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    Fourteen Details Of Franchise Industry

    2010/7/23 10:39:00 110

    Franchised Store

    It is difficult to start with everything, so it is no doubt that it is very difficult for individual entrepreneurship to produce a brand effect.

    But joining a powerful chain store can be an entrepreneur to save the trouble.

    Therefore, in recent years, many entrepreneurs are thinking of joining some powerful brand chain stores, thus bringing themselves considerable profits.


    But everyone is here.

    Join in

    Before a chain store, experts remind you to pay attention to the following fourteen details which are easily ignored by the franchisee:


    1, whether the product or service of the franchise industry has increased significantly over the past 3 years? Does the market demand or receive water? If the demand on the market has increased significantly in the past, it means that at present it should still be in the stage of growth, and whether the market growth or not is an absolutely important indicator for the future of the industry.

    When market demand increases substantially, it is most beneficial for franchisees.


    2, join the headquarters or other agencies, such as various associations or government units, to predict the products or services in the next 3 years (relative to the current demand).

    In addition to past demand records, forecasts of future market growth by agencies or affiliate headquarters are another indicator of the industry's future.

    It is important to note that the units that compile the data must be based on demographic statistics, government forecasts or other background information, rather than mere speculation and wishful thinking.


    3, which stage is the life cycle of the chain brand and product? The product life cycle refers to the product life process, just like life.

    Products that are in the stage of innovation are at higher risk of operation, and the products with the best growth period are the best ones; and those entering the mature stage will have to compete with more marketing activities, and the products in the declining period can be totally ignored.


    4. What percentage of the target customer group of the product or service accounts for the total number of people in the planned opening area? The number of target customers in the franchised business area will determine the turnover of the franchised store, but the target customer group must be in proportion to the proportion of the population. It must be judged by the type of store, the form of purchase (such as the frequency of repeated purchase) and the amount of purchase.


    5, is the product brand new or old product improved? Product differentiation refers to whether the product has a special selling point or superior performance.

    The larger the product difference, the more prominent this franchise feature and attracting the consumer.

    Generally speaking, if the product is newly developed, the difference and uniqueness of its products are usually higher.


    6, whether the product or service is quite different from other industries and has many distinct or distinguishing characteristics. In order to avoid fierce competition in the same industry, there should be something special to join the products or services of headquarters.

    This must be added to indicate that if the affiliate headquarters product is not special, it is also a special advantage to adopt a special sales method, circulation management, or add distinct commercial packaging.


    7, is the competition between the franchising system and the independent shop offering at present being quite fierce? Competition is also an important indicator of profitability and business risk. Is the headquarters and other operators facing fierce competition? Competitive industries are not necessarily not allowed to join, but with certain advantages such as products or prices, so as to reduce the risk of failure.


    8, in the area where you are going to open a shop, are there many competitors in the same business so fierce that the competition is fierce, as long as a little difference is enough to affect the business, and we should pay special attention to the store position, the form and the suspension position, and even the service attitude.


    9. What is the quality assessment of the products or services sold by the general people [including the franchisees themselves]? Product quality assessment is not easy. In fact, the intangible services provided by many franchise systems make the quality of the evaluation service more difficult.

    But the franchisees can refer to the general consumers, relatives or friends or their own judgments, and make a five level classification of their overall quality, so long as the difference between the difference and the extreme difference should not be taken into consideration.


    10, does the product or service of the franchisee always have fault records? Is the frequency high? Other industries? Maintenance and fault frequency are the most clear indicators of quality, but this index is not easy to understand.

    In general, it is often difficult to get an answer or only to a more conservative figure if asked directly to join the headquarters staff, so it is advisable to estimate based on the experience of the existing consumers.

    In addition, whether the maintenance department or stable delivery channel should be considered.


    11. What is the brand awareness of the franchisee? The importance of franchisor brand recognition is different for different industries.

    For general consumer goods or convenience goods, popularity is not the primary factor. But if it is a special commodity or service, especially when it sells luxury goods, the price of consumers is difficult to differentiate because of the higher unit price. Therefore, consumers are more likely to take brand awareness as the criterion of judgement, or even pay higher price for protection.


    12. What is the brand reputation of the franchiser? The good reputation of the franchiser will also have the same effect as the previous one.


    13, the price of the product or service provided by the franchiser is high or low in the general industry. The high price of the product does not mean that it loses competitiveness.

    Accordingly, low prices will not necessarily sell well.

    This is because the perceived price of the product in the consumer's mind depends on the value of the customer's product, rather than the price alone.

    Therefore, the franchisee must consider the value of this product or service in the middle of the consumer's mind.


    14. What is the status of the franchise system in the market? Is the franchising system a market leader, a follower or a first enter market in the market? Entering a more stable affiliation system, for the franchisees, the guarantee is higher, the terms of entry may be more stringent, and the number of franchisees is also more saturated. Relatively, the followers and the market participants may have the advantages of other differences, and the entry conditions are relatively relaxed.

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