Clothing Industry: A Win-Win Business With Brand Authorization

Brand licensing originated in Europe and the United States. At present, all kinds of brand licensed products account for more than 30% of the retail market in the United States, and are the most rapidly growing sales force.

For authorized enterprises, brand licensing is neither too much under the ownership structure or in all aspects of operation and management under the control of brand rights holders.

Friend R is an Anime fan who always dreams of working with world-class cartoonists to produce some fashionable and innovative products.

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"Under the big tree, let's enjoy the cool. Now there is a large number of fans. If I develop clothes, I will definitely do well in business."

In fact, there are very few enterprises that share the same idea as R. Once a manager of a clothing company has sent a similar feeling: "making a brand is very hard, and investing tens of millions of dollars at every turn. It's better to find a big clothing brand as a backing, so that money can come faster."

And the way to "borrow chicken and egg" is brand authorization.

In 2000, Guangzhou crocodile King Industrial Co., Ltd. officially became the general agent of Hongkong crocodile CROCODILE regional footwear products in mainland China.

Although it is called the general agent, the crocodile king is a licensed footwear manufacturer.

They are responsible for production and sales, and what they need to do is pay a high price for royalty.

For authorized vendors, brand licensing has solved a major problem faced by small and medium-sized enterprises in China for a long time: first, brand awareness.

The formation of a strong brand is not achieved overnight. It needs decades of its owners' efforts and even hundreds of years' efforts. However, if we do not make the brand and lack of popularity, it will be difficult for the enterprises to survive.

Through brand licensing, similar problems can be solved.

Two is the funding problem. Brand licensing has greatly reduced the promotion of brand advertising costs and other investments.

Cai Guilin, general manager of Guangzhou crocodile Wang Industrial Co., Ltd., since the 90s of last century, he has run an international brand agency business with some Wenzhou townships. Among them, Sun Xiaofei, who had been familiar with Sun Xiaofei for the acquisition of Pierre Cardin, is actually the chairman of the crocodile king company.

"At that time, several shareholders wrapped up counters in the shopping mall to act as international brand agents.

Hongkong crocodile shirt has been in the history of nearly 50 years, and several shareholders agree with their brand value. The brand agent has signed the general agent of the brand in mainland China.

Reporter recalled, "at the beginning of the operation is still relatively hard, slowly opened the domestic market."

After 12 years of hard work, there are more than 800 franchised outlets for crocodile products in mainland China.

In Cai Guilin's view, authorizing the brand of crocodile shirt is more reliable than creating a brand.

"How much success can a self created brand invest in and create a real brand?" Cai Guilin said. What he has to do now is to make the crocodile shirt shoes fine and meticulous. In the long run, he has also withdrawn some regional dealer dealership this year.

Since entering the Chinese mainland market in the late 80s of last century, Hongkong crocodile shirt has been authorized to give other companies other than men's wear.

Footwear, leather goods, down garments, cashmere sweaters, underwear, sports series and so on have fixed authorized partners.

Liang Feng, general manager of the mainland headquarters of crocodile, thinks that the mainland market is vast.

The way can make the brand fully occupy the market.

"Crocodile shirt originally had only men's wear products in the mainland market, so that other products such as down coats in the men's wear counters will launch five or six new models every quarter.

Most major department stores still carry out floors by category, and other categories in men's wear counters can occupy a small market share.

After the authorization of different categories, all kinds of crocodile shirts can be fully displayed and the brand development space is bigger.

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The key is management.

Although many enterprises are optimistic about the development potential of brand authorization, they have exposed many problems for many years.

For example, overlaps sell brand authorization.

Disney company, which entered the Chinese market more than ten years ago, caused the channel operators to purchase goods from only one authorized department because of repeated authorization, which made each authorized business compete and fight with each other.

For example, the operation of Shanghai three gun market for Disney's children's underwear is relatively unsuccessful. Although the royalty rate is as high as 400 thousand US dollars, its profit is very small and sales volume is not high, which leads to greater difficulties in operation.

There are also problems with blue cats. In recent years, the blue cat domestic cartoon star has broken the dominance of foreign cartoons. But Disney and the company also made a mistake of "spreading the net wide", not only being authorized to make money, but also the brand of blue cat.

"Every enterprise wants the brand to be widely advertised, but the authorized party who chooses the crocodile shirt must be able to develop comprehensively in product R & D, production and marketing."

Liang Feng told the clothing Times reporter that in addition to carefully selecting partners, the headquarters will also control product design and production for the protection of brands.

If the products of each part of the authorized party are to be issued to the head office in advance, the product pricing should be consistent with the brand positioning; every product has the anti fake logo.

"The licensed products of crocodile shirt will be provided to the head office with a catalogue of products including picture, price, and materials used before the official production is ordered. If inappropriate, we will suggest that it be modified."

Liang Feng said.

Many industry insiders worry that this mode of brand authorization will overdraw the brand. Liang Feng thinks that finding a good partner and positioning accurately will not suffer from such a result.

"Some manufacturers only earn" quick money ". Blind authorization leads to confusion in product quality. Such disorderly product development without long-term planning is equivalent to consuming brand vitality.

However, as long as the management is correct and the concept of cooperation is consistent, there will be no problem. "

Liang Feng said.