Clothing brand channel management strategy

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					Clothing brand channel management strategy
   According to conventional thinking, should brands, product innovation, in
technology. But now, more and more domestic enterprises are beginning to realize the
importance of channels and even more critical that the channel, "channel is
Youngor Group Co., Ltd. Li Rucheng on that: "The most important thing is
to do clothing brands and channels, the most valuable and vitality of the core is the
channel." Seven wolves, chairman Chow was also said: "Seven
wolves do not want to become one of the largest apparel manufacturers, and to
become the largest fashion retail and wholesale business. "
In 2007, seven wolves to additional and fund-raising to nearly 600 million yuan,
together with its own funds make up 1 billion yuan all dropped into channel, creating
"man living museum." After a few months, Younger stock
returns in the reduction of 300 million yuan into stores to buy in the terminal. Since
the 1990s, Younger store for the purchase of sale terminals and funds more than 1.7
billion yuan.
In August of this year, Shanghai's Metersbonwe (the "Smith
Barney") also joined the "war channel" will raise
funds by listing the "85% of outlets (channels terminal) open, 15% of the
IT platform for investment Building B2C Web channel. " Smith Barney has
been in the country store 2211. The raised funds to build 68 stores, including 31
flagship stores and image for the Direct stores, 37 to join the flagship stores and
strategic franchise.
In addition to these generous, Sea Orchid House, Firs, Bosideng and many other
clothing companies, but also the intensity and in different ways to increase channels
of investment and construction efforts. Then, the channel for the Chinese garment
enterprises in the end mean? How to effectively expand channels for competition?
Channels, the real competition is it?
Brand Channel Management 7 Big Mistakes
Let us first look, brand clothing in the management of common channel 7 when large
1. Lower center of gravity that must be self-built sales distribution network. Degree of
specialization is not high, and low efficiency; perhaps too slow to respond;
management costs higher; personnel costs, administrative costs, advertising costs,
promotional expenses, warehousing and distribution costly.
2. The number of middlemen as possible. Small market, prone to conflict; channel
policy is difficult to unity; service standards difficult to regulate.
3. Channels, the better. Management more difficult; extension of time to reach
consumers; link too much, increasing the product's loss; manufacturers can
not effectively control the terminal market supply and demand; manufacturers profits
were diverted.
4. Cover a broad coverage. Manufacturers with or without adequate resources and
capacity to pay attention to the operation of each region? Is a self-built networks or
through intermediaries network? Channel management can keep up? How to deal
with competitors, the focus of attack on the weak link?
5. Dealers strength, the stronger the better. Strength of large distributors will also the
competitive brands, and as a bargaining chip. Strength of large distributors will not
take much effort to sell a small brand. Manufacturer may lose control of the product
sales. Everything will be fine selecting distributors. The choice of intermediaries,
channel construction is only the first step. Brand popular not only with the distribution
of power brokers, but also need the cooperation of other factors. "A
mother" is that some dealers in the form of guidelines for manufacturers to
monitor the channel operation. Lack of enthusiasm for the dealer to the regular guide.
Technical guidance on the dealer and after-sales service is absolutely necessary.
6. Eliminate channel conflict. Channel conflict with malignant and benign points,
should be distinguished. Healthy conflict can be a catalyst to improve the channel
efficiency. Conflict can not always eliminate, but to take a positive approach to
conversion or resolve.
7. To middlemen none other the better. Brand was not strong, none other more useless.
None other will encourage dealers to rely too much psychological. None other dealers
are not the only factor in the brand. To middlemen none other the better. Brand was
not strong, none other more useless. None other will encourage dealers to rely too
much psychological. None other brand dealers are not the only factor. Channel can
control a few years later built. Many factors affect the brand development, such as
technology, products, competitive structure, industry, distributors capacity, consumer
behavior, channels completed, still under the market conditions continue to be
There is no channel there is no brand
Founded in 1992, the Firs, the development of the beginning of 1999, the already
have a complete sales network and channels: 35 branches across the country, more
than 2,700 sales outlets and warehouses, more than 3,600 sales personnel. Shanshan
suits from 1993 to 1999 for 7 years to maintain market share first, to a large extent, be
attributed to this channel.
Younger's Li Rucheng that "who and the market closest to, who
will be able to seize the initiative." Thus, in Shanshan, while large sales
channel in 1998 to achieve the listing of Younger, direct sales stores have invested 1.6
billion yuan grasp the building of a large number of purchase channel, so that
Youngor channel reaches more than 3,000 end up including shop store-operated stores,
franchises and so on.
