In modern Russia, in recent years, the franchise institution has been spreading more and more - an agreement between two companies in which one side “shares” the list of goods and services, and the other pays for it. A similar commercial agreement may be suitable for both companies. A novice entrepreneur gets the opportunity to raise his own business under a well-known brand, and the business owner receives financial preferences for experience and organization.
The weakness of the Russian franchise
However, talking about the widespread distribution of franchises in our country is currently not yet possible. The pet store franchise is an exceptional event for modern Russia, rare and unpopular, and the number of offers remains very small. And this despite the fact that the pet business is generally promising.
Pet Business Development
By the number of small decorative animals, Russia of the twenty-first century is at the level of world leaders after China and the United States. Nearly half of the population houses various small animals. The first place with great superiority is maintained by cats, the number of which reaches 30 million, followed by dogs (approximately 20-21 million). The number of all other animals, from horses to fish, is generally comparable to the number of cats. About 4% of families have homes of rarer animals - from fish to small rodents. The craving of the population for animals is increasing, as indicated by the increasing costs of their food and care. Currently, the total expenditure budget for these items is in the range of 4 billion rubles. It turns out a clear discrepancy - the society’s requests exist, but they are poorly implemented, including through a franchise. What is the problem, how to open a franchise pet store, getting the desired profit?
"Four paws"
Among one of the large chain specialized stores, the Four Paws pet shop is the most famous. The company takes care of pets for about 20 years, occupies one of the leading positions in the market, offering the best offer for the care of animals in about one hundred and fifty retail outlets in one and a half dozen regions of the country. By working with trusted suppliers, the Four Paws pet shop maintains a fairly acceptable level of production. The cost of pet products in a pet store is of high quality.
"Dinosaur"
Pet shop "Dinosaur" - the fastest growing network of specialized retail outlets in the capital of Russia. At the present stage, the campaign includes twenty-four pet stores located in different parts of Moscow and the Moscow region.
All stores have a type of department store, comfortable for the buyer, with a list of goods of more than 20 thousand items of products for animals from foreign and Russian manufacturers. In all, there are veterinary points where it is possible to buy medicines for animals and get professional advice from veterinarians about all kinds of medicines. The company pays great interest to aquarium sections. The store sells a large number of aquatic inhabitants and plants, special equipment and aquariums of various sizes. It is possible to visit individual stores and look at the mini-zoo, where birds, small rodents and other animals live.Experienced employees regularly undergo training, both in large animal feed supply companies and in specialized courses to improve trading experience.
In the network of pet shops "Dinosaur" it is often given the opportunity to purchase goods for animals on stocks, privileges and discounts are allocated. In addition, the shopping zoo "Dinosaur" allows guests to study the products sold on the site.
Beethoven Pet Shop Franchise
In addition to the development of pet stores, both in the real world and on the Internet, there is a slight increase in franchises. One of the few retail chains where this method is implemented was Beethoven, in which the Beethoven pet shop franchise was strongly popularized. However, most of the outlets were formed on their own. There is some practice in developing franchises within individual regions; franchisees are developing small firms, but their share is small.
Le'Murrr
The oldest franchise seller of domestic chains is now considered to be a company with the trademark "Le'Murrr", which unites 133 outlets, 56 of which are franchised. Le'Murrr has become the flagship retailer of the Russian retail market. Employees of the federal network represent Le'Murrr as a businessman with almost 20 years of experience and a real business model of profitable commerce.
When working with a franchise, employees at the Le'Murrr pet store convey business experience to businessmen through ongoing webinars and face-to-face classes on the premises of the company. Information is implemented in two ways: veterinary medicine and the formation of a pet market, including the technology of trading and the methodology of communication with customers. A separate area of study is the improvement of work with medical records.
Causes of Franchise Weakness
The weak development of the pet store franchise is understandable. The specificity of this area of commerce lies in the activities under the auspices of a popular brand, and in Russia today they actually do not exist in this area. People who come for shopping do not choose the product according to the mass brand, but according to the characteristics of the products.
Franchise cost
One of the leading issues in developing a pet store franchise lies in the financial field. The franchise is acquired by many entrepreneurs who lack their own funds. But the amount of investment in opening a pet company on a franchise is directly dependent on the position taken by the leading company with which it is necessary to conclude an agreement on the franchise of the pet store. Then you need to allocate at least 700 thousand rubles. contribution. Total capital needs to be paid on the basis of the company, respectively 700 thousand, 1.5 million and 2.7 million rubles. The company also will have to allocate a lump-sum contribution of the franchisee in the amount of 90 thousand rubles. According to the leading company, 6 weeks should be allocated to stabilize the outlet. The funds will be returned within 1-2 years.
One of the most profitable is the LeMur pet shop franchise, which defines three options for business development for its franchisees. All three are suitable for location in the checkout area of an additional grocery store.
For the development of the Beethoven pet store, an area of 100 square meters is needed. m. in a separate building or in a shopping center. There is a veterinary pharmacy at each retail outlet. The company does not record the volume of investments and the presence of a lump-sum contribution. The return of money invested in commerce will occur no earlier than in one year. For more effective collaboration, the leading company claims that it is advisable to have experience in trade.
Online Trading Franchise Cost
Currently, economic feasibility is pushing businessmen to actively develop online trading. At the same time, pet products are in the sphere of flagships among the most rapidly growing sectors of e-commerce.In one 2013, an increase from online sales of pet products was 95%. Most of the retail chains develop their stores on the World Wide Web in modern Russia. Investing in their development needs to be more modest than in creating a store outlet in real space. The main costs go to the formation of ways of delivery and marketing of products, as well as the development of a good site. Entrepreneurs do not need to look for suitable premises, employees, order equipment, transport goods to a new outlet. In such an environment, there is a great option for working together on a franchise.
So, a pre-prepared business is sold by the Swedish company Husse, which works in the field of cooking for dogs and cats, as well as in the sale of various things for pet care. Providing from 150 thousand rubles. and having paid a lump-sum contribution of 2,000 euros (for cities from half a million people), the businessman gains exclusive rights to use the brand name and logo in his country (or in part, if agreed upon in advance in the contract between the franchisee and the leading company) and the Internet Shop with an already developed trading system. Money can be returned within about a year after the start of the activity.
Area factor
The cost of the franchise, the complexity and complexity of a business project often depend on the area of the premises under the pet store of a particular company. For example, in 2015, the franchise of the structure of Petburg chain pet stores in Tomsk began to work. The leading company, the owner of the franchise, has developed three options for the format of the store, depending on the estimated size of the room. This should be a “Petmarket” ranging in size from 25 to 60 square meters. m. located in a large shopping center. Variability of choice limits funding: the minimum starting capital will be in the range of 700 thousand - 1.3 million rubles, and the lump-sum contribution - in the range of 100 thousand rubles. This form of financing, such as royalties, is not defined by the owners of pet store franchises.