Bestseller ONLY Agent For Recycling

　　 The Danish Fashion magnate fashion company (the "bestseller") is adjusting its business strategy in the Chinese market, but it disputes with franchisees.

On the 18 day, a number of agents from Hunan had a violent clash with their staff. On the 20 day, Dai lady from Hunan Loudi ONLY brand still sat at the Beijing bestseller doorway, insisting on a "statement".

"We worked hard at the market and began to make profits, but we had to regain our agency instead of letting us do it. Is this not a killing? " Dai said yesterday in an interview with reporters. The bestseller expressed no response to the matter.

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.

Burn the bridge after crossing it?

Bestseller belongs to Danish bestseller fashion group, which includes four brands, including ONLY, VERO MODA, JACK&JONES and SELECTED. Chinese Market 。 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.

Due to dissatisfaction with the unilaterally rescission of the agency contract, more than 20 agents from Loudi, Yongzhou, Chenzhou and other places in Hunan will be surrounded by offices in the Beijing World Trade Fair these days.

The representative of the franchisee, Ms. Dai, said she started a business in Loudi, Hunan since 2006. ONLY shop But it did not occur to me that the agent contract of the bestseller stipulates that the agency shall be signed for three months.

A person in the industry told our reporter that the agency contract between the brand and the franchisee was generally signed in one year, and that the brand was opened for the early development and opened up in the three era. However, such a contract in March was indeed very strong.

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, bestseller and these families Franchisee The termination of agency agreement is not a sudden move, but an embarrassing situation that it will inevitably encounter in the transformation 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 franchisee in the early stage of opening up the market, so as to take advantage of the funds of franchisees to get rapid expansion. But after the maturity of the brand, the company will often recover the agency power in order to take into account the brand image upgrading, the overall strategic layout of the company, and the problems of general franchisee's lack of motivation to shop and management to keep up with 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. {page_break}

"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.