The Ural distributor Mila-Shoes Wholesale terminates the contract with the Tuchkovsky shoe factory after a year and a half of cooperation. The company reports that relations have become more complicated due to the fact that the factory has chosen a strategy for promoting its brand without taking into account the interests of all participants in the distribution chain.
Earlier Tuchkovskaya shoe factory declared its interest in cooperation with large wholesale distributors. At the same time, representatives of Mila noted the impossibility of the parallel existence of direct sales and wholesale channels, and in return received assurances from the manufacturer about their intention to develop only distribution. However, despite this, a year ago, one of Mila's counterparties was invited to a direct partnership with EcoTex. According to the official version of the factory, to combat nerostovki that are difficult to sell, and small wholesale takes pleasure.
Mila’s offer to take this nerostovka on condition that it will be equipped with barcodes did not answer, while this counterparty switched from trading nerostovok to standard boxes at prices slightly higher than those of a large wholesaler. In addition, this product was delivered by the factory to a small wholesale link with unlimited deferred payment. This allowed the former partner of the distributor to reach quite large volumes under EcoTex TM, while Mila hardly managed to keep last year's sales volumes.
“It is impossible to build partnerships with a supplier in a competitive environment, so we decided to temporarily stop cooperation. Many factories make such mistakes from time to time and further, as practice shows, they realize that such a strategy does not give a significant increase in sales, and return to the distribution development strategy, ”commented Alexander Borodin, manager of Mila-Wholesale Shoes.