Break The Profit Code! Profits Of Garment Agents And Franchisees

In 2011,

Build competitive advantage and earn continuous profits

Viewpoint 1 building competitive advantages and improving profitability

The profitability of agents through investment in retailing is the essence and demand of agents in their operations.

As the most close to consumers in the apparel industry chain, the agent should be the most profitable organization. However, due to the large number of intermediate links in China's retail industry and the high cost of channels, the cost and expense of agents in the process of operation are relatively high, thus greatly reducing the gross profit.

How to build a profit based core competitiveness when agents face external environment and internal factors?

The first is the choice and combination of brands.

Whether the brand positioning is in line with the needs of consumers is the fundamental factor affecting sales realization, creating profits and business development. Through brand combination, it can enrich the channel control power of agents in a certain field, increase bargaining power with channel manufacturers and brand dealers, thereby achieving greater benefits and promoting the development speed of the industry in the region.

The two is channel sales network resources.

Channel network is one of the important resources owned by agents themselves.

Brand does not belong to agents, then only channel network is the agent controllable virtue, and is the foundation of creating sales and performance.

This is the competition of brands. Only agents have a good sales channel network, so that agents can get more voice in front of the brand.

Three is the retail terminal management capability.

This is the essence of the operation of agents. Only with the growth of terminal sales, only a single store's performance will continue to grow. Only when the network expansion is full, can the performance be increased and the return on investment will be most effective.

Point 2. Establish the necessary analysis mechanism and learn to conduct single store evaluation.

As an agent, are you facing too much inventory? Blind shops, opening and closing, closing and opening? Are there any shortfalls in the sales target? There is no plan for the cost of investment, the phenomenon of overspending is serious, and the turnover of goods can be repeated several times a year, which are caused by the mistakes in the operation of agents.

In operation, the ability to obtain cash as an agent is more important than the ability to acquire assets; turnover of investment returns is more important than the static profitability of agents; agents should make their subordinates pay more attention to net profit; the establishment of financial management and analysis mechanism can not be ignored.

From the two perspectives of sales volume and brand image contribution, there are excellent shops, namely image and sales, which are the best, but the resources of such shops are limited, and the quantity is bound to be limited.

What is really large is the kind of shop, that is, image shop and business shop. The image store has a good performance in brand image, but its business volume is not high, and there is a certain loss.

The image is good, the location and the area are all good, such shops rent and expense are higher, the loss and the meager profit are inevitable, such shops have the existence necessary, but the quantity cannot be too many, moreover the loss amount is affordable and worth paying.

A business shop has a higher sales, but a lower image. Such a store is the main source of profit for agents.

Viewpoint 3 release capital and improve turnover efficiency

The reason for the pressure of funds is the loss of stores, slow sales revenue, stock pressure or others?

The practical suggestions for the current situation of the general fund pressure and poor turnover of the agent are to close down the loss shop, to accelerate the withdrawal of accounts receivable from the store and the receivable account of the subordinate dealers. For the inventory pressure, we should open up the sale channel as soon as possible or the wholesale channel can quickly clear the goods.

Of course, improving the accuracy and rationality of purchasing commodities from the source and improving terminal sales are fundamental ways to solve the problem of capital turnover.

In the post crisis era, who has the power to channel marketing discourse?

Dai Chunhua, chief consultant of Guangzhou consulting company

Point 1, market sales are weak and inevitable.

2011 is very different from the past years. The reason is that there is an economic crisis all over the world.

From the CPI data released by the state at the beginning of this year, 5 consecutive months of negative growth, what is the signal of CPI for the whole retail market? That means that the sales price of our retail terminal is down, and the soft goods including clothing. The lowest discount in the first half is 90 percent off, that is, the selling price is 10% at the original price.

Secondly, department stores in 2011 were also the strongest promotions, even if there was no discount, there would be no sales situation.

The market in 2011 is weaker than before 2010, and the reduction of profits has become the main concern of all bosses.

View 2, profits fall, models encounter challenges.

Because of the drop in retail prices, the entire apparel channel directly leads to a sharp reduction in profits. Even if profits drop after the retail price falls, they can be compensated for by increasing sales volume. However, large and long-term price falls are hard to compensate for the damage to the brand and subsequent profits.

This will make the existing proxy mode of fashion channel challenged by earthquake.

Why is it a challenge of earthquake?

Because the current mode of agency, affiliation and distribution is basically a mechanism driven by interest segmentation.

