Interpretation: Leisure Clothing Brand Must Not Go Astray.
Franchising is the main way of leisure apparel operation. However, in the huge capacity of Chinese market, no brand has won the success of the national market.
In all cities and counties above the county level
Gold business district
Almost all brands of casual wear can be found.
Exclusive shop
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From the perspective of franchising, the market is vivid, but in practice there is no new business idea and progressive clothing culture. Some are just disorderly competition and simple plagiarism without distinction.
In the absence of genuine brand differences, market segmentation differences, cultural and service differences, vicious competition is bound to dominate: price competition tends to be white hot, and in the peak season of sales, everyone has a lower discount rate.
Competition in the industry is even more tragic: if you reduce the membership fee, I will avoid joining the fee; if you allow partial replacement, I will replace the goods in full; or even offer a discount without a reserve price, send advertising decoration, credit distribution.
However, how can enterprises provide quality services to franchisees without full franchise fees? How to guarantee the quality of goods? How can the quality of goods be guaranteed? How can the company's own goods be distributed and the turnover of funds? What happens if there is no mature management service and how the customer loses money? How can the company ensure the safety of its own funds? Do not provide the management of the service and sales system, but what is the difference between the supply and the wholesale? What is the difference between reducing the cost of the product and being inferior?
China's casual wear should have at least a huge market of 140 billion yuan.
The casual wear brand entered the domestic market in 1990, and there is no brand with annual sales of over 2 billion yuan. That is to say, no one can get more than 2% share. The large scale casual wear brand owns more than 600 shops in the whole country, and the brand that has started one or two years can also have one hundred or two hundred stores and counters. However, so far, no leisure brand has achieved comprehensive success in the national market, that is, a complete and unified image and meticulous service, not to mention the overall profit of the whole market.
Why such a big market, in such a long period of time did not grow a few big trees? Leisure clothing franchise business is planning problems, market problems, or into a misunderstanding?
Casual wear
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Business problems
1. Resistance from franchisees
1. no franchisee and brand are one.
In most cases, joining the chamber of Commerce will oppose their interests and brand interests.
2. always want to use the lowest input to get high returns.
Often the franchisees first think of the way is the brand image construction is very unfavorable.
3., boycott unified sales policies and promotion management.
The franchisee deliberately resists the brand's unified sales policy for its own purpose of high profit, the purpose of reducing storage and the purpose of regional monopoly.
4. disregard the brand's overall strategy for the sake of its own interests on the issue of regional development.
More generally, "occupy the land and do nothing", and more serious people are trying to mess up the market division.
5. staff quality and management level can not meet the requirements of brand.
Franchisees generally use relatives and friends, and use staff as little as possible. They mistakenly believe that they can save money and worry.
6. unwilling to cooperate with the company's information feedback requirements.
The direct reason is the shortage of manpower and the incompatibility of time, but the real reason is that we do not realize the necessity of doing so.
7. the more serious situation is doping, counterfeiting, fleeing goods and price fraud.
Two, resistance from Brand Company itself
1., it is difficult to find franchisees who meet the requirements.
Most of those who are unwilling to make clothes and are willing to do enough are not strong enough. Most of them are reluctant to invest according to the company's wishes.
2., it is difficult to solve the contradiction between proprietary stores and franchisees.
Due to the difference between breakeven point and operating objective, most companies can not achieve the coordination of the two.
3. due to the problem of talent construction, we can not provide perfect management services.
Many franchisees' services to the market are almost blank, and franchisees are in a state of laissez faire for a long time.
4. the contradiction between production and inventory restricts operation.
The franchisees hope that the supply will be sufficient, and the company will not be able to do anything because of inventory pressure.
5., the contradiction between the speed of market information and the speed of development and production affects the market reaction speed of the brand.
6., the lack of long-term goals of the company obscure its brand development.
Three, huge risks
From the point of view of operating profit, a medium-sized brand, with annual sales of 60 million yuan to 200 million yuan, is estimated to need 20 million yuan to 80 million yuan of funds to operate and turnover (including the funds of upstream suppliers of brands), while domestic brands currently crowded on the way of leisure apparel joining the business, more than 80% of the price is positioned in the middle and low grade, and the profit is very low by selling the market share to earn profits.
