recent contact with the two companies, one is to adhere to the steady development of direct marketing, another extension to join sky.
case, a fashion Couture. The enterprise brand ten years accumulation, boss initially at white horse markets wholesale, days are good, then started acting, joining way, according to their words, as the supporting non-sales gradually shrinking, sales drop to less than 20 million from nearly 100 million, brand image almost suffered extinction. From this bitter experience, starting with the 2007 opening direct store, refused to open stores, sales rose steadily in both years, now less than 70 stores, with annual sales of more than 150 million, and distribution areas are mainly concentrated in the Pearl River Delta. The company’s sales increased by annual growth in 30%, this number is a single store per cent, not just the increase in the number of stores. They of mode is fast fashion mode, almost is weekly are has new cargo, Headquarters on stores of strong control, information system apart from door shop sales data timely pass back company, and for processing, timely supplement cargo; company on stores of requirements is a week for once display, window models a week replaced two times, headquarters will has hand on all stores made display figure, all models of match requirements are to Directive of forms made to stores, stores according to single implementation, implementation finished Hou, all shops needs will stores of status photographed back pass headquarters, At the same time the Steering in the process of visiting shop checks in strict accordance with the standards, and on-site training on issues. A store that is responsible for the supervision of not more than six, even less in some areas, current with store implementation. Stores after you reduce the burden of marketing From EMKT.com.cn, the main effort is placed on top of the sales and service to our customers at the scene, store salesperson’s sales ability greatly reduce dependence. Although at present the company broaden speed unhappy, but giving the impression is very real, operating condition is very good. It can be said that this is a direct example of winning.
case II, a in the, and low-end brand underwear enterprise, from straight camp shop do up, site retail management has been is founder by concern problem, in opened joined shop zhiqian, straight camp shop operating of does not more, but in do joined zhiqian is on small scale, development near six years time, only opened shop insufficient hundred, 2006 introduced joined mechanism, due to to joined shop enough of space, to regional agent to flexible policy, regional agent is company employees is party nobility, That company employees are agents willing to accept company leaders, but the company is not salary, but extracts from the regional franchise performance ratio, thanks to such incentives, open very quickly, . to two or three times in each of these two times faster. Select the channels they are street stalls line, not shops or counters in department stores opened. Now number 2,500, sales (payment) exceeded 1 billion, over 3,000 by the end wasn’t a problem in its brands far ahead of the target market, but its direct store only 300 or so, it seems it was joining the powerful example of the success.
in fact, choose to join the direct factors to consider are still many, beginning with its own development strategy, if brands want to rapid development, but has limited funds, the franchise mode is a good choice: profits can be used for marketing, franchisee to earn head, himself making head, franchisee to help you open up the market. But the problem is you have to really control the live—so that they can really make money, and leave you still do not earn as much money, at this time, product development update capabilities on brand and on market trends will have a high level of control required, brands must be able to concentrate our efforts on the product, than your competitors. If you are in certain areas do indeed your brand, through retail Terminal Services to build reputation, steady development, direct marketing is a safe method.
in short, brand manufacturers operating in chain operation mode is to select direct or join that is not a problem, but a question of the viability of enterprises, or successful ability to operate single store and single store successful replication problems. And than ever before, successful brands in the future in addition to continuing product development, logistics management continues to improve things, in particular to enhance the skills of retail headquarters, to keep abreast of market trends, using modern information management technology and analysis to guide branch (agent) and Terminal shop operations; at the same time you want to have enough talent, implement implementation steering instructions issued by Headquarters, enhance Terminal performance. At this time, even if it is proxy mode, regional agents consistent with the brand enterprises are more difficult to interest the main body of the brands under the guidance of the day-to-day management of the enterprise. Terminal franchise in full accordance with the requirements for brand enterprises and regional agents to do, to get enough support from brands and regional agents.
at what level, what mode of enterprises, only problem is how to balance the interests of all parties. A parable is not particularly precise, franchise mode like Herod system during the spring and Autumn period and warring States period, Zhou under the unification flag, give you a fiefdom leaders develop on their own, do good, don’t you. Direct mode, like on the system of prefectures and counties of the State of Qin, around the Chief Executive appointed by the Central Government, everywhere to conduct regular assessment, strict implementation of the standard (car track, identical, uniform weights and measures), doing good Awards, doing bad penalties. Two models have their advantages and disadvantages. Real success is that Han dynasty mode, enfeoffment was retained, this piece of land or a letter to you, you can get to the tax benefits, but how to management or the Chief Executive has the final say. Perhaps it’s that we are respected managed mode.
in fact, both the direct, joined the hosting and enterprise needs is the ultimate goal of consumer satisfaction; brand dealers, agents, to join a city must meet the full interests of the consumers that goal became the principal! If this is not done, they will be eliminated by the market.
sang Wang, Alliance PKU Management Consulting senior partner, senior retail management expert, consultant, trainer, master’s degree in business administration from Tsinghua University, Xian Jiaotong University Bachelor of engineering. With 15 years experience in retail business and management, in the South of China’s best early gold store, at best, CRV, Shenzhen agricultural products to the people-run supermarket, China nepstar pharmacy chain, Dongguan guangda company, serving as Operations Manager, Chief Operating Officer and Deputy General Manager and senior management positions. Founded in June 06 tongda far management consulting co., Ltd. September 07 to become partner at BU. Links: wangshan@allpku.com. QQ:719581537