The "Self-Employed System" Of Shoes And Clothing Enterprises Has Gradually Replaced The "Agency System".

Every crisis will bring some unrest, but at the same time, it will bring a new reform to the industry.

The mode was once again pushed to the cusp of the storm. "Going to agents" became the choice of many enterprises, followed by some turbulence.

Economic environment triggers "agitation" again.

The world bank downgrade China GDP is expected to 8.2% this year, China's GDP growth rapidly decline, the macroeconomic downturn finally in the retail market, the retail market price war,

There is even a famous listed company who wants us to get involved in their short-term performance improvement projects to optimize their statements.

On the other hand, we see that as an important part of the entire retail market, "agents" have been pushed onto the board and become the fish under the knife.

The explosive growth of the past has never gone back in today's environment. It hurts the managers of enterprises, even though they will not admit it. But this kind of "tingling" has been existing in cooperation with agents.

New challenges faced by agent system promote pformation -- towards retail pformation

China

The cost of business has risen year by year. According to the statistics of relevant research departments, the average store rents increased by 15% in 2012 compared with that of last year, and the prosperity of commercial real estate directly or indirectly increased the cost of employees, the rise of total cost and the decline of purchase intention became the fuse of "going to agents".

We see that with the development of the market, the two core components of the value chain of footwear industry are facing new challenges.

Industry

The growth model is facing bottlenecks.

For many years, the growth of the horse race enclosure has encountered bottlenecks; the traditional "enclosure" sales strategy will first encounter challenges at the terminal of high cost and low profit, and this challenge will quickly spread to the agent until the corporate headquarters.

Challenge 2: "agency system" determines that the last mile of enterprises depends heavily on agents, and the expansion of their willingness to decline will hinder the pace of enterprise development.

Agents are the "pportation hub" of enterprises to consumers, and assume the "half way" of the entire value chain. Their stagnation makes enterprises somewhat hard to get used to.

Challenge 3: the wholesalers are lack of standardized chain operation ability, the strategy of enterprises can not land, and terminal potential can not be maximized.

However, these challenges should not be allowed.

As a victim, blind "agent" may ultimately affect the business results of enterprises.

We know very well that agents have many advantages over enterprises in many aspects, such as operation cost control ability, social connections of human resources, local consumption control ability, and the ability to grasp the development of stores.

If the agent is replaced by a self run branch, it will lead to an increase in operation cost. The introduction of professional managers has a great risk to increase the cost of individual agency, which is not apparent on the surface of the enterprise.

"Going to agents" is more risky for enterprises that start with the general agent system in provinces.

What we really need to do is make up for the lack of certain capabilities of agents, such as:

Value added business development capabilities (promotion, brand building, etc.), regional business management capabilities.

That is to say, the correct solution is to revolve around "retail" instead of simply "self run".

Even if the impact of the economic environment is ignored, consumer branding and channel flattening are inevitable in a limited market. This trend will also force agents to pform from "pure sale" to "brand operation", from "extensive wholesale" to "professional retail".

The first choice of enterprises is to help and promote the pformation of agents into regional brand retailers.