At the end of October, Mila - Wholesale Shoes "received two requests from the largest Russian manufacturers of children's shoes. The Magnitogorsk Shoe Factory and the Skorokhod factory from St. Petersburg offered the Ural distributor to resume cooperation.
“Earlier, Mila already had experience of cooperation with these factories, which turned out to be quite unsuccessful due to the orientation of their strategies towards the development of direct sales. Then it was not possible to build mutually beneficial relations. After all, the parallel existence of direct sales and distribution is impossible, - the company emphasizes. - One direction begins to displace the other. Some manufacturers prefer not to notice this, trying to "sit on two chairs" at once. On the one hand, they can be understood. After all, a painless transition from direct sales to distribution is not yet known, and a sharp rejection of direct contacts with retail means the loss of existing wholesale buyers of children's shoes at the first stage of the strategy change. On the other hand, the distributor is not able to immediately make up for this loss. "
Representatives of TM "Foma" (Magnitogorsk), TM "Skorokhod" (St. Petersburg) and the Ural wholesaler "Mila" - wholesale footwear "are now solving this problem.
“At the first stage of the transition to a new sales strategy, manufacturers need to add distributor discounts to the existing system of discounts and markups for retail. This will allow us to set prices for products below the price list by the amount of direct sales discounts and will facilitate the outflow of buyers from factories towards distributors. After this process is over, the component of discounts associated with direct sales can be removed and only the distributor's discount will remain in its pure form. So in one year it is possible to solve the problem of the factory's transition from direct sales to distribution ", - said the manager of Mila - wholesale footwear" Alexander Borodin.
Negotiations are still ongoing. Mila proposes ways to optimize the transition, factories decide how to redesign their business processes. Additionally, the parties are discussing the cancellation of the provision of free commodity credits and the automation of information exchange.