Risk Of Apparel Middlemen In Channel Risk

External type

It refers to the channel risk caused by external factors of garment enterprises (clothing middlemen, competitors, environment, etc.).

The risk of external channel comes from the channel risk of garment enterprises such as garment middlemen.

It usually has the following situations.

Super terminal risk

The strength of the retail terminal has brought great risks to the manufacturers.

In the process of pformation of marketing channels, some giant retailers, such as WAL-MART and Carrefour, have attracted special attention.

In the process of pformation, the functional role of the terminal has changed. This change has destroyed the distribution function of the original distribution structure of garment enterprises for clothing enterprises, and brought a series of risks to the marketing channels of garment enterprises.

These powerful retailers occupy a large market share in the range of commodities they operate, so they control market distribution channels.

From the point of view of clothing enterprises, these powerful retailers play the role of "gatekeepers" in the consumer market.

As a gatekeepers, they play the role of purchasing agent for their customers, rather than playing the role of sales agent for their suppliers (producers).

Retailers are more supply drivers than market drivers.

Most of them operate in a low margin / low price way, and offer tough demand to manufacturers (such as entry fees), which also brings channel risks to garment enterprises.

Risk of clothing middleman's selection

Clothing middleman is the main body of garment enterprises' channels, and is the realization.

The key to marketing objectives.

Therefore, choosing a suitable garment middleman is very important for garment enterprises.

If the clothing middleman is consistent with the target of the clothing enterprise, the marketing channel system emphasizes the coherence of the members of the system.

In the marketing channel system, organizations that perform different functions belong to the same marketing channel.

Therefore, the agencies performing different functions must "divide the work without division" to complete the distribution task uniformly.

We notice that in practice, the failure of marketing channel operation is often caused by the inconsistency of the actions of the members of the system.

It is very helpful for garment enterprises to develop the market, occupy the market and improve the market share.

However, in practice, clothing middlemen are also an independent economic entity. Its business objectives are difficult to match with the management objectives of garment enterprises.

Therefore, when choosing a garment middleman, garment enterprises are faced with the risk of choosing the right garment enterprises to benefit from it and choosing the wrong ones to damage the garment enterprises.

Apparel middlemen credit risk

The credit risk of garment middlemen is mainly reflected in the accounts receivable of garment enterprises.

Accounts receivable mainly refers to the fact that clothing enterprises can not recover money in time from the distributors, resulting in the occupation, loss and so on.

Accounts receivable are generated by selling on credit.

Credit sale may be caused by aggressive efforts by garment enterprises, but many times it is inevitable.

In such a way of sale that must be sold on credit, yes.

Credit review is the key.

But in reality, on the one hand, clothing enterprises sometimes know that clothing middleman is not good, but in order to achieve sales goals, they intentionally or unintentionally ignore credit risks; on the other hand, some clothing middlemen are interested in arrears of payment, and the payment is used as bargaining chip with the clothing enterprises, sometimes even they do not want to give up.

These problems will bring risks to garment enterprises.