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Direct VS Join -- How To Coordinate Clothing Brands

2010/8/27 17:04:00 94

Fashion Brand Alliance

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.


Direct stores are operated directly by manufacturers. Some powerful brands often prefer direct investment, invest directly in large stores or specializes in gold stores.

Franchised stores are usually franchised stores that are franchised by franchisees.

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 participate in promotional activities in shopping malls. Therefore, prices are often lower than those of franchised stores, to a certain extent, to snatch passenger flow, resulting in incomplete stores.


Conflict of goods: in the aspect of goods display, Direct stores are managed by enterprise personnel, so they have more advantages in resources, and more complete products, especially some tight commodities. Compared with franchisees, Direct stores have more advantages.


  

brand

Inconsistency of ideas: Direct stores often interpret business directly.

brand

The concept shows the brand image and service standard of the enterprise, while the franchisee has the limitation of contract and keeps consistent with the idea of the enterprise. However, because of the maximization of the pursuit of interests, franchisees often lack relative strength in these aspects, resulting in the two kinds of terminals of the brand can not 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.


Carefully planning the sales area of each store: let

be run directly by a manufacturer

Stores and franchisees maintain a certain sales distance, in order to avoid the most direct close interest and customer source conflict.


Set the price bottom: 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 terminal image: the disagreement of terminal image is the problem of many enterprises. In this respect, enterprises can strengthen the guidance of the franchise in the business concept, regularly organize supervision and training, strengthen the terminal image and unified service.


Scientific management of goods: for franchisees in terms of goods dissatisfaction, enterprises can formulate a reasonable return policy for goods, encourage franchisees to boldly increase the number of goods and display quantity.

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.


 

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