How much discount can an agent of European imported brands usually get?
Solved#Import agent#
I've been considering becoming an agent of European imported brands recently and would like to learn more about relevant information. Mainly, I want to know approximately how much discount I can get for representing European imported brands? Is this discount fixed or will it be affected by many factors? Are the discount differences large for different categories of European imported brands, such as beauty, clothing, and household items? I hope friends with experience can share, and I'll be extremely grateful!
Professional consultant answers
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
There is no fixed standard for the agency discounts of European imported brands, and they will be affected by various factors. First of all, it's brand awareness. For brands with high awareness, due to their high market recognition, the discounts may be relatively small, usually around 20% - 40%; while for some niche but promising brands, in order to open up the market, the discounts may be higher, reaching 40% - 60%.
Secondly, the agency level is also crucial. The regional general agent usually can get more favorable discounts, which may be 5% - 10% more than that of ordinary agents. Moreover, the purchase volume also affects the discount. With a large purchase volume, the brand side will offer a larger discount range to encourage more purchases. For different categories such as beauty, clothing, and household items, due to different degrees of market competition and cost structures, the discounts also vary. The beauty market is highly competitive, so the discount may be relatively high; due to cost factors such as transportation for household items, the discount range may be relatively small.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
As far as I know, it also depends on the brand's strategy in the local market. If the brand wants to expand the market quickly, the discount may be higher. I previously came into contact with a European niche clothing brand. In order to quickly open up the domestic market, the discount given to the agent was as high as 50%.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
The length of cooperation with the brand also has an impact. With a long cooperation, the brand's trust is high, and the discount will be appropriately increased. For example, for a European household brand I represent, after 3 years of cooperation, the discount was raised from 35% to 40%.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Sometimes participating in the brand's activities can also enable one to obtain additional discounts. For example, Zhongshitong previously participated in the brand's anniversary celebration activities and obtained an additional 5% discount.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
The negotiation skills with the brand side are also important. Those who are good at negotiating can strive for more discounts. Previously, I heard from a friend that through skillful negotiation, the original 30% discount was raised to 35%.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
The relationship between market supply and demand also affects the discount. If the market has a strong demand for the brand, the discount may be low; if the demand is average, the brand will offer a higher discount to digest inventory.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The overall economic environment also has an impact. When the economic situation is not good, the brand will offer more favorable discounts to stimulate agents to purchase goods in order to promote sales.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
The term of the agency contract may also affect the discount. By signing a long-term contract, the brand may offer more favorable discounts to stabilize the cooperation.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
The seasonality of the product also matters. For clothing with strong seasonality, the agency discount may be higher during the off-season so that agents can stock up.