Not only is the brand-name package has a difficult to explain the price composition and origin suspense, the industry is still a new trend, that is, after a firm foothold in China, a number of internationally renowned brands are now proposed to revoke the original agents , To their own direct. Recently, from the British brand Burberry Burberry announced that it will be in China all the agency will be changed to direct sales stores.
Female: Here to explain to you what is the direct store. Direct store is directly operated by the head office chain, that is, by the company headquarters direct operation, investment, management of the various retail sales mode. Headquarters direct orders to all retail outlets, retail outlets must also fully accept the headquarters of the command. Previously, the world’s well-known merchandise in China, are the development of dealers, and part of the profits to the dealer. Why is the international famous brand at this time to start their own straight up? Take a look at the mystery behind it.
This is a large shopping mall in Beijing Burberry Burberry store, in order to get an interview permit, the reporter three days earlier and Burberry high-level contact, but the reporter’s answer is not into the store to shoot.
Reporter: now is a direct or agent?
Reporters visited the five Burberry boutique stores in Beijing and found that these stores have been changed to direct, after the restructuring of the original store and sales staff have not changed, the only change is only about the price adjustment. It is understood that the current Burberry Burberry in mainland China 30 cities have 50 franchise stores, these stores have all been changed to direct stores. According to the company’s plan for the 2010-2011 fiscal year, it will open 10 new stores during the year, but also all for the direct mode. But the reporter learned that Burberry from 02 to enter the Chinese market, has been by the Hong Kong agents in the mainland franchise. Now what is the reason to push the brandy side of the dealer aside, their own dry it?
Burberry Burberry agents: “The fundamental reason is that the brand side to see their own brand in the Chinese market gradually recognized, she did not want to share profits with others, and want to maximize their own interests.
The agent told reporters that the increase in profits and maximize the benefits of the Baoli into an important reason for the direct. From the years into the Chinese market, the company’s sales profits in China are growing double-digit each year. As of December 2009, Burberry mainland China franchise stores revenue of 75 million pounds, profits of 14 million pounds.
Luxury goods survey Shanghai: agents four years of business was abandoned
After reading the Burberry Burberry business model to change the news, our reporter also found in the survey: not only the Burberry brand, many foreign brands have abandoned their agents in China. In Shanghai, our reporter interviewed a dealer abandoned by the luxury brand, he represented some luxury brands for nearly 20 years, remember the years of effort and accumulation, and now marketing and marketing are doing a good job. Looking to grow and grow, but he these international brands have lifted his agent contract.