Comparison Of Advantages And Disadvantages Between Brand Clothing Stores And Franchised Stores?

At present, most garment enterprises in China use the combination of Direct stores and franchisees to operate terminals. The main reasons are that the two ways have their own advantages and disadvantages and complement each other.

Although the outlets and franchisees go together, there are always various kinds of contradictions.

Price contradiction.

Direct stores are generally located in large shopping plaza. Apart from the discount sale of brands like franchisees, they often take part in promotional activities in shopping malls. Therefore, prices are often lower than franchised stores, to a certain extent, to snatch passenger flow, resulting in dissatisfaction with franchisees.

Conflict of goods.

In terms of display of goods, Direct stores are managed by enterprise personnel, so they have more advantages in resources, and more complete products, especially those that are short of goods. Compared with franchisees, Direct stores have more advantages.

The disharmony of brand concept.

Direct stores often interpret the brand idea of enterprises directly, and display the brand image and service standard of enterprises. While franchisees have contractual limitations and keep consistent with their business philosophy, franchisees often lack the expressive force in these aspects because of the pursuit of maximization of interests, resulting in two types of terminals that are often unable to be harmonized and unified.

With the continuous development of the market, the contradiction between franchised stores and direct stores is becoming more and more obvious. How to coordinate the relationship between them has become an important task for enterprises.

careful

Sales area of each store.

So that the direct store and franchisee to maintain a certain sales distance, in order to avoid the most direct close interest and customer source conflict.

Formulate

Bottom line.

Price is the most easily generated conflict of interest factors, is the root cause of the contradiction between franchisees and direct stores.

First of all, enterprises must make a good price mechanism, make mandatory provisions on the bottom price, and franchisees and direct stores can not arbitrarily stride across the price limits stipulated by enterprises.

Unified

。

The inconsistency of terminal image is a headache for many enterprises. For this aspect, enterprises can strengthen the guidance of franchisees in their business philosophy, organize regular supervision and training, and strengthen the terminal image and unified service.

Scientific management of goods.

If the franchisee is not satisfied with the goods, the company can formulate a reasonable return policy for goods, and encourage franchisees to boldly increase the variety and quantity of goods.

At the same time, they can help them formulate reasonable product mix strategy, speed up circulation of goods, and ease the pressure of funds from franchisees.