The Wave Of Shoe Enterprises' "Going To Join", What Should The Franchisee Go?

Recently, some

Franchisees gathered at Daphne headquarters in Shanghai to protest that Daphne headquarters forced the franchisee to give up franchise in the form of price war.

What is the reason for the close cooperation between the two sides? In fact, apart from shoe companies, many brands are considering how to "join" and develop direct stores.

Under such circumstances, where should the franchisee go?

"Old friends" oppose

At that time, a sweet partner has now been ripped off and even has the possibility of going to court.

Because a company's initiative, for franchisees, may be a life and death robbery.

These days, Liu Lingli is very anxious. She is a franchisee of Daphne in Nanyang. She owns a nearly 50 square meter shop on the busiest people in Nanyang.

Now, Daphne is going to disjoin, which makes her and other franchisees anxious.

Liu Lingli used to run all kinds of shoes in the shoe market of Nanyang, and earned some money. Later, her business was not very good. She wanted to find new ways.

In the summer of 2009, she joined up with Daphne. "I visited Daphne headquarters in Shanghai and Henan branch. I saw a lot of people who wanted to join, and some of Zhengzhou's franchisees also had a good business. They invested about 600000 yuan into Daphne's franchisee."

"Business was good at the beginning, but then the financial crisis became more and more serious, shoes sales were reduced, and the monthly profits were only enough to pay the rent and staff salaries."

Liu Lingli said, "according to the current situation, we will be able to make money from the initial investment until the end of next year".

Liu Lingli said that at the end of August, Daphne launched the "99 yuan" special event in the direct shop, which made it impossible for the franchisees to accept it. "The price of the same type of shoes is 119.50 yuan, plus freight, labor costs, store rents and so on. The cost of a pair of shoes is over 140 yuan, they only sell 99 yuan, so how can we sell it?"

According to Liu Lingli, Daphne dealers and headquarters signed an agreement every three years, headquarters informed them that the agreement expired in 2012 no longer renewed, which makes them more unacceptable.

"We invest so much, there is still a part of the backlog of goods, and we do not renew our contract. What shall we do?" she said. Recently, many of the franchisees went to Shanghai Daphne headquarters to protest and asked for their views.

The inside story of "breaking up"

Liu Lingli told reporters that in the past few years, Daphne has focused on developing its market, and the business of one and second tier cities has tended to be saturated, with limited performance growth.

They want to move to the three or four tier cities with larger increments, but they can't understand the local market's characteristics, scale, consumption ability and actual incremental space, and do not want to invest in themselves. So they use their familiar local market and people who have money at hand to pioneer.

"Daphne headquarters has made an oral promise that it will renew the contract three years later unless the franchisee voluntarily gives up.

Now, do not renew the contract, the inventory of franchisees, Daphne also does not recover, not to mention the return of franchise fees.

Over the past few years, we have invested a lot in brand promotion, but now we are making clothes for others. Who can promise? "

Liu Lingli said.

Li Haiyang, a marketing expert who had worked in several multinational companies, analyzed that in the initial stage of expansion, the three or four line city market was smaller, the start-up cost was relatively high, and the direct business risk was relatively high. In order to expand the distribution point rapidly, Daphne took the market strategy of joining and direct operation.

But now that the company has developed and has strength, he has developed a direct store and contracted the franchise front from his own business strategy. This is also normal.

So what is Daphne thinking about?

"We will manage our products in advance.

Profits are still relatively large, and most franchisees still earn money and lose very little. "

Yesterday, Daphne's headquarters public relations department's staff member said that Daphne's franchisees in Henan are not many, there are 100 households, Daphne from September last year, it no longer accepted to join. "In the future, the company will focus on self channel development, the existing franchisees, when the contract expires, will be assessed according to their comprehensive conditions, and then decide whether to renew the contract.

All our actions with franchisees are based on the agreement voluntarily concluded between the two parties, and there is no breach of commitment. "

"Going to Affiliate" has become the trend?

