Wholesale Agents Return To Wenzhou Shoe Industry?

In mid July, a well-known shoe manufacturer in Wenzhou sold Wuhan branch to a local agent.

This means that from then on, the company's Wuhan market will go back and return to the wholesale agent system from the proprietary monopoly system.

A decision of the company turned Liu Shou (a pseudonym) from a "frontier official" into a waiting worker.

In mid July, a well-known shoe manufacturer in Wenzhou sold Wuhan branch to a local agent.

This means that from then on, the Wuhan market of the company will turn back from the proprietary monopoly system to the wholesale agent system.

Acting as an agent from the back of self run, this seemingly backward practice in marketing mode has become a very special countermeasure for some shoe enterprises in Wenzhou this year.

Before 2002, Liu Shou's company's Wuhan market was also a regional agent system.

The chairman of the company told reporters that the biggest drawback of the agency system is that it is difficult for the company's marketing strategy to be implemented.

For example, if Zhang boss is the general agent of the company in Wuhan, earning 3 million yuan a year, he will be satisfied with the status quo, unwilling to take risks and increase capital investment to expand the larger market. More often, some agents will be distracted to do other businesses after making money on leather shoes, and eventually turn the "main business" of leather shoes into a sideline that can earn millions of yuan a year.

The embarrassment of implementing agency system in marketing still exists.

The owner of a leather shoe enterprise in Longwan says that as long as the investment is increased, the agent can make more money, and the market of the enterprise can also be bigger. But the agent does not invest in the area of his agent, and the enterprise often takes him to do nothing.

So before and after 2002, a number of Wenzhou brand shoe companies, which were emboldened, set off a campaign of resumption of agency rights, and began to deploy companies on a larger scale in the national market.

However, the agent's right to recover the agent is equivalent to breaking the agent's financial resources.

At that time, the news of the gang fighting between agents and enterprise employees was pmitted back to Wenzhou from the foreign market from time to time.

At that time, the "agency recycling exercise" of Wenzhou shoe enterprises eventually realized the following three possibilities: enterprises completely reclaimed the right of agency; enterprises and agents implemented shareholding system operation in the region, generally controlled by enterprises, enterprises accounted for 51% shares, and agents accounted for 49% of the shares; enterprises failed to receive the agency rights, and the regional market still implemented agency system.

In July 2002, Liu Shou's company recovered the Wuhan market from agents by including the cost of recycling all shoes and other means, which cost nearly eight million yuan.

Subsequently, the company dispatched 5 marketing staff with Liu Shou as manager, and launched a corporatization operation in Wuhan branch to expand the chain monopoly market.

6 years later, the company and its distributors and agents have opened nearly 100 stores in the Wuhan market with an annual sales volume of about 40000000 yuan.

But a phone call from the company recalled Liu Shouhe's marketing staff to Wenzhou, waiting for the company to arrange new jobs.

Loss, a continuous loss, this is the reason why the company finally "eat the grass" and return the Wuhan market to the agent.

President of a shoe company in Ouhai, who does not want to be named, told reporters that the agency system has disadvantages. Similarly, the company's proprietary system has many real worries in terms of capital investment and management.

When he talked about the marketing staff abroad, he said angrily that many of the shoe salesmen in Wenzhou are now proficient in eating, drinking and playing like some former long-distance bus drivers. But now prices are high, and they need money to eat, drink and play.

Just stare at the shoes.

He believes that if the company's own market losses are too large or exceed the company's expectations, it is better to return the market to the agents. After all, "as long as the agents sell a pair of shoes, the company will make money for a pair of shoes, but it will save worry."

"Whether it's self-employed or back to acting as long as it is conducive to the development of enterprises, it is a good way."

In Zhejiang, the chairman of the Paul Knight shoes company, Jin Zhexin and others, it seems that during such a very special period this year, some enterprises are able to introduce some unconventional practices in order to tide over difficulties. "Without survival, there will be no chance to talk about development."