Can be sent: Korea's big-name Chinese abandoned the value of the surviving in China

Shenzhen can be sent

Since 2010, the overwhelming big-name “break up” has been met with the Jedi’s Jedi counterattack.

Zhao Yunhu has been a clothing dealer for more than a decade and was originally a simple way to do "quantity." In the past seven years, he has made great contributions to the achievement of a certain brand's leading position, and he has successfully operated a South Korean low-end brand in the Chinese market. This has established his own unique channel “value-added”. method.

However, Lao Jianghu met new problems. After Zhao Yunhu succeeded in adding value to Korean brand Kang Jin Young, brand manager SKN and channel developer Zhao Yunhu were about to court the case for Kang Jin Young's "commanding power" in China. A fight between Chinese and Korean companies about brands started.

It seems that this is a battle of disparity in strength. One of the two parties is South Korea's SKN Corporation, which is part of the world’s top 500 companies and has a huge investment in China’s third largest group, SK. The other party is Zhao Yunhu’s “dwellable” Shenzhen company with assets of just over 100 million yuan.

Confrontation

On June 30, 2010, SKN plundered and unilaterally terminated the contract, and categorically stopped the supply of deliverables. The statement was very grand: the contract for the agency Kang Jin Young brand was valid for 5 years until June 2010. On the 30th, it can be extended for three years without major non-performance of the contract. However, it is possible to send only 15 franchised stores within five years and the contractual target is 50; in terms of sales, only one-fifth to one-third of the target mission can be dispatched each year. As a result, SKN forcibly stopped the contract extension plan for the next three years after the implementation of the five-year contract, which was "completely normal and simple business behavior."

Wen Yan, Zhao Yunhu angered and laughed. "The failure to meet the standard is too normal! The average sales of each of our single stores far exceeds the contract, the highest even exceeds 100%! But you asked me to open 50 stores. Of the 60 companies, you only allowed me to open 17 (two of which were demolished due to the closure of the shopping mall)! In turn, you also asked me to complete sales of 50 stores in 15 stores. Isn’t it ridiculous?”

It stands to reason that expanding stores is in the interest of both parties. But why brand SKN will reject the benefits at your fingertips?

Five years ago, on July 1, 2005, Zhao Yunhu signed an agency contract with OBZEE, the owner of the Kang Jin Young brand. At that time, it was Zhao Yunhu’s own initiative to propose that within five years, it could send 50 stores in China. “The number of 50 companies is completely reasonable, and we think we have this capacity to reach this number or even more.”

Zhao Yunhu boasts of arrogance, whereas OBZEE has left room for it. Zhao Yunhu wanted to sign an agency contract for 15 years in one breath. OBZEE strongly disagreed. One to two, the contract was compressed into eight years, which is the current "5+3" contract.

Afterwards recalled, “OBZEE, which had not yet been acquired by SK Group, is not as strong as SKN's, and their competitive pressure in South Korea is quite large. They need to look for opportunities to break through in the Chinese market. So they were very eager to cooperate with us. The negotiations are also very sincere."

This kind of "sincerity" is reflected in the contract. OBZEE has no restrictions on the site selection and the area of ​​the store. It only emphasizes that the brand owner must have the right to confirm the store.

No one ever expected that it was this “reasonable” clause that laid the ground for today’s dispute between SKN and the channel distributors who acquired the Kang Jin Young brand from OBZEE.