In Shaanxi, most medium-sized franchise stores have already owned 5 well-known brands, and some even have more than 8 brands. The annual sales growth of the manufacturers not only consumes a lot of human and financial resources in the franchise stores, but also the profit is not satisfactory. Self-owned brands represented by Yalijie, Tibetan safflower, Meimeichen, etc. (Note: “Own-brand†in this article refers specifically to products customized by manufacturers for franchise channels). Only franchise stores need about 30%. The island can bring about 30% of the profits with the least investment. This model has been introduced into the terminal channel by more and more manufacturers.
Self-owned brands are vying for an escalation in the Zhongdao area of ​​Shaanxi franchise stores. However, more and more private brands are approaching the edge of imitation and homogenous competition, how to reflect the differentiation of their own brands, and effective channels. Control, these will be the key factors in determining the “Nakashima Benefit†of its own brand.
     30% of the area produces 30% of the benefits of own brands, franchise stores in the island
     The new Boya Beauty Store in Beiguan Street, Yan'an City has a business area of ​​less than 100 square meters, but has introduced many famous first- and second-line brands such as Shiseido, Goss, Maybelline, L'Oreal, Nature Hall and Maru, throughout Yan'an. The district occupies a leading position in the category A franchise store.
However, the most characteristic of the new Boya Beauty Store is the Nakajima area. The distinctive brands such as Tibetan safflower, Meimeichen, and appropriate herbals occupy 6 beautiful Nakajima cabinets, and two other candy cabinets and a pylon. Stacks of beautiful make-up, personal care and toiletries. The clerk of the new Boya Beauty Store said that the Nakajima area's own brands are usually guaranteed to be 3-5, and sales can account for about 30% of the entire store. It is also the most attractive category for customers.
Although New Boya Beauty has almost included a second- and second-line brand, the strategy of fully exploiting the Nakajima region and relying on differentiated specialty brands as its own products has spread in Yan'an: Xinhua Daily, Founder Daily, Twelve Music Square Such franchise stores, using 30% of the area to open the Nakajima container to introduce 3-5 distinctive differentiated brands, complete the store's turnover of more than 30%, to achieve a substantial increase in consumer store, purchase rate and profitability.
Coincidentally, Baoji Dingding Daily Chemicals Co., Ltd. has also introduced personal care products such as “Made Women†and “Beautiful Beauty†as the regional differences in the first and second-line brands such as Maybelline, L'Oreal, Kazilan and Jinpolai. At the same time, the brand has launched its own brand with the brand name “Dingding†as the main brand, and has set up distribution outlets in many cosmetics stores in Baoji City, becoming the most representative private brand of Baoji. Another Mei Yichen personal care lifestyle supermarket, which opened shortly on the pedestrian street, has an area of ​​400 square meters. The differentiated brands of Zhongdao cabinets and open shelves account for 70% of the total, and the number of brands exceeds 100.
In fact, the "Nakajima effect" has attracted widespread attention in most franchise stores including Xi'an, Baoji and Yan'an. Due to the closed management of well-known terminal brands, and the area occupied by counters is large and the profit rate is not ideal, most B C-type stores are struggling to introduce well-known brands, learning the experience of Watson's specialty stores to develop their own brands, and using the larger Nakajima area to introduce Yalijie, Tibetan safflower, special color makeup and personal care products, which can enrich the franchise. The variety of store products, and can maximize profits.
　　 “Zhongdao cabinet products are actually equivalent to the franchise stores' own brands. They all achieve the dual influence and profitability of franchised stores through differentiated positioning and minimum investment.†Zhou Beichi, sales manager of Shanghai Mingyang Yalan Cosmetics Co., Ltd., said. Most of the early cosmetics franchise stores also had Nakajima cabinets, but they were used to display toothpaste, toilet paper, washing powder and other daily necessities, and did not give full play to the advantages of the Nakajima cabinet to establish the image and volume. With the success of the Watsons model, more and more franchised stores use the Nakajima area to display differentiated brands and exclusive sales of their own brands, so companies such as Yalijie, Tibetan safflower, and appropriate herbals also seize the end market. Unique needs, manufacturers and franchise stores have enough room for development. At present, Shanghai Mingyang Yalan Cosmetics Co., Ltd. is also developing the franchise store's own brand “Duoyuan Commune†to comprehensively develop the cosmetics franchise store in the Nakajima area.
     “Nakajimaâ€: Finding the balance between profit and popularity
     In fact, in the 60-square-meter Baoji Dingding franchise store, the well-known brand image counter area only accounts for about 30% of the business area, and the differentiated brands and private brands account for more than 50% of the total. Manager Lin Dingding said frankly, “I used to eat a loss on a well-known brandâ€: In the early days, the company has represented small nurses, Ding Jiayi and other famous brands in the Baoji market. After investing huge manpower and material resources, these brands are finally in the market. Recognized, however, the brand manufacturers transferred the agency rights to more powerful agents, and the company once fell into a development dilemma.
“Since that experience, Dingding has determined the long-term goal of developing its own brand.†Lin Dingding said that in order to promote the “Dingding†brand in the Baoji market, the company has already placed certain advertisements in the local media and considered it appropriate. At the time, the brand counters will be introduced into department stores to enhance their image and influence.
Not every franchise store has such a tortuous experience, but the low investment and high gross profit of its own brand is an important reason to promote the warming of the island effect in cosmetics: 10,000 yuan starting manufacturers to present beautiful Nakajima cabinets, candy cabinets and racks According to different seasons, the product guarantees an update rate of more than 20%; in order to meet different market demands, there are usually more than 100 self-owned brand items, and some can even reach 700; no need to increase the clerk and excessive promotion, 30% The Nakajima area easily completes 30% of the store's overall benefits. The many advantages of these Nakajima brand brands cannot prevent most franchise stores from taking the initiative. Â Â Â Â Â Â
　　 Most dealers said that from the manufacturer directly to the terminal store to face customers, the self-owned brand after the flattening of the channel at least increased the gross profit margin of the franchised store by 10%, and the average gross profit margin of the franchise store was also improved. In addition, Nakajima’s own brands can effectively increase commodity trading opportunities, total sales, and customer unit prices, and many manufacturers have followed the “Yalilijie Model†to launch franchised stores exclusively for brands, which are driving high gross profit margins and operating income. At the same time of the horizontal situation, it also provides opportunities for differentiated management and development for many small and medium-sized cosmetics stores.
However, from the survey of cosmetics stores in Shaanxi, the original brand area that can be built by one brand and four Nakajima cabinets has grown to 3-4 brands, 6-8 Nakajima cabinets, and candy cabinets. And the large-scale Nakajima area of ​​the rack, even the scale influence exceeds the brand image counter. Although the Nakajima multi-brand strategy makes the category more abundant and attracts more consumers, it also proposes the goods management and inventory aspects of the franchise stores. Higher requirements, and disadvantageous for establishing a clear franchise style.
According to industry insiders, due to the rapid increase in the number of private brands, the original differentiated features are difficult to avoid mutual imitation, and gradually show signs of homogenization. Even some of their own brands are “small reforms†of well-known brands, lacking core. The value of the private brand finally became a short-term profit tool. Nakajima, a franchise store, should concentrate its resources on promoting 1-2 private brands, so that it can find the best balance between sales profit and franchise store positioning.
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