully entered the international market, in his view, This is a very interesting and successful business school case. A few days later, I met James Kaplan, chief executive of Taiping Group, and Michel Gutsatz, the "saved" Pacific American. After three years of preparation, Taiping entered the mainland market and opened its flagship store in Shanghai.

Taiping, a carpet brand born in Hong Kong in the 1956, is renowned for its traditional Chinese carpets and works for refugees from mainland China and is well known in Hong Kong and Southeast Asian markets. Before inviting James Kaplan to be chief executive, the peaceful passing of some detours, including the blind investment in new joint ventures (cosmetics, cement, bottled water and the furniture leasing business in Hong Kong), has not only failed to keep the peace, but has plunged it into the mud, with a series of failed investments losing HK $200 million in two years. At the same time, Taiping's over-reliance on the Business-to-business market, in 2003, 90% of the Pacific's sales from corporate customers, the market flooded with a variety of low-cost carpet products also make the Taiping difficult.

At this time, Taiping made an important decision to stop by the shareholders on behalf of the management company, in turn from the outside to hire a professional manager with rich management experience. Soon they were targeting James Kaplan. He was the senior vice president of Knoll International.

"It took me 6 months to think about it. James Kaplan said. From an international furniture brand to a local brand, he needs a lot of determination. Finally, Michael Kadoorie, the biggest shareholder of Taiping Group, asked James Kaplan to come out and say, "taking over the peace and making it international is a once-in-a-lifetime opportunity." I will give you 100% resources and support. "Words let James Kaplan realize that this is indeed a rare opportunity, and it is time to change his career and he has worked in Noel for 14 years before he finds James Kaplan."

"I changed everything except ' peace '."

2003, James Kaplan became the first foreign CEO of Taiping, and he has been in office ever since. When he took office, he immediately found the problem: "Taiping has beautiful, high specifications of products, but there is no mature market strategy, do not know how to promote products." "He immediately made drastic changes," I changed everything except the name ' Taiping '. I was like painting on a piece of white paper. ”

1, the formation of professional team. James Kaplan quickly set up a powerful international management team in New York, USA, to build a global strategy. This includes chief marketing officer Simone Rothman, who was a former subordinate of James Kaplan. "I went to the Taiping 6 months after I dug her up, I know which posts need what kind of people, let professional people do their own professional things, is a brand success key." "Simone Rothman has a background in interior design, which brings the expertise and skills of the previously lacking brand logo to Taiping."

2. Unified Brand logo. James Kaplan found that the peace in the brand logo is also quite chaotic, the same brand, in different countries, different platforms on the appearance of the image, which for a brand, is undoubtedly a fatal wound. "I have invited brand experts from Europe to redesign the Taiping logo, using a unified logo and a visual vocabulary." ”

3. Establish a design studio in Paris. This makes it easy to benefit from the creativity of European designers and the complete design system in Paris. In his analysis of the Taiping case, Professor Michel Gutsatz said: "Taiping headquarters in Hong Kong, invited the CEO from the United States, senior team in New York, design companies in Paris, factories around the world, look very complex, but each of the operations have their own characteristics, have their own core competitiveness, A brand to internationalization, it should be eclectic. "It turns out that it is necessary to set up a design studio in Paris, which provides a favourable condition for the complete extravagance of the peace."

4. Stop the Foundry. Another approach by James Kaplan is to stop all the workers in the peace, "many people do not know that the peace, in addition to the production of their own carpets, but also for a lot of brands to do," James Kaplan said, "I even found that it also helps U.S. competitors to do production." I stopped the act at once. "Interestingly, in 2011, when Taiping acquired the French brand La manufacture Cogolin, in the latter's office, a long carpet behind, found the word" Taiping ", which none of the people on the scene thought of.

5, only to do high-end products. In addition, the Taiping stop manufacturing low-cost products, all into high-end products. "Taiping is one of the few high-end carpet brands that we have designed and produced, and many of our competitors have their own suppliers," he said. James Kaplan explained. He believes that a local high-end brand to internationalization, to be recognized by the market, the first to meet the consumer's high expectations of luxury goods-high-end quality, top design and high level of customer service, can be recognized. Taiping and Kenzo cooperation Kenzomaison luxury carpets have been successful in Europe.

6. A planned acquisition. In contrast to the blind investment and expansion of the end of the last century, James Kaplan a series of purposeful and planned acquisitions, successively bringing in a number of high quality carpet brands, including the previously mentioned French brand La manufacture Cogolin, and the American brand Edward Fields, Thai brand carpets Inter, plus the new brand Vicara created in 2013, and the 1956 by Tai Ping Brand founded in 2011, Taiping has a total of 6 brands. "These brands have their own characteristics and advantages, especially with unique craftsmanship, through acquisitions, we focus on a group of skilled hand-masters." ”

7. Open Exhibition Hall. In response to the Pacific's over-reliance on the business-to-business market, James Kaplan began building showrooms dedicated to individual clients. The first exhibition hall in 2005 opened in New York, followed by open showrooms in London, Hong Kong and Paris, and now has a Pacific flagship store in Shanghai. As it turns out, the move has been very successful, and today, the proportion of Pacific business customers and individual clients has changed from 9:1 to 5.5:4.5, "I hope the ratio will reach 5:5 in the future." "he said. According to earnings, Pacific's turnover soared from HK $563 million in 2004 to HK $1.4332 billion in 2013.

8. Change factory culture. At present, Taiping has 3 factories all over the world, 1 in France, 1 in the South China Sea, 1 in Thailand, and this year there will be an additional 1 in Xiamen, dedicated to the manufacture of handmade carpets. "I want our factory to look neat and tidy, and our workers will be respected and able to work in a good environment," he said. "It took him years to adjust and transform. "Nowadays, when our customers visit the factory, they are very impressed. Employees are the most important to us. ”

"I hope Taiping can be the same level as Savile Row tailor."

Taiping Shanghai Hall selected at No. 753 Yu Yuan Road, a building in the early 20th century of the house. The main building was originally commissioned by the American oil tycoon and philanthropist Rockefeller, which was completed in 1913. The location of the exhibition hall is hidden, it takes some time to find it, it seems that the outsider does not conform to the purpose of "investment".

"We don't want to make the showroom very commercial," said James Kaplan, "the number of visitors is not what we pursue, but the quality of the respondents." ”

Taiping in New York's showroom is selected on the second floor of a gallery, with a very artistic atmosphere. Taiping in Paris, located in the center of the Saint-Germain area of Montalembert Pui Street, is a 18th century Biltmore rebuilt from the new European designer Ramy Fischler fencing design. This time, Ramy Fischler also led the design of Shanghai Exhibition Hall, combined with architectural features, to create a sense of monastic general, but also designed a dedicated entity and digital tools, so that communication and cooperation process more easily.

"We want the feeling of peace to be artistic, unique, not commercial, not owned by everyone," he said. "He even wants the Taiping showroom to be as private as some high-end tailors in the London Savile Row, and customers need a door card and a password to get in."

James Kaplan revealed that before, they had a dilemma between Beijing and Shanghai, finally decided to stay in Shanghai, Beijing will open a shop in the next two years. He obviously has high expectations for the mainland. "At present, we have zero personal customers in mainland China, and I hope that 15% of the 50% of my personal clients I envision in the future will come from mainland China." ”

James Kaplan also often work with designers to create luxury products. This year, Taiping will usher in the first Chinese designer's work. "The products we work with Feng will be released in China this September and will then be launched into the world market, and a Hong Kong designer has designed a Hong Kong series for us." ”