Three Key Factors For Garment Enterprises To Grow

In China, it is not difficult to manage a truly internationalized enterprise. Clothing enterprise Faced with many challenges, including how to balance centralization and decentralization, localization and globalization, direct clothing sales and indirect clothing sales, etc. The last challenge listed by the author may resonate with the management of any international garment enterprise. According to the research, 94% of the international garment enterprises adopt the third party clothing distributors to a certain extent. Therefore, overseas garment manufacturers in China should take care of the management of international distribution channels in order to ensure that their products reach terminal consumers.

The author thinks that there are three key factors for releasing potential and letting the channel grow.

Do not define the scope of each clothing distributor by default. Although the status quo is indeed based on geographical distribution (estimated 57% of garment enterprises do so), the high growth clothing enterprises will more define the scope of each clothing distributor according to the type or size of their customers. They are more likely to operate in such a way than the low growth clothing enterprises two times. The general manager of a fortune 500 top tech clothing company explained, "we are very careful when we divide customers, and we should draw the scope of clothing distributors according to customer type (rather than geographical area). In this way, we will have the opportunity to serve the strategic customers directly and not to annoy the clothing distributors. "

We should adopt non monetary incentive measures to strengthen the understanding and control of clothing distributors. 87% of garment enterprises use non monetary incentive measures to reward apparel distributors. However, the incentive types of high growth clothing enterprises (win win incentive measures) and middle and low growth clothing enterprises (value transfer incentive measures) are obviously different. Win win incentives, such as providing business consultancy for clothing distributors. channel The platform can add value to both sides, and the selling side is expected to improve the operational efficiency of garment distributors. Value transfer incentive measures, such as allowing clothing distributors to use the seller's logo or share the information of potential customers, the value transfer from the seller to the clothing distributor is one-off, one-way, and has little long-term investment return on the seller.

Pick the best clothing distributors, forget the other weak. High growth clothing enterprises are highly dependent on garment distributors in the emerging garment market. On average, over 50% of clothing sales and clothing sales are through garment distributors. The resource input of high growth clothing enterprises in clothing distributors management is obviously higher than that of low growth clothing enterprises. The average area of the former is 53 full-time labor hours (FTE), while the latter has only 11. However, the proportion of garment distributors in high growth clothing enterprises is relatively high (the average in the past two years is 17%, while the average growth rate is 7%), and the average cooperation cycle is relatively short.

In overseas business, it seems inevitable to choose distribution partners. When your clothing enterprises begin to go overseas from the Chinese clothing market, it is very important to effectively manage the distribution partners. To deal with these complex relationships, garment enterprises should consider the following three suggestions: according to the type or size of customers. Clothing distributor The adoption of non monetary incentive measures will bring sustained value to the distribution partners during the two sides' cooperation. If the distributor fails to achieve the set goal for a long time, the partnership must be resolutely terminated. If you can do that, your overseas expansion strategy will be more successful.