Specially Invited Guests Explore The Brand Of Shoes And Clothing "Go To Join".

Why are brands and distributors going from close cooperation to revenge? What will "franchising" bring to the brand? In this case, where should the franchisee go?

Guests of this session:

Ceng Xiaohui general manager, Fujian Branch International Holdings Limited

Shi Jun Qi, chairman of Shishi Chun Chi Trading Co., Ltd.

Lin Qiubo, general manager, Xiamen Mai way Trading Co., Ltd.

Not retreating all franchisees

Moderator: how to treat Daphne's "de franchising" action?

Ceng Xiaohui: the so-called "de Affiliate" is not to wipe out all the joining clients, but to combine with the needs of brand development, and to part of the customers who are not suitable for the development needs. This is the reason why "the road is different from each other". So personally, I think Daphne can make such a decision from the perspective of adjusting the brand strategy. But all the franchiser have an agreement, and the relationship established is not unilaterally relieved, it needs to be properly handled.

Shi Junqi: the proportion of Daphne direct and franchise in 2009 is 1: 5, and now it has turned to 5: 1. However, this does not mean that Daphne will definitely go to join the league.

Contend

Direct battalion is the ultimate mode PK, both will exist for a long time.

Lin Qiubo: joining and

Each mode has its own adaptation stage. Joining is more suitable for the brand to start, and the direct camp is more suitable for the mature stage of the brand.

The disadvantage of affiliate mode lies in that it will increase the circulation cost; on the other hand, the agent pays more attention to the short-term interests, and the brand pays much attention to the long-term interests. The two will often conflict. For example, the brand dealers will constantly adjust their products in order to improve, but the franchisees will not stand in the perspective of market cultivation or brand promotion when ordering, but take the good selling of goods as the starting point, and consider the integrity less. So the adjustment of the brand is difficult to push forward; moreover, the franchisee is too strong, which will often form checks and balances on the brand dealers.

Therefore, individuals believe that the brand will eventually choose to go direct camp mode, because brand operators must firmly control the terminal in the hands, in order to form a virtuous circle.

However, the direct camp also tests the human, material, financial and channel control capabilities of the enterprise.

Shi Junqi: not every brand has to go direct camp mode, for example, Nike, even as the world's largest sports brand, is still very good at taking the light asset line, production, sales and many other aspects are outsourcing, and only focus on making brand.

Many people think that direct sales can increase the gross profit of brand operators. In fact, many costs of doing direct business are higher than those of franchisees. They not only have to bear higher rents, but also deal with team cost and management cost of remote management.

From the present point of view, many domestic brands have replaced the regional total generation by the branch mode, but this is not to replace franchisees, but to achieve binding with the franchisee's interests, so that franchisees can follow the brand's development strategy to operate and grow more.

Personally, the ultimate trend is the number of franchisees to shrink the number of franchisees, but they will cultivate large franchisees and strengthen the alliance with big franchisees.

Way out

Franchisees can develop into trusteeship

Moderator: for franchisees, in the brand's "de Affiliate" strategy, where to go?

Ceng Xiaohui: franchisees must find their own advantages, enhance their business philosophy, management level, understand market changes, integrate regional management team, customer groups, network resources, and set up their own brand value in some aspects, such as: you have excellent management team, a large number of stable customer groups and first-class network resources.

At this time, the brand will not only abandon you, but will actively cooperate with you.

Franchisees must ensure that they are not discarded by brands and get good channel resources. They must position themselves in middlemen and run multi brand strategy. After the brand is more, stores and channels will take the initiative to find you, or even offer preferential conditions. In turn, with a good channel, more brands will take the initiative to find the door.

In addition, retailers can take the route of brand hosting.

Some new brands are difficult to develop their terminals quickly because of their weakness in brand awareness and retail management.

At this time, brand hosting companies with the advantage of channel resources can help enterprises quickly access to various shopping malls, while helping enterprises to recruit personnel and team management, and receive commission through output management and channel mode.

The best is the right one.

The advantages and disadvantages of direct and affiliate mode is a controversial topic for many years. Different people will give different answers from different angles of franchisee and brand.

However, we all have a consensus that whether we choose to join or direct business, we should consider the actual situation of brand development and adopt different development modes at different stages. The ultimate goal is not to whom the channel belongs to, but whether it is conducive to the long-term development of the brand.

After all, the best is best.

A brand player should have a tolerant heart, and learn from the development of the brand to learn the concession of interests. He will concentrate more on product innovation, technological innovation and management innovation instead of simply digging profits from the interest chain.

Franchisees also need to have an enterprising mind to focus on the long term and follow the brand development at the same time, and constantly expand their strength.