Thematic Interview: "Brand And Agency"

Now is the era of brand operation, brand enterprises and agents.

Many brand companies say: finding distributors is harder than finding them. Franchisees are becoming more and more difficult to manage and not loyal enough.

Many dealers also put forward: the choice of mature brand investment is more and more high, the choice of new brand is like "gambling".

In this regard, Kentucky's description is: "the franchisee provides the main profits of the enterprise; the franchiser does not grow up, KFC will not grow; the franchisee loses, Kentucky will lose; the franchisee wins, Kentucky will win."

Moderator: our reporter Zhou Zhou

Guest:

Guo Min, Zhejiang Zheshang Capital Investment Promotion Association, senior consultant of times education management group, and chief operating consultant of Luo Hao men's clothing.

Chen Shaoheng, director of operations in Beijing branch, St.

Zhu Zhenhua, thousands of Li Beijing dealers

Zhou Zhou: can you tell me what changes have taken place in the brand strategy at different stages?

Cao Yitang: for franchised stores, the investment strategy is an important part. In fact, the market expansion strategy is more precise, because at different stages of development, the market development strategy is divided into two stages: investment promotion and selection.

When a brand has just been created or just entered China, its popularity is not high enough. It is not known whether it will make money or not. At this time, the importance and difficulty of attracting investment are great.

Therefore, the investment strategy at this time is mainly to establish market confidence and attract agents with preferential conditions.

For example, some brands will set up market confidence by opening a direct store, asking the image spokesperson, and putting up advertisements on CCTV, so that agents and shopping malls will feel that you are not making a lot of trouble.

Through the "redecoration", "back to advertising fees" and other preferential conditions to attract agents, reduce the business risk of agents.

At the same time, the market development department (including the company executives) should go out to find agents and shops through various ways and relationships, such as participating in exhibitions in the industry.

Someone once asked me why L&H, a fashion chain brand, spends a lot of money on the image spokesperson of a shop without a shop. This is not economical from a sales point of view.

I reply that this is part of our brand's initial investment strategy. There is no high brand in the early stage. We will not open more than 200 stores in 2 years.

When the number of shops in a brand reaches a certain level, for example, 500 ~1000 homes (because of different brands), we must adjust our strategy and focus on the "selection business".

Because the supply and demand relationship has changed at this time, the brand has been established in the market. Through years of practice, it has proved that the agency is profitable. Many agents will call to take the initiative to join you. For example, I used to serve Metersbonwe and nine Mu Wang clothing, every day can receive the application agent telephone.

The focus of the brand is to choose the eligible agents from these potential franchisees.

The strategy of market expansion is to optimize the existing agents, and update the agency policy to support excellent and potential agents, and gradually eliminate the poor agents, that is, the "Matthew effect".

At the same time, incentives for agents have gradually shifted from the way of sharing the cost of decoration and advertising to the year-end sales rebate, so as to control the risks and costs of market expansion and make the whole company's channels develop smoothly.

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Guo Min: brand investment is just like giving birth to a daughter-in-law. Brand investment will go through sowing period, incubation period, puberty, maturity and heyday. There are many changes in the investment strategy, but the only thing that remains unchanged is a word - "faith".

In addition, I think most of the brands in China are not starved to death, but are sustained by death.

We need to learn not only to be content, but also to know more about the brand.

Contentment is the number of people you give. You are "not satisfied, but acceptable"; and knowing that you have seen a certain degree, stretch out your hand to block it and say, "I will not."

I think this is the most important thing in the investment process.

Zhou Zhou: where will the brand consider the qualification of the agent?

Cao Yitang: the advantage of the business mode of chain monopoly is to integrate the social resources of all parts of the country and make the brand grow fast.

Since it is all over the country, there are various regional differences.

When a brand enters a city to open a shop, it mainly considers the factors of "five businesses", that is, "business opportunities", "business circles", "shops", "merchants" and "commodities", both with soft factors and hard factors.

We look at agents in five ways:

1 "business opportunity" - is it a good opportunity for the brand to enter the city to be represented?

2 is the "business circle" - the city's business district maturing? Is there enough market capacity to support the brand?

3 "shops" - what is the relationship between the applicant and the local shopping malls? Is it possible to get good shops in the suitable business district? How does the rent level determine the breakeven point? Therefore, it is possible to determine whether the economy is feasible.

4 "businessman" -- what is the applicant's character, financial strength, business philosophy, team strength and industry experience? Is it consistent with our brand requirements?

5 "goods" - potential agents should be familiar with our products and value proposition, know how to choose goods according to local market conditions, and display and display commodities according to brand value appeal and SI requirements. At the same time, we need to know how to adjust products in time to improve store efficiency.

Guo Min: in the process of looking for potential customers, many companies find agents looking for "MAN":

M - MONEY stands for money.

The applicant must have some financial strength.

A - AUTHORITY stands for the right to decide.

The object has the power to decide, recommend or oppose the franchise.

N - NEED, representing demand.

The applicant has the demand for this product.

For example, Luo Hao men's clothing has always insisted on "small wins by wisdom, and great wins by virtue". The investment philosophy and business philosophy of applicants are the most valued brands.

Zhou Zhou: how does a brand manage and control an agent with experience?

