Is the discount for acting as an agent of European imported brands actually significant?
Solved#Import agent#
I'm planning to act as an agent of European imported brands recently, but I'm not quite clear about the discount situation in this regard. I'd like to ask everyone, is the discount for acting as an agent of European imported brands generally significant? What factors will affect the discount? Such as brand awareness, the scope of the agency area, or the purchase volume. I hope friends with experience can tell me about it so that I can have a clear idea and make good plans in advance.
Professional consultant answers
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The size of the discount for acting as an agent of European imported brands is not fixed and is affected by multiple factors. Firstly, it is brand awareness. Well-known brands usually offer smaller discounts because they have high market recognition themselves and the brand side has stronger bargaining power; while niche brands may offer larger discounts to attract agents in order to open up the market.
Secondly, it is the agency area. If one obtains the exclusive agency right in a larger area, the brand side may offer a more favorable discount; conversely, if the area is small and not exclusive, the discount may be limited.
Furthermore, the purchase volume is also crucial. A large purchase volume can reduce the cost of the brand side, and they will encourage agents to increase orders through larger discounts.
In addition, the agency level, cooperation period, etc. will also have an impact on the discount. In short, it is necessary to comprehensively consider these factors and negotiate with the brand side to strive for a favorable discount.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Generally speaking, European brands that are newly entering the market will offer relatively large discounts in order to quickly expand their channels. If it is a brand that is already very mature and has a high market share, the discount space will be limited.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The discount varies greatly depending on the agency level. High-level agents have more authorization rights and can obtain better discounts. For example, the provincial general agent and the municipal ordinary agent will definitely have different discounts.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
The relationship with the brand side also has an impact. If there has been a successful cooperation before and the mutual trust is high, the brand side may appropriately increase the discount when cooperating again.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
The peak and off-peak seasons also have an impact on the discount. During the peak season when the demand is large, the brand side may tighten the discount; during the off-peak season to stimulate purchases, the discount may be increased.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
The discount strategies of brands from different European countries also vary. For example, some Italian fashion brands and German industrial brands have different discount setting logics.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
The market competition situation also affects the discount. If there is fierce competition among local European imported brands of the same type, the discount may be increased in order to attract agents.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Sometimes the brand side has a promotion plan, and agents who cooperate with the promotion may receive an additional discount as a reward to assist in brand promotion.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
The product category also affects the discount. Popular products have fewer discounts, while unpopular products will have larger discounts to clear inventory.