How Can A Franchisee Choose A Suitable Way Of Operation?

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 clothing business? What is the difference between the profits and risks of specialized stores, franchisees and boutiques? The following are some suggestions for readers.

　　 Brand monopoly profit Tempting spending

According to industry sources, the gross profit margin of brand clothing can reach 200% or even higher in large shopping malls, and winter clothing is higher than summer clothing, and men's clothing 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.

　　 Brand clothing The existence of profiteering 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 alliance 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.