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    Luxury Brand "Single Flying Season": Disheng Lost The Right Of Agency.

    2010/7/22 15:07:00 97

    Luxury Brand

    Dickson Poon, the richest man in Hongkong, is nicknamed "

    Famous brand pan

    "But in recent months, he founded Hong Kong listed companies Disheng, which has lost several international brand dealership.

    PoloRalphLauren, not only the clothing brand with strong American flavor, ended its cooperation at the end of 2009, but also TommyHilfiger, marked by red, blue, white and tricolor flags, announced recently that it would reclaim the agency in the mainland of China.


    Its experience is not a case.

    As more and more luxury brands choose to operate directly in China, the industry's doubts arise: has the luxury agency mode come to an end?


    "Break up" without hesitation


    PoloRalphLauren store in Disheng commercial building, Jinjiang, Shanghai, will soon be changed.


    Jinjiang Disheng mansion continued Dickson Poon's business model in Hongkong.

    international brand

    It is located in the bustling area of Shanghai.

    The store manager told the China business newspaper that in July 1st this year, the store will be taken over by PoloRalphLauren company, thus becoming a direct store instead of being an agent by Disheng.


    In December 31, 2009, disson and PoloRalphLauren contract expired, thus ending the agency for the brand.

    In a semi annual report, disson created a $18 million 200 thousand charge for each other when it expires.

    At the same time, the retail network created by Disheng was 531 stores. After deducting PoloRalphLauren, there were more than 400.


    In view of this, PoloRalphLauren will recover more than half a year from its creation.

    At the same time, PoloRalphLauren is starting to shop on its own.

    The store manager told reporters that PoloRalphLauren had already kept the office in Shanghai and had just opened a new store in Shanghai Nanjing West Light Department store.

    The stores will be different after the direct camp, each with its own location and characteristics, and the price will also be widen. At present, stores opened in the Bund and monopolized "Purple brand" will be "the most expensive one".


    Unlike PoloRalphLauren, TommyHilfiger did not even wait until the contract expired.

    This year, both sides announced that the agency cooperation in the mainland of China will be concluded ahead of schedule in March 1, 2011.

    At that time, Disheng will earn $21 million, and agents in Hongkong and other places will continue until March 31, 2019.


    Miss Xiao, who is responsible for the brand, said it was not easy to respond to the question of ending the agency cooperation, but Disheng said in the announcement that the company also has many famous brand businesses, and will also seek new brands to increase additional revenue.


    Bedtime dreams


    Luxury brands and

    Agent

    Breaking up often takes a long cycle.

    Say goodbye, all kinds of things.


    The US luxury brand Coach, famous for its handbags, told the China business newspaper that the recovery of Chinese retail business from the agent Junsi group started in September 2008 and was not completed until April 1, 2009.

    Only 5 tourism retail outlets are operated by third party retailers.


    Coach is eager to control the Chinese market. It is not difficult to understand: on the one hand, the company has regarded China as the third pillar after the United States and Japan. On the other hand, after investigating the target consumers, it is found that brand awareness is only 8% in China, and this proportion reaches 72% in the United States and 63% in Japan.


    The expansion of Coach after China's direct operation accelerated in China, with a net increase of 4 stores in 2009, a net increase of 15 in 2010, and a target of 20 in 2011.

    Coach said that Junsi group is still providing Coach with logistics, warehousing and technical assistance.


    However, not all partners can break up peacefully after this expiry.

    A cause for concern in the industry is that after 5 years of cooperation in early 2008, MontBlanc announced the recall of the agent of Shanghai ruisin watch Co., Ltd.

    The two sides argued so much that they went to court.


    Yan Jun, director of luxury management project at Peking University and President of Italy fashion management consulting company, told reporters that luxury brands believe that agents are not promoted enough, their profitability is not strong, or they fail to maintain the high-end image of the brand; while agents feel that they have just recovered the brand from the market, which is "dressing for others", and the contradictions between the two sides often appear on these issues.


    Yan Jun said that many luxury brands, even though they used agents at the beginning, did not plan to rely on them forever. They had already made up their minds to recover their brands one day.

    "Today, the brand has gone through some experience in the market, and has reached the stage of recycling."

    A person who works in a luxury company told reporters that bypassing agents can get the difference on the one hand, and on the other hand, brands can enter the retail level, thereby protecting the image of the brand.


    Industry with sadness and joy


    This is quite unacceptable to agents, because cultivating a market requires a long investment period, especially for brands with low popularity, promotion, store decoration and distribution. It is normal to invest tens of millions of dollars in the past few years.

    Unfortunately, because brands control the source of goods, agents are often in a weak position in front of the brand.


    But in the field of luxury goods, there are also days when agents live.

    For example, a luxury magazine editor told reporters that there are still many famous liquor brands willing to operate the Chinese market through agents.

    Some brands look for a general agent only, which is fully controlled by agents. There are also brands looking for local agents in different regions.

    These famous liquor brands think China's market is very complex. In the first tier market, their consumers are white-collar workers. In the two or three tier cities, the "rich" group is their goal, and agents know more about such a Chinese market.


    In addition, Yan Jun told reporters that there are still some luxury brands choose to concentrate on designing and making products, unwilling to focus their efforts on market promotion, so they support each other and cooperate with each other for a long time.


    Bi Shaopu, director of jCG (China) Trading Co., told the China business newspaper that jCG had been acting as agent for Porsche in Hongkong for 55 years and acting in mainland China for 10 years.

    Ji Cheng also represented many luxury items such as famous wines, yachts, watches and so on.

    "For luxury goods such as yachts and famous cars, which are rarely sold every year, brand self deployment is very inefficient, and such industries still need agents to manage."

    Yan Jun makes such an analysis.


    Then, where should the agents who "cut power" by luxury brands go?


    Now, more and more agents begin to build their own brands, hoping to have a good reputation in the industry.

    Some smart agents often talk about new brands before the end of a brand agent.

    "There are always new brands, and brands always need agents."

    An agent told reporters this.


    The more direct path is from "Party B" to "party a".

    As early as 1987, Dickson Poon bought French brand Dupont head company for $52 million.

    In China, there are sporadic examples of agents buying brands.

    However, acquiring a powerful brand to get rid of the situation of being controlled by others is still a dream for most agents.


    background information


    January 2008


    MontBlanc announced the recall of the agent of Shanghai ruisin watch Co., Ltd.


    2008


    The menswear group's men's clothing brand has gradually recovered the agency rights of Wenzhou, Ningbo and Hangzhou.


    September 2008


    Coach reclaims China's retail business from the agent Junsi group.


    September 2008


    The brand of Chlo, the brand of the peak group, announced that only one of the shops managed by the Hongkong agent I.T group was left in Suzhou.

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