Service Companies Face Overhead! Channel Operators "Kidnap" Clothing Production Enterprises

YOUNGOR 30 percent off sells new horse clothing, dump "burden" or pave the way for splitting.

In a reply to reporters in July 1st, YOUNGOR said that YOUNGOR was moving from a production and marketing enterprise to a company.

At the same time, YOUNGOR said that in the operation of the company, more attention should be paid to the domestic market.

YOUNGOR also said that in some underdeveloped shopping malls, YOUNGOR will appropriately increase the proportion of proprietary stores.

An anonymous insider told reporters that, like "real estate kidnapping the banking industry", Jiangsu and Zhejiang, Henan and other provinces and cities of the provincial agents currently have considerable strength, began with the clothing production enterprises "on the same level", the production enterprises "finger", clothing production enterprises have been "overhead" risk.

Channel manufacturers "overhead" production enterprises

Jiang Hengjie, vice president of the China clothing association, believes that the brand agents who become stronger and bigger will expand their occupancy in the market and have their own strength. In turn, they will require clothing manufacturers to reduce the purchase price and occupy the profit margins of garment enterprises.

At present, the domestic garment industry is in the pition period from manufacturing to creation, and the competition of brand clothing is internationalized and the mode of asset operation is rising.

However, there are some complaints about the light assets operation mode of garment enterprises and the pformation to brand operators.

Those who do not want to be named told reporters that the pition to brand operators should not be clothing manufacturers, but should be brand agents. The production of garment enterprises should be pformed into suppliers, so that "clothing manufacturers are responsible for production, agents are responsible for sales, and perform their duties".

According to him, the accumulation of early primitive capital of agents has been completed. In the process of marketization, the echelon of agents has gradually expanded and formed a sizeable scale.

"They are not only" flocking together "to negotiate with production companies, but also have their own designers to make changes in the sales of good styles of clothing so as to achieve high profits.

He told reporters.

As the brand of manufacturing enterprises is gradually recognized by the market and consumers, the control of clothing enterprises to agents and franchisees is getting smaller and smaller, and the demand of agents is increasing.

Jiang Hengjie, executive vice president of the China clothing association, believes that agents who have done bigger and bigger will expand their occupancy in the market and have their own strength. In turn, they will require clothing brand enterprises to lower the purchase price and occupy the profit margins of brand dealers.

"There are some hazards. At present, agents have a trend of development. Some powerful agents are acting as agents at the same time. They do not put eggs in one basket. They threaten and resist manufacturers by proxy brands, and demand greater preferential policies for them."

He Junfeng, chief marketing consultant of marketing planning, said in an interview with reporters.

Because of this, some brand manufacturers have invested or put their existing agents and franchising channels back to their own in order to improve their mastery of brand channels.

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Garment enterprises "passive pformation"

A survey of more than 200 garment enterprises in Humen shows that more than 95% of the growth oriented clothing enterprises have realized that the current marketing mode can not be used before, but most of them do not have a clear understanding of innovative marketing.

Over the past 6 months, the public marketing planning agency has just completed an investigation of more than 200 garment enterprises in Humen, a southern garment city.

Research data show that more than 80% of the growing garment enterprises have realized the importance of brand in the future competition. More than 95% of the growing garment enterprises have realized that the current market can not be used before the marketing mode, but most enterprises do not have a clear understanding of innovative marketing.

Due to historical reasons, the overwhelming majority of garment enterprises in China adopt agency mode.

He Junfeng said: "before, the clothing industry in Humen, Dongguan and even the whole Pearl River Delta region is mainly production oriented, and does not care about the sale of agents, because there is an export contract contract that can be eaten and drunk.

At this time, the product is in short supply, the agent does not have the right to speak at all. "

"With the development of the market, the clothing products become more and more homogeneous, and the market is not short of products.

And the channel of agents has more and more voice, so clothing companies have to cooperate with them.

He Junfeng said.

