International Brand Product Agency Risk Also Exists.

When international brands are looking at China's huge "cake" and enter China in succession, China's dealers also show great interest in these foreign brands.

As a result, a wave of international brand agency emerges.

So, is this international brand agency hot enough for domestic agents to be full of business opportunities or temptation of risks?

Dealers are keen on international brands. "I have my own fur production plant, and I also represent several domestic fur brands.

All along, I very much hope to act as an international brand.

Because in China, international brands still have great prospects for development. This time, a great goal of going to Europe to explore the market is to find a brand suitable for their agents.

Qi Jingwei, general manager of Ou Ya Fur Fashion Co., Ltd. is one of the representatives of the joint conference of Chinese clothing distributors to Europe.

In fact, there are a lot of people who share the same idea with Qi Jingwei. Many fashion dealers and clothing companies are looking for or have already acted as an international brand.

As a Chinese apparel Dealer Association, a professional organization of domestic garment distributors, the staff of the Conference Secretariat said that after communicating with its members, the organization found that many domestic distributors and garment enterprises had the need to act as agents for foreign brands, so they organized their members to study abroad, hoping that this way could help the domestic distributors and international brands.

In 2006, the joint conference organized 12 members to conduct business surveys in Europe, and conducted trade negotiations with 15 excellent clothing brands in Spain. Good results were achieved and 3 cooperation agreements were reached.

This year's joint meeting again sent a group to Europe to investigate.

Insiders pointed out that at present, many garment enterprises and distributors are optimistic about the potential of international brands in China, and they also have some experience in capital accumulation and sales, so they seek international brand agents.

And some garment processing enterprises are also beginning to act as agents of foreign brands, because garment export processing enterprises make gross margin of OEM production basically below 10%, and profit margins are very small, while agents of international brands are franchised. Franchisees only need to take money to pick up goods, and the risk of operation is very small. They can also make use of the famous brand effect and easily open the market. Some even better and well-known local brands are actively seeking or have already acted as an international brand.

An "international brand agency fever" is gradually emerging.

International brands are optimistic about the Chinese market and many other clothing companies are optimistic about international brands. International brands are also eager for the huge Chinese market.

At the CHIC exhibition that was not long ago, many international brands that were not well known to the Chinese people came to China for the first time.

According to rough statistics, there are more than a dozen of those who only want to enter the Chinese market in the exhibition site, such as the brand VOG-fashion from Italy, the 100 year brand HartSchaffnerMarx from the United States and so on.

The staff of the Joint Secretariat of China's clothing distributors said that during their contact with foreign apparel industry organizations and clothing brands, they found that international brands were very interested in the Chinese market. They welcomed the joint group's inspection.

And some garment industry organizations or brand enterprises will take the initiative to find them, hoping to help them enter the Chinese market, and recommend some excellent agents for them.

Some experts believe that the fundamental reason for attracting a large number of foreign brands to enter the domestic market is the enhancement of brand consumption awareness in China's clothing consumption market, which to a certain extent indicates the acceleration of the brand process of China's apparel industry.

After joining the WTO, the international garment brand has speeded up the process of catching up with China.

International fashion brands can enter into China, which can be divided into three modes: one is direct battalion, such as "Zegna", "Louis &#8226", "Vuitton", "Armani", "Chanel" and other top brands mostly adopt this mode; the two is OEM, commonly known as licensed production or OEM production; and three is brand agency.

After the entry of foreign brands into China, the two modes are the main trend, and they are the mainstream trend for quite a long time.

The extension of operation mode, some strong brands, usually adopt this way, but this kind of operation, because of its incomplete understanding of the Chinese market, is likely to lead to "acclimatization". There are two sides in the existence of clothing OEM: one is the client of OEM, the other is the manufacturer of OEM, the client often has the advantage of product design and brand marketing, but it is obviously in a disadvantageous position in manufacturing, while OEM manufacturers have opposite advantages in product design and brand marketing, but they have obvious advantages in product design and brand marketing, but have obvious advantages in the manufacturing cost of products, and can produce the quality of products expected by the designer. Direct camp mode is brand abroad.

It is worth noting that in recent years, some international clothing brands have begun to take joint ventures with domestic garment enterprises to achieve the goal of localization. For example, the brand owners of UNIQLO, Japan's Xun Sales Association and Jiangsu CHENFENG group, each invested 71.43% and 28.57% respectively, and the joint venture was established in Jiangsu.

Fast marketing is responsible for marketing and costume design, and the production of the morning wind and steel, the two sides work together to form an interest coalition.

Experts: business opportunities and risks are facing the upsurge of international brand agency. How should domestic distributors face them?

On this issue, the reporter interviewed the general manager of Shanghai morning brocade clothing Consulting Co., Ltd.

"Agency is actually franchising, which is a very popular way of operation in Europe, America, Japan and other countries.

In China, the agency of international brands is also very promising.

China has a huge consumer market, and once the international brands of distributors have opened the market, the market space is huge.

Manager Zhang fully affirmed the development space of international brand in China.

But Zhang also emphasized that there are risks in the presence of international brands. In particular, brands and first-line brands will be able to enter China directly or in cooperation with large domestic enterprises because of their strong strength and abundant capital.

At present, most of the international brands that want to enter the Chinese market through agency are international two or three line brands. They have a certain impact on their own or European and American markets, but they are not very well known internationally, especially in China.

They are optimistic about the Chinese market, but due to their own strength constraints, they can only enter the way of seeking agents.

When choosing a clothing brand as agent, dealers must consider two aspects: one is brand awareness, the other two is the product itself.

If these two aspects are to be measured, these international two or three line brands that want to enter the Chinese market and seek agents will not have a high reputation in China. They need to do a lot of promotion after entering China. After entering the Chinese market, their products need to be specially designed and developed for the Chinese market, and whether their specialised products can meet the needs of the Chinese market and demand is also not necessarily.

Therefore, from these two points of view, there is a certain risk of acting as an international brand at present.

Moreover, acting as an international brand is also a test of the strength and stamina of an agent. If an international clothing brand enters the Chinese market, it will probably take three years to invest. In the past three years, basically no investment has been put into production, which is also unbearable for most of China's agents.

Therefore, dealers need to be cautious when choosing international brand agents.

Then, how should dealers avoid risks in the process of acting as an international brand?

Zhang pointed out that not all international brands are worthy of agency, nor is it a brand name that meets the needs of local audiences. It should be chosen to act as an international brand.

Therefore, adequate market investigation should be done before acting to fully demonstrate.

After the agency, we should fully understand the brand's product style, characteristics and historical evolution, and make a comprehensive understanding of the operation of the brand owned enterprises.

A famous international brand always follows a concept and way from product production to sales, and even the decoration of franchised stores is globally unified.

Therefore, before deciding to join the international brand, we should fully understand the relevant information and make preparations for all aspects so as to reduce risks in the process of agency and lay a good foundation for successful operation in the future.

At the same time, in the international brand, we should pay special attention to the following points: first of all, in cooperation, we must learn to build our own team. The development of products can not rely solely on foreign enterprises. We should have our own design team.

Second, we must establish a comprehensive sales channel.

Finally, in the contract, we should clarify the responsibilities and responsibilities of both sides, and strive for more support from international brands.