How To Solve The Deformation Of Marketing Channel Between Clothing Enterprises And Distributors
In the market environment, we can understand the image of marketing channel as a long and stable sales channel in the circulation, from the manufacturing end to the consumer side, and eventually become a commodity. In this channel, production enterprises and distributors are inheriting relations in the commodity supply chain. Driven by economic interests, the two sides establish a commodity circulation channel. For garment enterprises, whether the marketing terminal is healthy and steady has become one of the core competitiveness of enterprises. Therefore, the relationship between enterprises and distributors relying on the chain of interests will inevitably lead to disputes due to the division of control rights of marketing terminals. What follows is the biased formulation of marketing policies, the unauthorized marketing of marketing models, the misunderstanding of channels, and the ineffective implementation of policies. The channels of many garment enterprises deviate from the original track, which also leads to the contradiction between enterprises and distributors. By this time, the path of product marketing has changed from "Feng Jing" to "Ma Liang".
Fujian Shishi A men's clothing business was originally engaged in garment export processing. In the middle of 90s, with the rise of the domestic men's wear market, it began to pition to branding, and invited Hong Kong and Taiwan stars to endorse their products. At the beginning of the brand building, with the advantage of capital and production, through a large number of advertising and launching of key cities on the ground, in the late 90s, it entered the famous menswear brand in China. In addition to some parts of the western part of the country, the country has set up a distributor in various provinces and major cities. There are more than 160 franchised stores and more than 1200 outlets in the country. The sales performance of the company has increased significantly every year. But from the production and Finance Department of the clothing enterprise, we get another set of data: the average monthly return rate of the enterprise is only 46%, and the sales of products often can not be settled for a long time. The marketing department has the reputation of coordinating the management of distributors, the actual content of which is to destroy the goods and prevent the dealers from selling goods to each other. The planning department has made different plans in terms of brand appeal language, advertising and other aspects in the past few years, so that the image of the brand is becoming more and more unclear in the consumer group. Therefore, although the annual output value of the enterprise increased by 2 times compared with that of the processing period, the profit and profit rate was only 80% and 64% of the processing period. Dealers in various places have a large turnover rate. In addition to some cities, the annual turnover rate of some two level market dealers is about 25%, and nearly 1/4 dealers have to change each year. This also causes some of the goods to become dead accounts and can not be recovered. The sales outlets of product sales sites also change with the replacement of distributors, resulting in the situation of no fixed sales. The brand image is always uncertain in the market, so the loyalty of the consumer group is very low, which can not reach the effective consumption cycle, and the product sales are highly volatile. The boss always sighs: it's better to continue processing.
We see the essence through various phenomena. The clothing enterprises and dealers in the vortex of contradiction are tightly linked by the two chains of commodities. From the perspective of market functions, enterprises consider producing more and better quality products, occupying the market and quickly returning funds. Dealers consider how to sell the products most simply and get the highest profits. From the form of operation, the enterprises are faced with large areas and groups of wholesalers, distributors for small areas, and individual retail. In marketing management, the advantage of enterprises lies in the scale manufacturing capacity of products, while dealers are outstanding in product terminal sales ability. Therefore, in order to make themselves in the dominant position in the industrial chain, clothing enterprises and distributors often cause friction on channel management. In this way, Lin Daiyu's famous saying should be answered in the product marketing: "not the east wind prevails over the west wind, but the west wind prevails over the east wind". If we are one-sided to demanding details, we will always put the cart before the horse. Then what are the reasons for the channel distortion of enterprises and distributors?
First of all, clothing enterprises do not have operability when formulating marketing policies.
Clothing enterprises when marketing policies are initially decided, more consideration is to let the products occupy the market in a fast and comprehensive manner, and use the overwhelming advertising attack and the ground bombing to attract the partners who have the ability to conduct product sales everywhere. Those distributors with many outlets, high grades, large sales volume and sufficient funds are the targets of many garment enterprises. Therefore, they will also compete in the formulation of the terms of the franchise. If you pay the monthly payment, I will be able to turn into two monthly payments. If you can refund 1 of the profits, I will be able to rebate 2 percent. If you can provide a 50% exchange rate, I will be able to provide a one hundred percent replacement rate. When terminal marketing decides whether an enterprise is alive or dead today, dealers who have mastered the advantages of market terminals have become judges of the sales area of enterprises. When the dealer contracts are drawn up, they are only referring to the practice of other enterprises in the same industry. They seldom consider whether they are feasible; moreover, in the process of negotiations, temporary modifications are often made in a variety of ways.
Secondly, the principle of departmentalism between clothing enterprises and dealers is being misled.
In front of us, we talked about the importance of enterprises and distributors in the market function, management form and marketing management, which made Lin Mei's "gale theory" have the market. It is normal for an enterprise and a dealer to have two independent economies, and to maximize their respective interests on the same product. But as a business partner, we can also ask both sides to shoulder their respective obligations while enjoying their rights. In the early days of brand creation, when the competitiveness of products is insufficient, the promotion ability of dealers is regarded as the key to the success or failure of the market. When the brand has certain advantages and the product competitiveness is sufficient, the business strategy of the firm will determine the profit level of the dealer. Therefore, in the two period, it is easy to lead to the emergence of departmentalism. In order to reduce inventory pressure and early withdrawal of funds, the two sides often make their own decisions. Dealers do not sell according to the prescribed price and form, and they sell products at a discount and promotions at will. Enterprises often throw off the seasonal products to the wholesale market, causing similar brands to fight price wars and destroy their brand image in one area.
