Disclosure: How Can Clothing Agencies Make Profits?

Agent resources and franchisee resources have always been the two main forces in the development of the garment industry. When the elements that affect profitability are more and more inclined to channel and terminal, agents become the most concerned crowd of brand clothing, and their operation mechanism and profit mode are related to the subtle relationship between the brand and the market.

Build competitive advantage and earn continuous profits

Viewpoint: building competitive advantage and improving profitability

The profitability of agents through investment in retailing is the essence and demand of agents in their operations.

As the most close to consumers in the apparel industry chain, the agent should be the most profitable organization. However, due to the large number of intermediate links in China's retail industry and the high cost of channels, the cost and expense of agents in the process of operation are relatively high, thus greatly reducing the gross profit.

The first is the choice and combination of brands.

Whether the brand positioning is in line with the needs of consumers is the fundamental factor affecting sales realization, creating profits and business development. Through brand combination, it can enrich the channel control power of agents in a certain field, increase bargaining power with channel manufacturers and brand dealers, thereby achieving greater benefits and promoting the development speed of the industry in the region.

Two is the channel sales network resources.

Channel network is one of the important resources owned by agents themselves.

Brand does not belong to agents, then only channel network is the agent controllable virtue, and is the foundation of creating sales and performance.

This is the competition of brands. Only agents have a good sales channel network, so that agents can be located.

Three is the retail terminal management capability.

This is the essence of the operation of agents. Only with the growth of terminal sales, only a single store's performance will continue to grow. Only when the network expansion is full, can the performance be increased and the return on investment will be most effective.

Point two. Establish the necessary analysis mechanism and learn to conduct single store evaluation.

As an agent, are you facing too much inventory? Blind shops, opening and closing, closing and opening? Are there any shortfalls in the sales target? There is no plan for the cost of investment, the phenomenon of overspending is serious, and the turnover of goods can be repeated several times a year, which are caused by the mistakes in the operation of agents.

In operation, the ability to obtain cash as an agent is more important than the ability to acquire assets; turnover of investment returns is more important than the static profitability of agents; agents should make their subordinates pay more attention to net profit; the establishment of financial management and analysis mechanism can not be ignored.

From the two angles of sales and brand image contribution,

What is really large is the kind of shop, that is, image shop and business shop. The image store has a good performance in brand image, but its business volume is not high, and there is a certain loss.

The image is good, the location and the area are all good, such shops rent and expense are higher, the loss and the meager profit are inevitable, such shops have the existence necessary, but the quantity cannot be too many, moreover the loss amount is affordable and worth paying.

A business shop has a higher sales, but a lower image. Such a store is the main source of profit for agents.

Viewpoint three release capital and improve turnover efficiency

The reason for the pressure of funds is the loss of stores, slow sales revenue, stock pressure or others?

The practical suggestions for the current situation of the general fund pressure and poor turnover of the agent are to close down the loss shop, to accelerate the withdrawal of accounts receivable from the store and the receivable account of the subordinate dealers. For the inventory pressure, we should open up the sale channel as soon as possible or the wholesale channel can quickly clear the goods.

Of course, improving the accuracy and rationality of purchasing commodities from the source and improving terminal sales are fundamental ways to solve the problem of capital turnover.