Advantage Of Management Channel Relationship In Garment Enterprises

Management channel relationship refers to the channel relationship formed by a large number of strong and reputable clothing enterprises relying on their own influence and aggregated by many distributors through strong management.

The advantages of management channel relations are mainly reflected in the following aspects: the whole channel system has a core.

The formation and maintenance of management channel relationship is based on the fact that large scale and strong garment enterprises have become the core of the whole channel system. The distribution strategy and planning of the channel are derived from this core. All the members of the channel are engaged in various distribution activities around the core, making the channel relationship closer and United.

The relationship between channel members is relatively stable.

In the management channel relationship of garment enterprises, the channel system is built around a core garment enterprise, and the core garment enterprises have certain credibility and profitability for channel members, which forms an interdependent relationship. As long as the core garment enterprises do not have drastic changes, the channel relationship will remain relatively stable.

The coordination of interests is better.

Different from the loose channel relationship, the channel members in the management channel relationship no longer regard the pursuit of their own profit maximization as the sole objective, because if we want to get the development in this relationship network, we must pay attention to the overall interests of the channel. Only when the overall interests of the channel are realized can the interests of each member be maximized.

Better sharing of resources is achieved.

In the management channel relationship of garment enterprises, according to the market conditions and the nature of the partners, the core clothing enterprises can provide support in the aspects of capital, information, technology, equipment, personnel and management, and at the same time, these resources can also flow from other members to the core garment enterprises, so as to improve the scope and efficiency of resource sharing.

The disadvantages of management channel relationship are mainly manifested in the following aspects: for distributors, excessive reliance on core garment enterprises will lead to the loss of their independent status.

The management channel relationship is based on the management and leadership of the core garment enterprises to the entire channel system.

On such a basis, the distribution rules and profit distribution methods of the channel are all made by the manufacturer, while the distributors can only obey them, which leads the distributors to over reliance on the core manufacturers and make them lose the accurate judgement and mastery of the market demand.

Especially when the strength of the core clothing enterprises is too large, they may appear to use their strength to coercion other members to assume more obligations without increasing any support.

For core garment enterprises, they always face the risk of ending cooperation.

On the one hand, once the core garment enterprises are in a predicament or crisis, because of the decline of channel profits, distributors may change their positions to make manufacturers fall deeper into difficulties. On the other hand, when the strength of distributors increases, the contrast of strength will change. They will put forward more profitable cooperation conditions to core clothing enterprises, or no longer enforce rules and instructions of core garment enterprises, which will affect the whole business.

Stability and balance.

Channel members' contribution and income are not equal.

Because of the different status of channel members, it is bound to lead to uneven revenue among members of the channel.

Because of the small scale and limited distribution ability of garment enterprises, some of the preferences listed by manufacturers may not be available to small garment enterprises, but they may still have more obligations.