New Markets: Changing overseas agents/ distributors/ partners. Fashion & Retail

?New Markets: Changing overseas agents/ distributors/ partners. Fashion & Retail

I saw a few of my older articles doing the rounds again which is much appreciated, so I thought its about time for another.

Agents/ distributors, retail partners are all referred to as Partners below.

In some contracts I have worked on I have been requested to find a new partners for brands in an area where they currently trade with an existing partner. I have had about 5 over the years.

This has varied from large retailers with a Middle East partner who were interested to research the possibility of a larger partner to an expanding designer collection who was “stuck” with a pan euro agency and had signed over all of Europe and not achieving near expectations.

When a brand first asks me on this I really do question it. I ask as many questions as possible as to why they want to change. Where is the relationship? What is wrong and most important the history of the relationship. When did it start, very important how did it start and then focus on where it is now. Equally important, what is right with it, what is working!

In the large retail case above with the Middle East partner (the retailer was a global 900 commercial clothing store) they wanted to look at change for two main reasons. This partner only covered 2 countries in the region. Some other potential partners covered 5 +. And they felt the stores were neglected compared to the partners other brands. The contract with the existing partner was coming to an end, and generally the existing stores in the region were in need of a touch up to say the least. I went into more and more detail and gradually realised they have barely sat down and had a good talk and overview with the partner. Communication was low.

I persuaded the brand to let me talk with the partner. After several discussions it was clear the Partner was still very keen, and there were some issues, mainly closing 4 underperforming stores which they were worried to mention in fear of losing the new contract. That was just one matter, there were several other matters, but overall we all agreed the existing business was good, solid and not worth the risk of jumping ship. Eventually the brand jumped on a plane and all was resolved face to face. I then found them a partner in another territory which is now going satisfactory.

Similarly with the Designer brand, the pan European partner had had very little propper communication, just emails occasionally Brand: “how are sales, please give report, we had hoped for more”, you know the type”. Again I had a long chat with the brand and then arranged a Skype with the Agency.

From my calls with both, I felt one of the main areas was the German Speaking countries, Europe's largest wholesale market. I see very few pan Euro/ Global agencies actually build a footprint in the GSC's. That market does not have a London, New York type fashion epicentre, in short it is like 5 or 6 markets in one and needs local/ regional agencies to work in tandem. Most pan Euro/ global agencies I see at best attain 15/ 20 accounts when brands who have a local operator will achieve 60-90 accounts, some more depending on price level.

I looked at all the brands the partner had, then looked at those brands store locators and of the European regions it was clear the partner was strong in 3, OK in 4 and quite weak in the rest especially GSC. With brand and partner now talking regularly with me in Skype conf's we agreed to release 4 territories and give added support with a trade fair on the existing. It was also clear, that as direct speaking communication had reduced, the less attention the partner gave to that brand in favour of the other ones in their stable. Over the next 6 months I secured a Benelux agency and a GSC distributor to collaborate those countries and we also recently signed a nice agency in U.S.

Normally if the partner is not doing the business and its just not happening then both sides shake hands and say farewell. It is important though when there is reasonable to good existing trade. Is it quality trade, good accounts, brand respect from consumers etc.?

With all the above, I noticed that the existing trade was actually good. We are always “wanting more” but International trade is not easy to come by, a certain amount of sales are yes, but not good solid long term profitable (for both sides) trade. That should never be snubbed at even if it does not feel like enough . It's ok to do a low quantity but high quality, in a large market like China, and equally through a more commercial distributor in Australia, quality high volume. Most would expect vice versa in those countries but quality business should not be frowned at.

With many brands, even in basic business development with brands in their 2nd / 3rd year who feel stuck, I often remark that they are basically where they should be right now. You dont always grow at 100 miles an hour. A very important thing I have noticed too is that the mere fact they are in the game and staying there can show results. Sometimes you win because the others around you drop or stop. A recent mens contemporary got into a leading store, because the store was let down by another brand that went wobbly. So too with international trade, just being there and maintaining that tradecan lead to good things if another brand withdraws, or down the road other avenues open.Do not risk losing that for quick gains with what appears a golden chalice partner.

Brands treating their partners as exactly that, a partner usually fair better than those who see them as a separate entity, always squeezing margins, little support etc.

We all know agent hopping is not good for any brand so I always look to fix what is there first.

The obvious thing above all is strong communication, but more important make that regular. Speak rather than email, Skype if you cant fly there. Without sounding like the sales Guru in Jerry McGuire, it is all about relationships. Stronger relationships generally solve their problems and differences. A good ding dong, social and informal is always good too.

With all the above, that goes the same for your domestic partners too.

Without doubt, when relationships with agents or distributors totter, a third party like myself can be useful to put things back on track. If you have a problem with your agents, or associate with any of the above do get in touch. Equally if you are looking at new markets, do read my profile.

Let me know with a short message and supply an email address or contact me through my website https://www.fashioncompass.co.uk and I will send my info pack with references etc. I do charge a small fee for the initial consultation , all explained in my info pack. The small fee is refunded if we go on to work with each other.

Thanks so much for reading all feedback welcome!

Warm regards

Stephen?

I am easily contact through: https://www.fashioncompass.co.uk ?