Ordering System VS Distribution &Nbsp; Who Is More Popular With Clothing Brands? (1)

Since 06, our country Clothing brand Gradually from the distribution system to Order system Transformation. Dealers at all levels have to adapt to the general trend and change their operation mode. However, after several years of reform and the baptism of economic crisis, the order system is not as big as the industry predicted. The distribution system returned after a period of silence. What is the rationalization of distribution system?

A few days ago, I was interviewing a famous underwear brand in China. Franchisee It has been learned that many underwear brands begin to adopt the distribution system when they cooperate with franchisees. "Why has this alternative mode of operation regenerated vitality?" faced with this problem, the franchisee declined to comment, saying that the distribution system seemed to be more conducive to the sales and operation of franchisees than the previous two years.

"Gorgeous" order system

Ordering system began to replace the distribution system in the early 2006, and became the main mode of operation. Whether in management or in production mode, they all have advanced nature. But it should also be seen that more of the order system is the resource of the brand.

Choosing a distribution system often causes brand operators to go on thin ice in terms of production plan, because brands lack first-hand information on the market, which makes it difficult for brands to place orders accurately. If the order is too small to meet the market sales, it will not achieve the best sales rate in the market. Once the order is too much, it will lead to backlog of products due to slump.

At the production level, due to low orders, increased production costs and low profit margins, time is pressing. It takes one to two weeks to turn the order. The goods will be sent to franchisees for 7 days ~10 days, which can not meet the market demand and the quality is even more difficult to guarantee. Procurement, production and distribution are often delayed. The product is not listed on the market, and the result can only be backlog.

If the ordering system is chosen, the brand will evade the above problems. The order management system is simple and easy to operate, and has strong production planning, but it requires a high degree of specialization for franchisees. After the market terminal management level is raised, the company only needs to do well in the market maintenance management and supporting services, and the remaining manpower can be used for market development and inspection, market research and analysis. Brand enterprise's market management system has a customer service center, a statistical analysis department, a warehousing distribution center can be competent.

On the other hand, the burden of work is lightened by the implementation of order system, and the brand can do more beneficial work in market development, planning and publicity.

At the same time, there will be more room for discount in terms of discount, so as to improve the difficulties faced by franchisees in the market with high discount points and narrow profit margins. Franchisees have more opportunities to choose shopping centers, and they can also achieve the purpose of brand promotion.

In addition, choosing ordering system can win time for brands. Products have been fully prepared two months ago, even if there are quality problems, they can be solved ahead of time, and generally will not affect sales.

But it should also be seen that ordering system is more conducive to the overall optimization of the brand resources. Compared with brands, dealers gain less benefits from ordering systems. The buyout ordering system often puts huge pressure on the dealer's capital chain, and at the same time, inventory digestion is also facing enormous challenges.

In addition, the ordering system has its historical reasons. Brand awareness began to sprout in 90s. After more than 10 years of accumulation, brand enterprises have already accumulated some capital and have certain strength, so they are more active in the implementation of ordering system. And the rejected distribution system is still valuable for dealers.

Therefore, we can see that a single order system does not really make the brand and distributor achieve a win-win situation, and the way to transfer risks is unsustainable.