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    2010&Nbsp; Do The Fashion Dealers Split Up With The Agents?

    2010/5/22 10:54:00 58

    Clothing

     

    In 2010, as the price of many accessories and raw materials increased and the competition between peers intensified, the number of agents needed to return gradually increased, resulting in their own profits declining. Naturally, many garment manufacturers began to abandon agents and go straight to camp.



    At present, according to professional analysis, the original accumulation of many brand businesses is basically closely related to "agents". Good agents have also made many brands, but with the constant changes of the market, especially the attack of financial crisis, some garment manufacturers seem to realize that the "direct mode" that can maximize profits is the best way to develop.



    Industry authority 1~7 2009 industry data analysis report pointed out: strong brands want to improve channel self-control ability, through a smaller scale investment in the future marketing channel control and competitiveness, so they have to return existing channels, or by increasing self built stores and distribution centers to improve the proportion of their own channels.



      

    Separation under heavy pressure is an inevitable trend.



    1, double oppression from profit and cost.



    According to Mr. Hu, director of marketing of an enterprise, there are four modes of clothing sales: agency, agent, direct, pure and electronic commerce. "But now some brand enterprises are getting rid of the original distributors and changing the way of pure direct business and e-commerce. The main reason is the difference between factory price and terminal sale price."



    The price of a brand garment is about 200-300 yuan, but the price of the garment may be more than 1000 yuan at the end of the consumer's hands. The thicker the diaphragm between producers and consumers, the higher the terminal selling price. As middlemen, it naturally makes more money, and manufacturers still take the "dead money". "Many manufacturers are quite unfair about this, but if they do not give proper profits, dealers or agents may very well invest in the arms of competitors."

    One industry insider said.



    The agent itself does not want to be stressed, so it is necessary for the manufacturers to face the increasing price of raw materials and the increasing cost of manpower, resulting in little profit for clothing production. "Especially for agents, some are willing to make money or even hurt the interests of manufacturers."

    "There is no emotion in this market, so making money is the last word," many people in the industry say.

    The agent is not responsible for the manufacturer, which has led the manufacturer to abandon the agency.



    2, the need for sustainable development of its own brand.



    With the development of garment industry, the channel mechanism of garment industry has exposed huge defects, that is, brand operators have lost the management and supervision of sales channel system.

    Therefore, as long as the inventory pressure is a little larger, dealers will disregard the brand demand and discount.

    In the majority of dealers' thinking, helping brands to promote and make brands is not their own job.

    Because in the eyes of dealers, profits and money are the first ones.



    It is understood that many international top brands such as Armani, Zegna and so on for brand maintenance needs, generally adopt direct camp way.

    In addition, many manufacturers will consider the promotion of image and set up self flagship stores in some important market areas, so as to establish a brand image standard and provide a reference shop for dealers.



      

    The absolute straight camp makes the target clear and two birds



    "Channel is king and terminal is king" has become the mantra of many marketing experts. Production enterprises have also slowly remembered this classic dogma which implies the future development. A marketing expert said that direct operation is one of the most effective means of mastering channels. In the development process of garment enterprises, there is always a stage suitable for direct operation mode, and "pure direct mode has many advantages."

    Mr Hu said.



    In fact, for garment manufacturers, how to earn more and reduce intermediate links is the key.

    There is no doubt that the establishment of Direct stores can not only shorten the agency links, reduce the agency level, but also enhance and enhance the control power of the enterprises to the sales terminals, so that they can get more profitable returns. "When there was an agent, a garment could earn only $80 yuan. Now it is in direct operation. The profit may be 500-600 yuan, and it is also a garment. The profit difference is so great!"

    High profit is the most direct benefit of direct battalion.



    In addition, the camp can enable manufacturers to respond to consumers' feedback in a timely manner, and further improve all aspects of production, including the entire supply chain, as well as help enterprises to achieve precise control over product quality. "At this level, direct marketing is conducive to enhancing the brand image of an enterprise."

    According to Mr. Wu of the industry, production enterprises can form a virtuous circle between high profits and brands through direct operation.



    Facts have proved that profits after direct operation are much more than that of the former "agent era". Brand clothing manufacturers also have capital to increase investment in image, promotion, talent and scientific research, and brand influence will also be further improved. Dealers and agents have great deficiencies in maintaining brand image and experience of manufacturers.



      

    Do producers directly run "cure all diseases"?



    The reduction of the channel will inevitably lead to the widening of management span. As long as the original headquarters manage dozens of agents, once the intermediate link is omitted, it becomes necessary to control hundreds of stores. This requires not only the considerable manpower, material and financial resources of enterprises, but also requires that enterprises have a sound management information system and accurate data analysis and processing capabilities.



    Direct investment in large shops, large structure, large number of personnel, organizational management is more difficult, investment risk and inventory risk is relatively large.

    The difficulty in management is also quite large. For many manufacturers who have just taken the direct camp mode, it is impractical to manage them as if they are familiar with the roads. It is the so-called "interlocking", and the premise and consequence of obtaining less profits from agents is to explore a better direct management mode.



      服裝生產商路在何方?


     


    At present, most garment enterprises in China use the way of combining direct stores and franchisees to operate terminals. The main reasons are that the two ways have their own advantages and disadvantages and complement each other.

    These two modes will also coexist in a certain range for a long time. How to strengthen the management and coordination of the relationship among garment enterprises, or put the market in the first place, only grasp the touchstone of the market can naturally find a trade-off point, according to their own circumstances, naturally can be arranged with the direct proportion of the appropriate proportion.

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