Four Misunderstandings Of Agent Market Development Strategy

Is the larger the distributor to the head office, the bigger the better?

When franchisees open a store, should agents abandon their development?

Do agents have to start franchisees in provincial capitals?

Is there more shops for agents?

From Ayilian brand agents to see the status quo of the development of China's agent market, the most important part of the clothing agency is to start shop in the early stage, open to the right store and find the right franchisee. Later management will get twice the result with half the effort.

So, for the "Ayilian" brand, especially for our national agents have already occupied a certain market share, how to break through the bottleneck of their own development and achieve higher sales performance is not easily affected by the objective factors of market and product development.

There are some common misconceptions about the development of Ayilian brand and even the national agents: first, the bigger the market, the better?

American scholars put forward three principles of product differentiation, cost leadership and market concentration.

Ayilian head office has cut down the cost through mass production, thus formulating the right and low price correct marketing strategy.

And in the development of products to walk the ladies leisure routes and lead the same brand, has seized the edge of the market.

Usually agents want companies to give their own districts bigger and better, which is not necessarily the case.

At present, some Chinese clothing brands have implemented the market concentration strategy and achieved great results and market reactions.

The principle of market concentration refers to the market development strategy that concentrates strength, concentrates operation cost, centrally manages energy to do regional market, makes the market stronger and stronger, enhances the strong influence of the brand in the market, and spreads to the surrounding market.

Let's take the Hangzhou market as an example.

Hangzhou city only Yanan road can open at least 4 stores, it can achieve 12 million turnover (wholesale, according to 60-100 Square shops), plus Wulin Road, Jiefang Road, Stadium Road, Wen Yi Road, teaching workers Road, etc., a conservative calculation can achieve 18 million, then a Hangzhou urban area can achieve 30 million.

Together with 6 county-level cities and dozens of towns with very active economy, concentrated foreign population and leisure sports brands, if we can make the Hangzhou area thoroughly cooked, we can achieve at least 1 hundred million of the wholesale volume.

So, 30 million of Hangzhou and 30 million of Zhejiang are completely different for this brand.

1, centralized market strategy greatly reduces management costs and management difficulties.

A city market in Hangzhou can only be finely supervised by 2 supervisors. If a Zhejiang market wants to do 30 million, it needs at least seven or eight supervision.

Besides, the market in Hangzhou can go to stores every 1-2 days, but if the seven or eight supervisors in Zhejiang market can only arrive at least two months, and increase the cost of travel and so on.

2, centralized market strategy greatly expands brand influence and popularity.

If we concentrate on the market in Hangzhou, then the franchisees and consumers who have been to Hangzhou will be impressed with the brand of Ayilian.

Hangzhou's "insisting on my brand" is a very striking example.

JASONWOOD "insist on my brand" belongs to Hangzhou Hongye Garments Co., Ltd. is a famous cowboy brand in China.

Hangzhou Hongye Garments Co., Ltd. was founded in 2000. In 2003, in the short three years, the company received nearly 100 million yuan.

At this time, the number of shops is only about 60.

70% of these shops are concentrated in the area of Hangzhou, Jiaxing and Hubei, which are centered around Hangzhou, and the remaining 30% are concentrated in the market of Jiangsu, Zhejiang and Shanghai.

In the urban area of Hangzhou, "uphold my" sponsorship of Greentown football team, bus station electronic screen advertisement, bus mobile TV advertisement, bus body advertisement and so on are all regional advertisements, which not only save advertising costs, but also greatly enhance the brand influence and popularity in the regional market.

3, centralized market strategy can greatly enhance brand competitiveness.

The biggest difference between a big market and a decentralized market strategy is to enhance the competitiveness of other similar brands.

The ability to resist risks has been greatly strengthened.

Of course, the market concentration strategy does not mean abandoning the market in other regions, but concentrates on the market of a certain region first, and then spreads through the influence of the market.

At the same time, the market chosen to focus on development does not conflict with the development of other markets.

Two, to abandon the existing franchisee market development?

When the agent was developing the market, when a franchisee opened a shop, he gave up the development of them, which was wrong.

We give the franchisee a regional market (an urban area or a specific area) rather than a single store.

Through the investigation of some "county" market in Ayilian, the author found that there are two "Ayilian" stores in a county-level city with only one commercial street and 5 minutes away from each other.

Nowadays, besides the main commercial street, there is a trend to extend to the surrounding streets. Although these new streets are not as good as the sales of old commercial streets, some brands can also divide the market here because of their low rent.

