How High Is The Risk Of Joining The Leather Clothing Market At A High Price?
On June 28, the headquarter base in the South Fourth Ring Road of Beijing staged a grand ceremony of "clothes are vivid because of people". After the press conference, the China Leather Industry Development Seminar attracted the attention of the media inside and outside the industry. The upgrading of the leather industry has added new ideas for clothing agents who are looking for new business space, but how to enter the door of high-end clothing brands such as leather clothing and fur? What is the cost of joining such brands? How high is the market return? ?
At the launch of Qiushidi's new products in autumn and winter of 2008, models in elegant leather clothes, beautiful evening dresses, and luxurious high-end furs poured out, and many franchisees on the scene began to involuntarily comment: "This style will sell well this year!" "I like this layered design!" "That fur has a good outline!"
It is this pure and simple design style, unique beauty and strong artistic pursuit, together with diversified product ideas, that has enabled Qiushidi brand to obtain good market feedback after entering the market for several years. At present, the brand has formed a development layout with Hong Kong as the management and decision-making center, Beijing as the production base and the marketing center in China. Two major sales streams are self operated and franchised customers operated by large and medium-sized malls, with an annual turnover of 200 million yuan. After understanding the market status quo of the sustainable development of such original leather brands as Qiushidi, we will return to the aforementioned issues. What should be considered first when choosing to be a high-end leather brand? How high is the market risk? High payment for goods is the biggest obstacle
As a new brand in the clothing market, Qiushidi Company, like most clothing enterprises, has chosen the development path of self support and alliance. Self operated stores mainly operate Class A markets, radiating and influencing the surrounding markets; The role of agents and franchisees is reflected in increasing market share and brand awareness.
In the process of contacting with franchisees, relevant principals of Qiushidi felt that it was difficult to develop and join the leather clothing brand, such as the strength of franchisees was not ideal, brand loyalty was not enough, etc. The direct reason for these difficulties was that the franchisees needed too much investment.
On the basis of ensuring the normal operation of business, according to the basic distribution requirements, the first installment payment of franchisees should not be less than 100000 yuan, and large cities should also increase it appropriately. For the annual purchase amount, Qiushi's franchise book also clearly states that the provincial capital city is not less than 1.6 million yuan, the prefecture level city is not less than 1.2 million yuan, and the county level city is not less than 900000 yuan. Therefore, without strong financial support, it is difficult to enter the door of leather clothing brand. At the same time, the value of materials and the limitations of factors such as the oneness and seasonality of traditional leather brand products also make leather enterprises want to increase market share and expand the difficulty of sales network with the help of agent franchise channels different from other categories.
Huge investment also means increased risk, but it also means that there is enough profit space. What kind of leather clothing brand does the risk coefficient of joining be smaller?
Rich product lines reduce business risks
Focusing on leather clothes and furs, Qiushi has continuously increased a wide range of products, including dresses, ready to wear clothes, weekend coats, shuttle knitwear, shirts, pants, accessories, bags, shoes, and so on. It also breaks the fate of traditional leather clothing enterprises limited by regions and seasons, which will enable franchisees to have business opportunities in the four seasons and business in the month.
At the press conference, Qiushidi also gave awards to franchisees, and selected ten outstanding agents and four outstanding agents. It is understood that some of these award-winning agents joined Qiushidi's team when Li Chengduo, chairman of the company, started from scratch; The other part was gradually added to the sales team with the development and promotion of Qiushidi. In the process of jointly exploring the market with Qiushi, they have made outstanding achievements. The main reason for attracting these franchisees and guiding them to success is that "Qiushi" has rich product lines, strong product R&D and production capabilities, and advanced production management experience.
On June 28, the headquarter base in the South Fourth Ring Road of Beijing staged a grand ceremony of "clothes are vivid because of people". After the press conference, the China Leather Industry Development Seminar attracted the attention of the media inside and outside the industry. The upgrading of the leather industry has added new ideas for clothing agents who are looking for new business space, but how to enter the door of high-end clothing brands such as leather clothing and fur? What is the cost of joining such brands? How high is the market return?
At the launch of Qiushidi's new products in autumn and winter of 2008, models in elegant leather clothes, beautiful evening dresses, and luxurious high-end furs poured out, and many franchisees on the scene began to involuntarily comment: "This style will sell well this year!" "I like this layered design!" "That fur has a good outline!"
