The joint venture model is that the customer pays a certain amount of product deposit to the brand company. The specialized department of the brand company allocates the goods according to the market situation and the sales situation of each product. The product style, price, and quantity are mostly determined by the brand company. The company communicates and adjusts the goods), and the customer makes a commission based on the percentage of the sales amount. The disadvantages of the joint venture are that the company invests too much, so it requires the brand company to have a certain economic strength, and the second is that the business is risky, because the management has a lot of care when operating the market, and it will lose money. In this way, brand companies have greater responsibilities, and they need to operate in a comprehensive manner to avoid operating risks of loss. Equivalent to the customer is only responsible for sales, there is no inventory risk. With an affiliate sales model, for brand companies, they can fully control the terminal, and brand companies share risks and profits with the sellers. The joint venture allows the company to directly extend the sense of governance to the market, collect market information in a timely manner, and enable the joint venture to follow the company's prescribed route.
For brand companies, choosing an affiliate model also has more advantages than disadvantages. Compared with the franchise model, the risk of the affiliate model is less because the franchise's business risks are borne by the franchisees themselves. The support is limited to the display and training of the store. After the store is opened, it is completely managed by the franchisee itself, so the risk is high. The joint venture model is to bind the fate of the seller and the brand company, and it will give more favorable protection in terms of getting goods, funds and supplies.
How to choose a business partner alliance, it is very important to choose a trusted business partner. Because, now in the business field, the profit dispute will make partners jealous. The shareholding quota of the two parties of the joint venture, after the selection of the co-branded company, the two parties will carry out a practical cooperation phase.
Affiliate is a model operated by clothing brand companies. If you are interested in the clothing business and want to take on less venture risks, then the EI. Yi Ai Women's Affiliate model is more suitable for you!
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