Traditional Service Industry: "Replication" Is The Hard Truth.

2007 is a year when the chain service industry broke out. Investors' favor shows that the traditional service industry must take a large-scale and branded chain road, and go to the market like BELLE.

This is the last word in the retail industry last year.

In May 23rd last year, BELLE international, the largest female shoe brand in the mainland, officially landed on the Hongkong stock exchange, raising nearly HK $10 billion.

On the day of the listing, BELLE's total market capitalization amounted to HK $51 billion 400 million, becoming the largest mainland retail listed company in the HKEx market capitalization.

It is not just BELLE, but in 2007, China's capital market, especially the mainland A share market, is beyond everyone's imagination. Almost all indices have been rewritten.

Chain service industry is the birth of another wave of wealth myth after IT, real estate, finance and other industries.

You 100, I 1000, whether catering or hotel, clothing or household appliances, traditional services are everywhere staged - replication is the absolute principle.

According to incomplete statistics, in recent years, nearly 60 chain enterprises in China's chain industry have gradually raised funds, with a total capital of more than 5 billion US dollars. The chain industry in the capital market is being sought after by others. This has led to the birth of dozens of small and medium sized chain enterprises listed in the year of 2007 alone, and the myth of wealth has been deducted and refreshed one after another.

Zhejiang Yintai landing in Hongkong motherboard, fundraising HK $2 billion 340 million, raising HK $1 billion 887 million in HK, financing HK $1 billion 887 million, sitting on the top fifth of Chinese fast food chain, Sichuan, Hongkong, Hongkong, HK $2 billion 330 million, Shenzhen, Jiahua department store, Hongkong Hongkong stock exchange, financing HK $260 million, famous sports products company, Hong Kong Sports listed in Hong Kong, financing HK $3 billion 643 million, New World Department Store Limited, China listed on Hongkong, 2 billion 360 million HK dollars; domestic largest down garment brand Bosideng, HK $6 billion 928 million in HK, 183 year old Quanjude listed in Shenzhen small and medium board.

A legendary stock market legend shows that the era of replication, franchise and franchising has arrived. Investors' eyes are not limited to TMT (technology, media and Telecommunications), but expand to the fast growing consumption field. Chains, because of their replicable and compound business models, are becoming the main way to integrate various traditional service formats.

In 2007, Chinese chain enterprises have become the new favorites of venture capital. Venture capital has almost stepped into all the chain fields in China.

Over the past two years, there have been more than 30 local chain enterprises that have started docking with overseas capital.

For example, in November 2006 and March 2007, ITAT, a clothing chain store company, invested $25 million in Lanshan capital and Morgan Stanley, Citadel 50 million and 70 million yuan respectively after the European investment organization 3I and the well-known investment organization Pu Kai fund injected little money into the sheep.

A large number of domestic and foreign funds have been invested in chain enterprises, indicating that the traditional service industry is ushering in an era of duplication.

The standard, brand and culture can not be ignored. Perhaps many people will remember the listing of the home. It is precisely the success of the family that has led to the outbreak of the Econo Hotel craze overnight. No matter in the economically developed Shanghai, Beijing or the relatively backward two or three tier cities, various kinds of Econo Hotel can be seen everywhere.

Compared with traditional star rated hotels, Econo Hotel has compressed or canceled functional settings such as catering, conferences and entertainment.

The "B+B" mode (that is, Bed+Breakfast, bed + breakfast) makes the operation cost greatly reduced, and the price is basically controlled between 100 yuan and 300 yuan.

A lot of business travelers with low requirements for accommodation are attracted by Econo Hotel's "cheap strategy", such as home, 7 days, Jinjiang stars, etc. the average occupancy rate of Econo Hotel is over 90%, and holidays are full every day.

In this case, the cost can be recovered within four or five years, and its investment is good for investors.

Many of the hotels in the Econo Hotel are eyeing the big cake in the hotel market, and they are playing the brand of "Econo Hotel".

At one time, the Econo Hotel has sprung up all over the country, and the service level is uneven. Once the chaos is a common problem in the service industry, what does the traditional service industry replicate successfully?

Use a popular advertisement: standards, brands and culture should not be small.

The basic characteristic of the chain industry is different from other industries, which is replicable, and is replicated and expanded rapidly through a standardized system.

In 2007, the Chinese chain industry has fully realized the importance of the standardization system. The leaders of many industries have increased the fine operation of the enterprise operation. The standardized system has even become the standard of the industry, thus strengthening the leading position of the market.

The standardization system of chain enterprises is a sign of maturity.

In the catering chain industry, the company has established a standardized system. The number of direct outlets has exceeded 200, and it has become the largest Chinese fast food chain store.

At present, many Chinese fast food have already realized this problem.

The dumplings are formulated in the relevant manual, which stipulates the contents of "standardization", such as the use of 1 bags of seasoning for every 10 kilograms of fillings, 120 grams of weight for each 6 dumplings, the introduction of the "fast food factory" in Lihua Fast food, the introduction of automatic rice production line, and the control of rice panning, adding water, steaming and cooking.

With the rapid expansion of the horse racing enclosure, more and more chain enterprises will focus on the upgrading and upgrading of the company's internal operation system in 2008.

The brand is the key to the success of replication. No good brand is like a building without foundation. The more storefront the replica is, the more dangerous it is.

A survey conducted by the American Consumers Association asked tourists in a strange place with McDonald's and a local restaurant where they chose to eat.

