Clothing Brand Authorization Is A Straightforward Or Trap&Nbsp; That'S A Question

"Do it yourself brand It's too tired. Without tens of millions of investment, we can't get out at all. It's better to find a big brand to support us and make money faster. " Jin Xianchao, the general manager of Zhejiang Aojiang Industrial Co., Ltd., said that Aojiang had been operating for 15 years, but it had not created an influential brand. Therefore, the company decided to take a "shortcut" to buy the trademark use right of a well-known underwear enterprise in the industry in the shirt field through brand authorization, hoping to "borrow chicken to lay eggs" The way to re open their wealth dreams.

Brand authorization that can make money

The idea of general Ao is definitely not an isolated case in Yiwu. According to a reporter's survey, in Yiwu, garment processing enterprises have very high recognition of the business model of brand authorization, and even there have been enterprises competing for well-known brands in the local area to grant authorization Qualification and mutual "fighting".

A boss who did not want to be named once won a second tier clothing For three years of brand licensing in the sweater field, the licensing fee is only about 400000 yuan per year. Because of the boss's strong production and R&D capacity and smooth channel organization, he has earned a lot of money over the past three years, which has aroused the envy of local peers. When their licensing contract expires, another competitor offered a higher price, Robbed the boss of his authorization.

"Making money" is the main reason why garment processing enterprises are willing to spend money to buy the right to use a well-known brand trademark. The model effect of the pioneers gave them confidence.

Zhang Chao is one of the oldest partners after the launch of Hengyuanxiang's brand licensing business. He pays Hengyuanxiang a brand licensing fee and packaging fees of up to 189 million yuan every year, but Hengyuanxiang's brand has brought him huge profits. At present, his home textile business has maintained an annual sales of about 100 million yuan, with a net profit of about 6 million yuan.

Stories like Zhang Chao have obviously played an exemplary role in the industry. After all, for businessmen, making money is the absolute principle.

Embarrassment of self created brand

While brand authorization is in full swing, it is an embarrassment for self created brands.

Mr. Xiang, who lives in Zhejiang Province, has been concentrating on running his own brand for several years, but he has been doing it tepidly. He wants to advertise, but he is limited to funds and dare not do it; Want to quickly spread goods and expand the terminal, but no one buys it. Seeing their products "rotten" in the warehouse, there is nothing they can do. After learning that others have made money through brand authorization this year, he also had the intention to withdraw from his own brand.

It should be said that in recent years, more and more people are no longer willing to live simply by earning increasingly scarce processing profits. Especially in the context of the global financial crisis, the number of foreign trade orders has decreased sharply. Those enterprises that could make a small living by relying on foreign orders are facing a serious survival crisis. At this time, the brand shows its superiority.

In interviews with reporters, some processing enterprises have begun to operate difficultly on the road of transformation. Mr. Shi has been engaged in garment processing in Ningbo for many years. His partners include Adidas, Big Cock and other brands in the United States. He has accumulated a lot of funds in those years when business was booming. He started to create his own brand two years ago, but after doing so, he felt very laborious, especially in brand operation and channel control.

"Processing enterprises generally face a problem in brand building, that is, they don't know how to manage the brand. They used to only need to do a good job with their products. They didn't have the concept of brand promotion, and it's hard to adapt at once." Li Guangdou, a famous brand expert, said that the threshold for brand building is indeed much higher than before, and it's impossible for a brand to spend 10 million yuan every year, Moreover, many links of brand maintenance are very complex, which is an obstacle for simple processing enterprises, so some people may retreat.

It is understood that in the business model of brand licensing, generally the licensor will provide a complete set of brand management models, which can be directly used by the licensee, so as to avoid detours. This may be an important reason why apparel enterprises favor the brand authorization mode at present. Rather than plunge into self created brands without any experience, it is better to take an excellent brand to learn from its management experience, perhaps with less risk. Moreover, through professional brand authorization, it is not necessary to invest huge advertising expenses, and with the help of the existing influence of successful brands, it can bring its own products into the market at a lower cost and faster speed.

In contrast, among these enterprises, brand authorization is better than self owned brand, and self owned brand has become a path that enterprises dare not touch.

Immature brand licensing market

Although many enterprises are optimistic about the development potential of brand licensing in China, some insiders expressed their concern about the current non-standard brand licensing market.

Tang Hengyu was once in charge of the licensing business of the brand in Beijiefang, and has found many partners for Beijiefang in the past three years, which made him see the business opportunities brought by this model. This year, he opened a brand authorized consulting agency after coming out of Polar Velvet, hoping to get a share in this market.

However, Tang Hengyu, who is in the forefront of the market, also has many concerns. He told reporters that he had contacted many parties and that everyone's psychology was strange. On the one hand, the licensee has a serious short-sighted mentality. Some people want to find a brand to "rely on" when they see others making money, but they dare not invest heavily, so they put forward some unreasonable requirements, such as whether they can try it first or not pay for the first year; Some people sign a category first, and those without authorization will continue to produce after they get it. In this way, long-term cooperation is difficult. On the other hand, the licensor also has some problems. Some brands are just trying to make easy money, but they are unwilling to spend money to maintain their own brands after they have authorized them, thinking that they can rely on the image of the previous spokesperson and the advertising they have invested in to earn a lifetime. "The problem is, what will happen ten or twenty years from now? When new brands rise, it is likely that these old brands have been forgotten by consumers." Tang Hengyu said with concern.

At present, the price code of the domestic clothing brand licensing market is still confused. Some brands "sell off" their licenses at a discount of RMB 450000 every year, some brands cost RMB 12 million every year, and of course, there are very large brands with a price of more than RMB 10 million.

In fact, these price differences also imply another problem, that is, the difference in the management level of the authorized brand side. It is understood that some brands are basically selling trademarks, and the authorization business is only done by two people and sold out; However, some have professional teams, mature follow-up management and control systems, and naturally the price is high.

It is understood that Catman International is carrying out brand authorization business in ten fields, including home textile, bra, children's clothing, etc. They have formed a team of more than 20 people to operate. Its chairman, You Lin, is very optimistic about this business, but he also has high requirements for partners. "We must identify with the brand value, identify with the brand management and control system, and have a long-term plan."

"Authorized enterprises must choose a good brand, such as to see whether the other party has a professional team, observe their advertising efforts in the past year or two, go to the market terminal to listen to consumer feedback, and so on." Li Guangdou made such suggestions to those enterprises who intend to enter this field.