He Junfeng told reporters that the agent channel has eaten a large part of the profits of clothing, "not obedient, not easy to control. Many manufacturers have given the discount to the terminal stores, which have been directly digested by the channel operators, and the clothing companies can not control the market".

At present, the number of clothing brands in China is far greater than the number of agents. Agents often have 4 to 5 brand resources, and the integrity and loyalty of agents have always been affecting the nerves of clothing enterprises.

He Junfeng told reporters that in Humen, the annual sales volume of 50 million yuan to 100 million yuan of enterprises, in addition to product advantages, the agency channel is relatively stable, but these channels, especially the provincial agents are acting at the same time three or even more than five brands, they also have more and more requirements for manufacturers, in addition to product quality, style, but also to provide a lot of supporting services.

Against this background, garment enterprises represented by YOUNGOR began to seek pformation.

However, the industry also has different voices on the pformation of the textile and garment industry.

Wu Jianmin, chairman of Shandong sulang clothing and apparel Limited by Share Ltd (hereinafter referred to as "Shu Lang clothing"), told reporters that the pformation of domestic garment enterprises is "passive pformation". Whether there will be success or not in the future is still uncertain.

"It is a great courage for enterprises to let garment manufacturers avoid middle links and create creative and brand marketing."

Wu Jianmin told reporters that clothing enterprises simply do marketing, take light asset mode operation and so on. Most of them are passive pformation under the national macro-control, rather than purely market oriented enterprise behavior.

Shortening the chain of agents and increasing profits

Clothing enterprises and agents should not be merely "business relations". Some excellent enterprises have integrated with agents. For example, clothing enterprises take measures such as shareholding system and brand culture fusion to integrate agents into the management system of enterprises.

The direct opening of Direct stores is regarded as the key to increase profits by shortening the agency chain, reducing agency level and reducing intermediate links.

"Before we sell clothes to agents, the profit of our single garments is very small, with only a few dozen yuan, and the profit difference of the same garment through the direct camp can reach an astonishing 10 times."

A brand clothing business people said.

In addition to self built stores, clothing companies can also split profits or brand hosting to increase profits.

According to the rough statistics of the industry, trusteeship can save more than 20 yuan per year for brands.

Wu Jianmin is one of the followers of this way: about 90% of the shop of sulang clothing is directly battalion.

Wu Jianmin told reporters that straightening out the industrial chain is not to create new industrial chains, but to keep pace with the times and make timely adjustments. Shu Lang has been considering how to make the agents faithful to the enterprises, and at the same time, it can penetrate the brand building of the enterprises into the daily behaviors of the agents, and fully integrate the interests of the two parties.

It is worth noticing that in recent years, with the popularity of the light asset mode and the Internet, domestic textile and garment enterprises frequently touch the net in order to shorten the links of agents.

Li Rucheng, chairman of YOUNGOR, said that over the years YOUNGOR has invested a lot in building solid channels both at home and abroad, and has also compared YOUNGOR with PPG.

"But this is not appropriate, the product is different, the channel will also be different."

Li Cheng Cheng said, "we are talking about cooperation with some networks, but it is not enough for me to grow bigger."

Apart from the large brand clothing enterprises, many small and medium-sized brands have little effect in the agents' links.

He Junfeng pointed out that clothing companies in Humen had made many attempts in the agents' links. Some even spent hundreds of thousands of yuan to invest in the terminal image recognition system. They also spent millions of yuan to do direct businesses, and spent tens of millions of dollars on advertising and star promotion, but most of the investments did not have immediate effect on marketing performance.

He Junfeng believes that clothing enterprises should take sales as the standard, and enterprises at different levels need to do well in channel construction at all stages, so they should not be too eager to pursue the so-called "brand effect".

"Clothing enterprises and agents should not be merely" business relations ". Some excellent enterprises have integrated with agents. For example, clothing enterprises take measures such as shareholding system and brand culture fusion to integrate agents into the management system of enterprises.

He Junfeng told reporters.