Causes And Classification Of Channel Crisis In Garment Enterprises

In modern marketing activities, the lack of any link will lead to stagnation in marketing activities.

Among them, "location" refers to the distribution channel, that is, the lines or passageways that clothes or services are pferred from producers to consumers.

Almost all the parties to modern competition can provide quality clothing, low price and fancy sales promotion activities. The only great potential is distribution channels.

But in reality,

Different interests among apparel distributors, clothing distributors and garment distributors, clothing distributors and customers will inevitably lead to various conflicts of interest. When conflicts develop to a certain extent or other external environment changes and have strong pressure and negative impact on the channel reputation, channel operation activities and internal management of the garment enterprises, they will evolve into various types of channel crisis.

The penetration and diffusion effect of the channel crisis is very strong. Once it occurs, it will cause immeasurable real or potential harm to the garment enterprises. Therefore, for apparel enterprises, the best channel crisis management is to prevent and control the crisis beforehand, and even to achieve the effect of turning the crisis into a turning point.

In view of the causes of the outbreak of channel crisis, clothing enterprises can start pre crisis control from the following aspects: establishing a sense of crisis in the whole channel, adopting appropriate channel mode, carefully selecting clothing distributors, strengthening clothing channel management, and establishing the early warning mechanism of channel crisis.

Causes of channel crisis

The crisis of sales channel is one aspect of the crisis of garment enterprises. The crisis of clothing enterprises refers to the decline of sales growth rate, market share and profitability of garment enterprises due to external environment or internal management and other reasons, and even the bankruptcy of garment enterprises.

Clothing enterprise

Management is to establish a crisis early warning system, in order to prevent crises, monitor crises, identify crisis types and crisis levels, and take measures to deal with crises so as to achieve sustainable and stable development of garment enterprises.

The birth, generation and even disastrous consequences of a sales channel need a process.

Therefore, at the early stage of the crisis, we should regularly review the performance of sales channels and identify potential crises in a timely manner.

The main manifestation of the crisis state of sales channel is as follows: because the business environment is not conducive to the change of garment enterprises, the sales growth rate slides down, and the market share decreases; the middleman complains more and more, and the enthusiasm is not high; the sales channel manager can not get relevant information in time, or the information obtained is very error; the manufacturer's customer value added behavior can not get the effective cooperation between the middlemen, which weakens the communication effect between the manufacturer and the customer.

Classification of channel crisis

Sudden crisis refers to some external events, such as external macro environment, industry conditions or sudden events in garment enterprises, which bring significant economic losses and image damage to garment enterprises, such as the sudden collapse of middlemen.

Structural crisis means

Due to the unreasonable design, the interests of the structure are contradictory and internal friction is generated.

Imperfect management system and poor flow of information are also important reasons for the structural crisis.

The functional crisis refers to the crisis that the manufacturers perform improper management functions of sales channels, or the crisis of clothing sales channel management is not compatible with the changes in the business and environment of the garment enterprises. This crisis mainly includes supply chain crisis and talent crisis.

The strategic crisis is an inappropriate strategy for garment enterprises in the marketing channel, or a crisis caused by improper implementation of clothing enterprises.