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Fashion Women's Franchisee How To Prevent "Money Trap"

2010/12/7 15:06:00 66

Franchisees Trap MoneyFashion Women's Clothing

"At one time Fashion Show On the other hand, a brand dealer said that their franchisees had a monthly sales volume of more than 150 thousand yuan, and they could earn one hundred thousand a year. There was no precedent for their failure to join their brand. Lan Qi said, this family Casual wear brand The words of the staff moved him, and it was not long before he decided to join the brand.


However, let LAN Qi do not think that he worked hard in downtown stores, in the first two months of business, but then began to be desolate.


In the subsequent market research, he found that he joined the casual wear brand, just a small clothing company called the "Hongkong brand". Last year it was just started. At present, there are only 3 outlets in Fujian Province, and there are only 6 franchises in the country.


This is not the case. On the supply of goods, due to the lack of production capacity of the manufacturers, they often lose their goods. At the beginning of the brand support, the headquarters of the headquarters had been delayed.


Looking at the increasingly cold shop, Lanqi was in a dilemma. If he withdrew, the loss would be great. But if he continues to work, when will he be able to open up the situation?


   Franchisee Beware of "money trap"


Many franchisees have the same experience as LAN Qi. Because they do not have much experience, they lack rationality in choosing brands and cause great losses to their business.


One industry believes that most entrepreneurs choose brands when they choose to join the brand. They look for brands through advertising or clothing shows, and discuss brands through exhibitions or reading promotional materials. But the actual situation of the brand is not a few pages to join the manual data can be clear, if not in-depth study, franchisees are likely to suffer losses.


Compared with the traditional way of opening stores, franchised brands have the entrepreneurial advantage of "under the trees and enjoy the cool". Franchisees can start businesses on the mature brand platform without having to spend time and effort on Market Research and brand promotion. For entrepreneurs who lack entrepreneurial experience, the risk of joining the brand is relatively small, so it is easier to succeed. But this is also becoming a way for some enterprises to "attract" franchisees and take the opportunity to "cash in".


"Now many garment enterprises, coupled with a considerable profit in garment business in the past few years, made some new fashion brands and franchisees more impetuous." Deng Siyi, managing consultant of Kajie consulting (China), believes that some of the franchisees are eager to start their own businesses. They only rush to sign up when they look at some publicity materials of the enterprises. When there is a dispute, they discover that the brand headquarters has no terminal management capability and experience at all.


Mr. Li, a franchisee in Beijing Tianya mansion, said: "these" money making companies "generally agree that the more they join, the better they will be. The franchisees are always welcome. They always rely on investment to earn money from franchisees, while ignoring the fundamental product quality, network channel management and brand sustainable development.


As one of the main marketing modes of garment enterprises, franchisee is an important means for garment enterprises to expand the market at low cost and high speed. However, part of the blind development of franchisees, investors are called "money trap" small businesses are also mixed. An expert told reporters that most of these enterprises are weak in strength and poor in operation. The purpose of developing franchisees is to rapidly expand the market by using the funds of the franchisees.


According to one industry insider, because some policies and regulations for franchising in China are not yet perfect, franchisees often have to "eat yellow lotus and suffer hardships" when they fail to fulfill their commitments.

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