It is this pure and simple design style, unique beauty and strong artistic pursuit, together with diversified product ideas, that has enabled Qiushidi brand to obtain good market feedback after entering the market for several years. At present, the brand has formed a development layout with Hong Kong as the management and decision-making center, Beijing as the production base and the marketing center in China. Two major sales streams are self operated and franchised customers operated by large and medium-sized malls, with an annual turnover of 200 million yuan. After understanding the market status quo of the sustainable development of such original leather brands as Qiushidi, we will return to the aforementioned issues. What should be considered first when choosing to be a high-end leather brand? How high is the market risk?
High payment for goods is the biggest obstacle
As a new brand in the clothing market, Qiushidi Company, like most clothing enterprises, has chosen the development path of self support and alliance. Self operated stores mainly operate Class A markets, radiating and influencing the surrounding markets; The role of agents and franchisees is reflected in increasing market share and brand awareness.
In the process of contacting with franchisees, relevant principals of Qiushidi felt that it was difficult to develop and join the leather clothing brand, such as the strength of franchisees was not ideal, brand loyalty was not enough, etc. The direct reason for these difficulties was that the franchisees needed too much investment.
On the basis of ensuring the normal operation of business, according to the basic distribution requirements, the first installment payment of franchisees should not be less than 100000 yuan, and large cities should also increase it appropriately. For the annual purchase amount, Qiushi's franchise book also clearly states that the provincial capital city is not less than 1.6 million yuan, the prefecture level city is not less than 1.2 million yuan, and the county level city is not less than 900000 yuan. Therefore, without strong financial support, it is difficult to enter the door of leather clothing brand. At the same time, the value of materials and the limitations of factors such as the oneness and seasonality of traditional leather brand products also make leather enterprises want to increase market share and expand the difficulty of sales network with the help of agent franchise channels different from other categories.
Huge investment also means increased risk, but it also means that there is enough profit space. What kind of leather clothing brand does the risk coefficient of joining be smaller?
Rich product lines reduce business risks
Focusing on leather clothes and furs, Qiushi has continuously increased a wide range of products, including dresses, ready to wear clothes, weekend coats, shuttle knitwear, shirts, pants, accessories, bags, shoes, and so on. It also breaks the fate of traditional leather clothing enterprises limited by regions and seasons, which will enable franchisees to have business opportunities in the four seasons and business in the month.
At the press conference, Qiushidi also gave awards to franchisees, and selected ten outstanding agents and four outstanding agents. It is understood that some of these award-winning agents joined Qiushidi's team when Li Chengduo, chairman of the company, started from scratch; The other part was gradually added to the sales team with the development and promotion of Qiushidi. In the process of jointly exploring the market with Qiushi, they have made outstanding achievements. The main reason for attracting these franchisees and guiding them to success is that "Qiushi" has rich product lines, strong product R&D and production capabilities, and advanced production management experience.
Qiushidi's assessment of franchisees is also based on their sales ability, number of stores opened, single store performance and payment collection rate. This is also a few hurdles for joining a leather clothing brand.
Start after confirming advantages through multiple assessments
From the experience of these agents, it is not difficult to see that joining a leather brand is bound to be particularly cautious and needs to be considered in detail from many aspects. In this regard, the person in charge of Qiushidi Company gave several suggestions to the agent franchisees who want to enter this field.
Generally speaking, many clothing brands will provide preferential franchise policies, perfect management and after-sales service systems to attract dealers from all over the country to join when developing agent franchise networks. In addition, there are five points that cannot be ignored. First, consider the brand: brand resources are the only resources that can not be copied by enterprises. Today, when cloning is prevalent, brand advantages are particularly obvious. For example, Qiushidi believes that luxury is simple and elegant, fashion is style and taste; The second is mainly reflected in the style: Qiushidi is keen to subvert the convention, and the style materials are mainly innovative, which is also the key point to stimulate consumers' purchase desire and form differentiated competition with other similar brands; The third is a clear product positioning: a promising brand enterprise, whose clothes not only conform to the taste of mass buyers, but also should be noble, elegant and fashionable everywhere; Fourth, we need to understand the technical ability: Qiushidi's clothes are all designed exclusively, and the styles are renovated quickly, and we are not afraid of competitors' imitation, which requires strong technical support; Finally, we need to understand the company's ability in logistics. Without the convenient transportation and logistics, the dealers cannot bring great convenience, which will affect the subsequent market development.
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