Brand Of Children's Shoes Actively Explore New Channel Mode

From consortium to small pool, local Children's shoes enterprises The exploration is continuing, and the cost is not too small. We will wait and see how to find a suitable model.

　　 Big joint venture goes into a blind alley.

Not long ago, the A children's shoe brand closed its last affiliate branch, marking the eventual failure of the two year joint mode of the brand.

"We will no longer consider being a joint venture company!" A brand is responsible for the kiss of the population. The frustration behind this resolutely reflects some of the crux of the ideal joint venture.

The market has proved that the development of regional market channels has not gone beyond the imagination of the A brand company and the cooperation of the provincial and provincial partners. On the contrary, inventory management and capital operation have been challenged to a greater degree in joint ventures. Instead of doing so, we might as well take it back and do it again. As for the agent system or the direct branch company, the head of the company is still considering it. However, it is certain that the joint venture mode will no longer be adopted because joint venture is a worthless investment.

This is the result that the A brand failed to think of when it launched a joint venture two years ago. Two years ago, in order to achieve the goal of low-cost rapid expansion of channels, many children's shoes brand chose joint venture to see from the paper the mode of combining the advantages of the parent company and the agent company. However, the experience of two years has made people laugh and cry.

"In Jinjiang, most of them Brand of children's shoes The affiliated companies adopt 51%: 49% holding mode, and the head office is the largest. For production oriented brand children's shoes enterprises, after the production cost is recorded in the joint venture, the continuous investment of the head office is far more than that of the agents. This means that the money of the head office keeps coming out, and the accounts receivable of the branch company is more and more. The head of A company added that over time, in the process of operation affiliate branch, they found that the gap between the input and output of the company and the agent was bigger and bigger, and the distribution of the benefit results became more and more unreasonable. Eventually, more and more risks were transferred to the head office. The head office could only ensure the safety of the overall channel operation of the brand by ending such a high-risk channel mode.

In the industry view, the reason why the joint venture mode is so short-lived is not the problem of the mode itself, but many affiliate branches of children's shoes are forced to come out.

"Some agents owe a lot of debts. In this case, the head office believes that since agents spend money on the company, it is better to adopt a joint mode of cooperation, agents are responsible for management, and companies provide goods for them to jointly promote the development of regional markets. This is not a small difference from a true sense of joint venture. " Industry sources.

In the true sense of joint venture, based on the premise of mutual initiative, the company and the provincial generation joint venture, we want to integrate their respective advantages and set up a relatively independent sales organization in the distributor's place to operate the regional market.

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In this way, the agent brings out the business resources, business experience and public relations resources of the business circle, and the brand manufacturers have products and management resources, and integrate the complementary mode. However, how can a joint venture start passively to achieve the goal of resource complementarity and common development?

In the eyes of more industry peers, even if there are no problems at the executive level, joint ventures are still ideal models for children's shoes industry, and will encounter difficulties in the actual operation.

"Take a matter of inventory rejection. During the clearance season, the head office decided to clean up a stock market at a price of 75% off, and met with strong objections from agents. The agent thinks that such a loss and sale directly damages his vested interests. When he originally acted as an agent, he could not sell these stocks. He would return to the head office in the coming year. In fact, in the specific operation of the branch, the details of management and execution vary from day to day, and sooner or later, it will erupt sooner or later.

　　 Small joint venture is refined.

The ideal mode of joint operation is basically impossible to achieve. Is there a channel mode that can expand the regional market and give full consideration to intensive management terminals, especially in the market competition with low sales and declining profits? In this year's order meeting, many children's shoes enterprises have turned their sights on "small joint ventures".

The so-called small joint venture, literally, is that the scope of the joint venture has been narrowed down. In the past, it was combined with the total generation and the provincial generation to develop the market. Now, many brand enterprises have begun to choose joint regional agents, mainly based on regional franchises, to implement full hosting joint ventures in key areas, or to open stores directly with franchisees.

According to people familiar with the industry, the local children's shoe brand, Quanzhou, has adopted such a small joint venture mode in some street shops on the ground. "The joint mode of the company is relatively simple. In fact, it is the cooperation between enterprises and customers and the implementation of the franchise mode. For example, you have a store that wants to make a brand, but worry about inventory pressure and worry about management capability. Then, we can adopt a cooperative way, providing customers with stores and certain margin, providing goods and management, and getting the turnover of customers.

　　 Caslon Ding Canyang, chairman of China Limited company, is very optimistic about the joint venture mode. He even said in accepting relevant media, Kasiron will put the fast "horse race enclosure" plan on the joint venture mode. The reason is very simple. "Take a 60 square meter shop in the two or three line city as an example, the annual rent plus the clerk's salary needs 2.3 million yuan. If you open 1000 outlets, you need two or three billion dollars." This is almost a high cost for children's shoes enterprises.

Therefore, in his view, in order to seize the opportunity in the market expansion, the joint development of children's shoes brand enterprises is irresistible. It is only how to combine the bundles to achieve the best resource combination. Since the way of large joint venture is not mature enough, Kasiron can be adjusted from the original "company and provincial generation" large joint venture mode to the head office directly with the regional market agent pool, or to open a self owned store directly with franchisees. The small flat that is now verified by the market can quickly help the transformation and upgrading of the Kasiron terminal.