More than 80% of respondents would answer McDonald's because McDonald's as a chain store brand represents a guarantee of nutrition and hygiene standards.

It can be envisaged that if there are any problems with the quality of McDonald's worldwide, such as consumer food poisoning, it is likely to affect the whole McDonald's business.

In the market, the brand is first of all a quality assurance, consumers can easily identify the quality of products with the brand, but some domestic enterprises do not realize this.

Essentially, a brand can identify a specific set of characteristics, interests and services of a seller or manufacturer.

The best brands convey the guarantee of quality.

The final competition is the brand competition.

Brand is the life of chain service industry. The chain replication without brand is just a dead end.

Culture is the soul of reproduction.

Successful replication is not dead copy, there must be a successful culture in it, and integrate into the local culture.

You may remember that after Kentucky launched the "dried rice mushroom rice" in 5 northern cities, Shanghai introduced the fancy breakfast porridge suitable for Shanghai's local flavor. At the same time, McDonald's also started playing the traditional Chinese brand. After the first pot porridge in Hongkong, McDonald's is asking customers to have breakfast free, and the whole plan will send out 6688 Chinese breakfast.

As an international catering chain group, KFC has always pursued a local culture based strategy. This is not a matter of inventions in China. Even in Islamic countries, they also consider Muslims fast food for Muslim purposes.

This incident shows that the franchise chain industry is increasingly without borders.

If we dogmfully and artificially divide fast food into "ocean" and "dirt", it will not be conducive to the internationalization of service industry.

In the process of entering China, the foreign capital chain enterprises first focus on how to localize, how to make Chinese citizens accept that they are a Chinese shop, not an outsider, not to earn the invaders of Chinese consumers, but a messenger who can bring joy to the big family.

As a result, the layout of foreign-funded enterprises is gradually rich in some Chinese atmosphere, equipment and facilities are becoming more and more sinicization, completely designed according to China's shopping habits.

For example, at present, more than 90% of the large retail enterprises purchased by WAL-MART and Carrefour and so on are all purchased in China. If they are simply cloned local retail businesses in China, if we open "American WAL-MART", "French Carrefour" and "German Metro" in China, do we live in western food because of their entry?

No, we have our own way of life. Since some habits of customers can not be changed, it is the operators themselves who want to change them.

The essence of the expansion of retail chains is to develop things that remain unchanged.

The success of the world's largest enterprise GE is to integrate its own success ideas into the management of an enterprise. Its expansion is not simply the production of car workers in the production of electrical equipment to complete the job.

In 2007, the national catering industry's symbolic enterprise, Quanjude listing, has a great impact on the whole catering industry. But if we have studied carefully Quanjude, we should know that Quanjude is not easy to go to this step. After several failures, we have gradually realized how traditional services develop in chains.

In 2005, Beijing's old time Quanjude formally withdrew from Chengdu, which meant its failed attempt at franchising in Chengdu. Before that, there had been shutting down or losing its business in Quanjude Nanjing, Hangzhou, Shenzhen, Shantou and Guangzhou stores, which was called "five losing streak" by the media.

Although Jiang Junxian, chairman of Beijing Quanjude Refco Group Ltd, does not agree with the "five losing streak" report, it also puts forward one objective reason, but anyway, Quanjude has lost its way and lost its speed too much.

At first, Quanjude wanted to rely on the rapid expansion of franchised stores. On the one hand, it did not require a large amount of capital input from the company. On the other hand, it developed faster. However, after the speed up, various problems also followed: careless choice of some partners, inadequate research on the consumer market in the south, swaying of management characteristics, and ineffective cost control.

After that, Quanjude changed its strategy. In Beijing, the development of direct chain stores was mainly based on franchising chains.

Through strengthening the business, it will become the foundation and guarantee for Quanjude development franchise chain.

In the layout of the mainland market, Quanjude will choose 6 to 8 central cities, establish regional companies, form regional companies as the center, direct chain enterprises in key development areas of provincial capital cities, and develop franchised chain enterprises in district level cities.

After trying to develop its own wrong path through franchising, Quanjude finally turned to the practice of training its own internal management and establishing its own direct store.

There are several prerequisites for franchising: there are several prerequisites for the promotion of franchising: the first premise is "point", the model store is "showing the window to understand the business to the public, and more importantly, taking the model store as the core, occupying the business district and the market where it is located"; the second premise is "line", that is, the franchise support system, including the construction system, operation system, financial system and manpower system; the third premise is "platform", that is, the knowledge economy platform for sustainable development of headquarters; the fourth premise is "mode", that is, the profit model based on "point", "line" and "platform".

In these elements, "point" is the key.

"No point, there is no line, no platform, no mode. Chain replication is a tree without a source of water."

Perhaps, considering the risks of franchising, as a giant in the world's catering chain, KFC and McDonald's franchising in China are extremely cautious and prudent.

KFC started its franchise in China in 1993. Until now, its franchised stores account for a very small proportion of its chain stores. Moreover, since 2000, KFC has only adopted a form of "not starting from scratch" in KFC's operation, that is, KFC only sells stores that have been successfully managed to ensure that they can make money, and do not sell franchised brands only.

McDonald's stores are much later than KFC, and they only sell successful stores.

It is not that these enterprises do not want to develop rapidly, but are very afraid of speed traps.

KFC believes that it is the best way to carry out "no starting from scratch" franchise in the Chinese market at this stage.

It can ensure that franchisees integrate into the KFC standard management system as soon as possible and develop together.