northernbook Chapter 228 Which Sports Brand Is Better?
Chapter 228 Which Sports Brand Is Better?
Chapter 228 Which Sports Brand Is Better?
Wu Lei sat up straight, and replied respectfully: "In normal channels, you get the goods from authorized dealers, and you get discounts. New products or mainstream models are basically [-]% off, and old models are more than [-]% off!"
"Hiss, such a high discount!" Chen Shi took a breath,
"Have you asked the official? It is much higher than clothing brands like Smith Barney."
Chen Shi didn't expect it to be so high. It seems that the low-end clothing brands like Smith Barney only earn a hard fee.
For a T-shirt from Adidas, two to three hundred yuan is normal for genuine products. If you get the goods at a [-]% discount, it will cost hundreds of yuan.
There are also shoes. It is normal for a pair of tags to cost seven to eight hundred or even more than a thousand, and they are not discounted.
Discounts have disadvantages for these international brands.
The price is the witness of the brand, and the brand is the guarantee of the value.Just like Pierre Cardin's belt has a logo, it is worth several thousand, while Playboy's brand image is not as good as the former because of too much discount.
Seeing that Wu Lei was embarrassed, Fang Zhiyuan explained with a smile: "Boss, the normal purchase discounts of several sports brands are around [-]%. It is impossible to imagine [-]% discounts like Smith Barney and Semir, unless there are individual discounts. Old models, to deal with inventory."
"Although these two international brands have foundries in China, it is impossible to get goods directly from the manufacturers."
"Oh, why is this? It's not okay to get the goods directly from the manufacturer?" Chen Shi was a little curious.
Wu Lei pondered for a while, and explained: "Boss, these two international sports brands generally have two ways to get goods."
"The first is to find a large agency company and apply for a franchise store. At this time, there are two situations;
1. Pay on time and pick up the goods in order to get a lower discount. This method uses less funds, but the purchase price is high. It is the [-]% off for new models and more than [-]% off for old models as I just mentioned.
2. Sign a contract with an agency company to order futures, but you have to pay in advance, which takes up a lot of funds and the futures price is low, but not much lower. If the new model is [-]% off, I guess it would be good to get the goods at [-]% off. "
Seeing the boss nodding, Wu Lei continued: "The second is to directly contact the headquarters of these two international brands as a direct agent. Generally, this kind of agent must have a huge sales network and market development capabilities, as well as strong financial support. Futures trading as a condition and brand company.
However, Adidas and Nike are both futures systems, and they need to order half a year in advance, and the final payment is paid on delivery.For us, the financial pressure is very high.
Of course, the discount for getting goods is much lower than that of common channels, but it will not be very low. Adi is divided into ABC three-tier dealers. The specific discount is not clear. It is a confidentiality agreement of major dealers. I estimate the discount at 3.5 It's more than 4% off. "
Chen Shi frowned: "It's a bit annoying to order and pay half a year in advance."
If what Wu Lei said is true, getting the goods at [-]% off is indeed a bargain.
If the funds are too high, the prepayment ratio will not be very low. These two international brands are relatively strong.
From 20% off to 30% off, [-]% off, the cost can be reduced by [-]% to [-]% in half a year, which is more reliable.
If there is no profit of more than fifteen points, those dealers will not pay half a year in advance, after all, the capital risk is too great.
Fang Zhiyuan saw that the boss was worried, and said: "Yes, boss, those dealers did not purchase according to the actual market demand, and the financial pressure was very high. There is no order like Smith Barney, where you can order as many as you want, maybe The goods will be available in no time.”
The financial pressure is greater than that of selling mobile phones, and the pressure takes longer.
However, the margins on selling clothing are much bigger.
Chen Shi sighed, and asked, "Is it easy to get dealer rights for these two sports brands?"
Chen Shi felt that it was too much of a loss to get the goods at a [-]% discount from the normal channels. He didn't get the goods at all.
But for him to pay so much advance payment, it is estimated that the proportion is at least 30%. According to the plan to open a total of 25 sports stores in five cities, each planned purchase will cost several hundred million yuan.
Within half a year, the accumulated backlog of funds must have exceeded 10 billion yuan.
Fang Zhiyuan said awkwardly: "It's hard to get the distribution rights. Except for the remote areas in China, the regional agents are basically divided up by the distributors, and they need to negotiate with the headquarters. It's useless to negotiate with the Greater China headquarter in Shanghai. .”
