Shoes And Clothing Brands Become Investment Hot Spots

With the rapid development of footwear industry, the major brands in China are also facing severe challenges. High franchise fees, high operating costs and high operating indicators have made many first-line brand dealers feel the pressure. According to statistics, since last year, 30% of first-line brand dealers have switched to second tier brands, and there is a trend of continuous growth.

A domestic line Shoes and clothing The brand franchisee Xu told reporters: "now we have to join a brand like ours, which requires a lot of shops. It requires the location of the shops to be prosperous, the shop area is large enough, and the sales target is quite high. And some well-known brands rely on their own brand awareness, and do not pay much attention to the general franchisees. Their support policies are also few, resulting in too little profit margins and low survival rate of these franchisees. This also directly affects the confidence of our dealers, and how little we can manage. And some of the first tier brand franchisees say that if they don't run too long and have deep feelings for the brand, they really want to change to a relatively relaxed second-line brand.
As expected, the reporter visited the market and learned that the shoe and clothing industry now has two extremes: first line brand competition and direct competition, fierce competition, which has led to the "disaster" of franchisees to varying degrees. The three line brands can not survive, and have a direct impact on the business confidence of the potential franchisees. However, this situation has advantages and disadvantages. According to the relevant person in charge of footwear and clothing industry in Fujian Province, there are still a large number of enterprises in the industry that are doing their best in the industry, and are vigorously supporting the franchisees and achieving good results. Many second tier brands not only increase their support for franchisees, but also continue to train their franchisees, making franchisees full of confidence in making profits at the same time. And these franchisees are also becoming mature, even beyond some first-line brand franchisees, no matter in terms of experience or quality.
It is true that with the increasing demand of franchisees in the first tier brands, some second tier brands have stepped up the opportunity to break through, and have turned retrograde into a unique business in the industry. In response to this situation, the reporter interviewed Mr. Fu Fu, a trade association expert. Mr. Fu suggested that the reporter contacted Mr. Ding Junxian, CEO of the eight starlings (China) Limited, and realized that BAGE ( Myna In recent years, the "board shoes" have been "New Deal". In recent years, with the strong support of franchisees, BAGE (starling) has been rising rapidly in the market. Every year, whether it is a franchised store or a sales performance, it has maintained a rapid growth. Mr. Fu said, "even though there is a line." brand There is a certain advantage in the added value, but its additional threshold is still a great sensation. The second line brand will be the first choice for the footwear industry in the future.

According to statistics, the cost of opening stores is getting higher and higher, but the effect is not as good as before. And those small and medium-sized brands, which are dominated by single products, can not afford franchised stores. They have to enter the wholesale and retail channels of shoes city, supermarkets and other sales networks. It is difficult to effectively enhance brand integration. Reporters also learned that, in recent years, opening stores not only has high store rentals, but also good stores are becoming more and more difficult to find. "In recent years, in order to efficiently open more stores and open a good store. We have done three things: first, to avoid joining the fee and to open stores in large scale; the two is to hire Louis Liu and other spokesmen to support the franchisees substantially; three, we should start to integrate superior resources, advocate the integration of multi products with the core of board shoes, and diversify the product mix of the franchised stores. We need to let agents earn money, but also to make money out of franchisees from franchised stores. If they do not make money, no one wants to open stores, and the chain monopoly can't go down, "said Mr. Ding Junxian, CEO of the eight stark company.

Summing up the experience of doing monopoly in these years, Yan general, a regional brand manager of a second line brand, said that the "secret" of the rapid development of second line brands in a short time is "great support for franchisees".

This shows that the support for franchisees is even greater, and these battalions on the front line will go elsewhere. First line brand has its brand advantage, but its disadvantages are also hard to avoid because of its advantages. With the development of the industry, with the further promotion of various supporting terminal policies of the second line brand, the advantages of the first-line brand have been gradually pulled down by the second tier brand. Looking at the overall situation, the second line brand led by BAGE is the first choice for investment.