"With their own channels later, our fate would be to decide," Li
Rucheng great value self-channel, he said Younger in the next 5 to 10 years, will the
channel construction and the combination of brand building as a important
engineering task. As of the end of August 2008, Youngor latest channel number of
terminals is 1700, of which 400 self-store, franchise store 550, window shopping 750.
Younger 71% of clothing sales are completed through this channel.
Metersbonwe first store was established in April 1995 to currently more than 2,000
direct sales stores and franchise shops. Bonwe is to use their powerful channel edge, a
name without a pass from the small garment enterprises to achieve the dominance of
today's casual wear.
Similar ideas were held by seven wolves. Began operation in 1995 authorized
monopoly model seven wolves, emphasized that "under market conditions
to determine the company's agents, joined the demands." As of
the end of June 2008, seven wolves have stores (Office of Cabinet) The number of
Local garment enterprises become so concerned about channels, competition is
inevitable and also because they think in practice there is no clear channels rely on,
there is no basis for the development of the brand.
Channel management strategy for the brand
Distribution system set up
For brand clothing, the distribution system, how to set the channel length, width how
to design, this is brand clothing should consider.
Some people say that the wide channel located some good, it could be more market
share, some people say that the long channel set some good, that could ease the
pressure on the company expense; channels in the end how to design, I want to now
noted in the financial business and manpower should be determined. Let us look at the
pros and cons of several distribution system:
Distribution system in the form. According to channel width, the distribution system
in the form of design for the three types: exclusive of distribution, intensive
distribution and selective distribution. Exclusive of distribution: in a given market
area level of each channel is only one broker brand. Advantages: low level of market
competition, manufacturers have close ties with distributors, suitable for private brand
distributor. Cons: dealer incentives lack of competition may not be able to cover the
requirements of the market, while dealers of the manufacturers of anti-control stronger.
Intensive distribution: in the same level that meets the manufacturers minimum
requirements for market intermediaries can brand. Advantages: high market coverage,
suitable for use in consumer goods. Disadvantages: prone to conflict between the
leading broker market confusion, manufacturers of the high cost of channel
management. Selective distribution: at the same level market, manufacturers select
only a few brokers brand. Advantage: the initiative rests in the hands of manufacturers,
distributors according to the performance of market changes and make choices.
Disadvantages: Some dealers will still be conflict.
Brand - distribution strategy
The branded apparel and franchisees to establish what forms of cooperation? We are
currently on the market of the more common type is the contract brand of cooperation.
Through a paper contract, the franchisee would be the brand owner the right to sell the
regional distribution. Brand identity for their brands to a certain degree of market
support. Franchisee sales profits go. This model is not strong, often a lot of problems.
Franchisees often complain that the brand owner can not keep up product design,
market, marketing support too little; and brands it, then blame the franchisee does not
operate the market with company policy.
Let's explore the new brand - distribution system, this system though is not
very common in the fashion industry, but in other industries such as home appliances,
the use of FMCG industry is very good.
Sales Aids Consortium: co-brand manufacturers and franchisees set up sales offices,
joint development and management of the market, so you can control all aspects of
sales, to internalize market transactions to reduce circulation costs. Brand
manufacturers and franchisees that are not a simple buyer-seller relationship, but the
development of the market to assume joint responsibility and obligation.
Symbiosis type of brand integration. Two or more companies through some form of
collaboration to develop new market opportunities and the formation of the channel
relationship, the purpose of resources through the synergy of joint play to avoid risks
and get the brand benefits.
Brand Trust: Trust became popular from the early 21st century has become a channel
for innovation and channel apparel outsourcing important ways. The so-called
"managed" refers to the part of the clothing brand management
authority delegated to specific individuals or institutions to manage the business form.
This particular individuals and institutions for the trustee, the management object to
be trustee. Managed hosting and marketing managed by whole, the overall custodian
trustee shall fully take over the brand's overall affairs, sales management
managed to sell only part of the custodian's work.
The meaning of the brand custodian trustee must have the personnel, channels, funds,
management advantages of a relatively complete; be managed unit personnel exist,
channels, management of severe deprivation, can not meet the market demand.
Managed and was managed through the establishment of the relationship, to the
strength of the joint, resource sharing, mutual complementarity and common
Clothing enterprises to choose the brand or do channels do first when I think: brand
clothing enterprises need to do first channel plan, establish and improve the channels
operating system, then only the brand-building; no strong channel network to support
your brand will be the lack of development.