Mingchuang is simply the Avengers League

It can open 3,000 stores in 4 years. In today's closing tide, this is a myth. Myths can never be done by the power of a team.

Peter Til said: The development of human history is divided into two types, one is called horizontal progress, and the other is called vertical progress.

What is level improvement? It is from 1 to N. It’s as if I opened a store and copied it to 100+, or 1000+.

What is vertical progress? It is from 0 to 1. It's as if you didn't have a store before. You are now opening a store. This is a process from scratch. This process is called vertical progress.

When the traditional retailers frequently close the store, Mingchuang Youpin has made a flower in the country.

This article will focus on how the Chuangchuang Excellence products complete the process from 1 to N by creating the Avengers Alliance.

Where is the difficulty from 1 to N?

The first question facing from 1 to N is a multiple Newchic Coupon choice question. Is it expanding through the “direct mode” or through the “join mode”?

Direct mode: refers to direct investment by the company headquarters. The ownership and management rights are centralized and unified at the headquarters. Centralized leadership and unified management by the headquarters. Each direct chain manager is an employee and not an owner. The disadvantage is that the expansion speed is slow. The advantage is that it is stable and steady, and every detail of the store is controllable.

Affiliate mode: The ownership and management rights of the store are no longer unified at the headquarters, but scattered in various franchisees. The disadvantage is that after more people, the model becomes more complicated, and the store operation efficiency is difficult to guarantee. The advantage is that the expansion is fast.

For the famous products, there is no choice. Certain, necessary, certain, must, is to "expand quickly." Can only choose to expand the fast joining mode.

First of all, Mingchuang Youpin needs to be in the Chinese market and needs to seize the window of 10 yuan in China. The bonus period may exist for a while, but the window period is extremely short. I missed the window period and may have missed becoming a national company. Convenience stores do not have national enterprises in China, and each region has several representative works of different brands. In order to avoid the convenience of the convenience store, Mingchuang's excellent products need to be copied quickly and occupy the market.

Secondly, Mingchuang's excellent products are doing economies of scale. The small department store sells at a low price and earns money. Only by expanding the scale can we increase profits. At the same time, where does the famous bargaining power in the upstream come from? Why can he get such a low price? It is also because of his large quantity.

Therefore, he can't be steadily and only open to direct sales, only to join.

Where is the joining model difficult?

How do you find a franchisee? Why not find a wow. The requirements of Ming Chuang are too high. His franchisees need to help him win the most expensive location. The most expensive part is not only available for money.

There are many large shopping centers in China, such as Impression City, Yintai, Vada, Kaidemao. Strong investors have taken the entire system down. Others want to enter the money, and can't solve all the problems.

The franchisees that Ming Chuang wants to attract are not the small bosses in our traditional sense.

What Ming Chuang wants to attract is the original channel system, which is experienced and old. These people come from the traditional retail industry, joined many chains, held the shop in their hands, and experienced many ups and downs. They are the victims of the shop-opening business, the business does not make money, and the land in the home is useless.

They have land, but there is no pattern.

It is like a program is a profession, a teacher is a profession, and a chain store franchisee is also a profession.

How can you attract the franchisees of these channel systems? How do you let these franchisees think that this business really makes money?

We use a tea shop to look at the concept of gross profit.

Milk tea costs 10 yuan and costs 2 yuan. Gross profit refers to the part of a commodity that is added after it has been converted into an internal system. Roughly speaking, it is the "sale price" - "cost." Therefore, the gross profit of milk tea is 8 yuan. The gross profit margin of milk tea = (price 10 yuan - cost 2 yuan) / price 10 yuan = 80%

Selling this cup of milk tea requires a tax of 1 yuan, a rent of 1 yuan, and a profit of milk tea = 8 yuan - 1 yuan - 1 yuan = 6 yuan.

So you can see how the franchisees measure whether a model makes money, mainly whether the profit is 6 yuan. Be careful again, look at the turnover and gross profit margin brought by this franchise model.

The Avengers - How to increase gross margin?

The gross profit margin of Mingchuang Premium to the franchisee is 38%. Today sold 100 yuan, Ming Chuang hit 38 yuan to the franchisee bank account.

How high is this? The franchisees have been in the market for three months. Even the agents of branded clothing have changed their clothing stores into famous products and helped the famous products to expand rapidly.

In the upstream, Mingchuang increased the gross profit margin by reducing the price of goods by taking a lower price and lowering the price of goods. After raising the gross profit margin, part of it is distributed to the franchisees, and part is reserved for itself.

The gross profit margin is distributed to the franchisees 38%, and Mingchuang claims to only stay 8%, so you can know that Mingchuang is actually doing a business with a gross margin of 50%. The gross profit margin of Japan’s 10-yuan store industry is about 40%.

In summary, the advantage of franchisees is that there is land, and the advantage of Mingchuang is that there is a high gross profit margin. Strong Alliance, Avengers Alliance~

The Avengers - How to increase turnover?

100 square meters of stores and 300 square meters of stores, turnover can not be compared. So how do franchisees see whether the franchise business earns money? Look at the efficacies, that is, 1 square meter can produce tens of thousands of turnover.

If the franchisee's store is 80 square meters, the turnover is estimated to be 80 square meters * ping effect.

In the promotion of the turnover model, Mingchuang has once again opened the Avengers mode.

The three elements of retail, people, goods, and fields.

The famous Avengers model focuses on the innovation of “field”. The traditional direct mode is responsible for the headquarters inside and outside the store. The traditional joining mode is responsible for both the inside and outside of the store.

The model of Mingchuang is responsible for the operation of the “headquarters” in the store. The "franchisees" outside the store are responsible.

What does it mean? The external environment of the store includes business and industry, taxation, sanitation, rent, shop decoration, water and electricity, etc. The franchisee is responsible for management. The internal environment of the store, personnel management, accounts, inventory, procurement, shipping, etc., all the famous products are managed.

After the franchisees have invested in the money, they can wait for the achievement. There is no franchisee for the famous products, and only the investors are famous.

The advantage of this model is that through store hosting, comprehensive and refined operations, greatly improved the effectiveness. The name of the founder joined the shell, and made a direct effect.

How expensive is the operating cost of the store? Lei Jun once said that Xiaomi stores: “The best level of efficiency for Chinese retail stores was about 12,000 yuan, and we have achieved 20 times this efficiency.”

“At the 2017 Shanghai International Business Conference China Consumer Economic Transformation and Upgrading Summit Forum, Xiaomi Chairman Lei Jun revealed in the keynote speech that as of August 28th, the cumulative passenger flow of Xiaomi’s offline store has exceeded 15.7 million person-times. They all sold 5.19 million yuan, and the annual efficiency reached 270,000 yuan. The annual efficiency was second only to Apple retail stores.

According to Mingchuang's public data, the famous A+ store, Wangfujing has an area of ​​131 square meters, a monthly turnover of 2.6 million yuan, a monthly efficiency of 20,000, and an annual efficiency of 200,000.

Is it terrible? This is the department store that is still sold.

In summary, the advantage of the franchisees is to invest in Mingchuang, and the advantage of Mingchuang is that the store is managed to improve the efficiency. Strong Alliance, Avengers Alliance~

to sum up

When the traditional retailers frequently close GeekBuying Coupons the store, Mingchuang Youpin has made a flower in the country. How to complete the process from 1 to N by creating the Avengers Alliance.

The advantage of franchisees is that there is a store, and the advantage of Mingchuang is that there is a high gross profit margin.

The advantage of the franchisees is to invest in Mingchuang. The advantage of Mingchuang is that the store hosting improves the efficiency.