Channel Diversification Brings Challenges To Garment Enterprises

There is no doubt that even in today's "channel is king" and "winning the battle end",

It is still the first choice for most garment enterprises to establish distribution channels.

But at the same time, as the market continues to change, especially under the impact of the financial crisis, some clothing and garment enterprises seem to realize that the "direct mode" that can maximize profits is the "King's way" for development.

A group of hot self built "direct marketing channels" has been pouring into the clothing industry in recent years: Metersbonwe spent 517 million yuan in the first half of 2009 to open a large number of Direct stores in the whole country, and YOUNGOR reduced the original 3000 stores to 2000 stores and increased the proportion of direct outlets, including the movement of seven wolves, also started the intensive cultivation of the channels, and adopted the practice of setting up branches with local agents to strengthen the channel control rights, and so on, and this situation is becoming more and more intense.

At the same time, with the acceleration of industrial upgrading, some emerging channel models have also sprung up, such as the direct selling of the Internet, the television sales, the mail order sales, the rise of brand chain direct selling stores, and so on.

To be sure, the era of diversified channels of clothing industry has arrived.

Under this background, where will the fashion agent pattern be as a traditional mainstream channel mode? Can it withstand the test from all sides and continue to dominate its position? What is the development direction of the agency mode in the future? A series of problems have aroused people's renewed concern about this group of agents.

In the era of diversified channels, how do you view the current situation of agents? What are the pressures and challenges that they come from?

Industry development and competition intensification complement each other.

Intensified competition has also promoted the process of channel diversification.

In the era of channel diversification, traditional distributors are facing new opportunities and challenges.

On the one hand, the rise of new channels brings new opportunities for development and profit channels for agents. The new and old channels can make some excellent agents quickly win new market share and become multi brand and multi-channel agent specialized agents. On the other hand, new channels weaken the traditional proxy distribution chips, divide the wholesale market share of seats, or even be directly replaced by direct channels, which will bring heavy pressure and severe challenges to some wholesalers who are only accustomed to wholesaling and distributing.

Channel diversification

The pressure and challenges brought by agents mainly come from 4 aspects:

1, because of the characteristics of some new channels, some brands will differentiate the channel from the traditional agency distribution channel and operate independently, such as online shopping, mail order and TV shopping.

Although the combination of products and price will be distinguished from the traditional channel, the main part is the traditional channel cake.

Therefore, the rise of new channels will inevitably divide the share of traditional agency distribution channels.

2, the traditional agency distribution has exclusive and exclusive nature in the local area, enjoys regional protection, and brand dealers rely on agents strongly.

However, with the rise of new channels, the monopoly pattern has been broken, and the chips of traditional agents and brand players have been weakened.

3, as competition intensifies, it is necessary to promote the flattening of the channel. The mode of direct operation, single store franchised and direct terminal chain has been gradually adopted by brand dealers. For some agents, it is difficult to escape the fate of being merged or replaced.

4.

It has promoted the diversification of competition, and the intensity and means of competition are higher. This will definitely promote the polarization of market structure, the stronger the stronger, the weaker the weaker.

Therefore, agents lacking strength are also at risk of being shot dead by their peers.