The Fantastic Journey Of Brand Inventory

J, a children's shoe company, has had a lot of trouble this year. As a three line brand, J companies have to find other stock sewers and sell their inventory products to foreign trade companies at the low price of export orders.

However, in the near future, J companies found that they handed over to the foreign trade company's inventory products, in addition to a small number of exports to foreign countries, more than a number of names are still in the domestic market.

On the one hand is to quickly go to inventory, win the temptation of cash flow, on the one hand is worried about the impact of brand and brand awareness, in the J company entanglement, a stock product "fantasy foreign trade trip" in acquiescence.

Domestic channel saturated three or four line brand seeking inventory export

Compared with last year, foreign trade enterprises Jinjiang Jin Zhu shoes and garments Trading Co., Ltd. The order structure has changed significantly since the beginning of this year. Among them, the "domestic shoe clothing brand stock orders" business project growth is the fastest. Take children's shoes as an example, the company has undertaken robot cats, Babu beans, Wan Taisheng, COOSKIN, knights and so on this year. Transformers And more than 10 brands of stock orders.

"For foreign trade enterprises, brand inventory is a good product. In the past few years, our foreign trade companies have been seeking inventory. Now it is the brand enterprises that call to contact us to deal with the inventory. Even this year, we do not need to go to the enterprise to receive the goods. Many three or four line brand enterprises send their goods to them, many of them are still uncooperative brands. " Ceng Jinzhu, chief executive of Jin Zhu shoes and clothing trade, and Lai Yue, head of stepping over company, told reporters.

In this regard, many foreign trade enterprises have the same feeling. Reporters visited to understand that "selling brand inventory" has become the key business of many export enterprises in Jinjiang this year.

"Brand stock has always been exported to foreign countries, which has become more prominent in the past two years." General manager, Jinjiang Sentai sporting goods Co., Ltd. Hou Feng Qi Introduction, a lot of local shoes and clothing have sold stock products abroad, including a number of second tier brand enterprises. "There are many enterprises dealing with inventory in this way. A second tier brand has its own channel export. And foreign trade companies, more is to undertake some three or four line shoes and clothing brand list.

J is one of these three or four line shoes and clothing brands. This year, the company has strengthened its contacts and cooperation with several foreign trade companies, and has been able to digest inventory through foreign trade channels.

"Now the sporting goods industry, a second tier brand has set up factory stores, discount stores, inventory sales, international giants and channels to sink, the existing domestic sales channel load has been particularly large. In other words, the domestic inventory channels are almost saturated, and competition is heating up. The three or four line brand is hard to resist, and foreign trade in inventory is an inevitable trend. Mr. Chen, the responsible person of J company, said that many three or four lines are walking the same way.

Compared with a second-line shoe and clothing brand, the three or four line brand is more passive in seeking foreign trade channels to digest inventory, and can only rely on external forces.

"Jinjiang second line brand has rich marketing experience, can grasp the information of the foreign trade market, and has strong overall sales ability. Generally, it will take the Ministry of foreign trade to deal with the inventory, while the three or four line brand is weak and does not understand the tedious process of foreign trade, so it can only choose to cooperate with foreign trade companies." Insiders Mr. He told reporters.

Many foreign trade businesses of Jin Zhu shoes and clothing trade and Jinjiang Qinghua shoes and clothing market have further confirmed Mr. Ho's analysis.

"Exported products" reproduce the domestic market

According to foreign trade companies, these three or four line brand stocks are popular among foreign businessmen because of their low price and quality guarantee, and are mainly sold to emerging markets, including India, Russia and South America.

"Emerging markets are on the rise and demand is increasing rapidly, and the market for brand inventory is naturally going up. At the same time, compared with the European and American countries, emerging market demand for style and quality is relatively low, so long as the price is reasonable, it is very easy to make a deal. Because the price of stock shoes is low, the customer purchase rate will naturally be high, which is very substantial for foreign businessmen who purchase stock shoes. The foreign trade enterprises that cooperate with J company tell Mr. Chen so.

Therefore, Mr. Chen envisaged that their inventory products are selling well in India, Russia and South America. In this way, we can quickly digest the inventory, increase the cash flow, and at the same time maintain the image of the brand to the greatest extent.

When Mr Chen confidently plans to empty his inventory, a dealer's complaint brings him back to reality after the brand transformation and upgrading plan.

The dealer complained about the market of its exclusive agent. J's products were sold at low prices, completely disrupting the market rules and directly referring to the source from the head office. Under the assistance of the dealer, Mr. Chen found that these low-priced products that disrupted the market were supposed to be sold through foreign trade companies, which had already been sold in foreign markets. However, the direct sellers of these inventory products are transferred to several hands.

"Though it is thought that the product may not be exported, it is not expected that it will be such a large-scale distribution." Mr. Chen sighed.

