ONLY Brand Joined To &Nbsp.

The Danish Fashion magnate has quickly attacked the market after entering China. At present, the sales volume of China is up to ten billion yuan.

Relying on franchised stores to rapidly develop two or three line market channels, covering nearly half of the cities and towns above the county level, starting the expansion camp and reducing the channel reform of franchised stores, this reform has hurt the interests of some franchisees, and has directly led to the escalation of the two contradictions.

It belongs to the Danish bestseller fashion group. Its brand includes four brands, including ONLY, VERO MODA, JACK& JONES and SelectED.

According to incomplete statistics, at present, it has 934 ONLY stores, 1053 JACK& JONES stores, 916 VERO MODA stores and 155 SelectED stores in China.

Among them, this is related to its brand ONLY in Hunan franchisee.

Unilaterally relieved due to dissatisfaction

The representative of the franchisee, Ms. Dai, said that she started a ONLY store in Loudi, Hunan since 2006. But what she did not expect was that the agent contract of the bestseller was authorized for three months.

A person in the industry told this reporter that the brand and

Ms. Dai also said that after signing the agency contract, she did not propose to terminate the contract in the next two years. She also opened another shop in the local market last year according to the requirements of the bestseller. In May this year, she joined the ONLY order meeting, and the goods were booked to February next year.

But in June 7th this year, five franchisees, including Ms. Dai, Hunan and Guangzhou Shantou suddenly received the "agency termination agreement", which was sent by fax, demanding that they stop business ahead of time in June 30th.

"In June 13th, we came to talk about compensation in the shop, and asked us to list the items that need compensation and the amount and list of compensation needed.

However, on the second day, Dan Friis, one of the two co founders, refused to admit it and called us out.

At this point, the escalation of the two sides began to cause intense physical conflict.

Said Ms. Dai.

Join the camp

In fact, it is not a sudden move to terminate the agency agreement with these franchisees, but rather an awkward situation that it will inevitably encounter in the pformation of China's market strategy.

It is understood that in 1996, Beijing entered the main high-end high-end casual wear market in China's mainland market. In its early market development, except for a small number of direct outlets in the first tier markets of Shanghai, Guangzhou and other places, the two or three line cities mainly expanded in the form of franchised stores. In the more than ten years after entering the Chinese market, its fashion stores covered more than 300 of the 632 cities above the county level, with annual sales amounting to ten billion yuan.

However, since the beginning of 2008, it has begun to adjust its development strategy in China. The key is to enhance the brand image, increase the proportion of Direct stores and reduce the proportion of franchised stores.

Since then, ONLY has gradually recovered the agency rights in Xi'an, Ji'nan and other places, and there have been many contradictions here.

According to Ms. Dai, ONLY has five hundred or six hundred agents in the country at its peak. At present, there are only a dozen left.

Dan Friis, the China's best seller, recently told the media that in order to consolidate its market share and gain more profits, it decided to reduce its dependence on franchisees.

In 2008, about 50% of the shops that sell clothing brands of fashion fashion companies were franchises, and now they have dropped to 28%.

Cui Hongbo, senior partner of Lian Zhi Da, reflects that most brands will take the form of brand alliance in the early development of the market, so as to take advantage of the funds of franchisees to obtain rapid expansion. But after the maturity of the brand, the company will often take the agency power into account in order to take into account the brand image upgrading, the overall strategic layout of the company, and the problems of insufficient power to shop in general stores, and the lack of management to keep up with the brand development.

And with the attention of the international clothing Brand Company to the Chinese market, more and more brands will take the agency back.

"Agents and franchisees have a sad side, the market that has been laboriously nurtured, and the Brand Company says that it is more and more popular in the country.

In the face of annual sales of 10 billion yuan of clothing predators, regional agents can only obey and be forced to withdraw.

A regional clothing agent from Xi'an said.

Cui Hongbo suggested that the most important thing is the contract. The rules of the game are signed by both sides. They are binding on both sides.

For agents, there is a reasonable assessment of potential risks before signing contracts, otherwise it will be easy to conflict with manufacturers.