Shoe Business Retail Market Entry Costs Make Businesses Unhappy

At the end of the year, business activities in the market can be seen in layers, especially for those marketing links directly related to the life of consumers.

In the process of mass trading in the market, the disadvantages of its development are very serious.

In this regard, relevant government departments have repeatedly intervened in the corresponding first-line market research, and found that there are still many loopholes in the cooperation between retailers and suppliers in the sales market.

If it is allowed to develop for a long time, it will indirectly affect consumers' business products.

In view of such market background requirements, the five ministries and commissions such as the national development and Reform Commission and the General Administration of industry and Commerce have jointly issued a work plan to clean up and clean up large retailers to suppliers in the near future, and have decided to centrally carry out the illegal charging work of clearing and rectifying retail enterprises to suppliers in the whole country from December 2011 to June 2012.

The notice also stated clearly that the clean-up and rectification will be the most stringent control over all kinds of retail enterprises and their subordinate stores that use the market dominant position to charge the suppliers violating fees.

Throughout the development of the market, there are frequent cases of zero supply disputes.

In other words, excessive charges for entry fees will inevitably affect the poor convergence of the supply chain of their suppliers.

But in this case, suppliers still can not do without retail business.

Retail entry fee

The entry fee mainly refers to the fees charged to the supplier by the retail terminal using its own advantages and status.

Among them, the retail terminal covers our common supermarkets, stores and other terminal entities.

But it is worth noting that at present, many retail terminals are mainly collecting the entry fees from suppliers in the two categories of contracts and contracts.

As the name suggests, the fees in the contract are mainly advertising, promotion, annual fee, gross margin compensation, and on board fees. There are also many kinds of charges outside the contract, including promotional activities, staff management and so on.

Moreover, as the amount of admission fees has increased year by year, many retail businesses have obviously reversed the main business mode that originally earned the difference in price for commodities, and entered into the income of the retail terminal to charge various fees for the brand and suppliers.

Market magic

Of course, in the retail market, in addition to charging more, no head debt has also been settled in brands or suppliers.

Especially for those products that are closely related to people's lives, if they do not deal with the relationship between the retail terminal and suppliers, they will directly lead to the unsalable and inventory of many first-line products.

But at the same time, if the retail terminal continuously charges a large amount of fees to the suppliers, it will also create a vicious circle between the supplier and the retail terminal, and even lead to the collapse of the entire sales link.

So, here we take the familiar footwear products as an example to analyze.

In the shoe industry, the entire sales system is the management of the Pyramid model.

As a result, retailers often have direct contact with distributors (including wholesalers).

In such an architecture, those two brand dealers will inevitably ask for contracts with the retail terminal to sell the shoes, and when the shoes actually enter the store, they will have to pay for the shelves again. Many retail terminals will usually add 10% more to the cost.

This is bound to give shoe dealers a lot of business torture.

In the face of the increased fees charged by some of them, part of the retail business will set up the "fee for promotion service" on the invoice to cover the fact, so that the details of the fees paid by the two phase dealers will not be verified at all.

Among them, more let the two phase dealers "be upset" is the retail terminal, sometimes unlawfully destroy the reasonable price system of shoe enterprises, and independently reduce prices to get the so-called "small profits but quick turnover" of shoes.

Because for them, if the sales volume of shoe products is bigger, the two dealers will return more frequently.

But on the contrary, for the two period dealers and even shoe companies, the more they sell, the more they lose, and they fall into the vicious circle of sales.

Development breakthrough

On the whole, the arbitrary charging of retail terminals is actually the embodiment of the process of crushing upstream production to the market, and the consequence of arbitrary charges is a vicious circle of zero supply relationship.

Once the successful implementation will have a positive effect on the contradiction between supply and demand, the arbitrary charging of retail terminals is actually a disguised act of pushing up prices, which is obviously unfair to consumers.

Especially for those shoe enterprises which mainly take retail development as the main axis, if retail enterprises have been operating in the way of collecting entry fees, then these shoe enterprises' collapse will become an inevitable trend.

In this regard, the industry suggests that shoe companies can try to change the plight of being suppressed through self built channels or other new channels.

It is reported that from October this year, many women's shoes brand enterprises have established many stores, the purpose is to get rid of the constraints of retail terminals, especially terminal stores.

Therefore, in this tide of zero supply and sales development, how to deal with the relationship between suppliers and suppliers is even more important.