Franchised Store Model needs modifications

Seeing that the traditional sales channel of wines, such as supermarkets, restaurants and bar are growing in China, a new channel – franchised stores can probably become an important professional channel for wine consumption in the near future. After all, the wine market is maturing in China and thus new channels will definitely appear. Of course, the traditional main channel won’t change a lot in years, though new channels will emerge to satisfy more demand.

As the franchised store model is still in its infancy, it can have less powerful influence on the wine market. The actual purchase mostly happens in traditional channels. There are two reasons for such a presence. First, we have an immature wine market, where franchised stores are not strong enough. And thus current wine consumption form decides that sales will be impossible without traditional channels. Second, the operation model of franchised stores actually deteriorates its position in the wine market. Now few franchised stores are operated with a strategy for a long run. Many franchised stores are purchasing short term profit growth without considering a long-term development. The top players in the market such as SAC, Aussino, and Jointek have already realized this and implemented some modifications.

Now we can summarize the problems of current franchised stores in following five aspects. And modification shall be made in related areas.

1. There is no long term strategy of running a franchised wine store. Selling wines is actually broadcasting cultures. This shall be the core value in operating a wine store. Every move of a wine store shall focus on cultural broadcasting. The culture herein includes enterprise culture, product culture, brand culture, and consumption culture. Without cultural building, a wine store will not be recognized by wine consumers.

2. Clear functional positioning will help a wine store growth. Many wine stores in China are just places of selling wines without clear idea of its functions in sales distribution, business refreshment, and training of wine cultures. A franchised store can be an integrated place of all the related functions. It shall decide its functions before opening to the public.

3. A wine store must exhibit its professional in its personnel, store arrangement, and directions.

4. Membership is another important issue.

5. The most important factor is the selection of wines for a wine store.

Only after the above-mentioned problems in current franchised stores are modified, franchised store model can become stronger in the wine market in China.