The Egorievsk-Obuv factory will grant exclusive rights to the Kotofey brand stores.
Now all the stores of Kotofey should be no less than a strictly defined sales area, it should be noted that this is far from 30 square meters, and sell at least a certain number of pairs of branded shoes a year. In return, they receive factory support, which translates into providing them with promotional materials. In addition, Yegoryevsk-Obuv will prohibit the placement of outdoor advertising informing potential buyers about the place of sale of Kotofey to stores that are not branded and along with Kotofey sell shoes of other brands. The factory also plans to allocate a special advertising budget in support of its stores.
In addition, branded stores will have the primary right in the distribution of goods that have gone out of production (even if they have not participated in presentations), the right to refuse previously declared goods and to exclusive sale in a certain territory (within the boundaries of a city or city district).
“Ultimately, all Kotofey shoes will be sold only in branded stores. On the one hand, this is good - it emphasizes the quality and status of the brand, and on the other hand, there is a risk of a drop in sales volume, since the remaining stores may not be able to realize the volume that is now distributed to everyone. Thus, the brand will become exclusive, prices will rise, and sales will fall. And not only end consumers and ordinary stores of children's shoes will suffer from this, but also distributors, "says Alexander Borodin, manager of Mila - wholesale footwear."