Finally, the irrational allocation of resources will also break the fragile marketing chain.
The two biggest headache for garment enterprises is the intensity of brand promotion, which leads to the blurring of brand image and the construction of circular consumption chain. The second thing is that product sales monitoring is lax around the country, often resulting in product follow-up errors, resulting in product extrusion or customer shortage, which is also likely to lead to the phenomenon of distributor's goods distribution. In clothing enterprises, the departments are mainly based on production, and the departments responsible for marketing and planning are just as useless as the shortage of talents. Some of the marketing executives of some garment enterprises are usually run by one general manager. Unreasonable departments can easily lead to unclear responsibilities and unclear responsibilities in the internal management of enterprises, resulting in confusion in marketing. The irrationality of resource allocation directly affects the maturity of brand in the consumer group and reduces the expansion of brand promotion. There is no effective connection between garment enterprises and distributors in the exchange and contact of information resources, which makes dealers lose confidence in the ability of marketing management and indirectly increase the sales cost of both sides. Finally, enterprises and distributors, distributors and consumer groups will break the chain of marketing.
Generally speaking, there are many reasons for the distortion of marketing channels between garment enterprises and distributors. The continuation of this situation can only be done by drinking poison and quench thirst. Therefore, we must integrate the marketing channels, reduce the business crisis caused by various management factors, adjust the existing channel policies appropriately, standardize the rights and obligations of the two parties, establish reasonable marketing and planning departments, increase channels for information resources exchange, and avoid market fluctuations caused by resource allocation.
In the 99 years October, the board of directors of the enterprise was determined to break this complicated and chaotic situation, first of all, from regulating dealers. The company has hired an excellent consultant and consultancy company to assist enterprises in marketing standardization management, and has also been responsible for the publicity work, product promotion and other market work, and has formulated a 2 year brand promotion plan for the long-term healthy development of the brand. The Sales Department of the enterprise set up foreign affairs department, and directly set up offices in the major provinces and regions of product sales: coordinating and dealing with product sales in the region, and strengthening information communication with distributors. And set up direct flagship stores in significant areas of the region. The management of the original distributors in the region shall be responsible to the regional heads. The system of the credit guarantee system shall be adopted to regulate the dealers' behaviors and exchange views with the regional directors regularly, and the marketing measures such as product promotion, advertising promotion, and customer direct investment shall be unified at the place of sale. The sales outlets of some consumer groups are invested by 30% of the enterprises, redecorated according to the selling style of the flagship store, and the brand image is kept uniform. Organize the marketing staff of various stores and sales websites to focus on training to ensure the professionalism of sales activities.
The change of distribution policy and marketing measures also made the enterprise feel a severe test in a short time. In the first 1 months of the change, the product delivery rate was less than 40% of the previous day. Dealers everywhere used to be on the same day. Now they are required to follow the code of dealership strictly, and of course they will boycott the behavior of enterprises in various ways. Some dealers stop taking goods from enterprises, or deduct accounts, or even threaten to turn into competitors' brands. However, the enterprise has not been intimidated by this form, and is still in line with the established plan. And increased publicity, launched a brand new image, invited foreign designers to develop new styles of clothing, and began a new round of distributors in some areas of marketing confusion. A series of marketing initiatives immediately turn the business from disadvantage to advantage. Six months later, the original distributors in all regions except part of the initiative to cancel the business, other dealers have re signed a new distribution contract with the enterprise, according to the new management method for product management. By the end of 2000, the sales volume of products had only recovered to the mid level of 98 years, although it was less than 85% before the reform. However, the financial return rate reached 88% per month, and the profit margins of single products increased by 37% and sales outlets increased by 17% through the product promotion plan and marketing method formulated by professional bodies.
Both garment enterprises and distributors are complementary to each other and work hand in hand. But it is their strong points that they will all rely on each other to form a deformed development of marketing channels. The cause of evil has already lurked in the early stage of operation. With the development of both sides and the gradual increase of interest demands, the consequences will inevitably appear in due course. Therefore, when the channel is deformed, it is necessary to change in time. Although there will be pain in a short time, it is too late for the long-term development of the enterprise.
After a series of changes, the president of the A company is now smiling. He also said he was back to the early stage of the enterprise when he changed. All day is restless, the most afraid is to look at the sales report and answer the phone. Because sales reports decline every day, and phone calls are often the complaints of old friends and the threat of dealers' withdrawal. When 3 years later, he looked back at his original choice, and he answered with emotion. "If it was only for the first time and the profit for a while, then I would never sit here again, and there would be no more business." Although we are too blind and optimistic in the early stage of market entry, our pformation is timely and correct. So, having problems is not terrible. The terrible thing is not to solve and fear to solve. Therefore, we did it and succeeded. I hope we can eat this cut to make other garment enterprises grow wiser, which is also a contribution to our industry. "
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