Cao Yitang: channel control is very important for a chain operation brand. First, it is necessary to ensure that 100% of the agents carry out VI's rigid regulations and marketing strategies to ensure the unity of the brand image and the execution of marketing strategy, that is, "consistency"; and the two is to avoid the excellent agents from defying themselves or switching to competitors, that is, "loyalty".

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On the issue of "consistency", Brand Company should formulate corresponding management processes and systems to standardize, and provide corresponding teams for training, supervision and guidance. For example, Metersbonwe and L&H have "shop image management methods", supervision departments, and their own business schools responsible for training various agents and their shop teams, so that everything can be "lawfully acceptable", "knowing the law and knowing the law" and "having laws to comply with".

On the issue of "loyalty", first of all, the brand should be responsible to the agents. We should help them grow up and help them solve the problem of real store operation and form a "win-win" relationship. Only the "win-win" relationship is sustainable and solid.

Second, we must form a closer alliance or control core resources by means of capital.

For example, a brand can set up a joint venture with a good agent in a city, then give it to an agent, or make a company's cross shareholdings between the company and the brand company. If the brand company goes public, an excellent agent can share the added value of the capital market.

L&H has been pilot joint venture in Beijing, and the result is good.

In addition, a strong brand can buy or lease a good store for a long time, and then sublet it to an agent. If the agent is defected, we can hand over the store to other agents.

Third, we should introduce competition mechanism appropriately.

For example, if a city's "experienced" agents do not want to make progress or operate multiple brands at the same time, we can deal with the old agents three times. Once the agreed operating targets can not be completed, we can split up his agency rights, introduce other agents into the city, and form a healthy competition under the supervision of the company.

L&H has been pilot in Shanghai for "city competition", and agents have formed healthy competition. A single store sales volume in Shanghai has increased by 100% over last year, becoming the largest single store sales in L&H.

Guo Min: first of all, I think the word "control" is not very popular with me. Why do I say so? To make a brand is to win more.

In the words of Mo-tse's business: I am good, the customer is not good, the customer is not left; the customer is good, I do not profit, then I do not exist; I profit big, the customer is small, then the customer is not long.

This is also the business objective of "Luo Hao men's clothing".

All the world is prosperous, and the world is full of gains and losses.

First of all, we need to help agents make profits, and let agents rely on you in the management mode, and really earn money to brand loyalty.

Zhou Zhou: let's listen to the idea of agents too.

When you choose brand, which 3 aspects do you care most?

Chen Shaoheng: first of all, brand products, because products are the core of opening up the market and producing benefits, so we first consider the market positioning and product quality of products.

The next is the price of the product, and the reasonable price is a very important factor for the dealer to get the best profit.

The third is the management ability of the company's brand, because the perfect management and operation ability can ensure the product's lasting and stable development. If there is no good brand management consciousness and ability, even if there are good products, but its growth is not sustained growth power, dealers will not be willing to run a brand that will disappear in one or two years.

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Zhu Zhenhua: I will focus on brand quality, after-sales service and brand development potential in the future.

My shop is on the 5 floor of the hundred glory World Trade mall. In 2005, thousands of Li manufacturers looked at the location of our store. The manager in charge of investment came to talk about it several times. I also visited the factory several times. I felt that the brand was ok, so I decided to join.

Thousands of Li joined the conditions of business area of not less than 30 square meters, the first phase of the purchase of not less than 150 thousand, for the not selling version 30% can be adjusted version, decoration shelves reimbursement 50%, new products listed advertising support, for such an old customer, if the funds are tight, can be delayed for a month, first take the goods after payment.

After five years of cooperation, we both feel very happy and hope to cooperate.

Zhou Zhou: if you are faced with a new brand, how do you judge and choose?

Chen Shaoheng: in the face of the new brand, we need to pay special attention to 3 aspects:

First, the scale and strength of a company, a mature scale enterprise will have many market resources, product experience and the accumulation of management and operation capabilities in the operation of new brands and timely products, which is the key guarantee for brand growth in the later stage.

Secondly, the conditions and support that enterprises give to distributors, although the purchase price is an important reason for dealers to choose brands, but consumers do not always play a decisive role in purchasing brand products. Therefore, dealers should pay attention to other brand service factors such as brand image and market positioning.

Third, the service and support of enterprises to distributors, the competition of brands in the modern market has not only limited to the hardware requirements of products and images, but also more concerned about the ability of enterprises to provide continuous service for consumers.

Terminal sales skills, after-sales service, quality assurance, and more and more become the most important factor in brand loyalty and long-term consumer loyalty, and it is also a weak link for most of the enterprises. However, if done well, it will be a good market entry point for the success of the new brand.

Zhu Zhenhua: I will directly communicate with the person in charge of the brand, and understand his brand concept and planning design, brand qualification and the existing scale, which I also need to focus on.

Zhou Zhou: do you value the brand's future potential and the existing size of the company?

Chen Shaoheng: I look at the potential for brand development in the future.

To do business is to look at the long term, and later development is more important.

For example, at present, the outdoor products we are involved in will start late in comparison with sports brands or leisure brands at home, but the prospects for future development are very optimistic.

Zhu Zhenhua: I personally believe that the scale of the enterprise is even more important, because future potential enterprises need time to grow and grow, and today is money.