Everyone dreams of starting their own business and getting a good income. But not everyone has the knowledge and experience to develop a business from scratch. It is no coincidence that franchising is becoming increasingly popular. A novice entrepreneur can invest his money in a brand that has been working for many years. There are many offers for a startup in Russia. In large towns, the Zara franchise is popular.
Franchising Features
Franchising is a special form of continuous business cooperation between several firms or companies. On the one hand, the contract is signed by an organization that has been working in its field for many years and has managed to build its recognition. On the other hand, the participant in the transaction is a businessman who wants to work under a false name for a certain fee. Under such conditions, for example, you can open a Zara store.
Franchising is a transaction that can be beneficial for both parties. From the first days, a novice entrepreneur conducts trade under a well-known brand. If the business plan is drawn up correctly, net income will be able to get in a few months.
For a large company, franchising is an opportunity to expand the market, attract new customers and make your name even more recognizable. The contract signed by the parties is called a franchise. A novice entrepreneur agrees to pay the agreed fee for the opportunity to use someone else's name and the technical achievements of a large company.
About Zara
The leading trading network is today known almost all over the world. It belongs to the Inditex group of companies. The main office of the network is in Spain. Here in 1975 the first store was opened. Almost from the first days, the brand found its customers. Any Zara store pleases customers with a large assortment of bright clothes for home, office, street walks. Models for men, women and children are presented. Clothing is designed for young people and the older generation. Everyone will be able to find an option for themselves.
Initially, the company's designers did not really think about creating models. In the first Spanish store, you could buy copies of the work of famous designers at a reduced cost. In the early 80s, they began to develop their own models, which also liked the customers. The popularity of the brand grew at a tremendous pace. First, stores opened in Spain. Then the trading network began to conclude contracts with representatives of other countries. There was an idea to work on the Zara franchise.
Production of the company
What attracts Zara today? Clothing that manages to feel comfortable cannot but attract store visitors. And if it is also original models, demand will certainly grow. This is another factor that proves you should consider the Zara franchise. The probability that the business will be profitable is 80%.
Today, the Zara brand has 7 product lines for representatives of the stronger and weaker sexes. In addition, each line consists of seven subsections. That is, everyone can find interesting models of this brand for themselves. Initially, the company offered only light casual clothing. Today, bright jackets, coats, faux fur coats, jeans and much more are offered. In addition, there are cosmetics, original accessories, shoes for any time of the year.
Zara today is a powerful production.From the beginning of the development of new models to their sale lasts only 14-20 days. During the calendar year, more than 10 thousand new designs are developed. Employees of the company follow fashion trends, so the collections that appear on the shelves quickly sold out.
Production capabilities
The plus is that Zara is not a distributor of clothing. The company does all the work on its own - from design development to the manufacture of the final version. The acquisition of the Zara franchise is an opportunity to collaborate directly with the manufacturer, to create your individual order for individual models of shoes, clothes and accessories.
The entire production chain is carefully monitored by qualified staff. About 50% of all products are produced in Spain, 24% - in Europe, 26% - in Asia and Africa. The most striking models that are popular are created in Spain. In 2017, Inditex announced the launch of a new production of Zara clothing in Russia. This means that franchise collaboration will become even more profitable.
Terms of cooperation
The Zara franchise is convenient in that the terms are negotiated individually with each potential partner. Then all information is recorded in the contract. However, there are conditions that are the same for all customers. Those entrepreneurs who have an initial capital of $ 100 thousand or more will be able to start a business with the brand. Zara franchise in Russia alone will cost 30 thousand dollars. This amount will need to be paid once for the opportunity for many years to work under the brand name.
The franchise will cost a little less for those who decide to open an online store. In this case, you have to pay 10 thousand dollars. The plus is that there are no royalties (regular payments). The entrepreneur pays once and in the future must fulfill the obligations stipulated by the contract.
Obligations of the parties
If the entrepreneur does not comply with the terms of the contract, the transaction will be broken without the possibility of recovery. Particular attention is paid to the volume of the first purchase of goods. It does not matter if the entrepreneur plans to open an online store or a real retail outlet, it is necessary to purchase models worth more than 40 thousand dollars. Terms of cooperation may vary depending on the country of the entrepreneur. But the binding to this figure remains quite rigid. Thus, the company evaluates the financial capabilities of the future partner. If he can not make the purchase of goods for a large amount, there is no point in cooperating with him.
