Channel Diversification Brings Challenges To Garment Agents

Competition intensifies the terminal operation cost, and the direct channel can reduce the circulation cost to ensure the terminal cost advantage; the direct channel can extract the successful profit pattern to be replicated nationwide; the direct channel has broken away from the estrangement of the intermediary channel, and the brand operator has been able to control the end of itself, more flexible and autonomous, making the terminal operation more sophisticated, and the market operation more planned, planned and systematic.

It will bear the double pressure from brand dealers and competitors: on the one hand, its own brands are demanding a high standard of expectation and high expectations by the direct channel, and on the one hand, the competitive advantage of the rival brand business channel is outstanding, and it is hard to resist the impact.

As far as the Chinese market is concerned, the agency distribution mode will still exist and play an important role in a very short period of time.

After all, the Chinese market is very huge in terms of territory and capacity, and the regional differences are great. The resource support and risk sharing of agents play a vital role in the rapid establishment of the brand kingdom. Moreover, most domestic brands are built up for a short time, and many brands are strong enough to do well in the market operation level and resources, and there is no sufficient strength to directly manage and operate the national market.

Therefore, many brands will still use the resources and strength of high-quality agents to maintain the status of the brand kingdom.

Faced with the impact of channel diversification, traditional agents should think and change.

On the one hand, we should set up self operated stores more strategically to increase the survival chips, at the same time, strengthen the management level of terminal retail, enhance the competitiveness of terminals, ensure that the share can not rise and fall, and on the other hand, we must strengthen the tradition.

Management, research the characteristics of new channels, firmly grasp the channel resources, formulate strategies, open up new channel resources, carry out multi-channel operation and improve performance; or, conditional agents can develop complementary multi brand agents, reduce dependence on single brands, or combine with other regional agents to create their own brands.

With the further intensification of competition, the items and styles of manufacturers are gradually enriched, almost exclusively to meet the needs of wholesalers; on the other hand, agents also require regional protection; therefore, Chinese agents have begun to take shape.

At this time, agents and manufacturers basically formed a single line of cooperation, but still engaged in bulk wholesale, and retailers only random trading relationship.

There are at least two possibilities for the development of the traditional agency mode in the future. 1, the mode of retail Hosting: all the stores' investment and assets are brand dealers. The agents only export the retail management, but they can operate more brands. 2, the affiliate branch mode: the agent becomes the shareholder of the brand in the local branch company; the agent should choose the breakthrough and pformation direction according to its own resource characteristics and advantages.

The brand is based on the quality and quantity of the terminal, and the agent controls the terminal and determines the quality and quantity of the terminal.

The divergence of distribution patterns on input and output leads to the game between the two sides in many aspects.

To achieve the binding of interests, the two sides must first shelve the short-term interests of the game and reach a long-term interest distribution contract, so that the two sides can cooperate honestly and pursue the maximization of long-term and common interests instead of maximizing short-term and individual interests.

As competition continues to intensify, the market will continue to subdivide, channels are more diversified, and industrial prices tend to be infinitely pparent.

The status and proportion will be reduced.

In the future, agents who have strong channel resources, familiar with multi-channel management and good at terminal retail will be more useful.