Profits And Risks Of Franchised Stores

In all industries, Garment industry It is an eternal sunrise industry. Whether it's a personalized clothing store that spreads all over the streets, or a high-end brand clothing of the major shopping malls, from tens of dollars of low-grade stalls to imported clothing that reaches tens of thousands of yuan or even tens of thousands of dollars, people are willing to pay for it if they are in line with the trend and consumers' tastes. Many cities "moonlight clan" consumption list, at least 1/3 is for the pursuit of beautiful and blood clothing expenses.

Compared with other industries, the investment threshold of the clothing industry is low, and there is no need for too much expertise. Moreover, this industry is almost impossible to form monopoly. Although the industry competition has been intense, it is far from the degree of white hot, and the market risk is relatively small. Therefore, opening a clothing store has become the first choice for many people to start their own business.

So, how big is the profit of the clothing business? What is the difference between the profits and risks of the franchised stores, franchisees and boutiques? The following points are available for readers to choose.

　　 Brand monopoly profits attract big expenses.

Insiders revealed that the brand in big shopping malls clothing The gross profit rate can reach 200% or even higher, and winter clothing is higher than summer wear. Men's wear is higher than women's clothing. For example, a T-shirt of a brand man's dress is priced at more than 100 yuan, but it can be sold for more than 400 yuan, even if it is 50 percent off, it is still profitable. As for those clothes that are particularly discounted, most of them have been in storage for several years and are basically processed at cost.

From the point of view of digital analysis, the profit margin of brand stores is indeed hot and heartbeat, but this kind of algorithm that simply uses the price minus the purchase price does not seriously calculate and deduct all kinds of expenses in the operation. Therefore, simple addition and subtraction analysis does not seem convincing.

The existence of profiteering of brand clothing is mainly in circulation. The intermediate links of clothing sales include dealers, brand agents and retail stores. In terms of clothing, dealers usually have to increase their price by 30% at the ex factory price, and the retail store will increase the price by 30%. Therefore, a 100 yuan clothing to the mall, the price may climb to more than 170 yuan, or even higher.

Some people in the industry say that the price of new clothes is so high because the various expenses from shopping malls are higher during the sales process. Besides the high cost of entering stores and the apportionment of various promotional expenses, it is also necessary to deduct a certain number of points according to the turnover. If the price is not marked higher, it will be difficult to cope with the frequent discount and coupon activities in the shopping mall.

brand Join in Investment is risky.

The brand clothing in the mall has a high profit, but the entry threshold is also high. As a result, many smart investors find it more profitable to set up brand franchises in downtown areas.

Franchised store is the most popular brand clothing sales mode in recent years. Investors only need to pay money to join, from the store site selection, store decoration and layout, to shop staff training and promotion means, all of which are provided by headquarters, and do not need to spend too much energy in operation.

According to the insiders, the gross profit margin of brand clothing stores is generally over 50%, and the investment of a brand clothing store is between 100 thousand and 200 thousand yuan. The cost mainly includes store transfer fee, annual rent, first payment, decoration cost, and brand joining fee, mobile fund and clerk salary. If the annual turnover can reach about 200 thousand yuan, according to the gross profit margin of 50%, the actual profit can be up to around 40 thousand yuan if the expenses are calculated.

According to the insiders, it seems that there is no need for professional technology to open a clothing store, so long as there is capital, it can be involved. However, it is not so easy to make big money from it. Brand affiliate also has a certain investment risk.

With the increase of rents in urban areas, the cost of opening shops is increasing. At the same time, clothing stores are increasingly fierce competition, turnover is limited; on the other hand, shopping malls at 50 percent off or even greater promotional activities, small and medium-sized brand stores also have greater pressure, especially in the golden holiday of clothing consumption, a large part of the consumer sentiment will be attracted by the mall.

Thus, clothing brand franchisee's profit margin is not very large. For example, if we take the goods at 60 percent off of the retail price and deduct the rent of 30% or so, then the sale of 30 percent off will be the bottom line. What we see is that the present shopping mall is always "forty percent off new products", so that only the suppliers can afford it.

Therefore, many franchisees often rely on a number of stores to operate with small profits and quick turnover strategies to win volume, and demand profits from suppliers with high turnover.

Small clothing stores, small profits, quick money

At present, the clothing store in the city is mostly in the specialty. market Large commercial buildings and clothing street, the area is more than 10 square meters. The operating costs are mainly rent, payment and salesman's wages. Among them, the rent is determined according to the size and location of the berth, which is usually between 1000 yuan and several thousand yuan. The salesman's salary is based on the basic salary plus the Commission (usually 2% to 5% of the sales); the repair cost is generally several thousand yuan, and the high-grade one needs more than ten thousand yuan. {page_break}

According to industry insiders, the peak season of clothing stores is from 4 to August, and from October to January of next year. The profit is generally between 30% and 120%. The newly released new clothing has the highest profit, up to 200%. As the season changes, the price of clothing gradually decreases and profits are reduced to 50% to 70%. By the end of the season, businesses will be able to clean up inventory and withdraw funds, or even keep the original sales, and the profits will be 10% to 20%.

The most important thing to open a shop is to have a vision. All shops in a street are always stocking in one place, but some customers are in an endless stream, and some shops are crowded. This is the difference of vision. The improvement of vision depends on running more, watching and learning other people's experience. Besides, we should learn some knowledge about color and clothing collocation.

The most important way to open a clothing store is personality and characteristics, and the other is price flexibility. This is also the key factor that makes the store full of charm. But now it is not easy to have a unique personality. Now, in the streets and alleys of the city, there seem to be all kinds of strange shops, and the purchase channels have gradually become an open secret. Therefore, many small shopkeepers make an issue on price, try to attract customers at a more favorable price, and many shops often sell hundreds of dollars of clothing and tens of dollars of clothing. On the one hand, they are quick to spit goods and speed up the return of funds into new products; on the other hand, they can also meet different consumer needs of customers.

For the end of the season, people in the industry say there are two main situations: first, the business owners have already returned to the market at the beginning of the season with higher profits. The rest of the goods are sold purely for money, so they are generally sold or sold at a loss. Another sale is actually a fake sale. The merchant itself enters the stock market, for example, the price of a shoulder shirt is 5 yuan, and the return is "10 yuan" and the profit is 100%.

From this point of view, it is not too much to say that clothing stores are small and profitable. Some investors, after touting the exit road, implement the business mode of the front shop and the factory, producing and processing their own garments, and the profits are naturally higher.