Clothing Brand Authorized &Nbsp; Is It A Smooth Road Or A Trap?

"Do it yourself" brand Too tired, no tens of millions of investment can't get out at all. It's better to find a big brand as a backer and make money faster. " Jin Xianchao, general manager of Zhejiang Austrian Industrial Co., Ltd., said that the company has been in operation for fifteen years, but has not yet built an influential brand. Therefore, the company decided to take a shortcut and buy the trademark right of a famous underwear enterprise in the shirt industry through the brand authorization.

Brand authorization to earn money

Mr Ao's idea is definitely not the case of Yiwu. According to a reporter's investigation, in Yiwu, clothing processing enterprises have a high degree of recognition for the brand licensing business model, and even in the locals there have been enterprises' mutual "pinch" for competing for the licensing of famous brands.

A boss who did not want to be named received a brand authorization from a second-line clothing brand in the sweater field for three years. The licensing fee is only about 400 thousand yuan per year, because the boss's production and R & D capability is relatively strong, and the channel has also been organized smoothly. After three years, he earned a lot of money and attracted the jealousy of his local colleagues. When their licensing contract expired, another competitor came out. Higher The price has robbed the boss of his authorization.

"Earning money" is the main reason why garment processing enterprises are willing to spend money on buying the right to use a well-known trademark. The forerunner's model effect gave them confidence.

Zhang Chao is one of the oldest eligibility partners after he launched the brand authorization business. He used to give Heng Yuan Xiang's royalties and packaging fees up to one thousand $8 9 million a year, but Heng Yuan Xiang brought him a lot of profits. At present, his home textile business maintained an annual sales volume of around one hundred million yuan, with a net profit of around 6 million yuan.

Zhang Chao's story obviously played a great exemplary role in the industry. After all, for businessmen, making money is the absolute principle.

Embarrassment of self created brand

While brand licensing is going on like a raging fire, it is the embarrassment of self created brand.

In the past few years, Mr. Xiang, who was in the same direction in Zhejiang, devoted himself to running his own brand. However, he had been doing a lot of work. He wanted to advertise but was limited to the funds. He wanted to quickly expand the terminal but no one bought it. After recognizing that others earned money through brand authorization this year, he also sprouted a retreat from his own brand.

It should be said that in recent years, more and more people are no longer willing to survive simply by earning increasingly thin processing margins, especially in the face of financial crisis in the whole world, and foreign trade orders are sharply reduced. Order Enterprises that are able to lead a small life are facing a serious crisis of survival. At this time, the brand shows its superiority.

In the interview with reporters, some processing enterprises have begun the difficult operation on the road of transformation. Mr. Shi has made many years of clothing processing in Ningbo, and its partners include Adidas, big cock and other brands in the United States. They accumulated a lot of money in those years of booming business, and started building their own brands two years ago. But after that, they felt very laborious, especially in the operation of brands and the control of channels.

"Processing enterprises do brand is generally faced with a problem, that is, do not know how to manage the brand. They used to just do the product well, there was no concept of brand promotion at all, and it was difficult to adapt to it at once. Li Guangdou, a famous brand expert, said that the threshold of making brands is indeed much higher than before. A brand can not necessarily come out of 1000 yuan per year, and many links of brand maintenance are very complicated. This is a barrier for simple processing enterprises, so some people may retreat.

It is understood that in the business mode of brand authorization, the general Licensor will provide a perfect brand management mode, which can be directly used by the authorized party so as to avoid any detours. This may be an important reason for fashion enterprises to favor brand authorization at the moment. Instead of having any experience in entering their own brand, it is better to take an excellent brand to learn his management experience, and perhaps the risk is even smaller. Moreover, by means of specialized brand authorization, no need to invest huge advertising fees, with the influence of the successful brand, it can make its products enter the market at a lower cost and faster speed.

In contrast, in these enterprises, brand licensing is better than the road of independent brand, and independent brand has become a way that enterprises dare not touch.

Immature brand licensing market

Although many enterprises are optimistic about the development potential of brand licensing in China, there are also concerns about the irregular market of brand authorization.

Tang Hengyu used to be responsible for the authorized business of the brand, and he has found many partners for the North Pole in the past three years, which made him see the business opportunities brought by this mode. This year, after he came out of the Arctic pile, he opened a brand authorized advisory body, hoping to get a share in the market.

But Tang Hengyu, who is in the forefront of the market, also has many concerns. He told reporters that he had met many parties, and everyone's psychology was very strange. On the one hand, the short-sighted psychology of the authorized party is quite serious. Some people see others making money, and they also want to find a brand to rely on, but they dare not invest heavily, so they raise some unreasonable demands, such as whether they can try a provincial test first, or not pay for the first year; some people sign a category first, and then get the same without authorization after hand. This will make it difficult to work together for a long time. On the other hand, there are some problems with the Licensee. Some brands are trying to make easy money. To grant authorization After going out, they do not want to spend money on maintaining their brand. They believe that they can eat their lives for the rest of their lives through advertisements and images. "The question is, ten years or twenty years later, when the new brand rises, it is very likely that these old brand brands have been almost forgotten by consumers." Tang Hengyu said without worry.

At present, the price of the clothing brand authorization market in China is still relatively confusing. Some brands sell out their own licenses every year at a rate of 4.5 million yuan. Some brands sell 12 million yuan a year, and of course, there is a very big price tag of about ten million yuan.

The price gap of these disparities also implies another problem, that is, to authorize the difference of the management level of the brand side. It is understood that some brands are basically selling trademarks, so that two people are authorized to do business and sell out, while others have professional teams and mature follow-up management and control systems, and the natural price is high.

It is understood that the cat international is carrying out the brand licensing business in ten fields, including home textiles, bra and children's clothing. They set up a team of more than 20 people in operation. Its chairman Lin Lin is very optimistic about this business, but his requirements for the partners are also very high. "We must recognize the brand value, identify the brand's management and control system, and have a long-term plan."

"Authorized enterprises must choose good brands, such as seeing whether the other party has a professional team, observe their advertising campaign in recent one or two years, go to the market terminal to listen to consumers' reflection and so on." Li Guangdou made such suggestions for those companies who want to enter this field.