Why Are Franchisees Attracted By The Home Of Hai Lan?

Very few.

Brand can be directly linked to a consumer group, but

Standing firmly in the position of "men's clothing national brand".

In the tide of shop closet, Hai Lan's home opened shop against the trend. In the first three quarters of 2016, there were 972 new stores, equivalent to more than 100 stores on average. At the same time, there were more than ten billion revenue in the three quarters, ranking the top of the total retail revenue of the national garment retail industry in the first three quarters of 2016.

The home of Hai Lan has been deeply rooted in the hearts of the "two times a year" and "men's Wardrobe". At present, there are 4962 stores (up to September 30, 2016), but not one of their own factories, most of which are franchisees.

Ever threatened to follow

What's the bottom line of the founder Zhou Jianping? How can he expand the market value by 80 billion? Why is there a controversy over franchised stores?

From 300 thousand to 80 billion

In 1988, Zhou Jianping, the founder of Hai Lan's home, took 300 thousand of the photo studio, contracted the third woollen mill in the town, and began to dress.

28 years later, the market value of the "woolen mill" has doubled 267 thousand times, and has grown to be the largest clothing enterprise of A shares with a market value of over 80 billion yuan, the Limited by Share Ltd of Hai Lan home.

In the financial analysis agency Standard & Poor's announced the "global market value of the highest clothing accessories luxury goods company 25 list", from China's "Hai Lan home" ranked fourteenth.

According to statistics from China apparel network, in the first three quarters of 2016, the total revenue of 28 listed companies in the national garment retail industry was 69 billion 251 million yuan.

Among them, Hai Lan's home is the top of the list, with a revenue of 12 billion 67 million yuan, accounting for 17.4%.

In the data released by the National Bureau of statistics, the net profit of 28 retail companies listed on clothing was 8 billion 971 million yuan, and the net profit margin decreased by 1.47% compared with the whole year of 2015, the first quarter of 2016 and the first half of 2016.

Cheng Weixiong, an expert in China clothing network column, said in an interview with "one service", "from the data, we can see that the macro market environment has not been fundamentally improved."

Zhou Yong, an analyst at Shanghai Business School, said that China's retail industry is facing changes in consumer demand, changes in marketing environment and revolution in business mode. No matter whether traditional retail or electronic retail industry is looking for new development ideas.

In this regard, in the first three quarters of 2016, Hai Lan's home belonging to 2 billion 414 million of the net profit was not too worried, while the number of stores was expanding wildly.

At present, the brand stores of Hai Lan's home have reached 4962, covering 31 provinces in the whole country, covering more than 80% counties and cities.

"I'm going to fight with UNIQLO!" three years ago, in September 3, 2013, Zhou Jianping made a speech at the investor meeting.

In fact, the location of Hai Lan's home and UNIQLO is different. In Zhou Jianping's view, the development mode of "UNIQLO" is the goal of learning and imitation.

The so-called "challenge", he is more inclined to understand as a kind of self motivation or strong vision.

There are 972 stores in the opposite direction, and 99.8% are franchised stores.

With the rise of clothing business, the performance of many clothing brand stores has been declining, and Boateng, seven wolves and Giordano clothing brands are also caught up in the shop.

With the slowdown of sales in the clothing industry, Hai Lan's home has quietly added 972 stores in the first three quarters of 2016, and has gone crazy to expand channels.

Among them, the "Hai Lan home" has increased by 556, and the "love of the rabbit" has increased by 239, and the "sea family" has increased by 177, and the total number of stores has increased from 3990 to 4962.

It is worth noting that only 2 of the 972 stores added by Hai Lan home are direct stores, and the rest are franchised stores.

In the first half of the year, the revenue of Hai Lan's home stores and shopping malls reached 7 billion 670 million yuan, compared with 142 million yuan in the outlets.

Xue Danqing, a representative of the securities business at Hai Lan home, told the interface news: "80% of the new stores in Hai Lan's home can be profitable in the year."

Why have franchisees been attracted by the home of Hai Lan? According to the world clothing and shoe net, the franchisee of Hai Lan home does not enjoy franchisee's management rights, and only needs to bear the risk of rent and daily operating expenses. The products that can not be sold can be returned to headquarters.

This means that franchisees do not have to bear the risk of unsalable goods, and the attractiveness of affiliate increases greatly.

In addition, according to the "fortune ten years" analysis, the number of net sales increased by 605471497461 and 263 per year in the first 2011-2015 years.

In the case of collecting bond margin, the number of net increase stores decreased slowly in 2011-2015 years, and from 2016, the company relaxed the demand for joining, and did not receive or reduce the margin, so that the net sales increased to 972 in the first three quarters of 2016.

Franchisee dispute

As a large clothing enterprise with nearly 5000 stores, Hai Lan's home does not have a factory of its own.

According to the "rich diary" report, Hai Lan's home works with hundreds of upstream suppliers, and the upstream suppliers produce products according to the company's design center.

According to the world clothing and shoe net, the analysis said: "in fact, the risk of inventory is pferred to the upstream suppliers.

In this mode, the Hai Lan House controls the upstream product planning, brand management, and the downstream supply chain management and marketing network management, while the intermediate product design, garment production, pportation and distribution links are outsourced.

The family of Hai Lan itself plays a role of OEM and upstream and downstream, and the risk of its own expansion is greatly reduced.

In addition, this franchise mode is also controversial.

Public information shows that the joining conditions of Hai Lan home are 1 million yuan deposit for franchisees, and the operation of franchisees is directly managed by the headquarters of Hai Lan home.

Hai Lan's home can provide guaranteed returns to franchisees, ensuring that the franchisee's accumulated pre tax profit of 5 years is not less than 1 million yuan, and the franchisee must pay a franchise fee of 60 thousand yuan / year.

According to the world clothing and shoe net, according to the interface news reports, some lawyers believe that Hai Lan's house violates the financial market management rules, and is a disguised lending behavior. It is suspected of illegal operation and illegal fund-raising. If the chain of funds appears, it will face greater risks to join the chamber of Commerce.

More interesting reports, please pay attention to the world clothing shoes and hats net.