In fact, when children's shoes brand enterprises explore a more reasonable and optimized mode of joint venture, Ruan Sen, marketing director of card Dudu children's products Co., Ltd. even put forward a bold idea - the two way holding of the joint venture. Ruan Senhe believes that, because of the lack of supervision in the operation of joint branches, management often leads to a one-sided risk. But now they can tie up the interests of the total generation, the provincial and the parent companies and share the risks and responsibilities by way of two-way shareholding. The head office still has to establish a branch with the total generation or province instead of the holding company. However, the entire joint venture company needs to calculate and convert it into a shareholder of the general company, which means that the branch owns the shares of the head office.

"Imagine, as a provincial generation, you push all the risk of loss to the head office. What will you get dividends from the company's shares at the end of the year?" however, Nguyen Sen River admitted that the company is in the process of preparatory work at the moment, and whether the final success can still be tested by the market.

　　 We need to avoid a single form.

Although children's shoes enterprises have begun to try "small joint venture" which seems to be a more suitable way to expand channels, but in the eyes of the industry, this mode is still too single. After nearly two years of advertising, star, terminal, promotions and other marketing wars, the brand operation costs of children's shoes have been greatly improved, the profits of products have been gradually diluted, sales have been weakening and declining, brand homogenization is serious, and the market is becoming more and more difficult to do. The local shoe brands such as the dog, the card, the Bumblebee and so on can only begin to try the diversified channel mode. The agency, the small pool and the direct camp coexist, the small joint venture and the direct battalion keep pace with each other, or the agent system is mainly supplemented by some direct battalions and so on.

In Luo Zhengming's view, the brand business of children only follows a guideline, namely, according to the brand positioning and development stage, planning a channel mode that is really suitable for its own development.

"At present, the decline of some brands is due to the fact that the general agent goes to the provincial agent and then to the regional agent or franchisee. This kind of marketing mode with multiple layers is no longer competitive, and there is no profit margin. For example, the ex factory price of a product is 50 yuan, which is gradually sold to the retailer and then to the consumer through the broker, and no sales can be made to 100. And this interest chain is headed by a self run company, and the tail is a consumer. It can't be cut off one after another. Then we can only change from the agent level, and we can realize it by transforming the agent's status, and develop them into a large scale retailer.

For example, Luo Zhengming said, in the future, they may adopt various supporting policies to encourage agents to build their own channels, instead of developing the next level franchisees as before, and enable them to become large scale retailers to complete the channel system with flat channel and profit maximization.

It is worth mentioning that if there is a direct market in the enterprise's channel planning, then the direct marketing market can be regarded as his "experimental field". Let agents see the sample market effect, he will be more bold to open terminal stores, which is more conducive to brand enterprises to promote the process of market expansion.

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"Children's shoes terminal formats are relatively rich, street stores, shop stores, shopping malls, large business super counters, no matter what kind of terminals are the main ones, as long as they are ready, sales and scale benefits are considerable, but the premise is that we must plan their matching channel system according to the brand positioning and development stage, set the main channel, compile extra pipeline, and then gradually import into the retail system. We must not just look at the immediate interests, but will not accept rectification." ABC Brand Senior Manager Huang Weicheng said.

"However, whether the channel mode of small joint ventures and the rich terminal formats can match the brand positioning ultimately, help the brand to stand out in the market war, which also requires the head office to coordinate the interests of the agents or branches and distributors. The three parties work together to promote the channel mode promotion and retail import on the basis of strict planning and firm implementation. Otherwise, the brand of children's shoes is still unable to upgrade and upgrade under the downturn of the market." Huang Weicheng said.

　　 Related links

Joint venture: brand enterprises provide products and management resources, agents provide business circle store resources, industry operation experience and public relations resources, and the two share dividends according to their shares.

Small Consortium: brand enterprises provide products and management resources, customers provide stores and certain margin, and customers share actual turnover.

　　 Most important

From agency to joint venture to small joint venture, children's shoes enterprises have been trying all kinds of models in the past years. The original intention is only one: finding the most suitable ones, and then making efforts to expand the market.

In the eyes of outsiders, the exploration of local children's shoes enterprises is very frustrating, because other peers do not do so, nor do they live equally well.

However, it is undeniable that it is precisely because of the constant "toss" to create the glory of the Jinjiang brand today: if Heng An had chosen not to set foot in the capital market at ease, would there be tens of millions of Heng An? Today, if Anta did not hesitate to ask for spokesmen, would it become the boss of today's physical education products?

The root cause of this kind of trouble in local children's shoes enterprises lies in their unhappiness.

As a breakdown industry in recent years, local children's shoes enterprises are still groping for growth. On the one hand, they learn from the successful experience of the development of adult sports shoes; on the other hand, they combine the characteristics of their own industries to adjust and innovate some of the existing models. The "toss up" in channel expansion is only part of it.

While affirming this kind of "toss up", local children's shoes enterprises need to remember: don't "toss" for "tossing". When you see that people are sitting on their feet, they can't sit still, and they want to paint the gourd. But they don't know that they are doing everything because they simply adopt a certain pattern to solve all problems. Behind them, a more systematic project is supporting them.

Shoes are uncomfortable, feet know. There is no uniform standard and mode in developing market or channel integration. The most important thing is the right one.