Zheng Youmin, marketing director of the same machine cat (Fujian) Sporting Goods Co., Ltd., has once again explained the reasons why J has "exported products to reproduce the domestic market". Many of the three or four line brand enterprises that are pressed by inventory have directly delegated their inventory to the foreign trade company. Although they have signed relevant contracts and submitting deposits, they have tacit approval from foreign trade companies. Foreign trade companies can choose to export their agent's inventory, or choose to continue to sell at a low price in the domestic retail market. "Stock is handed over to a foreign trade company, and the foreign trade company will transfer part of its stock to other foreign trade companies to digest it. Every foreign trade company may change its hands again, and no one can tell clearly where it ends up.

In this regard, He Yaowu, marketing director of Jinjiang huun Kun shoe industry Co., Ltd. also confirmed that in fact, after the three or four line brand enterprises transferred their inventory to foreign trade, they could not really sell to foreign markets. "Foreign trade companies play the leading role in selling to foreign markets, but in fact, most products are still digested in the domestic market."

Even under the help of these foreign trade companies, the stock market of many cities in the central and western regions is becoming bigger and bigger. According to He Yaowu, the stock sale market in Hebei has only more than 10 stalls in operation, and the monthly rent is only one thousand or two thousand yuan. The development of these two years has been fast. The stalls of these specialized brands have already formed a mature professional market, and the monthly rent has also risen to six thousand or seven thousand yuan. "In addition to the inventory of some agents, these inventory products are mostly those purchased by foreign trade companies directly to the brand enterprises."

In order to further verify whether the inventory products were exported, the reporter visited several foreign trade companies. Among them, many foreign trade companies are honest, "although they have taken the brand list, they are not all exports. Lower orders for foreign trade, and then sold in the domestic market, compared with the price of factory discounts, foreign trade prices have more advantages.

An unnamed brand stock foreign trade agent said, although the profit of shoes and clothing products is relatively large, they must be eaten in a whole batch. For foreign trade enterprises, the financial pressure is relatively large. "Besides, foreigners are also astute now. They will pick some styles with good looks and complete number of codes. With so much stock left, we are going to deal with it online or in the form of retail outlets, most of which are sold to wholesale stalls or Taobao on township level markets. Compared with the tedious process of export, it is easier to get rid of the product in this way.

Helplessness

Like " Fantasy drift of young school "The true result of the same is that the planned export products are not actually exported, and the three or four line brand stocks only go on a" fantastic foreign trade trip ". As far as J's experience is concerned, this fantastic journey is having an adverse effect on the brand.

"Inventory products at low prices will lead to confusion in the price of the brand market, so that the profits of their agents will be damaged, leading to their distrust of brands and losing their confidence, which will lead to more serious legal disputes. These are all a fatal blow to the brand image." He Yaowu pointed out sharply.

But it is amazing that the fact that most of the brand companies of the three and four line shoes and clothing brands are not ignorant, but they are wasting their efforts.

"Even if we know, we still choose to hand over the stock to the foreign trade company. As a matter of fact, people in the industry know that even if it is perfected, some of the export stocks will flow into the domestic market, but as long as there is no problem of large scale stock exchange, we will acquiesce in it. In order to recover cash as soon as possible, this is also helpless. " Zheng Youmin frankly, the three or four line brand terminal channel is limited, coupled with the bad environment, we have to quickly cash flow.

Including J company, many three or four line brand companies admit that even if they do not sell to foreign markets, as long as they can digest inventory and revitalize their capital. Withdrawal of funds is the root cause of the three or four line brand's efforts to catch up.

But at the same time, J's experience has also raised alarm bells for its peers.

It is reported that Jinjiang's second-line brand shoe companies, even if they entrust foreign trade companies to export their products, will ask foreign trade companies to remove product tags and submit a corresponding export certificate to prevent products from entering the domestic market and affecting brand value. But like the J company, most of the three and fourth tier brands do not require these special treatments when they deliver their inventory products to foreign trade companies.

"In order to return the funds, the potential brand damage is ignored. This is the mistake made by J company. It's very wrong. " Insiders Lai Zong said.

While in Zheng you min It seems that as long as the enterprises pay attention to some problems, the problem of mass goods can still be avoided. "For example, we divide our stock products into small orders and put them in many small foreign trade companies, and they are different regions. In this case, these orders are only small products, which will not affect the big market even if they flow into the domestic market.

Mr. Lin, a second-line brand, also introduced the export mode of its inventory products. "If it is a long-term cooperative foreign trade company, after paying attention to the goods, we can pay all the goods at once and wait until the goods are exported. If it is the first cooperation or relatively small foreign trade company, then adopt the "bill of lading deposit" mode, after obtaining the export certificate of the national commodity inspection, confirm that the goods are exported according to the quantity, then the deposit will be returned to the foreign trade enterprise, otherwise the deposit will be confiscated.

　　 Zheng you min He is even more optimistic. He even expects foreign trade companies to sell machine cat stocks to some towns and villages to fill the market gap of brand enterprises. "Of course, brand inventory conversion is only a short-term behavior. Enterprises still need to do well in the terminal Bureau, so that the brand can develop well. After the withdrawal of funds, we also carried out the terminal layout plan at once. In September this year, the first direct store in China will open in the form of factory discount stores. After all, only like a first-line brand, it has its own controllable channels to protect brand value.