The Study Of Supply Channel Control Under "Brand Pool" Model Of Luxurious Store

Presently, there are three operational models widely adopted by Chinese department stores, namely, self-support, lease and "brand pool". An investigation reveals that in major cities, 80% of luxurious store take the advantage of "brand pool" model, which indicates that "brand pool" becomes the mainstream operational model."Brand pool" is referred to as introducing well-known brand in the store by way of trade promotion. The brand product manufacturers or their agents are responsible for running business. The store takes care of integral management. Besides charging fixed area-related expenses such as floor occupation and property management charges, the store adopts royalty settlement with minimum rent. Hence, "brand pool" is different from the traditional section management in self-support mode and the property management in lease mode. It is a brand management based on unified planning, unified image, unified merchant drawing, unified operation and cashiering. Both of the store and brand suppliers contribute to the sales revenue and each take a share of it."Brand pool"model prevails in Chinese department stores because it reduces cost and risk comparing with self-support model, and strengthen the integrality and power of control."Brand pool"model caters to the brand consumption preference of urban high-income class. It has its reasons for existence and is indispensable in market economy, especially for those newly opened stores in short of fund. Indeed, "brand pool"brings vitality and prominent performance to luxurious stores. However, some defects are also exposed during its development, such as low profit margin and weakened control of the service provided by clerks. In the cooperation between stores and brand suppliers, black case deal may appear; some brand suppliers will boycott the store's promotion by deceiving customers; they sometimes questions on passage fee; stores and brand suppliers may scramble for dominating supply channel. With analysis of causes of these problems, we realize that they can be avoided or settled by concept and technology innovation in the course of management.Under the "brand pool" model, the relation of supplier and the store turns from transaction to cooperation. Management also changed from section management to brand management. Consequently, luxurious stores have to adopt brand new channel-control strategy to solidify cooperation with brand suppliers.The would-be brand suppliers of luxurious stores should succumb to stores' objective and abide by the management regulations and rules. They can be roughly classified into two categories. One is golden brand supplier and the other is ordinary brand suppler. Golden brand suppliers are what the stores yearn for and hopefully, they will be helpful in achieving the store's goal of "famous store rises with famous brand". The store should build up the core competitiveness with characteristic management for the purpose of attracting the retaining golden suppliers. Meanwhile, if the brand supplier factually proves their competence, they will benefit from the brand grading management. Ordinary brand suppliers with the help of store aim to foster market and reach their target of "famous brand rises with famous store". This category are mixed up with various brand, superior and inferior. Grading management is to eliminate inferior brand supplier and make the superior the store's exclusive brand.Based on the above analysis, focusing on the chronic problem of "brand pool" mode and aiming at improving overall management, luxurious stores are likely to get the hold of brand suppliers' supply channel through correct positioning, stipulating merchant drawing and operational rules, shaping core competitiveness and brand grading management. To achieve this aim, the store has to learn how to attract, introduce, retain, promote and eliminate brand supplier.