Adidas and Nike have no general agent in the country, and both have direct branches. Moreover, Adidas and Nike have no concept of agents, only dealers, and dealers only have the right to operate but not the right to authorize franchises.
The office of Adi's Huaxia head office is at 227, Floor 23, Zhongqu Plaza, No. 20003 Huangpi North Road, Shencheng. It is useless to find such an office directly.
The largest distributors of Adidas and Nike in China are Belle and Baosheng International, two very powerful agents.
Take Belle for example. Its Taobao Sports (transformed from the shoe king) has become the sports retail and service platform of Belle International. Its agent brands cover Nike, Adidas, PUMA, Converse, etc., with a total of 17 international sports or sports brands. Outdoor brand distribution rights.
Topsports’ revenue last year was 200 billion yuan!
Moreover, among the 200 billion revenue, Adidas clothing revenue accounts for a very large proportion, perhaps 80 billion yuan.
In terms of market share, Top Sports has thousands of directly-operated stores across the country, occupying a 15.9% share of the domestic sports shoe market, ranking first in the industry, exceeding the total share of 15.2% of the next four companies.
Chen Shi wants to build a sports store, which is actually a bit similar to Top Sports.
It can be seen from this that this kind of distributor is very powerful, and those small regional distributors also have an annual revenue of 1 million yuan.
Nowadays, without tens of millions of cash and strong channel strength, it is very difficult to become a regional distributor of Adidas and Nike.
Therefore, each franchise store is honestly getting goods from domestic distributors.
Just like Nike, the franchise fee of the most basic franchise store is about 18 yuan, and the decoration fee is generally specified by Nike, so the decoration fee is very expensive, ranging from 1200 yuan/square to 2000 yuan/square meter.
The dealers are very powerful, and Adidas and Nike are also aware of the disadvantages of channel agents becoming bigger. If they are finally chosen by several dealers, they will be at a disadvantage in negotiations.
This year, Nike canceled the authorization of many provincial distributors, and Adidas was also brewing a series of "power reduction campaigns", but it directly faced Belle and other national distributors.
Chen Shi pursed his lips, feeling a little helpless. He looked at Fang Zhiyuan and said resolutely: "Mr. Fang, I plan to do Adidas and Nike, so be prepared. At the same time, I will try my best to negotiate with the brand headquarters to see if I can get the agency rights. A purchase volume of several billion a year is quite a lot.
While contacting the regional agents of the two brands, we must not fail to obtain distribution agency rights and delay opening stores to make money. "
Chen Shi definitely wants to open a sports brand store, after all, the type of clothing is different from casual and suits.
Chen Shi looked at the next few subordinates and reminded: "This is a company secret. I don't need to say more. Before the cooperation is successful, don't disclose it to ordinary employees and outsiders."
He plans to open 25 sportswear stores in five cities, two-thirds of which will be Adidas and one-third Nike. If the daily turnover of a single store reaches 40 orders, it is estimated that the number of goods sold in a year will reach [-]. billion.
It is no small matter to get billions of goods a year.If Adidas or Nike's headquarters knew about Chen Shi's true intentions, Shenshi would be at a disadvantage in the negotiations.
Seeing the boss's serious face, several subordinates seemed to be staring at them, and nodded seriously.
"Understood, boss."
Everyone didn't expect that the boss, Nike and Adidas, both wanted to do business. Seeing that the boss was silent, they didn't dare to disturb them, and they were also thinking about how to carry out their work better.
"The matter of the sports brand has been settled in this way. There are five stores in one city. Mr. Fang, you are in charge of this matter. The person in charge of the branch company also needs to start preparing for store leasing and staff recruitment." Chen Shi said calmly, moaning. Chin, picked up the glass and took a sip of water,
"Mid-to-high-end clothing brands, do you have any good brand recommendations?"
This matter was mentioned after the last meeting, and now Chen Shi already has a brand in his heart, but he still wanted to ask their opinions.
The managers of the four branches understood what the boss meant, and they were very excited. At present, there are already 10 Meibang stores in one city, plus sports clothing stores, and mid-to-high-end clothing stores. people.
This means that their rights will become greater and greater, and their treatment will be greatly improved.
(End of this chapter)