Dealers Cross Regional Business To Travel Between "Competition" And "Harmony"

Dealers cross regional business to travel between "competition" and "harmony"

As the opening year of "12th Five-Year", the changes and new trends of garment and other downstream industries in the spanformation and upgrading in 2011 are closely related to the business managers and sewing machine dealers who are highly sensitive in the sewing machinery industry.

In recent years, with the increase of labor cost, the trend of the strategic spanfer of clothing enterprises is becoming obvious. The sewing machine dealers have to break the previous regional sales boundaries to carry out cross regional management. When spanboundary dealers encounter local dealers, is it competitive or cooperative? We will wait and see.

Challenge --

Strategic spanformation of service companies frequently test dealers

As " The 12th Five-Year In the first year of 2011, 2011 is the key year for the development of the industry "12th Five-Year". Therefore, the change and new trend of garment and other downstream industries in the spanformation and upgrading are closely related to the business managers and sewing machine dealers who are highly sensitive in the sewing machinery industry.

In the past year and a half, the follow-up effect of workers' salary increases is gradually emerging, and the high cost pressure brought by it is testing labor-intensive enterprises. In fact, not only the high cost of manpower, such as the appreciation of the renminbi, the incomplete recovery of the foreign trade environment, and the unclear international economic situation, are all the way ahead of the enterprises. Influenced by the above multiple factors, the pressure of garment enterprises has increased dramatically. Many garment enterprises, especially those in the coastal areas such as the Pearl River Delta, have chosen to shift their strategy to the central and western regions, where labor, tax policies and other resources have obvious advantages.

A survey of managers of clothing enterprises showed that 44.44% of respondents said that enterprises should seek industrial spanfer in areas with abundant labor and low labor costs; 27.78% of respondents said that enterprises should carry out information spanformation and technological spanformation; 16.66% of enterprises thought they needed to build their own infrastructure; if necessary, they should also design and build modern factories to upgrade their technology; while looking for two new options in the undeveloped regions with a relaxed policy climate and new channels for brand reengineering, 5.56% of respondents agreed.

According to the reporter's interview with a number of 50 dealers in the industry, Clothing enterprise The trend of selective strategic spanfer has attracted the attention of many commercially sophisticated sewing machinery dealers. Many of them said that their garment enterprises completed industrial spanfer in the first half of 2010, and set up new production bases in Hebei, Chongqing, Yunnan, Qinghai and Xinjiang. {page_break}

Turning to the trend of the strategic shift of garment enterprises, Du Shihong, general manager of the sewing machine industry 50 dealers and Hebei blue sky sewing equipment Co., Ltd., said: "at present, Foxconn has decided to move to Langfang, Hebei. As far as I know, the current trend of clothing enterprises is to place sales and design businesses in Beijing, Shanghai, Guangzhou and other first tier cities, and spanfer processing and production to two or three tier cities. For example, YOUNGOR has built production bases in Chongqing, Xinjiang and Yunnan, all of which are designed to shift their large scale production base.

　　 Sewing machine industry Chen Jin, general manager of the 50 strong dealers and Beijing heavy machinery brothers sewing equipment Co., Ltd., introduces the new production base of his client, Beijing Jessie Saint Lo Garments Co., Ltd., which is located in Hebei Yixian County. Bao Lian clothing company and Yong long industry and Trade Co., Ltd. respectively built new production bases in Beijing outer suburbs and Liaoning Chaoyang.

The fixed assets investment in clothing industry is mainly used for the new expansion factory buildings with gradient spanfer, the renewal of technology and equipment, and the construction of sales channels. The gradient spanfer has a huge effect on investment. The garment industry is opening up a new round of investment in the undeveloped areas with abundant labor force, low labor cost and relaxed policy environment. At the same time, it also tests the "fineness" of the sewing machine dealers.

In response, Chen Jin said: "this is a positive and gratifying trend, which is conducive to the development of the national economy. But this requires dealers to cross regional operation, which poses a greater challenge to dealers' technical service capabilities, service quality, technical personnel composition, capital accumulation and resource allocation capabilities, especially the communication and coordination with local sewing machine dealers."

Cooperation -

Dealers across the region are more "private".