The characteristics of clothing products are that the over season products are almost dead goods. If a company's inventory backlog is up to or close to 20%, the increase in inventory will make it more and more difficult for the company's capital turnover. Large companies can still support 35 years or change their business routes. The company with a poor foundation estimates that it will have to return to the starting point after three years.
From the point of view of brand management, most casual wear brands do not have brand culture and core value, but rely on advertising or star effect to publicize the brand. In fact, publicity is also a trademark. After having the advertising effect, they desperately develop distributors to open shops everywhere.
The only advantage of this business mode is that, with a certain production and operation basis, rapid expansion of production scale will help to expand the scale of production.
However, there are many disadvantages in running clothing brands according to this mode: no brand, only stars, no culture, only products, no brand loyalty, only immediate profits.
In fact, many franchisees have a wrong understanding of the root cause of their affiliate activities, often when the company itself, when a company has no additional value to others, no one else will take you as a brand.
When a company starts to try its brand operation, its input and expenses will increase exponentially (several times higher than that in the wholesale market).
In the initial stage, because of the new brand's new ideas, advertising stimulation, especially the follow up of a large number of successors and the new army, the market expansion of the brand will be more successful, but there will be a lag in the development to a certain stage. This delay is due to the fact that many contradictions have not been comprehensively solved, and the enterprises will be stuck in the dilemma of the development bottleneck.
At this time, the most frightening thing is that if a part of the franchisee quit, and the enterprise can not develop new franchisees, it will bring disastrous consequences.
From the past actual business analysis, the reasons leading to the withdrawal of franchisees are mainly as follows: {page_break}
1. franchisees have not really been promoted, nor have they had very high business interests (especially those with high expectations at the initial stage).
2. the attractiveness of other brands and excellent market performance have made franchisees lose their confidence in the brand and turn to other brands.
3. inability to continue operations due to long-term inability to make profits and lack of working capital.
4. the lack of brand loyalty does not agree with the price, service, advertising and promotion of products.
5. a better franchisee with profit and development will also quit because the brand can not meet its development needs.
The exit of franchisees is most likely to happen at the two sides of the franchisee team, that is, the larger and smaller franchisees.
If the loss of franchisees occurs in a more concentrated period and the company fails to anticipate changes in the market, there will be no strong expansion measures to maintain the original scale.
Many domestic brands have encountered this problem, and the huge production capital invested into a stock in a flash.
What should we do in franchise business?
First, seize the core of the brand.
Nowadays, almost all brands have made great efforts in these aspects: professional advertising companies are required to carry out the VI image design; the national stores are "unified" beautifully; the most famous stars are the spokesmen of the image; the beautiful products are set off by the exquisite POP; the "unified" display, language, gesture, applause, lighting...
Each company has brand supervision, AD training, market planning, product development, but the market is rarely seen with personalized brand image, targeted services, and can not see a clear market positioning and culture, products, services and accurate brand.
"Unification" is not the unity of the brand itself from the inside to outside, from the top to the bottom, but the "unification" of all the brands in the country, which is the most fatal.
On the surface, everyone is doing it, but in fact, everyone is following, the store is beautiful, but the brand is gone.
The core of brand marketing is brand. Then what is the core value of a brand? The core value of a brand is not the beautiful face of a spokesperson or the luxurious decoration of a luxurious shop. The core value of a brand is the functional, emotional and self expressive interests that the brand promises to the consumer.
The key to brand marketing is to fully embody the core value of the brand, because only when the core value of the brand is effectively conveyed, will the target consumer's brain be able to establish a clear brand impression.
For example, people who like cars must know the brand difference between Mercedes and BMW. It is the distinction between solemnity and spirituality, and the difference between comfort and natural and unrestrained. But solemn, comfortable and safe is the core value of the Mercedes Benz brand, and the core value of BMW is personality, spirituality and natural and unrestrained.
Because of the existence of this core value difference and the insistence on the core value of the brand in the whole process of marketing, they have achieved great success in each of the different target markets.
Similar marketing cases are too numerous to mention. Their common points are: clear their target market, establish their core values that distinguish themselves from competitive brands, and then unswervingly implement and embody them in marketing activities.
The clothing market is characterized by "no common ground", which means clothing is more distinct than other categories of products.
In the clothing market, sex, age, crowd, preferences, class, income, culture and so on, a fine distinction is a segmentation market, and the consumers in each market have different requirements for the brand core value.
