By organizing several events in China, FITS has successfully found Master
Licensees for 15 U.S and European brands.
China distribution dilemma
- Chain Stores - it’s almost impossible for international brands
to open its own chain- store in China due to location selection, merchandise
production, management team, not to mention the huge capital investment.
- The department stores do not buy any merchandise. They ask the brands
to set up their own display, supply merchandise & sales persons. Department
stores collect all the sales proceeds, retain a percentage of sales and
also require minimum sales volume per year from the brand.
- Specialty stores, Boutiques, or small merchants do not have any fashion
sense. They do not know how to pick the brands to fit their customers
need. All the Asians like to open small shops to be their own boss which
can be evidenced by Korean owned grocery stores or Indian owned 7-11,
hence China is ideal for franchising.
- FITS is designed to resolve all above problems to ensure international
brands enter China in the most effective way - finding a Master Licensee
partner in China to develop the China market. (Average licensee fee is 10
– 15% of wholesale value with minimum Guarantee.)