Brand Change Channels To Increase The Proportion Of Direct Shop

September 18th, a few days ago, about shoe companies

Banning the news of distributors has become the focus of widespread concern in the industry.

In fact, many shoe and clothing enterprises are also facing changes in channels after their growth and development. Many enterprises are gradually increasing the proportion of Direct stores, and the funds raised on the market are also widely used in the construction of direct channel.

Expanding the proportion of direct outlets

Through the first application, the upcoming bird landing in the capital market shows a "ambition" in the store.

Public information,

We intend to use the fund-raising funds to develop the domestic first tier city market and establish 60 strategic stores nationwide, that is, direct outlets.

According to prospectus disclosure of the fund-raising fund investment, a total of 880 million yuan to raise funds, 550 million yuan will be invested in the construction of new open shop, it is estimated that the new shops will invest more than 60% of the funds.

At the same time, Jordan sports prospectus ready for listing also shows that the company expects to raise 1 billion 200 million yuan, of which about 460 million yuan will be used for direct store construction.

There will be 27 new strategic shops in the first tier cities of the country (Beijing, Shanghai, Tianjin and Wuhan), all of which will be directly operated.

Among them, the number of shops for purchasing property is 9, about 3000 square meters, and the number of shops rented is 18, with an area of 5400 square meters.

It is understood that at present, Lining's self shop contribution rate has reached 20.8%, and Anta, XTEP and 31st degree distributors also have many direct outlets and joint stores.

The seven wolves have also been speeding up the construction of Direct stores. In November last year, they raised 1 billion 800 million yuan in fund-raising, all of which were used to optimize the company's marketing network, and to increase 1200 sales terminals. Among them, there were 360 additional outlets, including 60 flagship stores and 300 exclusive stores. The proportion of terminal stores in all terminal stores increased from 12.28% to 16.73%.

Relieve inventory pressure

"When the brand grows, the original channel does not follow the growth. Just like a 10 year old child wearing her clothes at the age of 3, it is inevitable that the change is inevitable at this time. The flat running channel is always a trend of product distribution, and also a necessary way for the development of the enterprise."

Ceng Xiaohui, general manager of Fujian international branch Co., Ltd.

It is understood that many brands of flying international are promoting the construction of Direct stores, but according to the brand development stage and positioning, the proportion of direct and franchisees is not quite the same.

The "direct camp" mode can reduce circulation costs, establish brand image, alleviate inventory pressure and dredge the flow of goods at the same time, but the investment is large and the profit period is long. Therefore, many shoe and clothing enterprises will adopt the way of joining in the initial stage of the brand, and gradually increase the intensity of direct investment after the brand matures.

Ceng Xiaohui said.

In addition, in clearing inventory problems,

It also shows advantages.

At present, there are only two international brands that can solve inventory problems in the Chinese market -- ZARA and UNIQLO, and the two international brands have adopted the same sales mode -- direct battalion.

Since it is a direct battalion mode, a more flexible strategy can be adopted to deal with inventory.

For example, a pair of trousers, ZARA will take a weekly discount, starting from 499 yuan price discount, first hit 50 percent off, 249 yuan, a week later, this price changed to 219 yuan, after two weeks to 189 yuan, and so on, weekly reduction of 30 yuan, and ultimately promote sales, complete the task of clearing inventory.

Increase channel profit

"For brands, the direct camp can not only enhance the control of the terminal, but also help to increase the profits of the brand and promote the brand strategy better."

Lin Qiubo, general manager of Xiamen Mai Tu Trading Co., Ltd.

He once tried to join the franchise mode, opened more than 400 stores online, but after four or five years of operation, he had to withdraw all of them. The biggest problem was that accounts receivable could not be recovered.