Daphne's Franchisees Protest Against The Renewal Of The Contract.

Since 2000, famous brands shoes Daphne has shifted its channel strategy from agents to self owned stores, and now the proportion of direct brand shops has increased to about 83%. Behind the figures is the embarrassment of the national franchises who have encountered the company's unilateral failure to renew their contracts. The reporter interviewed two representatives of franchisees to explore the storm of "not being renewed" for nearly a year.

Daphne notifises franchisees not to renew their contracts

When the typhoon struck, suddenly Shanghai howled and howled. Wang Xia and Hu Jing, who are the two allies in the business network, are sad and puzzled. They tell reporters about the painful experience of the year.

In November 16, 2011, Hubei Daphne franchisee Wang Xia (pseudonym) received Daphne product's quarterly product orders as usual. A few hours later, the headquarters made second calls unexpectedly. "We will not renew your contract with you next February."

No reason, no aftermath, Wang Xia suddenly limp. Not only is Wang Xia, but the Daphne franchisees all over the country are experiencing this life and death. The storm started in Changsha, Hunan. In November 2nd last year, the 46 Daphne franchisees from Hunan joined the banner of the "anti dictatorship hegemony treaty" in the downtown area of Changsha.

　　 Daphne The franchisee and the group sign a contract every three years. According to Wang Xia, the franchisee, whose contract expires at the end of 2011, will renew it for another three years, and will not renew the contract after 2012.

Wang Xia's shop is due to expire in February 29th of this year, and it should take the initiative to reconciliate the accounts and return the franchise authorization. According to her description, Daphne headquarters has made an oral promise that it will renew the contract three years later unless the franchisee automatically gives up.

Another franchisee Hu Jing said that the first contract cycle is the initial stage of investment, and the franchisee has gradually returned from the fourth, fifth year. At the time of signing the contract, she paid twenty thousand yuan to join the fee, five thousand yuan CI deposit, thirty thousand yuan futures deposit, and invested about one million before and after. Thirty thousand yuan futures earnest company did not issue invoices or related credentials, Hu Jing said, if refused to pay the money, the company will stop shipment.

Like Wang Xia, the two have not recovered their cost now. "I quit my job, turned off my old business and joined Daphne. Women's Shoes . I work hard every day, dedicate my youth to this store, and I even want to sell my house to a branch, but now there is no hope. " Hu Jing sighed.

Be besieged on all sides

In order to get rid of franchisees, Daphne set obstacles from its source, price and location.

The first is supply. Daphne has launched YOUNG and impressions two series products in three years. It has always been sold in Direct stores, and franchisees have never received relevant products. "We asked why, and the headquarters replied that because the inventory was too large, the outlets were selling to digest inventory." Wang Xia said helplessly.

Hu Jing said that since the occurrence of the "no renewal" storm, the delivery speed is slower than before. Before fighting, the goods usually arrive for a week, and now each purchase is at least half a month later than the direct store.

"If the shoes have quality problems, one or two pairs of shoes can also be returned to the company. If there is a problem with dozens of pairs of shoes, the company can only handle it by itself."

In terms of price, Daphne started the 99 quarter sales promotion campaign in the whole country in August 17th, but the price of the summer sandals for the franchisee is 120 yuan, and the headquarters does not provide any subsidy for the difference. {page_break}

The location of the direct shop is most painful to them.

According to Daphne international 2012 semi annual report, the company's net sales increased by 366 in the first half of the year. The company said that after joining 411 direct outlets and reducing 45 franchised stores, the proportion of the core brand stores increased to about 83%.

"Our franchisees nurtured the market hard, and our headquarters opened direct stores in the stores not far away from the franchisee. They have large shops, plenty of goods and many kinds of resources, so it is easy to take away our market share."

　 Huge amount of investment in franchisee

What will the franchisees do when they do not renew their contracts? How do Daphne set them up?

"Only when we hand in the shops free of charge do they agree to help part of the inventory. footwear 。 Shop design and decoration are their own money, in the past three years, I eat and sleep in the shop, and how much food I eat to open the market step by step. It is really not my pleasure to hand in a shop to the market.

Hu Jing owns a double door shop with the largest specifications and is in downtown area. Now she has invested 1 million yuan, and she never thought that her own business would be like this.

She said that after the shop was handed over, the company would deal with the stock quarterly, and then pay back the money at the market price in the season.

Compared with Hu Jing, Wang Xia's single head shop is too small because of its small store. Although the contract expired, but after the collective protest of Hubei franchisees, headquarters approved her shop can be operated for half a year to digest the remaining stock.

Half a year, still can not get three years can not recover the cost, but also can not pick up the already broken future.

Since 2000, Daphne has shifted its channel strategy from agents to self owned stores. Experienced online e-commerce cuts, the traditional business of Daphne offline is also suffering from the transformation.

Whether the strong protest of franchisees will be properly handled and how to carry out the transformation under the Daphne line will continue to be concerned.