Therefore, in a county-level city, there are at least 3 more brand stores.

For franchisees, single brand multi store strategy can not only improve brand competitiveness, but also enhance the distribution of goods and increase sales.

We should select some excellent franchisees to penetrate the market.

Our existing franchisee has the following advantages over the newly developed franchisee: 1, it fully recognises the terms of joining the Ayilian brand and the brand itself; 2, it has full confidence in the Ayilian brand; 3, the franchisee and its employees have a very pure "Ayilian" blood system; 4, there is capital strength; 5, stability is higher; 6, familiar with the management and operation of Ayilian brand.

Therefore, for our current agents, we already have certain customer resources, and the focus of market development should not be placed on the new intention franchisees, but the existing excellent franchisees.

1, penetrate existing market existing stores.

We should increase the training opportunities and infiltrate the brand concept and brand management capabilities into the existing franchisees, store managers and shopping guides.

2, penetrate existing market existing franchisees.

Expand the principle of existing store area and single city multi store principle.

3, penetrate the blank market existing franchisees.

Many cities have multiple shops.

Three, blindly pursue the high level of the market?

People who make clothing business most like to develop the most prosperous city, such as the capital of a province, is actually a misunderstanding.

The key to choose what kind of market depends on the positioning of this brand. Some brands are suitable for the first-line market because the brand price and brand style are highly positioned, which is more suitable for the high consumption level of the first-line market, but it does not necessarily mean that the brand is doing well.

Through the analysis of the annual sales of the Zhejiang market, the turnover of the town level market and the double facade shops is in the upper middle level, and the profit is at the highest level.

This is determined by the price and style of Ayilian brand.

The economic level of villages and towns in Zhejiang is very active.

Then, to some provinces with general economic level, they may be more suitable for county level cities, and open shop with more than two facades and make a first-class shop image.

Lowering the market level does not mean giving up the front-line market. Instead, it focuses on the two or three line market when it comes to the development of the market, and when the franchisee operates, the agent will enter the first line market.

The purpose of the first tier strategic market is not to make profits for a single store, but to enhance the brand influence and popularity with a strategic mindset, so as to enhance the brand value.

The two or three line market has the advantages of small competition and low operating cost. First, it will be simpler in terms of investment, and when our franchisees' return on investment is relatively large, their loyalty and confidence in the brand will undoubtedly be greatly enhanced and there will be more room for development.

Therefore, for the Ayilian brand, we should follow the market strategy to reduce the market level, raise the store level and take the first tier market as the strategic goal.

The brand should first identify its position and see which market it is most suitable for and develop accordingly.

Four, the more shops, the better?

The fourth mistake for agents to develop the market is to think that the more shops, the better. In fact, the opposite is true. The fewer shops, the better.

2007 of the global brand value ranking, five fashion apparel brands ranked the top one hundred.

They are LV, PRADA, AMARNI, GUCCI and ZARA respectively.

The turnover and profits of these brands are very high, but their turnover is definitely not based on the number of shops.

LV has 15 stores in China, and only 60 stores outside China. She has become the world's top luxury brand. ZARA is known as Europe's first clothing brand, but she has only more than 200 stores in the world.

But in turn, we look at the quality of these brand shops. LV's performance in each foreign market is more than $100 million, and ZARA's first store opened on the first day of its business as high as 800 thousand.

If you think these brands are not comparable with ours, then look at some excellent brands in our country, the reason why they are excellent is not the number of shops.

For example, Beijing's "white-collar" in 2006 only 40 stores can complete 380 million of turnover, Hangzhou's JASONWOOD, OTT, and so on, Guangzhou exception.

The author enumerates these data does not mean that the quality of these brands is high, but a market development strategy.

As an agent, the profit is the first. Therefore, it is no exception to increase the turnover through the number of shops when we just develop the market.

But if the market is fully able to bear the operating costs of the company, it should reduce the number of shops, and it has been reduced to all the high quality shops, and then steadily spread.

Why is it that the fewer shops there are, the better?

Because too many times, there will be a small number of "black sheep". Although these shops will bring certain turnover to the company, there are the following very negative effects: 1, the shop area, image and management level are very poor, affecting the image and brand value of the brand regional market, affecting the new excellent franchisees' confidence in joining the market; 2, complaining more, and easily forming "public indignation" and inconvenient management; 3, disrupting the company's choice of styles in ordering; 4, dispersing the management energy of the company, thereby affecting the sales performance of other excellent franchisees.