The Important Secret Of "Joint Venture" Brand Children'S Shoes To Upgrade Channels

Channel is flat, right.

A stumbling battalion mode

From bulk wholesale, to shoe city's special rack, special area, to the shopping mall's special counters, special hall, then to the shop store or even the street store.

Children's shoes and children's clothing gradually come out of "market goods", monopoly mode has become the mainstream nowadays.

"A franchised store is equivalent to the sales of 6 counters."

Ding Canyang, chairman of Kasiron, made a comparison of his own counters and stores in Quanzhou, and concluded that the upgrading of channels is imperative.

"To speed up the" horse race enclosure ", we must constantly integrate high-quality agents to enhance the quality of terminal channels.

Compared with adult shoes and clothing, the strength of children's shoes and clothing enterprises is relatively weak, and the intermediate profits they get are also relatively weak.

Most children's shoes enterprises try to directly compress the profits of middle tier distributors and agents and increase their profits.

Is the direct camp really perfect? Because the whole industry suffers from overcapacity, backlog of inventory and declining purchasing power of consumers, many children's shoes and children's clothing enterprises are facing new puzzles: when the factors such as time, business district, location, area, and product structure are almost the same, why is the performance of a direct store less than that of a franchisee?

"Direct battalion put forward higher requirements for enterprises' funds, products and other hardware, such as human resources, terminal team, customer service supervision and other elements are also essential, but children's shoes industry started relatively low, there is no way to provide sufficient follow-up guarantee for the direct market."

Chen Binggao, vice president of marketing of Wan Tai Sheng shoes and Garments Co., Ltd., especially funds, has become an insurmountable gap between the vast majority of children's shoes and children's clothing enterprises.

Joint development of combined development

The industry believes that the expansion of exclusive stores through agents alone will inevitably be felt by others.

Because the brand strength can not compare with the adult shoes and clothing brand, children's shoes and children's clothing enterprises often encounter the delay of agents' refund and the loyalty of their brands.

However, the management capability and financial strength required by the direct camp mode have also constrained many children's shoes and children's clothing enterprises to set up direct stores.

"Take a 60 square meter storefront in two or three cities as an example. The annual rent plus the clerk's salary needs 2.3 million yuan. If we open 1000 outlets, we need two or three billion dollars."

As a result, Ding can set a fast track for "horse race" in the joint venture mode.

"Joint venture is a trade-off business mode. It is the manufacturer and distributor integrate their respective advantages, and establish a relatively independent sales organization in the distributor's place to operate the regional market."

According to the introduction, as a joint venture attempt, through the "company and the provincial generation joint venture, the provincial generation and the terminal business association", Kasiron company set up a branch in the central city of the key sales area, the branch is controlled by Kasiron, the agent is the general manager of the branch company, Kasiron delivers the goods, the agent gives out the personnel, the shop resources, and on this basis, the two sides jointly set up the own store.

"The advantage of the joint venture lies in the integration of resources and the binding and development of franchisees and brands."

Xie Jiasheng, Secretary General of Fujian footwear industry association children shoes branch, introduces the so-called integration object, which is the store resources, industry operation experience and public relations resources of franchisees, while brand manufacturers have products and management resources.

"This complementary mode of joint operation will undoubtedly add some odds and ends to the current market for children's shoes and children's clothing enterprises to develop the terminal market."

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A matter of expediency

Or long-term strategy?

However, is the joint venture an expedient measure or a long-term strategy?

"Joint venture can help enterprises reduce the risk of open shop cost and independent operation, thus quickly occupying the terminal market."

In Ding Canyang's view, joint venture is an ideal channel mode at present.

Dai Xinmin, the marketing director of the elf Mitch, also expressed the same view. He believed that with the wealth accumulated by agents for many years, it was not possible for manufacturers or professional managers to run quickly in the short run.

However, there are different voices in the market.

A child shoe business leader throws doubt: Although the joint venture mode can reduce the hidden risks of the camp, and change the traditional distribution mode of low profit situation, but enterprises and agents "the same piece of land", finally easy to produce contradictions and conflicts.

"If interest is not clearly segmented, it may eventually lead manufacturers and agents to fight in a pot."

Chen Binggao said the crux of the problem lies in the fact that children's shoes industry is too small, and the interest chain is too weak to share benefits.

The end result is to do direct business with the ability and funds, otherwise it will be an agent.

Chen Binggao believes that joint venture can not be a permanent solution, but can only be an expedient measure for the layout of the channel at this stage.

"Children's shoes enterprises will eventually have to go to the multi-directional operation mode, which is directly operated and supplemented by other marketing modes."