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What are the advantages and disadvantages of direct operation and agent joining mode? Where does it generally apply?
Regional agent: there is a big difference between being a product agent and being a distributor. If we are agents, all the sales contracts signed by the other party on the finished products will be borne by us, which requires a considerable trust relationship between us and the other party. In the case of distribution, we only sell the products to the other party, and the other party will sell them in the agreed area. We do not assume the legal responsibilities (except product responsibilities) that the other party should bear for further sales. In this respect, you are the person in charge of this brand: it refers to the organization and operation mode in which the franchisee (franchisor) allows the franchisee (franchisee) to use its name, logo, proprietary technology, products and management experience to conduct business activities in a contractual manner. The main advantages are: the franchisor can achieve the goal of scale operation only by investing in brand and management experience, not only can get returns in a short time, but also can quickly upgrade intangible assets. Franchisees can get help and support from experienced franchisees in site selection, design, staff training, market and so on, so that their operations can quickly move towards a virtuous circle. Direct marketing: refers to the chain stores directly operated by the head office, that is, the business form of retail outlets directly managed by the head office of the company, which has no franchise stores. The headquarters adopts the deep management mode and directly controls all retail outlets. Undoubtedly, retail outlets must fully accept the command of the headquarters. The main task of direct chain is channel operation, that is, to obtain profits from consumers through the expansion of operating channels. So direct chain is actually a management industry. From the relationship: direct selling is the brand's own business, and has nothing to do with others! Franchisees are the bottom investors who invest in this brand! As for agency, the main stakeholders are investors, which is the superior-subordinate relationship between investors.