First of all, we analyze the Hailan House, which has achieved great success in the fashion industry with a hosted franchise model. Among the many project operations of the Hailan Group, the successful operation of the Hailan House alone has revitalized the entire group, which undoubtedly illustrates this. The power of mode!

Enterprises are in trouble. How does Hailan House turn around and turn a profit into a profit and become a Chinese clothing retail giant in one fell swoop?

1. Consumer group positioning Hailan House consumer group positioning: All male consumers over 18 years old "Men's wardrobe" membership system: no membership system;

2. Product positioning Product positioning of Hailan House: suitable price, guaranteed quality and multiple choices; product categories: clothing, leather shoes, leather goods, bags, small accessories, etc .;

3. Supply chain Hailan House supply chain: suits are produced by themselves, and other categories use the purchase and sales + end-of-season return system (or low-end buyouts in the end of the season); all unsalable products can be returned and exchanged;

5. Franchisee Hailan Home Franchisee: The cooperation threshold is relatively high, 1 million guarantee for goods, which is prohibitive for many small investors, but the guaranteed income of at least 1 million pre-tax income for five years still attracts Hailan House A large number of powerful investors;

6. The number of stores The number of Hailan House stores: more than 1,000 exhibition methods: Managed franchise site selection strategy: "Golden area, diamond shop" as the location of the "Character Classic"; Store area: 200-1000 square Cost: A franchisee invests at least one million yuan to open a network marketing business;

7. Market Layout Hailan House has successfully expanded to cities such as Jiangsu, Shanghai, Beijing, Sichuan, Shandong, Henan, and Liaoning (the in-depth development of regional cities drives the surrounding cities), with more than 1,000 stores. Its goal is With over 5,000 chain stores nationwide, Hailan House has been built into a large-scale modern clothing company with strong brand, well-managed, leading technology and leading fashion.
The model of Hailan House and other companies is based on the ZARA-style SPA model, to learn and innovate. By integrating production resources and product development resources, it focuses on the creation of retail terminal profit models and the improvement of terminal operation and management levels. Finally, in combination with the current state of the Chinese market, network scale expansion will bring overall development and benefits.

Among them, Hailan House is further upgrading its single-store profit model into a financial product, thereby achieving the integration of social resources and capital, and reducing development risks on the basis of improving capital efficiency. Higher requirements are also placed on the profitability of a single store. Therefore, the rationality of operating costs and the support of brand value-added will be its core key factors.

Hailan House Profit Structure
1: Actual benefits:
Through terminal chain operation system and brand system operation, expand chain terminal profitability and brand added value, improve brand value income and end product value sense;

2: Integration benefits:
By integrating upstream suppliers, downstream franchisees, and commercial real estate partners, large-scale operations can be achieved to gain integration revenue;

3: Revenue Copy:
The single-store profit model and franchise income model are continuously copied to achieve repeated profits.

So companies need to pay attention to:
Corporate profits (maximize) = reduce costs (maximize) + improve store business performance (maximize) + other profits (such as membership cards, e-commerce).

Chain companies can maximize their own profits from three aspects:
On the one hand, strengthen the internal process and standardized management of the general department, reduce management, labor and product costs, and improve work efficiency;

On the other hand, strengthen the standardization of storefront operation management and brand operation level, improve the profitability of single stores, thereby increasing product value, service and brand value, increasing sales performance and profitability;
At the same time, it can also drive sales of membership cards and e-commerce.

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