Clothing Industry: Raising Prices Means Re Shuffling

"Some say the present. clothing The price is too high, and half of the money spent on buying a dress is made away by our brand agent. I really hate to hear that. Every time people talk about the experience of making clothes agents these years, Liu Shiwen feels very hurt. Liu Shiwen is Women's wear In the view of the brand agent, the general agent in North China, the promotion of clothing prices is a manifestation of the industry shuffling upgrade.

　 A business and a business

Since entering the clothing circle in 1992, Liu Shiwen has been a fashion designer. He grabbed the most fashionable dress from Shenzhen and returned to Beijing zoo clothing wholesale market in order to speed up the listing. In addition, Liu Shiwen sold fur to Russians and even took orders for foreign trade "Dove". In Beijing Tianya clothing city, like Liu Shiwen, there are not many people who really experience the shuffling of the clothing industry. However, in Liu Shiwen's view, these experiences in the past 20 years are not enough to make him feel the cruelty of the clothing industry. He said: "compared with a friend's experience last year, these things are nothing to me."

Liu Shiwen said that his friend Li Nian (a pseudonym) is the general agent of a brand of women's clothing in North China. At the beginning of this year, Li made a decision. He made up his mind to swear that he would never set foot in the garment industry for the rest of his life. Because in the past two years, Li's general agency in North China has been dismembered by the head office. After the agency's performance has been released this year, he has finally decided to hand over the agency and decide to give up everything he does.

This matter also needs to start from 2002. 10 years ago, Li had succeeded in winning the general agency of a brand of women's clothing in North China through competition, with strong financial strength and mature channels to promote connections. At that time, the brand women's clothing headquarters was divided into the market area of Li Nian, including Beijing, Tianjin, Hebei and Inner Mongolia. As the brand is the first time to lay a market channel in the North China market, Li has greatly supported the agency policy and performance.

In the first few years, Li had a very good relationship with the head office. The head office will regularly send people to guide Li Nian's sales in North China market. The supply of goods also provides the biggest convenience for Li Nian to ensure the fastest delivery speed and to replace the unsalable funds in time. As a friend, Liu Shiwen saw everything in Li Nian's experience. "Although the clothing agency is a business in essence, in order to make a difference, Li feels that I feel that the clothing agency is a career, not just like other agents, but just as a business of clothing agents."

　 Brutal agency recovery

Of course, Li's team worked very hard, not only by virtue of their own strength, but also successfully developed the dress brand in North China. market Channels, but also create market performance. Soon, Li Nian's brand of women's clothing entered a steady development stage in the North China market. After 2009, the development trend of the women's clothing brand entered a rapid growth stage. The performance of the North China market, which was headquartered by Li Nian, increased from 15 million to 18 million, of which Beijing and Tianjin were 4 million, and Inner Mongolia and Hebei were 5 million respectively.

In Liu Shiwen's view, the performance of the head office for Li's team is indeed a bit high. In the good market and the weather is not too abnormal, the company's new product design, reasonable pricing of single products, and the cash flow of agents below two can be fully guaranteed, 18 million of the index can still be completed reluctantly. Fortunately, with the efforts of Li, by the end of 2009, the tasks set by the head office were successfully completed. {page_break}

In pursuit of higher market share, in 2010, the company hired a new marketing director. The head office decided to increase the performance of the North China market to 30 million, and stipulate that if the mission is not completed, the agent will be handed over to the Shenyang market in Inner Mongolia. Li certainly refused to hand over the market he worked hard for, so he bit the toothpick contract. Unfortunately, this time, Li is far from the target of 30 million.

In 2011, after the contraction of the market, the company made a 30 million achievement for Li Nian. Under all circumstances, Li year still signed the contract, because if he did not sign the agreement, the head office would cancel its total eligibility. If he signed but failed to complete his annual performance, the Hebei market would be divided according to the north and the south, and the southern part should be handed over to the Shandong agent. By the end of 2011, the result could be imagined that Li finally decided to leave the garment agency completely.

　 Distinguish between rising prices and brand upgrading

In Liu Shiwen's view, the year of Li is actually the result of the gradual recovery of the agency by the brand. This may be the biggest grief for clothing agents. "At the beginning, if the agents did not establish a huge regional market network and effective sales mode for the newly established clothing brands, where would one brand of clothing be born?"

Liu Shiwen said, in recent years, the clothing agency business is becoming more and more difficult. Under the situation of high manufacturing cost, the profit of wholesale is once again squeezed. Some brands, under the slogan of brand upgrading, are eager to advertise frantically in TV stations in pursuit of advertising effect. After that, the brand owners have reason to raise the price of the tag, and the agent has no voice at all, and can only passively accept the reality of the price increase, which is equal to the increase of the purchase cost.

Liu Shiwen believes that for the middle and low end clothing brands, the behavior of the brand's rising price will ultimately hurt the interests of consumers. He said that at present, most brands in the clothing industry are taking advantage of rising prices. For agents who are in the "middle link", price increases will make the capital chain of agents tight. Once consumers do not recognize the behavior of brand markup, the days of agents will be very sad, and a group of garment agents will undoubtedly withdraw from the market.

Besides, there is another aspect worth noting. In recent years, many brands have been Agent With the help of business, the regional market has basically completed the stage of laying, and some brands have put forward higher requirements for the overall profit increase or brand image building. According to past experience, brand dealers will be cruel to withdraw the agency right at this time, or gradually increase the number of Direct stores to achieve overall profit improvement. Regardless of which way to upgrade, these rising brands will mostly adopt ways to raise sales prices.

The biggest difference between brand growth and brand growth is that each growth price of these growth brands corresponds to certain quality, design improvement, style change or upgrading of terminal store image. Of course, this also includes supporting agents, distributors terminal operation capabilities, and opening up flagship stores. According to Liu Shiwen's statement, from the perspective of brand dealers and agents, the rising price of the clothing industry will accelerate the industry reshuffle.