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    The End Result Of China'S Clothing Agents (1)

    2010/7/22 10:23:00 50

    Clothing Agency

    This is another focus on the future prospects of clothing agents. The trend of brand orientation, the further improvement of industry concentration, and the strategic adjustment after the change of overseas brand equity have made more and more lawsuits and disputes between brands and agents.

    These disputes make the industry more aware of the "limitations" of the agency model that has been going through for decades.


    The indictment of South Korea's SKN does not mean that Chinese agents enjoy the local "moral advantage". PRADA refuses to buy shares of Chinese agents, nor does it indicate that agents have the priority of "business" for brands.

    In fact, in recent years, the business disputes between domestic agents and foreign brands, and even the first tier brands in China, do not reflect the merciless of brand dealers, but the hardships and vacant development of China's agents.


    When the industry concentration is further improved, and the market matures, and the brand players have enough strength to bypass the agents and directly advance towards the retail sector, it is also reasonable for the brands pursuing greater profits to reflect on the current agency joining mode.

    Then, where is the future of agents at this time?


    crisis


    Muxiyuan, Beijing, one of the most important clothing distribution centers in North China, is a mixture of clothing companies from northeast and North China. The awakening of brand awareness has created the trend of branding in Muxiyuan in recent years. Many former franchisees started the "licensing movement".


    The experience of a down jacket businessman from Liu, who is from the northeast, has fully illustrated the desire of franchisees for brands.


    I believe that as a franchisee and distributor, there is neither a good future nor a long time. I always think that the fashion distributor is just a pitional stage.

    Down Jackets

    Brand.

    Mr. Liu has launched a brand almost a year, but most brands have only one year's life span.


    Because of the lack of strength and fierce competition, coupled with Mr. Liu's own disrespect for the market, not caring about the quality of the product, instead of replacing it with this brand, he will not change his attitude again next year. As a result, Mr. Liu has so far no brand with market influence. He is still just a clothing agent dealer.


    At the moment, Mr. Liu's experience shows that the agent's pformation is difficult and the strength is insufficient, which is why most agents are unable to get involved in the independent operation of the brand.

    At the same time, Mr. Liu's series also means that domestic agents have a strong sense of crisis for their own development prospects.


    On the one hand, the sense of crisis comes from the weakness of its own brand. The brand is not its own. "Making more money or working for others, there is no initiative."

    On the other hand, it is the change of the economic environment.

    The difficulty of clothing business and the weakness of profits have led to more brands seeking to maximize profits.

    These brands have gradually stepped out of the pioneering stage of emerging markets and are showing less and less interest in adopting the low cost market expansion method of agency affiliation.

    The upgrading of financial strength and management capabilities and the lack of regional markets with undeveloped and no sales outlets left the brand players capable of implementing direct operations in the market that has been occupied by the franchisees, so as to reduce the middle tier and gain greater profits.


    The pformation of iron lion Tony in recent years partly illustrates this trend.

    In the past few years, the industry's mid stream brand has pformed from the wholesale market to the retail market, and has "ruthlessly abandoned" many of its agent franchisees.


    In the northeast, the traditional advantage market of iron lion Tony, Tony, a strong lion in the wholesale market, began to pform to the retail market in order to gain more competitive advantage and return to higher profits in order to adapt to competition.

    He told the dealers in the wholesale market either to leave or to join the iron lion Tony to invest in the brand stores at a higher cost, and to enter the higher priced retail market to jointly develop the Northeast retail market.


    "Brand development must be done, before

    Wholesale market

    If the dealer can't adapt to the change, there is no way, because this is also a pformation of life and death for us. "

    Liu Bisheng, chairman of iron lion Tony, explained this fully and reasonably.


    But this also deepens the distrust of the franchisee. "If we want to abandon the wholesale market partners in the retail market, then will the partners in the retail market be abandoned if the layout of the retail market is completed?"


    The pformation of iron lion Tony shows the weak position of agent franchisees.

    His further development will probably evolve into the direct marketing of domestic brands such as the United States and the United States. The strength of the brand is enough to allow brands to bypass some agents and directly distribute the retail market.


    way out


    At present, in front of the franchisee, it is about the future development space. How can the franchisee survive to further enhance the market concentration?


    From the practical experience of developed markets, there are basically three directions for agents to complete the market layout, namely, channel providers, pformation brands, and acquisition by brands.


      

    brand

    The direct operation does not mean the end of the agent's joining mode, and the mature developed market also has agents.

    However, the agents in developed markets are not as functional as domestic agents at present. Their position is to control retail channels, and integrate channels into the retail market to "rent" to the brands that they want to enter.


    The most successful cases are Japanese businesses, such as Itou Tada and Li Feng Group in Hongkong, China.


    These channels have a mature and well competitive channel resource in a market. For example, many shops that are not replicable in the prime location are the private property of the channel, or the long-term lease cooperation. These channels also have a perfect logistics and warehousing system. If the brand wants to enter the market, it is difficult to bypass these channels. Otherwise, the brand will need to spend more cost to obtain business resources.


    At the same time, these chambers of Commerce set up detailed market development plans for brands, including legal reminders, management output, establishment of salary system in local market, detailed market data and market analysis, communication and access at government policy level, sharing local resources to avoid interference from local protectionism, and helping or leading brands to negotiate price negotiations in local markets.


    In this regard, the most typical example is Japan's Itou Tadaryo.

    Because it is very difficult to enter the Japanese market from outside, the local consumers are more trustworthy than the "direct trading" with the external brands, such as Itou Tada.

    Therefore, under the influence of Itou Tada's strong channel brand influence and the high integration of retail, Itou Tada has nearly 130 European and American fashion brands operating in Japan, ranging from high to low, from luxury to leisure.

    Itou Tada has almost become the most important and accessible channel for overseas fashion brands to enter Japan.


    In addition to continuing to deepen, integrate business resources and create channel brand influence, the future development direction of garment agents will also be the pformation of private brand operation.

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