Why is JEEP clothing so expensive?

More and more international brands are trying to explore the China market. Many China businessmen have also begun to imagine realizing their business dreams with the help of multinational brands. ..... These companies are pioneers in the field of brand authorization. In the future, there will be many such enterprises and businessmen. In less than six years, Zhang Yongli made Jeep a famous brand in the field of casual wear. At present, special counters have been set up in national 170 shopping malls, covering all provincial capitals except Haikou, "50% direct stores and 50% franchised stores". However, when I was first authorized by the Jeep brand, Zhang Yongli set a goal of opening 40 stores in three years. "He is really doing this brand well now." Zhang Yiwen of Xieya Investment Consultant (Shanghai) Co., Ltd. commented. This company specializing in brand authorization is the exclusive agent for the extension and development of Jeep brand in Asia. In 2003, Xieya Consultant recommended Jeep brand to Zhang Yongli. Half a year later, Guangdong Liwei Clothing Co., Ltd. operated by the latter successfully became the general agent of Chrysler's Jeep brand in the field of casual wear in China. Zhang Yongli said: "I mainly communicate with Xieya Company, which coordinates us with Chrysler." . "Chrysler is most concerned about whether the use of trademarks is standardized and whether the brand image can be guaranteed." Jeep is an off-road vehicle, which is famous for its strong power and slightly wild. "It's a bit like outdoor products," Zhang Yongli said. "Since I took this brand to make clothes, at least I can't violate each other's rules." He hopes to sign a longer contract with Chrysler and pay a reasonable royalty. "If you only authorize it for one or two years, you will spend a lot of money in the early stage and the advertising fee will also go in. If we don't renew it, it will be in vain. " Levi must pay royalties to Chrysler every year. In the clothing industry, the total sales for the next year are usually estimated according to the wholesale price of products. On this basis, the brand licensor will draw 3% ~ 7%, and the specific proportion needs to be negotiated by both parties. Guaranteed sales, sales growth and the increase in the number of sales outlets will be written into the contract. Guaranteed sales volume is an estimate made by the licensor according to its own strength and plans for the coming year. Even if the guaranteed amount cannot be completed in that year, the authorization fee will be accrued according to the agreed guaranteed sales ratio. "Obviously, the licensee will provide the most conservative estimate. If Chrysler is not satisfied, I will coordinate between the two. " Zhang Yiwen said. She is well aware of the planning and requirements of the company she represents for products and articles, and usually suggests that the licensee make adjustments and finally submit them to the licensor for approval. Compared with the benefits brought by brand authorization, the licensor pays more attention to the experience and qualification of local enterprises. "It's not who pays the highest price, but who will have the right to use this brand." Zhang Yiwen said. "They will investigate the business of these companies in advance, understand and agree, and then consider cooperation." During the negotiation, Chrysler repeatedly mentioned the functionality of clothes, which they felt was consistent with Jeep's brand feeling: strong, durable and versatile. To this end, Liwei tries to use wear-resistant and washable fabrics, and uses knots to reinforce the moving parts where clothes are easy to tear, and uses double sewing threads to sew. "Jeep's DNA must be added to let consumers know that it is our product at a glance." Zhang Yongli said. The brand licensing industry in America is very developed. Generally, large companies have special brand licensing departments to develop extended products in other fields, and they will authorize them according to categories and regions. "Jeep brand has authorized clothing, shoes, camera bags, backpacks, glasses and children's wear in China; In Europe, you can see their construction carts, barbecue grills and pet sleeping bags. " Zhang Yiwen said, "This is not to say that Chrysler wants to make money from licensed products. The main purpose of expanding its product line is to tell consumers that the Jeep brand can be extended and developed in many aspects. " Zhang Yongli believes that becoming an authorized brand is much more complicated than developing a brand by yourself. "The design and development of each garment needs to be approved by Chrysler headquarters in the United States. Every time you open a new store, you must inform us where it is, how big the area is, and how the outlets are designed. " In terms of products, Chrysler has made it clear that they don't like chemical fiber fabrics, and Levi uses cotton, hemp and wool instead. "After the sample comes out, the company's brand management department will review it first and then hand it over to Chrysler. In the first two quarters, everyone was in the running-in period, and now the qualified rate of our designed samples can generally reach over 90%. " "For the licensor, the risks of expanding its brand into unfamiliar areas far outweigh the benefits," Zhang Yongli said. "Compared with the main business of the brand, the benefits brought by the licensing business are minimal. In case the licensee does not do well, it may also cause harm to the original brand and even endanger the interests of the main business. " Zhang Yongli tends to build Tongrui into a professional brand authorized clothing company. "The most important thing in doing business is to make money. Whether to establish your own brand is not within our consideration for the time being. "