The strategic spanfer behavior of garment enterprises is understandable from the perspective of the development of the enterprises themselves, but it does pose a greater challenge to the distributors in the sewing machine area.

As we all know, the sewing machinery industry has always been a regional distributor agent system as the main mode, that is, brand dealers in the region agreed with the whole machine sales of sewing machinery products, and follow up the implementation of customer technology, sales services. Therefore, the multiple strength advantages of brand dealers also determine their "dominant position" within their jurisdiction. However, the spanfer of garment enterprises has led to a vague intersection between many dealers in terms of geographical division, customer ownership and service implementation.

Chen Jin said that in the face of the strategic shift of garment enterprises, the sewing machine dealers were not only restricted by the region, but also increased by the cost of services and the difficulty of resource allocation. "The most difficult thing is not to follow orders and services, but to communicate and coordinate with local distributors," he said. When confronted with the problem of cross regional operation, we insist on the principle of not channeling goods, not fighting price wars, and communicating with local distributors themselves.

"Usually, we communicate with local distributors and choose the form of cooperation with local distributors. When we follow up our customers, our technicians are responsible for completing all aspects of the main project of the customer service pipeline, and then the auxiliary services such as repair and maintenance are completed by the local distributor. Among them, the most important thing is to compensate the local dealers for money and so on. With the benefits, we can serve our customers well and win together, "Chen Jin told reporters about the general process of cooperation with local dealers.

Du Shihong, Chen Jin and many other 50 strong dealers have indicated that both the whole enterprise and dealers have some tacit understanding of dealers' problems of cross regional operation. The whole machine enterprises usually adopt the "encounter" for the dealers of both sides, so as to support the dealers themselves to communicate with each other as long as they do not flee, but if there is a vicious competition, they will severely punish dealers in various ways.

Competition --

It is equally important to be a man.

According to other distributors, five or six years ago, two dealers and 50 strong dealers in Guangdong, Liang Foxiang, Fujian Xiang Xing sewing machine Co., Ltd. and Lin Hongnan Fucheng sewing equipment Co., Ltd., respectively, expanded in different regions through the establishment of branches or chain stores, which also made a useful exploration for the cross regional operation of sewing machine dealers.

According to the unnamed dealer, such as Liang Foxiang's choice of address in Guangzhou, Hongkong, Hangzhou and Wuhan, these places are densely packed in textile industry, and demand for sewing equipment is strong. At the same time, geographically speaking, Wuhan is a bridgehead near the west, and Hangzhou has a wide range of traffic links. The establishment of this "branch" has enabled Xiang Xing to enter a fast developing channel. Its annual sales performance has increased by 10%. In 2000, the output value of the company successfully passed the threshold of 45 million yuan. In 2003, the annual turnover of Xiang Xing broke through 100 million yuan for the first time.

Many dealers who have seen sweetness have also tried to test the water chain system or to set up cross regional branches. However, another 50 strong dealer who did not want to be named said: "the chain like mode of running a horse park is very high because of the amount of capital needed, technical capability, service level and connections. Not all dealers can try it. Such key elements as manpower, material resources, financial resources and local resources are indispensable.

"Of course, when dealers meet the problem of span regional operation, not all things are harmonious. As Chen Jin did in the form of cooperation with local distributors to solve the case, but competition, and even between the vicious competition among distributors. A dealer said.

The dealer said that his contract orders in the field gradually increased, and began to cross regional operation. He opened a store with a local distributor and co operated the brand of the agency. Not long ago, he encountered a single cross regional order that could be his pride. But because of the vicious competition of other distributors, the stumble behind the local dealers, and the bias of professional managers, the order ended. In this regard, he said: "how much regret, but also summed up a lot of experience from ah!"

For this kind of event, Chen Chin, who has been in the sewing machine business for many years, is not surprised. "Vicious competition has long been a malignant tumor that restricts the scientific development of China's sewing machinery industry. The product has developed, and the market is very bad. The domestic sewing machine is still unable to be assembled into the production line of the domestic first-line brand clothing enterprises." {page_break}

At the same time, Chen Jin said that commercial competition is understandable, but the vicious competition is the whole "China Sewing machine brand". He always believed firmly in his eight character creed of business: "honest and easy to deal with," and thought that if things were done well, things would be smooth.