The whole chain is a chain of interest segmentation. That is to say, there is not enough profit space to support such a long chain of channels.

And the drop of retail price will reduce the interest space of the whole channel, and the profits of the entire channel will be squeezed by the market quickly.

In this case, can the brand continue to drive down with this mode? Can agents, distributors and these intermediate channels continue to make money in this mode? It has become a problem worth pondering.

Viewpoint 3 retail channel is an inevitable trend.

How to build the profit space of the whole chain?

First, reduce the quality to maintain the high interest rate of the channel. The end result is vanished, and there are many international brands that disappear in the past with high brand and low quality strategy.

Second, if the quality of the brand is maintained, the interests of the channel will be reduced, and the channel interests will be reduced to a certain extent. The profit margins of middlemen, agents and franchisees will be reduced.

The first is not desirable, and the second is to solve the focal point of contradiction.

Now that we need to solve the contradictions, we need to see how the profits of the whole chain are driven.

Branding is driven by 3 ways, one is design driven, the other is advertising endorsement driven; the three is manufacturing driven.

The channel business is driven by channel. If the profit is reduced and there is not much profit space, the first possible strategy is to reduce the level of agents that cut down 3 or lower levels, which actually leads to the retailing of the agent. That is to say, the total share of the direct business of the whole agent increases, such as having more direct outlets and more and more retail businesses. Secondly, with the retailing of the main body, the retail business activities are increasing, because the content of technology management in the whole wholesale field is limited, and refinement is bound to be realized in the retail field.

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Viewpoint 4 the profit mechanism of channels = the right to speak in channels.

Channel retail inevitably leads to the retail of channel profit mechanism. What is the profit mechanism of channel?

The apparel industry has changed from brand to channel making money into the era of brand survival.

Excellent channel resources rely on their connections, funds and experience to compete for many brands. The competitive market of brands is quite obvious compared with the monopolistic resources of channel businesses.

In channel marketing, who has the right to speak in the channel, whose interests will be the biggest.

The right to speak is not only determined by the property right of the terminal, but also the management power of the channel chain.

Whether it is a brand dealer or a channel dealer or agent, who has the management power of the channel, who has the right to speak.

What is the foundation of channel management right? Department stores and commercial streets are still a problem of image and threshold. In the clothing market, they have already passed the era of making money only by opening a special shop, as long as the shop opens. It is not only the problem of appearing in the market but also the share and profit problem.

Therefore, the focus and focus of channel management is to solve the profit problem of the retail market thoroughly. Whose methods and tools are naturally chosen as the means of channel survival and profitability, that is, the source of channel management rights.

Where are the tools and sources? The current focus of the channel is retailing, and the trend of the evolution of channel management is related to the core retail chain retail chain modern chain retail.

Viewpoint 5 profit mechanism of channel = modern chain retail management system

The so-called terminal wins, the winning of the terminal has never been short of concept and no gap.

The winning of the terminal is a set of effective systems, tools, methods, management and teams.

Over the years, both the industry's management consulting companies, entrepreneurs and channel managers are trying to solve the terminal problem. The result is to solve them repeatedly.

Why do so many years, so many ways, can not achieve the so-called "thousands of miles away", where is the ideal state of such a terminal standardization?

Because the tools, methods and routines to be solved are not the same, solutions that are inaccessible to the nature of the chain can hardly be fundamentally effective.

The so-called "Outline", good display, profitable or shop opening are all goals.

Therefore, to solve this problem, we must start from the perspective of outline.

For many years, the terminal experience of the apparel industry is quite different from the modern retail management system that reflects the nature of chain.

If the original scattered experience and practice, like farmers build a house, can cover 2 or 3 floors, but if it continues to cover, it will collapse, and modern architecture science can let people cover 100 on a foundation.

In other words, the successful experience of any store in the original fragmented mode can not launch the 1000 store mode.

The modern retail chain's marketing management system is to build thousands of shops in theory, so that every store can make profits under standardized operation. There is no such thing as making money without image, and having no image and making money.

The retail market and letting a hundred schools of thought contend make the consumer's concept of clothing consumption more mature and rational. Building a customer centered modern retail chain system is the market basis for fashion design. The brand should not only be a fashion brand, but also a standardized and standardized retail brand, so that a brand can reestablish its profit channel chain at the low retail price level, so that it can pass the weak period in the mode pformation and upgrading.

