Most often, novice entrepreneurs choose the industry with which they themselves are well acquainted. For example, wealthy ladies who regularly purchase underwear in branded stores believe that the underwear franchise will be an ideal field for them. The advantages of such a business are a small amount of investment and a less rapid rate of fashion change than for clothing. But just the desire for elegance and a sense of style is not enough for the right choice of a large patron. The franchise of women’s underwear should be in line with changing economic conditions in a positive way.
Business benefits
Of course, each network of a large brand has its own conditions for working with franchisees, but in any case they will be more profitable than opening an outlet on their own, as a beginning businessman is helped in:
- choosing a place for the store;
- staff training;
- selection and supply of assortment.
The main thing to remember is that this is just help, not a third-party solution, since you still have to solve the main issues yourself.
Seat selection
So, the underwear franchise has its own rules for the placement of outlets and the franchisee must offer the best options for consideration by the patron. This is due to his knowledge of the city, because stores open, as a rule, at the place of residence. The franchisor in this matter will only choose the option he likes from the proposed list, but according to his own conditions. The main thing is not only the location of the store, but also the area. So, franchises of lingerie from 20 square meters are simply impossible to find, the minimum requirements for the area of the outlet are 25 meters, and then only for the Milabel brand, the rest require much more.
A more acceptable option for the premises is the area in shopping centers, but you can open a store in the form of a street outlet in a separate building.
After determining the location of the point, repairs will have to be carried out for the money of the franchisor, but according to the strict recommendations of network managers. All design and interior should be completely consistent with the brand. The same can apply to store furniture.
Store filling
Of course, the first deliveries are agreed upon by both parties in order to fill the store shelves with a sufficient amount of goods. In the future, the choice of assortment depends on the demand at a given outlet, on which the franchisee should rely on during subsequent orders. If you do not express special wishes at the time of orders, then a large network will simply merge all stale goods from official stores. Of course, the richness of the assortment also depends on the initial conditions of the contract, which may involve partial third-party filling of the store or not. Orders for goods should also depend on seasonality, so that in winter shelves are not full of swimsuits, and in summer thermal underwear. The main thing when choosing a medium-sized city as a retail outlet is to take into account that the material well-being of its residents differs significantly from the capabilities of residents of megacities, therefore it is not worth bringing exclusive collections at high prices.
Employee training
Under the terms of the contract, the franchisor is obliged to train new personnel in all the nuances of working with clients, since his reputation will depend on the quality of their service.A lingerie franchise can only involve theoretical training and master classes, or practical internships in existing retail outlets. In addition, the training also applies to the franchisee, who is provided with a network strategy for working with employees and customers.
To carry out high-quality product accounting and sales statistics, the entrepreneur is provided with specialized software that can only be used temporarily or on an ongoing basis.
The advantage of some chains is the operation of discount and gift certificates not only at official points of sale, but also in franchised stores.
Network selection
The underwear franchise can work with domestic brands or with foreign ones. In the latter case, negotiations on the opening of the point will be carried out with a company representative in Russia. So, the name and assortment will depend on the choice of the company, since each company has its own policy.
So underwear ТМ Women Secret, the franchise of which involves the sale of only underwear and swimwear, can be distributed by the entrepreneur at a high level. Despite the narrow profile of the store, the quality and design of the best American brand of underwear has many fans.
The franchise of underwear and tights from the Italian brand Calzedonia can only be opened under the name Triumph. The assortment will be similar, but the sign itself immediately indicates an unofficial outlet. By the way, the Intimissimi chain of stores also belongs to the same brand.
Can be bought and a popular domestic brand franchise. Defile underwear produces good quality, and cooperation with this company can bring no less profit and pleasure from work. This brand has occupied its niche in the market for two decades, creating at the same time not only high-quality and attractive underwear, but also not very expensive.
To work in a multi-brand outlet, you should pay attention to the company "Milabel" or "Parisian".
Opening expenses
Depending on the brand chosen, the underwear franchise can cost the owner 2-3 million rubles of initial investment. Further contributions will be calculated as a separate item of expenditure. In most cases, by the way, the franchise of underwear, reviews of real franchisees confirm this, it does not require royalties or lump-sum payments. The return on initial costs can be determined in just a few months, because the percentage of the mark-up for the store is determined by the entrepreneur.
Conclusion of an agreement
After determining the patron of the business and selecting a place for opening, an official deal should be concluded between the partners. The executed contract always has a validity period of several years, but at the same time it can be extended in the future for an indefinite period. This option is beneficial for both parties, because in case of failure the franchisor, so as not to spoil his reputation, simply can refuse to renew the contract, and in case of a successful business, extend it and continue to make profit from purchases.
Store Terms
When a patron provides a list of recommended places to open a point of sale, you should know that each network has special requirements for this. You should start with the fact that not every brand will agree to open a store in a village with a small number of residents. So, the Italian franchise Triumph allows the work of a new point only in the village with a minimum number of inhabitants of 400 thousand people.
In addition, several outlet formats can be selected. As already mentioned, more preference is given to places in shopping centers, since the linen in them is considered the most bought goods. The choice of floor in this case is not important, the main thing is that there should be a lot of traffic for visitors.
Street shop also needs to be opened on busy streets and in conspicuous places.
Possible difficulties
To learn all the features of running a franchise business with a particular brand, you should conduct a personal conversation with their current franchisee.
There are several reasons for this:
- not everyone decides to speak negatively about the franchisor on the Internet;
- negative comments can simply be deleted.
Discontent of partners most often causes a discrepancy between real costs and those agreed on the initial terms. In the best case, during a telephone conversation, even before the conclusion of the contract, it turns out that the real amount of the required investments is much more than the declared ones. Then the partner will have the opportunity to refuse the transaction in favor of another brand or postpone the opening date of the store to collect the required amount.
Some unscrupulous franchisors present their requirements for payment after the repair of the outlet is done and the matter moves to the purchase of goods. By the way, this stage may also have a tight framework, requiring the purchase of new expensive collections that are not able to be sold in small cities. This leads to stagnation of goods, and sometimes franchisers send their stale goods to entrepreneurs on their own. A big problem for the franchise may be the requirement of the patron for a mandatory deposit in the bank for a large amount. This gives them guarantees that the delivered goods will be paid in any case, but may become an obstacle for a novice businessman.
In difficult economic conditions, it is better for young entrepreneurs to pay attention to multi-brand networks, with which there are much less difficulties than with representatives of only one brand.
Due to worsening conditions, many representatives of expensive brands prefer to reduce the cost of their goods and distribute them through other chain stores. Also, many today pay attention to online stores, because such trade does not require rent for premises, repairs and salaries to several employees instead of one.
Conclusion
Based on the foregoing, it is worthwhile to think carefully about opening a stationary distribution point for branded underwear, and start a business only if you are sure of success. Today, the sale of underwear is a pretty profitable business. The most important thing is not to be afraid to start doing it. If you approach the matter wisely, then everything will surely work out, and you will receive a good profit.