There is another important condition for the acquisition of the Zara franchise. The reviews show that the company obliges entrepreneurs to develop the brand within one country. The first businessman who decided to collaborate with the brand acquires a “master franchise”. This gives him the right to act on behalf of Inditex Corporation within the region and offer franchises to other entrepreneurs. But there can be only one owner of a “master franchise” in a country.
All obligations of the parties in the franchise agreement are clearly described. There are points regarding the company itself. So, brand owners are committed to supplying only quality products that comply with all European standards.
Benefits of working with Zara
If there is a sufficient amount of investment, you should consider purchasing a Zara franchise. The cost of the contract is quite high. And this is a minus. However, a huge advantage is that you have to pay only once, when signing the contract. There are no regular payments in the future.
Zara is a brand known around the world. Therefore, if the business plan is drawn up correctly, you will be able to make good money. And if you open an online store in parallel with a real outlet, you will be able to recoup the investments much faster. The company allows you to put a wrap on goods up to 300%.Under such conditions, the average return on initial investment is about 6 months.
Drawing up a business plan
The payback period of the Zara franchise in a particular case will directly depend on how well the business plan is drawn up. All initial expenses must be considered. This is not only the price of the franchise itself, but also the cost of equipment, rental of premises for the store, tax fees, the purchase of the first batch of goods, etc. Before concluding a transaction, the company may request a ready-made business plan for deciding on the proposed cooperation.
Before drawing up a plan, you should definitely consider for what target audience the goods will be offered. If the outlet is small, it will not be possible to reach young people, children and the older generation at the same time. For a store with a large assortment, an area of 150 square meters is needed. m. This must be taken into account when drawing up a business plan. If the room is smaller, you need to stop at one subcategory. The most popular in Russia are youth models.
Choosing a place for the store
If we are talking about a real outlet, it is important to choose the right place for sales. The ideal option is the center of the village. Buildings near universities are also suitable. In between couples, young people will go to the store with bright models of clothing.
If we are talking about an online resource, you should choose the right domain name. This is almost the same as the place for the store. The name of the site should be bright and easy to remember. This is not worth saving.
Filling a store with goods
If you initially choose the right product for the outlet, the Zara franchise will pay off quickly enough. The conditions are stringent only in terms of the amount of the first purchase. At the same time, the company does not specify which category of goods should be purchased. The entrepreneur himself decides which assortment will be presented in his store. The success of sales will directly depend on the taste of the entrepreneur, his sense of style. If you are not sure of your own abilities, it is worth hiring a specialist who understands fashion trends.
Zara home
If the niche in the city of fashion is already occupied, you can consider opening the Zara Home store. To start working under such a brand, you will also have to acquire a franchise from Inditex Corporation.
What is Zara Home? In a store of this kind, buyers will not be able to find either bright clothes or original shoes. Bright home goods can be presented here - from decorative pillows on a sofa to door handles. In addition, in this store you can buy bedding, rugs for bathrooms, decor for walls, photographs, etc. Despite the fact that the category of goods is not at all connected with the classic Zara store, the company is not inferior to its principles. Only high-quality products that meet European standards are offered.
It is worth noting that products from the Zara Home brand are not cheap. In some cases, the purchase price is equal to the retail value of a similar product from other brands. Despite this, there are always enough buyers for the Zara brand. The quality of the goods fully meets the cost. Bed linen, for example, can last more than 10 years.
Who is the Zara franchise not suitable for?
Despite the large number of benefits, this option is not suitable for everyone. Be sure to consider the impressive amount of initial investment. It is worth deciding on the acquisition of a franchise if you have your own funds. Credit is not the best way to start a successful business. Zara store, if the business plan is drawn up correctly, pays off in 80% of cases. And if you have to face problems? In this case, the loan will not work. Instead of a successful business, serious financial difficulties will appear.
You should not open a Zara store in a small village. In cities with less than 50 thousand people, people tend to save.And Zara products can not be attributed to the low price category. In addition, the flow of customers will be low, even if the store is located on a busy street. Businessmen living in small cities should consider opening a good online store.
First steps in business development
What to do to those who nevertheless decided to purchase the Zara franchise? Reviews show that the whole procedure takes about a week. Initially, a businessman needs to register as an individual entrepreneur. Paperwork will take several days.
Then you need to draw up a quality business plan, send a request for a franchise to the representative’s email in Russia. Contacts can be found on the official Zara website. The answer usually comes within a few days. Next, an appointment is scheduled to sign the contract.
Reviews show that in 80% of cases, the results of work are noticeable already in the first three months. With proper business organization, a franchise pays off very quickly.