The franchise chain, known as the “successful business model of the 21st centuryâ€, has become a key project for the development of medium-term jewellery companies in the future. Jewelry brands of all sizes are joining, and even some international brands want to enter the Chinese market by franchising.
Some internationally renowned large-scale chain groups, 70%-80% of chain stores are established through franchising. According to a survey conducted by the US Department of Commerce, the probability of failure of a small retail store is 83%, while the success rate of a franchise retail store is over 90%.
Jewelry stores can be divided into high-end jewellery brands (precious metal inlaid high-end treasures, jade), and jewelry brands (silver jewelry, crystals, etc.), each of which varies in investment depending on the product. In addition, the amount of investment in the store includes the purchase of equipment, decoration, initial personnel expenses, housing rental deposit, initial feeding and franchise, margin and so on.
Some headquarters will make appropriate planning in terms of equipment, investment methods, and margins, so that franchisees can reduce the burden, so the burden on franchisees can be reduced. Of course, this depends on the strategy of each headquarters. Therefore, the franchisees need to consult with the relevant responsible persons at the headquarters to discuss the needs and support of the headquarters in terms of investment funds to determine whether their finances are appropriate.
Many small brands are actually not brands in the true sense. They can only provide goods to franchisees and solve the brand authorization problem of pre-opening stores. The franchisee also cooperates with the brand for the purpose of profit. Once the cooperation begins, the purpose of the franchisee is reached. He gets the necessary opening conditions and will maintain a detached relationship with the small brand. The two sides cannot mutually restrict each other and it is difficult to seriously perform the contract. Such a small brand can only earn money for distribution.
In comparison, large jewelry brands are relatively mature in terms of products, management, marketing, and services. However, the reason why large jewelry brands choose to take the route of joining is that they need local support and channel relationships. There is a purpose to finance. That is to use the funds of the franchisees to make their own brands occupy the Chinese market as soon as possible.
Big brands do affiliates with "I" as the center, and the partners they are looking for are to enable them to make more profits. Big brands are the masters, they will control the franchisees, so when the brand just started to join, it will grow faster. However, when the brand is getting better and better, the big brand will make a name for the brand to spread the cost of brand communication to the franchisee. Therefore, some sensible franchisees are far from the big brands, and most franchisees are not willing to climb the brand.
When selecting a headquarters, you should first assess the status of the brand's popularity, and you should not be obedient. Some jewellery companies have no choice in joining their own hearts. They simply follow the trend and simply do not care about the interests of franchisees. Therefore, franchisees must make their own decisions and evaluate the headquarters from all aspects of the overall quality and credibility of the headquarters.
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