Risk Management Of Garment Channel Management

Fleeing is very common in reality, and also a garment enterprise.

A big problem.

The so-called "fleeing" goods, also known as rush goods or goods, or cross regional sales, is because sales channel members are driven by interests, so that their products sold across regions, causing confusion in prices, so that other dealers lose confidence in products, consumers lose faith in the brand phenomenon.

According to the different motivations of fleeing goods and the different effects of fleeing goods on the market, we can divide fleeing goods into three categories: vicious fleeing, natural fleeing and good fleeing.

Vicious fleeing

Vicious fleeing refers to the behavior of a dealer dumping products in a market outside his jurisdiction in order to obtain abnormal profits.

The most common way for dealers to dump products outside the jurisdiction is to sell at a reduced price, which is mainly for sale to non district areas below the price specified by the manufacturer.

The harm caused by vicious fleeing to clothing enterprises is huge. It disturbs the price system of the entire sales channel of clothing enterprises, and easily leads to price war, reduces channel profits, makes dealers lose confidence in products, and has strong management channel members; training channel members, changing their concepts and improving sales skills and management capabilities.

Promote relationship marketing strategy to meet the needs and desires of large customers.

Loss of enthusiasm and eventual abandonment of products sold to the garment enterprise.

Natural fleeing

Natural distribution of goods refers to the behavior of dealers dumping products in the market outside their jurisdiction while obtaining normal profits.

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In the market is inevitable, as long as there is market segmentation, there will be such a fleeing.

It is mainly manifested in the vicinity of the boundary of the adjacent jurisdictions, and the distribution of the overall objectives of the channel system according to the product characteristics and channel conditions, so as to clarify the early-warning requirements of specific channels, or in the distribution market, products will be dumped to other regions along with the trend of logistics.

If the quantity of goods is large, the access price system in the area will be affected, so that the profit of the channel will decline, and the enthusiasm of other dealers will be affected. In severe cases, it can develop into vicious turnover among dealers.

Benign channeling

In the early stage of market development, it is a deliberate or unintentional choice of a distributor in a stronger market. For many types of consumer goods producers, sales from small and medium-sized retail stores still occupy a major share. At the same time, because of the complexity of China's sales channels, the types of terminals, the wide distribution of games, and the inconsistent rules of the game, it is difficult for garment enterprises to find effective ways to create a good image of their brands in the channel, so that their products can flow to non important business areas or blank market.

In the early stage of market development, good circulation is good for garment enterprises.

But in practice, we should be careful. Otherwise, it is still a risk to improve the channels in the future.

The confusion of the channel caused by fleeing goods, especially the vicious fleeing of goods, will cause three problems: first, the confusion of channel prices; two, the deterioration of the relationship between dealers; three, the relationship between them.

There is an increasing conflict between distributors and dealers.

Enhance dealers' awareness of market protection, improve the quality of dealers, enhance their ability to compete with the market's "evil potential", and cooperate with distributors so as to minimize the risk of channel risk.

All these problems will increase the management risk of garment enterprises' sales channels.