What is the role of agents in luxury distribution channels?

Usually, the model of cooperation between agents and luxury brands is: the luxury brands sell products to agents at a certain discount and provide support in terms of store image; while agents are responsible for paying the cost of opening a store. , organize personnel recruitment and training, conduct promotional activities, etc., and enjoy the right to operate a certain area.

As the best choice for major luxury brands to initially enter the market, after agents obtain agency rights, they will rely on their strong channel network to select the most suitable store for the brand's products. For example, five-star hotels and major high-end department stores.

Italy’s Ermenegildo Zegna, France’s Pierre Cardin and Louis Vuitton, which entered the Chinese mainland market in the early 1990s, entered the more internationalized brands such as Beijing and Shanghai through agents (mainly from Hong Kong) In cities like these, luxury goods often choose agency sales when they first enter a certain market or when management resources are insufficient. Therefore, emerging markets can be quickly seized through the ready-made channels of agents. At the same time, using the agency channel model, luxury brands can transfer inventory risks to agents.