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Abandoned By International Brands: How Clothing Agents Protect Themselves

2010/7/21 15:40:00 44

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International Brand Clothing Agents

World famous

Luxury goods

80% of the brand has entered the Chinese market.

But while these companies are flocking to China, Chinese enterprises are only playing a leading role in risk sharing.

"Let the Chinese mainland

Agent

It is impossible for us to do the Chinese market forever. Our aim is to capture the market quickly. After 3-5 years, when the market is completely mature, we will reclaim the dealership's distribution rights, and then let the distributors go to the two or three tier cities to open up new markets.

Andrea, general manager of the Asia Pacific board of directors of Bella, revealed at the fifth luxury international summit held in Macao recently.

Reporter survey found that at present, the international brand "abandonment" part of the agent phenomenon has emerged.

Dickson Poon, a Hongkong tycoon known as "famous brand pan", ended 9 years of cooperation with the US clothing brand PoloRalphLauren at the end of 2009, but also lost TommyHilfiger's agent in the mainland of China.

The American luxury brand Coach, known for its handbags, has also recovered the Chinese retail business from the agent Junsi group, leaving only 5 retail outlets operated by third party retailers.

"This practice makes the agent unwilling.

Because it takes a long period of investment to cultivate a market, especially for those brands that are not well known, publicity and promotion, shop decoration and distribution are huge investments in the past few years.

Unfortunately, because the brand controls the supply of goods, agents are often in a weak position in front of the brand.

A clothing agent told reporters.

In many related fields

Brand dealer

In the dispute with agents, what is more deeply felt is that the inherent defects of this cooperation mode result in disputes.

The development of the market by agents results in the fact that the market is handed over to the agents, and the supervision of the agents to the agents is mostly reflected in the written contract terms, which are limited by the limited regulatory manpower.

However, for those agents who abide by the terms of the contract and devote themselves to enthusiasm, the unilateral breach of the brand is undoubtedly a great blow.

As Zhao Yunhu, the president of the company, said, "a plan that is being planned, planned and implemented is constantly obstructed, disrupted, interfered and not implemented, which has brought huge losses to the enterprise."

How can an agent protect his interests from damage? A comprehensive lawyer's suggestion, I believe that agents and branding should consider carefully and refine the contract terms as far as possible.

For example, the granting of agency rights should be as clear as possible to specify the scope and time, for example, which stores in the cities, who will be responsible for the decoration of the stores, who will employ the salesmen, and whether to allow the franchisees to be recruited.

In addition, we should distinguish the degree of default and the different consequences caused by breach of contract, for example, under what circumstances constitute remediable breach of contract, and under what circumstances, the brand can terminate the contract immediately.

In particular, the amount of liquidated damages should be agreed as far as possible in breach of contract terms, because many cases show that agents usually have significant losses when they default, but there is often no way to prove the amount of losses.

Therefore, the agreed liquidated damages will help agents to take the initiative in dispute resolution.

The provisions of the dispute settlement clause should also be given enough attention.

Avoid different dispute resolution methods in agency contract, trademark licensing contract and other related contracts.

Otherwise, it will bring inconvenience to the future dispute settlement.