Shan Shan: Where Does The Channel Change Go?

Shanshan finally made up its mind and began its "two revolution" to its sales channel, the second time since 1999.

The last time it was "one size fits all" for its own sales companies, which changed from traditional channels to franchising systems at once, and this time, many franchised stores were converted into direct stores, and their "franchise" mode was "closed".

As a leading leader in clothing industry, Shanshan has been attracting people's attention, so the company's action has also become the focus of the industry.

People can not help asking, the channel of Shan Shan.

"Concession" franchise

In March 26, 2005, the East Street of Beijing intersection was red, and the red drum was flying. The scene was warm, and the Beijing flagship store of Shanshan Group was officially opened. It is worth noting that at the same time, the marketing channel reform of Beijing, Shanghai, Nanjing, Chongqing, Nanchang and other places is also in full swing.

"Although Shanshan still believes that franchising is the trend of the development of garment enterprises in the future, it is imperative to implement reforms now, because many dealers do not reach the" franchisee "standard in the" sales index "and" sales network ".

After the reform, the head office of the group will send the general manager and the financial staff of the sales company to the branches of the big cities, while others will use the original staff of the branch.

Liu Mingjie, marketing manager of Shanshan Co., Ltd., told reporters.

"The profit of men's clothing is gradually flat, and several central cities are facing the huge cost of the marketing network, which makes dealers unprofitable, which will inevitably lead to the concession of Shanshan."

Xu Wenju, the former general manager of the Chinese fir Nanjing branch, told reporters.

Xu quit the sales network of Shan Shan after losing about 1000000 yuan.

In 2001, he personally invested 3 million yuan to become the head of Nanjing fir.

At that time, the operation of Shanshan in Nanjing was not optimistic. After experiencing the peak of sales volume of about 10000000 yuan in 1995 and 1996, the annual sales volume of Shanshan in Nanjing in 2001 was only 45 million yuan.

Xu's attempts in recent two years failed to reverse this situation.

"Poor management in several key cities across the country is also an important reason for the recall of Shanshan."

Ningbo Shan Shan Liu Mingjie said.

"Shan Shan", a loud and special name.

From the local small factories 15 years ago to today's famous brands of domestic clothing industry, the five major business sectors, and two big companies of listed companies, it has always been challenging itself and arousing people's attention.

"Uncompleted residential flats" of channels

In 1989, Zheng Yonggang, chairman of the board of directors of the Shanshan Group, began to reform the marketing channel after taking over the badly damaged Ningbo Yong Gang garment factory. In 1992, the first Chinese fir market was built at that time, and the integration of production, supply and marketing was completed.

When the colleagues wake up and start making brand, Shan Shan has become a strong person.

In 1996, the market share of Chinese fir was 25%, leading second to nearly 20 percentage points.

Sales revenue reached 2 billion 190 million yuan in 1997, 2 billion 350 million yuan in 1998, and 2 billion 680 million yuan in 1999. It has been rated as "high growth firms" by the world economic forum for three consecutive years, ranking the list of key construction enterprises in China.

But behind the boom is higher and higher costs. Zheng Yonggang has become more and more aware that the sales network that was originally established in traditional way is very expensive, including running cost and inventory.

To run the system effectively, there must be a premise: the appetite of the market is enormous, and how much goods are sold.

Once the market demand slows down, the channel is no longer a channel, but a "storeroom". Just like a city's pportation system, if there are problems, streets and roads will become temporary parking lots.

Even if Shanshan has the ability to bear the price at present, this marketing mode is not the direction for clothing enterprises to develop in the future, and can not adapt to the needs of the development of the brand of Shanshan.

Dealing with so many inventories every year will not only cause huge losses to the enterprises, but also will damage the fir seriously.