Channel Width Of Garment Enterprises

Clothing enterprises Channel width It refers to the number of intermediaries used by garment enterprises in a certain market. In narrow channels, manufacturers or service providers sell through a few wholesalers or retailers; In the wide channel, it is sold through many wholesalers or retailers.

If a clothing enterprise wants to strengthen its position in the channel hierarchy, it can buy companies similar to itself, such as a doorman service clothing enterprise to buy another doorman service clothing enterprise. As a result, the scale of garment enterprises has been expanded, and the market share has increased, which has increased the weight of bargaining with other channel members, and also expanded the market, so that scale promotion and distribution technology can be more effectively used. The level of channel width of clothing enterprises. The channel width of garment enterprises is divided into three levels: exclusive distribution, extensive distribution and selective distribution.

Exclusive distribution. Exclusive distribution means that only one middleman is selected for distribution or agency in a certain region for a certain period of time, and the other party is granted the exclusive right of operation. This is the narrowest form of distribution channel. Clothing enterprises that produce and operate famous brands, high-end consumer goods and clothing with strong technology and high prices often use this form. The advantages of this approach lie in the high enthusiasm and strong sense of responsibility of middlemen. The disadvantage is that the market coverage is relatively narrow, and there are certain risks. If the middleman's business ability is poor or an accident occurs, it will affect the whole plan of the clothing enterprise to develop the market.

Wide distribution. Extensive distribution is also called intensive distribution, that is, use as many intermediaries as possible to distribute products, so that Clothing enterprises The channel should be widened as far as possible. For consumer goods with low prices and high frequency of purchase, manufacturers should understand the basic situation of intermediaries, their needs and interests. On the one hand, adopt the strategy of promoting intermediaries, such as increasing the gross profit margin available to intermediaries, giving greater discounts on prices, and giving rebates or other incentives based on sales volume. This kind of clothing distribution mode is mostly used for standard parts, general tools, etc. in clothing. Its advantages are wide market coverage, and potential customers have more opportunities to access products. The disadvantage is that the middlemen have low enthusiasm for operation and poor sense of responsibility.

Selective distribution. Selective distribution means that some middlemen are selected to operate the products of the clothing enterprise in the market. This is an intermediate form between exclusive distributors and extensive distributors. Only in this way can we ensure that clothing brand management will remain attractive and dynamic for a long time. A clothing enterprise with clothing brand awareness often considers cooperation between dealers who attach importance to clothing brand construction in channel decision-making, so as to establish and maintain clothing brand and clothing enterprise image. However, in the channel decision-making of many apparel enterprises in China, selective distribution is mainly applicable to the selection of consumer goods, clothing parts and some machinery equipment. Of course, clothing enterprises operating other products can also refer to this practice. If the middleman is properly selected, use this Clothing distribution mode You can enjoy the advantages of the first two methods.