When The Clothing Brand "Away From" Agents: Long Live The Camp?

With the price of raw materials rising, competition among peers is becoming more and more intense, more and more agents are returning, their profits are getting thinner day by day, and manufacturers are overburdened. Therefore, many garment manufacturers begin to abandon agents and go straight to camp.

The original accumulation of many brand businesses is basically closely related to "agents". Good agents have also made many brands. However, as the market continues to change, especially under the impact of the financial crisis, some garment manufacturers seem to realize that the "direct mode" that can maximize profits is the "king of development".

Industry authority 1~7 2009 industry data analysis report pointed out: strong brands want to improve channel self-control ability, through a smaller scale investment in the future marketing channel control and competitiveness, so they have to return existing channels, or by increasing self built stores and distribution centers to improve the proportion of their own channels.

First, multiple reasons prompt producers to "stay away from" agents.

Pressure on profit and cost

According to Mr. Hu, director of marketing of an enterprise, there are four modes of clothing sales: agency, agent, direct, pure and electronic commerce. "But now, some brands have" destroyed "the original dealers, and changed their way to pure direct and electronic business. The reasons are many, and the most important thing is the difference between factory price and terminal sale price.

The price of a brand garment is about 200-300 yuan, but the price of the garment may be more than 1000 yuan at the end of the consumer's hands. The thicker the interlayer between producers and consumers, the higher the terminal selling price. The middlemen as "interlayer" naturally earn more, and the producers still take the "dead money". "Many manufacturers are quite unfair about this, but if they do not give proper profits, dealers or agents may very well invest in the arms of competitors."

In addition to "unwilling heart", agents do not want to share the rising price of raw materials and the increasing cost of manpower, resulting in little profit margins for garment manufacturers. "In particular, some agents, in order to make money or even hurt the interests of manufacturers,"

Many businessmen have become famous brands as agents, but once they find that their profits are not abundant, they will immediately become another brand agent.

Maintain brand image

At present, the channel mechanism of garment industry has exposed huge defects, that is, brand operators have lost the management and supervision of the sales channel system.

Therefore, once the inventory pressure is slightly larger, dealers will disregard the brand demand and discount.

Or in order to save money, the requirements for brand names to match the brand and the market are totally incompatible.

In the majority of dealers' thinking, helping brands to promote and make brands is not their own job.

Some international top brands such as Armani, Zegna and so on, for the sake of brand maintenance, usually adopt direct battalion.

In addition, many manufacturers will consider the promotion of image and set up self flagship stores in some important market areas, so as to establish a brand image standard and provide a reference shop for dealers.