Agency System To Expand The Market Is Not Conducive To Brand Image

"Last year, I bought a pair of leather shoes for my boyfriend here, which cost nearly two thousand yuan.

These new models are similar to the styles and materials they bought last year, but they are seven hundred cheaper. "

Miss Zhang, a member of the public, has made such a speech in her circle of friends.

The reporter found Miss Zhang's shoe cabinet at Yintai West Lake Cultural Plaza Shop. The teller said that before the brand was represented by the distributor, it changed to a direct store this year.

"Removed the dealer's raise price, so the price has a large reduction space."

In recent years

Overall recession, in order to quickly withdraw funds.

Usually there will be a discount on the backlog of inventory, which will bring hidden danger to the healthy development of the brand.

Therefore, many brands began to go to distributors.

Burberry paid no more than more than 100 million pounds to recover the brand's proxy in China; HUGO BOSS also said in July this year that it would suspend cooperation with Macao rainbow group and recover the control of the mainland market.

The war is going on.

Spread, ONLY, Adidas, YOUNGOR and other popular brands also continue to recover some of the agency power, increase the proportion of Direct stores.

For consumers, although direct stores do not offer frequent discounts, shopping experience may improve significantly.

"Brand has just entered the market, and agency system is more conducive to expanding the market."

The Kolon Sport brand leader, who soon entered the Chinese market, told reporters that the brand's goal is to go straight to camp.

In fact, many popular brands are made up of agents.

The Chinese market is very large, and the business environment is different. If you want to quickly integrate into the local market, brand dealers will often choose distributors for distribution.

Local distributors are often rich in resources. They can quickly spread channels and brand awareness so as to enhance product sales.

"Brand implementation of the agency system, more limited to the constraints of funds, talent and other conditions, in the channel expansion of a realistic choice."

An unnamed brand PR said.

Dealers are self financing, and stores are their own industries. The level of performance and operation of stores are directly related to revenue.

Therefore, dealers often invest more energy and thoughts.

But this is also a double-edged sword.

Dealer qualifications are uneven, and there will often be a backlog of inventory.

This has laid a hidden danger for the healthy development of the brand.

"In order to get the money back quickly, dealers usually discounted and sold stocks, although the sales volume went up, but the brand's terminal image was damaged.

This is why companies have insisted on increasing the proportion of Direct stores in recent years.

YOUNGOR official said, "the service quality and price of the direct store are unified to facilitate enterprise management.

It also helps to enrich product categories and enhance shopping experience.

Market downturn led to high inventories.