Fashion Camp Will Be A Major Trend

"Although in the short term, franchised stores have a good effect on garment enterprises' digestion and inventory, it is a good way to effectively avoid high storage pressure for listed apparel companies, but in the long run, Direct stores will be a trend in the development of garment enterprises."

Sun letter securities clothing industry analyst said.

"In the short term, in recent years,

It will continue to be an important model for the development of garment enterprises. Especially for the entry of new markets, franchisees are a better means to effectively save enterprise funds and avoid operational risks.

Wang Bing told reporters, but in the long run, the store will continue to be the main trend of the future development of garment enterprises, because it can enable enterprises to better control the terminal market, understand the real needs of consumers, enhance the brand image of the company, and conform to the long-term development strategy of the enterprise.

Wang Bingyi believed that

Reduce the franchisee's link, do not need to give up part of the profits to franchisees, enterprises can get more profits from it, which is a good sales mode for mature enterprises.

In reality, some enterprises have begun to change from franchise mode to direct operation mode.

It is understood that Danish fashion.

Since its entry into the Chinese market in 1996, it has begun to rely on franchisees to rapidly develop two or three line market channels, covering nearly half of the country's cities and counties above the county level. At present, China's sales amount to tens of billions of yuan.

Dan Friis, China's leading designer, said that in order to consolidate its market share and gain more profits, it decided to reduce its dependence on franchisees.

Beginning in 2008, it began to adjust its development strategy in China, increase the proportion of Direct stores and reduce the proportion of franchised stores.

In domestic enterprises,

002029.SZ) is also accelerating the pace of direct pformation.

In November 2011, the company plans to raise 1 billion 800 million yuan through the issuance of the scheme, and build 1200 retail terminals in three years, including 360 Direct stores, 840 franchisees (40 flagship stores and 50 stores), and the other ones are leasing stores.

The total number of shops will reach 5000~6000 by 2014, and the annual compound growth will be 10%~15%. The number of self run shops will reach 1000, and the proportion of self run businesses will increase from 10% to 20%.

"Most brands will take the form of franchisees in the early stage of opening up the market, so as to take advantage of the funds of franchisees to obtain rapid expansion."

Cui Hongbo, senior partner of Lian Zhi Da, thinks that after the maturity of the brand, the company will often take the agency power into account in order to enhance the brand image and the overall strategic layout of the company.

However, in the process of pferring from franchise mode to direct operation mode, enterprises will also face certain problems.

Liu Hui, an analyst with Qun Yi securities, pointed out that since the purchase of the store's funds is relatively large, the short-term amortization cost will also be higher than the rental cost.

Therefore, the increase in the sales cost of enterprises will have some impact on the growth of profits.