Embarrassing Channels For Chinese Garment Enterprises
wholesale
Wholesale with the growth of most garment enterprises in China, Guangzhou white horse, Dongguan rich people, Wuhan Hanzheng Street, Shenyang five love, Changshu merchants city and other wholesale markets play a decisive role in the development of China's garment industry.
However, today's wholesale mode has added a lot of worries to many developing garment enterprises. Some of them have already become bad debts due to a large number of arrears in the wholesale sales process. And some arrears have become the weights for wholesalers and manufacturers to talk about conditions, causing manufacturers to fall into a passive position. Moreover, the channel system generated by wholesale sales is often in disorder. Manufacturers can not reach the terminal and fail to establish a good brand image.
Because the wholesale radiating surface is very wide, wholesale production of goods fleeing and other issues also cause manufacturers headache, fleeing goods easily lead to conflicts among regional agents and distributors.
With the intensification of competition, the profits generated by the wholesale market are becoming thinner and thinner. If there is no support for effective profit margins, it will easily lead to the lack of stamina in the development of enterprises. This is the last thing that many ambitious companies want.
Nowadays, brand clothing is gradually taking the lead in the market. In the face of the temptation of huge volume generated by wholesale, many manufacturers are still hesitant to make a brand transformation, and there are too many factors to worry about. Wholesale has become a piece of chicken ribs on the hands of many enterprises.
Because of their strength and historical reasons, the majority of Chinese garment enterprises operate by agency mode.
There are mainly two forms of agents: one is the traditional wholesaler, the other is the agent who manages the brand clothing. But most of these two types of clothing agents grew up in the wholesale market, many of which were operators of individual stalls.
Once an agent is chosen, it is equivalent to giving the regional management right of the brand to the agent. The success of the regional market depends largely on the operation level of the agent. However, manufacturers and agents are just a community that relies on interests. There are always many conflicts in interest, and agents often misplace in the implementation of marketing system.
The number of clothing brands in China is far greater than the number of agents. Agents often have multiple brands of resources on hand. Therefore, the integrity and loyalty of agents is always a headache for manufacturers. The threshold of clothing management is very low. Agents have too many choices, and they are faced with too many temptations. They may abandon you at any time and give you a market mess. Moreover, the arrears of agents, malicious fleeing and other issues have been troubling manufacturers.
In addition, the overall management level of garment agents is not high. Many agents can not upgrade from the concept to the synchronous development of manufacturers and brands, to a large extent, to delay the progress of manufacturers.
Shopping mall counter
Setting up counters in shopping malls is the first choice for many Chinese high-end clothing brands. Shopping mall environment is superior, easy to establish a good brand image, and shopping mall main consumer group is relatively stable, has a strong purchasing power.
However, the operation of shopping malls is generally puzzled by the operating environment, and various expenses have made the profits of manufacturers in the mall become thinner. I believe that many manufacturers are baffled by inexplicable entry fees, shop fees and advertising fees. Some brands do not sell well in the stores, but in order to keep them in the mall, they even have to pay for their own products.
Moreover, today's department stores and shopping centers are also the most competitive Battlegrounds in the apparel industry. The mall has gathered many excellent brands. You must be close to your competitors with similar styles, and the competition between shopping malls and shopping malls is also keen. Therefore, there is always a crazy sales promotion among shopping malls and brands. The result of vicious promotion is the loss of profits and brand value. The huge cost generated by the sales promotion has undoubtedly been apportioned to the enterprises, leading to higher and higher operating points. The brand image of many fashion brands is often cut down by price cutting edges.
Therefore, for the operation of shopping malls counters, enterprises love hate.
Exclusive shop
Franchised stores are the most easy to set up a brand image, but at the same time, it is also the terminal that can easily damage the brand image.
With the diversification of market development, single brand clothing stores are being severely tested by the market. The blind development of business circles, at least 70% of the clothing stores in the market are in an unsatisfactory state of operation. Almost every day in every large and medium-sized city, clothing stores are being transferred or closed because of poor management. Clothing franchised stores are often relatively simple because of the products they operate, and the homogenization of the market is very serious. There are so many competitors of the same kind and the rents of commercial shops are increasing. In order to enhance the sales ability of terminal stores, it is foreseeable that single store multi brand management will become the mainstream mode of clothing terminal in the future. But the vast majority of enterprises do not yet have the ability to implement single store multi brand strategy.
Therefore, many clothing stores in order to pursue profits, they often distribute some products of different brands at will, for example, they sell scarves in women's clothing stores and sell socks in men's clothing stores, which can easily lead to blurring of the image of the monopoly system and influence the spread of brands.
In addition, there is the most direct conflict between franchised stores and proprietary stores in the monopoly system. It also brings great difficulty to management and is limited by conditions. The franchised stores, which are the vast majority of the market, are at a disadvantage in direct competition with the company's own stores. The competition between franchised stores and shopping malls counters is also fierce. The most direct response to competition is price war, which makes the price of franchised stores hard to maintain stability.
Editor's comment: channel problem is a basic problem in marketing. It needs to be paid enough attention by manufacturers to enhance the quality of channels and enhance the sales power and image transmission ability of channels, so that consumers can better understand and accept our local garment enterprises, and let the Chinese clothing industry really have world-class brands.
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