How To Choose Retail Channel

The first stage before World War II was the simple integration stage of retail trade, and the rise and prosperity of department stores.

The second stage is probably from the end of World War II to the middle and late 80s of last century. At this stage, the retail industry began to specializes and differentiated.

Food sales in department stores were first replaced by chain supermarkets, and food retailers were divided into many formats.

It is at this stage that chain stores, discount stores, convenience stores, hypermarkets, and category killers are emerging, and department stores are still playing a leading role in non daily shopping.

In the third stage, from the middle and late 80s of last century, the international retail formats showed two trends: deep specialization and specialized integration. Category killers, franchised stores and shopping centers were popular.

In fact, the department stores in traditional sense are beginning to die out. The theme department stores can be pformed into factual shops such as clothing and cosmetics.

In terms of clothing industry, the retail channel of future brand enterprises will include theme stores, clothing stores, brand stores, shopping centers and so on.

At present, department stores and stores are still the main retail channels for brand clothing enterprises.

When choosing a retail channel, brand clothing enterprises need to first define their own target market and brand positioning to determine whether shopping centers are the main channel or the exclusive store is the main channel, or the two formats exist.

Compared to the exclusive store format, for enterprises, in the current business environment, the construction of shopping mall channels is often more difficult.

Of course, if there is an international brand, the market channel is easy to establish.

Many enterprises reflect that due to the strong position of shopping malls in the supply chain, and the lack of "professional" mentality in the domestic market, many brands are often set up to collect various kinds of explicit and implicit fees, and the accounts are longer.

Many brands, even international brands, have to build their own store channels and stay away from shopping malls because of their "insults".

Moreover, because of the frequent high discount promotion behavior of the shopping mall, the price of goods is often high in the market. For the enterprises choosing two types of stores and stores, the price of stores and stores will not be unified. It is also a difficult problem to torment the brand enterprises.

There are no more than three strategies for brand enterprises to focus on shopping malls: first, stay away from shopping malls and build proprietary outlets.

Many brands, after starting their own brand stores, are welcomed by shopping malls and get relatively equal status.

Second, accept the reality and not complain all day.

For most enterprises, what can be done is to improve their comprehensive ability and get a better position in the competition among many similar brands in the mall, so that they will not be eliminated in the process of frequent brand change.

Third, it is very difficult to establish a strong position relative to the market through multiple brands, such as BELLE international.

Here we need to remind enterprises that with the increasingly fierce competition between shopping malls, there are two major trends in China's department stores at the present stage, namely, differentiation and linkage.

After the differentiation, the shopping arcade has a clear positioning, and they will choose their brands according to their own location. If the two sides agree to cooperate with each other, the chances of cooperation are much greater.

Enterprises can no longer crave the full coverage of all shopping malls, which is clearly not feasible.

The trend of chain also requires the mall to have strategic vision and form strategic partnership with some brands. This also gives the excellent and even potential brands a chance to expand rapidly.

The competition among shopping malls will surely enhance the "professional" quality of Chinese business and make it gradually realize the awareness of establishing a stable strategic relationship with the brand, which is undoubtedly a gospel for apparel brand enterprises.