In view of the reality of the market, we should start with the following aspects:
1. according to the needs of the market, combined with the company's own capabilities and characteristics, make a clear positioning of the brand and establish its brand goals;
2. establish the core value of the brand according to the brand target, establish the guiding principle of taking the core value of the brand as the center in every link of the marketing, and run the whole core process of the brand in the whole process of marketing.
3., through marketing integration and communication integration, the core value of the brand can be conveyed to the target consumer group and the target consumers' loyalty to the brand will be cultivated.
4., establish a complete marketing management system that runs through the entire access chain to ensure the success of brand marketing.
Two, give franchisees a complete management mode {page_break}
Most of the difficulties in clothing franchising come from the brand itself.
Many brand operators have not really set up the view of long-term brand management. They only use their brand "sheepskin" to encase their products, and regard "brand joining" as a magic weapon for rapid expansion, but the banner of "brand joining" is empty.
The biggest requirement of these operators is "do not sell other people's things". The question is who will be responsible for the interests of franchisees? Can you sell them only? Can you make profits? What profit protection measures and systems do you have? If a brand operator does not take into account the interests of franchisees, he has already opposed their interests and interests of franchisees. How can he ask franchisees to maintain the image, interests and management of the brand?
"Strike iron must first be hard" is a truth that we all understand. Brand is strong, management is scientific and feasible, strong service support system, profit guarantee and risk aversion system, product quality assurance system, product development and update system, logistics supply and maintenance system, talent training and training mechanism are all brands must possess.
From the actual situation of domestic apparel retailers, there is widespread phenomenon of low quality and lack of systematic management experience. In such a big market environment, no brand will do anything if it does not fundamentally solve the management problems.
In fact, a large number of franchisees and prospective franchisees who want to enter this industry already have a strong desire to develop their business at a higher level. The problem is that few clothing brand operators can provide systematic management services.
The core of franchise management is a scientific, perfect, meticulous and meticulous management system. With this core, brand operators will have the ability to resist risks, and franchisees will have confidence in joining.
Three, to meet the franchisee's profit, development and cultural requirements is a powerful weapon for joining the brand.
What are the needs of franchisees in the franchise process? First is the demand for profit, the second is the demand for development, and the more advanced is the spiritual and cultural needs.
When brand operators are developing the market, they must pay attention to ensuring profits with scientific and strict management, encourage the franchisees to invest continuously with good development prospects, and satisfy the spirit needs of franchisees with excellent brand culture, so that they can feel full of honor and sense of accomplishment.
"Protecting franchisees can be profitable" is a topic that many brand operators avoid. However, unprofitable brands are unattractive to operators.
With the perfect management to ensure the profits of franchised stores, the profits of franchisees will continue to stimulate more investors to join. The rapid expansion of brands should be completed in this way.
In developing franchising business, the clothing brand should first consider establishing a perfect retail management mode and regional business expansion mode.
In this mode, we should have all the necessary knowledge and practical management methods of clothing retail management, and we should have a unique cultural dissemination and sales means for this brand segmentation market, in particular, we should have a way to guide franchisees to manage and expand the channels.
Only when the brand has established its own feasible management mode and service guarantee system, can franchisees unite under the banner of the brand.
Because only under such a mode can franchisees gain the confidence of profit and obey the brand's overall strategy for the sake of growing demand.
More importantly, in this way, there is no separation between franchisees and brands, and quickly integrate into the brand, and fundamentally overcome all kinds of problems that lie between franchisees and brand operators.
At the same time, with excellent and progressive brand culture as the brand banner, with excellent communication and integration, the progressive clothing culture represented by the brand will win the hearts of the people, and will promote the sense of honor and accomplishment of the franchisees and satisfy their spiritual needs.
Wholesale clothing is a sprint, it is explosive force and speed (style and time to grasp the right line), and the brand must do a good job of Marathon preparation, before the start of a systematic plan and a comprehensive ability to save.
The opportunity of China's clothing market is enormous. The key to seize the opportunity is to absorb talents extensively according to their own actual capabilities and characteristics, conduct careful and careful analysis and study of the market, establish a complete set of scientific management mechanism, and ensure the long-term goal of brand licensing with scientific planning and methods.
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