In fact, for the footwear industry and the apparel industry, "de franchising" has become a trend.

"We are also promoting the construction of Direct stores and gradually expanding the proportion of direct outlets."

Yang Liusong, chief executive officer of M·SUYA, said that the importance of clothing enterprises in Henan is strengthening. However, because the situation of different enterprises is different, the proportion of direct businesses and franchisees is not the same. "Direct shops can play the role of assets, funds, talents, brand management benchmarks, and can also play the role of talent export. The disadvantage is that the investment is large and the profit period is long. Therefore, many clothing and footwear enterprises will adopt the way of joining in the early stage, and so on, and the market will become mature, and then gradually increase the intensity of direct investment."

{page_break}

Zhang Dengpin, the general agent of Henan, has a higher level of profitability for the shoe companies with certain popularity and sales performance.

"The price of brand shoes for franchisees is generally seventy percent off of the original price, but if they are self-employed, they can sell at least half off to forty percent off of the price. In the three or four line cities with a higher maturity of the brand market, even if the manpower, logistics and rental costs are calculated, the profit level of the direct battalion will be higher than that of the franchisees.

In addition, the turnover speed and operational efficiency of goods are higher and competitiveness is stronger.

After 2008, the proportion of small fat sheep to adjust the development of Direct stores and franchisees was developed at the rate of about 20 per year, developing direct stores at the rate of 40~60 per year. The chain enterprises represented by Metersbonwe, KFC, Kung Fu and so on are more "increasing the proportion of direct battalion", "returning to the whole direct camp" and "adhering to the whole direct camp" to push the wave of direct investment to a small climax.

In the process of "de franchising", many enterprises have taken positive measures.

Last year, I thought you first launched a direct marketing strategy in Zhengzhou, and spent about 40 million yuan to buy about 21 dealers in Zhengzhou, about 80 shops.

The person in charge of the acquiring party can take up the management position of the new store, and the employees of the original franchisee are willing to enter the company's work, so that your company can sign a labor contract with you.

Similarly, the 8255 brands of the sports brand "Lining" are in the hands of more than 2000 dealers. Last year, Li Ning Co began to shrink agents and develop their own outlets.

Ms. Zhang, a Zhengzhou merchant who once joined Lining, said that the other side and the franchisee signed an agreement a year. After the expiration, she did not want to renew the contract. Li Ning Co also returned the shop decoration costs.

"The company will do this on a certain scale. This is also the rule. Nine shepherd kings, seven wolves and Li Lang, including Adidas and Nike, Luo Lai, Fu Anna, Meng Jie and other home textile enterprises are operating directly."

Wang Jianxin, chairman of Henan win win marketing planning Consulting Co., Ltd.

Franchisee's "choice"

Under such circumstances, how should franchisees respond?

"Franchisees want to be clear about where their core competitiveness is."

Wang Jianxin said, the product will be homogenized, the brand will be homogenized, the marketing mode will be homogenized, but one thing will not be homogenized, that is, people will not homogenization. This is the advantage that franchisees can play.

He said: "the advantage of local communication, the establishment of a customer service system full of local characteristics, the use of human services measures to strengthen the follow-up and management of old customers, so that the clerk and guests become acquaintances and friends, this is the core advantage of franchisees."

Moreover, it is better to follow a new path than to die.

This year, Zhang Dengpin, general agent of Henan, made a wise choice.

He has been acting for many years, although he has hundreds of millions of pairs of shoes sold every year, but his profit is not high. This summer, he registered a brand of his own, designed and produced high-grade leather shoes, and used his marketing channels to sell, so he would not compete with the original leather shoes brand, and he also sought a new way for himself.

In just 3 months, sales of new brand shoes reached 5 million pairs, and profits were much higher than before.

Footwear industry association president Zhang Yan introduced in Henan, footwear and

There are many affiliate dealers. You can get inspiration from Zhang Dengpin's story.