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    The Dilemma Of Clothing Agents: The Coming Of The International Grand Camp

    2010/8/24 15:38:00 53

    International Fashion Agency

    After MontBlanc, Britain's biggest luxury item.

    Retailer

    Burberry (Burberry) group announced that it will buy its franchise partner KwokHangHoldings Burberry franchise in mainland China at 70 million.


    Burberry has 50 franchise stores in 30 cities in the mainland, and Burberry will open 10 new stores in the financial year, all of which are direct battalions.

    HugoBoss and so on have been circulating in recent years. Versace (Versace) and FENDI (Fendi) also indicated that there were only direct outlets nationwide.

    In addition, CUCCI, Montblanc (MontBlanc) and other brands have also indicated that they will gradually replace authorized agencies in Direct stores. Zegna (Zegna) and RalphLauren (Laurent Loren) have also recovered their agency rights in the Chinese market long ago.


    It is undoubtedly the drive of interest that brands change their business strategy.

    At the beginning of these big international brands entering the Chinese market, in order to avoid risks and not miss opportunities, they adopted the agency mode to enter the domestic market.

    Because local agents have a better understanding of China's national conditions, they also have rich human resources and channel advantages, which are conducive to the development of luxury brands in the domestic market.

    However, with the gradual expansion and development of the Chinese market, brand dealers also see tremendous business opportunities in China.


    This year, luxury brand Prada has opened 4 new stores in Shanghai. In the near future, the brand will also open 4 new stores in Chengdu, Guangzhou and Hangzhou, with an increase of 47%.

    On the two day before the opening of World Expo in Shanghai, LV opened 2 flagship stores in Huaihailu Road and Pudong District of Shanghai, and two of its Huaihai flagship store, with a total area of 1475 square meters, and Pudong national gold center flagship store area of 1736 square meters.


    Relevant data show that in 2009, the sales of China's luxury goods market increased by nearly 12%, reaching US $9 billion 600 million, accounting for 27.5% of the global market share.

    In the next five years, the sales of China's luxury goods market will reach $14 billion 600 million, the top of the global luxury market.


    China

    Luxury goods

    With the strong growth and huge profits of the market, luxury brands have to adjust their strategy in China, and the withdrawal of agency power is an important step for them to change their strategy.

    This is also reflected in the selection of cooperative department stores from the world's major entry into the Chinese market.


    Record of big break up:


    01, 2008, the brand of the menswear group's menswear brand Dunhill gradually reclaimed the agency in Wenzhou, Ningbo and Hangzhou.


    In 02 and September 2008, Coach recovered the Chinese retail business from the agent Junsi group.


    In 03 and September 2008, Chlo I.T, the brand of the group, announced that only one of the shops in Hongkong was managed by the agent I.T group.


    In 04 and December 2009, disson and PoloRalphLauren contract expired, thus ending the agency for the brand.


    In 05 and May 2010, Disheng and TommyHilfige announced that the agency cooperation in mainland China will be concluded ahead of time in March 1, 2011.


    In 06 and July 2010, Burberry announced that it would buy its franchise partner KwokHangHoldings Burberry franchise in mainland China for 70 million pounds.


    In 07 and July 2010, HugoBoss plans to set up a joint venture in China in the second half of this year. It has signed an agreement and HugoBoss will have 60% stake in the joint venture.


    The time has come for fruits to be ripe and fruit picking. In the face of international brands' abandonment of agents, where should we go as terminal operators?


    1, brand purchase: Shu Lang's acquisition of GuidoBertagnolio and ADRI-ANORODINA brand models is worth learning from. According to this model, as terminal operators, we can fully use the advantage of our terminal stores to acquire international second-line and three line brands in the form of alliance.


    2, the buyer model is ready to come out. The establishment of a retailer brand has been shaped: the establishment of a brand is like the cultivation of children, as an international brand of "foster son". After all, we must return to the embrace of its "mother". Its blood is destined to be abandoned.


    3, the domestic brand trusteeship: although faced with the possibility of being abandoned, after all, we are working hard for our excessive brand development, and sweat is worth paying.


    4.

    Agent

    How many years can there be room for survival in China? This is a question no one can answer. As terminal operators, we should get together and talk about our future development.


    The rules of the market are ruthless, incomplete, stalled, and left behind in the glorious memories of the past, leaving behind our regrets and all our efforts.

    Let's start our plan before CHIC2011, let's start our execution at CHIC2011! Go forward and have our way back, where it will be a bogged mire.


    Editor's comment: whoever controls brand advantage will occupy the commanding heights of business and have the initiative to cooperate. The most intense reason for international brands to "command" and the unlimited access to profit maximization is the most important reason why they want to abandon those Chinese agents who have made great contributions to the development of market neutrality. The feast of agents has ended.

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