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Analysis Of The Advantages And Disadvantages Of China'S Direct Placement Of Luxury Clothing Brands

2012/4/6 21:13:00 59

Clothing Luxury Goods Agency Pros And Cons

China agent

Profits and risks are small and profits are stable. Agents know more about China's business opportunities and sales channels.

Early business opportunities in China depend on agents as expedient measures.

Before 2004, China had many restrictions on business opportunities and business opportunities, so most brands chose to shift risks.

The first batch of large scale private foreign trade enterprises has become a luxury force to enter China's business opportunities.

about

Luxury brand

The price is very small, almost zero, and these agents are more familiar with China's business opportunities. Some of them already have ready sales channels.

Disadvantages - in order to save costs, dealers

brand image

At a discount, luxury brand intellectual property protection can do a special limited.

The agents are eager to clean up the stock and reduce the cost. They are only willing to put their products on their shelves, while luxury brands often have a theme for every season. Every single item presenting the theme will obviously cost more.

In order to save costs, dealers' control of brand image and related services will sometimes be greatly reduced.

When some luxury brands are produced locally, agents will directly get goods from factories. When the sales channels of these agents are too powerful and too close to manufacturers, luxury brands will lose control, which leads to many grey areas.

Luxury brands in China are limited in the protection of intellectual property rights.

Brand direct operation

Profit is conducive to maximizing brand image and domestic demand has been fully stimulated.

China's domestic demand has been fully stimulated. The main consumption opportunities of luxury goods are no longer the same as those of the former Beijing, Shanghai, Guangdong and three developed provinces. The second tier provincial capitals, such as Chengdu and Wuhan, are also beginning to enter the big view.

Disadvantages - channel cooperation can not be handy, and it is not easy to find suitable shops.

The overall direct sale of luxury brands is not easy.

The constraints include not always finding the right store when negotiating with the channel side.

Agent

Because of long-term and channel cooperation, there may be deeper accumulation.

Luxury brands do not necessarily gain the advantage of negotiating with distributors.