Is It Good To Open A Franchised Store Or A Bulk Store?

There are business opportunities everywhere in twenty-first Century. For today's clothing market, parent child dress is no longer a novelty.

Joining is risky and investment requires caution.

We need to do enough homework before we can join the parent child assembly before we can get twice the result with half the effort. Today we will talk about the difference between the brand and the bulk.

The advantage lies in the fact that the clothing manufacturers are numerous, and the prices are relatively cheap.

It is relatively free. No one makes demands for you. The investment is relatively small, and the risk is relatively easy to control.

But the disadvantage is also obvious, the style is too common in the market, and the price does not improve space, the single profit is relatively small, and the bulk goods market is mixed, in the quality of work is much worse than the brand, and

Without security, it is a great test for the eyes and courage of the operators.

Franchised brands are more advantageous both at present and in the long run, but whether they are franchised brands or bulk goods have their own advantages and disadvantages.

The key is to start from a more practical perspective and conduct a comprehensive survey. We should consider comprehensively the local needs, brand strength, quality, reputation, price, style and strength.

With the progress of the times and the rapid development of social economy, the brand awareness of consumers is more and more intense. Brand franchised stores have become synonymous with quality assurance, and consumers are willing to spend more to protect the quality of clothing.

When a dealer joins a brand, the company will provide guidance, resource sharing and continuous renewal to dealers, which is far more secure than the bulk individual combat in terms of success.

Because of the brand image, the brand is more stringent for dealers, and the investment is higher than that of bulk goods.

Moreover, the supply discount is fixed, and the profit rate may not be as good as that of some good bulk products.

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With the growth of sales and even negative growth, the general decline of gross profit is an important reason for the decline of retail business performance.

There are three main reasons leading to the continued decline in gross profit in the retail industry.

First, the costs, including taxes, circulation costs, labor costs and store rents, are increasing year by year.

At the same time, the price of commodities is very difficult to get up.

Indeed, rising costs have become the main contradiction in the development of retail industry.

The cost of rental, labor, electricity, card and so on in retail enterprises is more than 70% of the total cost.

Therefore, if the price of various costs keeps rising due to various objective reasons, the gross profit of the retail industry will be greatly affected.

Second, intensified competition in the industry has also led to a decline in retail profits.

In the final analysis, the retailing industry is still fighting for prices rather than services.

Many shopping malls are still at the low level of price competition. In the case of commercial oversupply, unless the merger and reorganization is achieved, the gross profit margin of retail businesses will go up.

The third reason comes from the booming electricity providers in recent years.

The emergence of the electricity supplier has caused great pressure to the real business.

The intermediate links of the electricity supplier itself are few, and in addition, in order to seize the market share, some large electricity providers even lose money to carry out sales.