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Ordering System VS Distribution &Nbsp; Who Is More Popular With Clothing Brands? (2)

2010/6/9 11:36:00 45

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What is the resurgence of distribution system?

Relative to distributors, the distribution system still has its advantages. The relatively low professional knowledge requirements, low investment and low inventory are the shining points of the distribution system.

In addition, the distribution system is also beneficial to the brand.

Therefore, the rationing of distribution system is reasonable.

The purpose of dealers in choosing the way of business is to avoid the risk of market operation, reduce inventory and ensure their healthy growth.

And the distribution system seems to be in the hands of distributors.

Low sink

The advantages of existence and smooth capital chain are unique.

It should be said that inventory and capital flow are the most troublesome problems for distributors.

If ordering system is used to buy products, dealers will have more autonomy in sales, but their risks will also increase.

Once sales problems occur, it often leads to a large backlog of stocks.

Inventory backlog directly causes dealers' capital turnover problems, threatens the whole operation process, and even leads to bankruptcy.

Nowadays, in the industry, the click rate of "buyer" is quite popular.

From this we can see the importance of experience and related knowledge in the channel market.

Many dealers have not been exposed to clothing before entering the market. They do not know much about professional knowledge and related goods, which make them worry about entering the clothing store.

If you choose the distribution system, the introduction of the brand will enhance the dealer's confidence and success rate.

Moreover, the interest rate of the order system is about 35% to 38%, while the profit from the distribution system can reach 42% to 45%.

It can be seen that the return rate of the distribution system is obviously higher than that of the order system.

Another thing that can not be ignored is that nowadays brand operators pay more attention to training franchisees, and franchisees have been able to reach the same distribution level as direct stores.

Therefore, many dealers are willing to "save worry" to make money.

Dealers can benefit from the distribution system, and brands are no exception.

In the initial stage of brand operation, the scale of market operation is not too large. If the brand maturity and customer loyalty are not too high, the brand should use this method more quickly to expand the market and expand the market share.

This method is conducive to brand market expansion, brand can accurately grasp the market sales situation, because the initial investment of franchisee is not large, especially for the first tier franchisee (key city franchisee) attractive.

Second, franchisees do not need too much capital.

Investment

Professional knowledge and skills are not very high and there is no financial pressure and inventory risk resulting from blind orders. They can concentrate on selling products. This way enables enterprises to open up the market quickly and occupy a certain market share in the shortest possible time.

Third, under the premise of enough brand selling, the distribution system can effectively manage the franchisee market, and the brand has absolute autonomy in the distribution of goods, and it can effectively manage the franchisees with a high degree of cooperation.

Whether brand or channel, it has to go through different stages of development.

The single development mode is unable to adapt to all stages of development.

Therefore, when choosing ordering or distribution system, brand and channel must define their current development stage and the specific circumstances of capital and operation.

As far as brand is concerned, if we are in the market share expansion period, we should use the distribution system in a timely manner, so that we can better occupy the market and expand our connections.

And if the development of the brand is more mature, there is a certain amount of capital, it should be the same, rather than a single order or distribution system.

Because the single system can not adapt to the market, the ordering system is simple and quick, but it has no ability to develop the distribution system, and the rate of return of 5%~10% is relatively low. While the distribution system is conducive to the construction of brand maintenance channels, its cumbersome operation also makes the brand invest a lot of manpower and material resources.

Therefore, finding the right brand development stage and implementing corresponding system is a shortcut to development.

Compared with dealers, inventory,

capital

The problem is top priority, so it will be more inclined to choose the delivery system.

But now the initiative of ordering and distributing is in the brand, so dealers are looking forward to cooperate with the big brand distribution system and pay attention to training their buyers.

The advantage of training buyers is that both the order system and the distribution system have lagging behind in the market reaction.

The order system was fully prepared two months ago, even though it could deal with quality problems, but there may be a prospect of errors in the field of popularity.

The distribution system is pressed for time, and it will take half a month to join the franchisees, and the quality is difficult to guarantee.

But if you have an elite buyer, you can adjust your product at any time according to the market changes.

The so-called "cunning rabbit hole", the appropriate use of order system, distribution system, buyer system, there is only one purpose: reduce inventory, speed up capital flows, to earn the maximum profit.