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Dai Chunhua, chief consultant of Guangzhou beigun road consulting company, has been engaged in the modern chain retail terminal industry for more than ten years, serving ITALINA, Mass Phil, Mann, Ji Houfeng, tri color, Blue Leopard, lechton, Bai Fu, Luo Lai, Xin Bai Li, playboy, Lian Xiang, Haier, Guang Bai group, Guangzhou Wangfujing, Wu Shang department store, Shenzhen maotie department store, new Yansha general merchandise department, Shanghai China general merchandise department and so on.

Avoiding business risks from brand selection and inventory control

Li Yang, general manager of Sichuan Kai Lai Garments Co., Ltd.

Viewpoint 1 clothing is always the sunrise industry.

No matter in any economic environment, the clothing industry is always a sunrise industry. Why do I say so? I've been doing women's wear for almost 15 years. When a friend asks me, "when will this be unemployed?" I told him that when women did not love beauty, I would lose their jobs.

He is laughing, but it is true.

With the rapid development of economy and the improvement of living standards, the frequency of consumers' replacement will definitely increase. Not only female friends, but gay men will feel embarrassed now that they wear a style for a few years. The acceleration of consumption frequency constitutes a multiplying growth of the market, so although the discount is decreasing or the financial crisis is affecting.

But the frequency of buying clothes is increasing, and the rate of increase is very fast. The individuation of the terminal demand of garment industry determines that it will not form an oligopoly situation like Telecom, automobile, real estate and so on. Clothing is a product of various levels and styles, each market, first-class shopping center, wholesaler, agent, even low-end wholesale production.

Both have his market, have their development space, can not replace each other, because clothing demand is very huge, from this perspective, clothing is a sunrise industry, at any time is full of unlimited business opportunities, did not come in the sooner or later the difference.

Viewpoint 2 the premise of making money is to choose products that can be profitable.

How to choose a brand that can make profit? First, we must understand the local consumption demand, know ourselves and know it, and fight for it.

How to understand the consumption needs of the market? Climate differences in different places, lifestyle, cultural background, and economic development stages are different. If you live there for a long time, you should know something about them.

The two is to inspect the brand. We mainly understand the three points of the first point, that is, style positioning, age positioning and price positioning.

When inspecting the company, it depends on whether the company has a perfect product structure and coordinated cross matching capability. The strength of the company, including staff quality, dress taste, conversation and even office supplies, can reflect whether the company has strong R & D capability.

Because the driving force of fashion comes from the creativity of the source, the precise grasp of market demand and the realization of product demand satisfaction are two very important aspects.

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Viewpoint 3 acting women's clothing, details decide success or failure.

Vision determines the world, ideas determine the way out, details determine success or failure. If you do not touch the details of women's clothing, you will have difficulty in building a place on the rivers and lakes.

We should try to understand the designer's character and past qualifications and experience, and see whether the company is eating by clothes. Whether clothes are the main business of an enterprise, an investor often fails to do well, and wants to love from the bottom of his heart.

Viewpoint 4 decentralized management can effectively control inventory.

If there are conditions, one or two outlets will be opened, so that inventory can be effectively digested.

Inventory is not to be noticed in operation, but to control inventory from the beginning of purchase, so as to ensure that the entire sales pattern will not be affected.

We should eat enough best-selling funds, drive flat sales and slow sales to dispose in time.

It is necessary to have a concept of countdown from listing, and to find the trend of style as early as possible.

It is important to note that the best seller is not in stock.

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The women's wear is a professional women's clothing brand agency in Sichuan. Since its establishment in 94, Sichuan Kai Lai women's wear Agency Co., Ltd. has diversified and all-round development from single women's clothing brand to men's and women's wear, pregnant and baby's children's clothing and accessories, etc., and has been a professional women's wear agency and management experience for more than ten years.

The women's wear is the responsibility of "creating value for customers". It aims at "maximizing customer profits", and takes "honesty and trustworthiness" as a creed, with "no smiling staff, no smiling customers" as the service criterion.

Enthusiastic, meticulous and thoughtful for each of the owners to provide free from the opening decoration, decoration, display, planning, sales, staff training and after-sales service and so on a comprehensive, scientific and reasonable marketing plan and professional training.

Li Ping, a professional manager who is rich in practical experience and professional vision, selects the most suitable Sichuan people's aesthetic vision, the most advanced (in line with the international trend), the most cost-effective, the best women's clothing brand every year from thousands of excellent women's clothing Brand Company in the country.