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Think of everything from every corner

Updated on June 26, 2015

Garment Retail Franchise Business, Think Before You Dive

Garment retail franchise business is growing rapidly in many developing countries day by day due to the reason people are getting conscious in their look and styling and keep searching something new and different which will be best suitable for their personalities as well as keep them away from ordinary dressing.

We must give credit to some of the local brands which have changed the fashion sense of many people and made them ready to spend some more money for good quality products.Keeping in mind the growth of different brands, they always seek for the franchisees in some potential markets. That’s why they come up with contracts to open up their franchises in new and potential markets. It helps them to explore new markets with the expense of others whom we call “Franchisee”.

So to become a successful franchisee is not an easy job, you must know deeply below mentioned points before you dive into this business otherwise you will simply get nothing and will loss all your money for the cost of others.

Brand selection based on market need and product type: You must select a brand which is offering those products which best suit for your area and you see the deep interest of people in buying such products. Please always remember that product fits of your selected brand must be according to the body fits of your target people. For example, if your brand has the American sizes and you will open up an outlet in China and trying to sell the same sizes in China. You will not only loss customers despite having good quality and latest trendy products but also it will ruin your brand’s image. In our garment language we call it “Anthropometric” studies so you should check and get it confirmed from your franchiser if it has been done for your specific area/market already.

Investment / budgeting: Before starting this new venture,you must know that how much investment you can do in this business and how much it will require with the passage of time because in this business like others you will not be started earning profits at least during first six months so you must have sufficient capital in hand in order to bear all running expenses easily at least for one and half year.

Area selection: Before you select any area, must remember below points into your mind.There must not be any other outlet of same brand in your selected at least 6Km radius area.You must do proper survey to know the buying trend of your product in that specific area.You must know the buying power of that particular area by keeping your product value in mind. Many franchisees do above mistakes due to the lack of product knowledge and improper survey for that specific area. Many local brands trust on the reports of franchisees rather than conducting their own surveys for the selected area.In both cases, franchisee always on the higher risks so they must take every step with full confidence and proper homework.

Marketing campaigns: Many local brands are lacking in this area and are mainly relying on Internet/facebook marketing but it can never help to market your own outlet so it must have been agreed before starting thisnew venture that how your franchiser will help you to market their products as well as your outlet in that specific area.

New collections and replenishment time: More the new collections/new designs your brand launches in a year and fastest the replenishment being provided by your brand, more the revenue/sales your outlet will earn.

Conclusion: If your outlet is not giving you the expected per month sales or you are not able to get recovered your fix cost after a year then you must start thinking for all above mentioned improvements before investing on your current location further.


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