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project on allen solly franchise
Typology: Thesis
Uploaded on 02/14/2018
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Allen Solly,an initiative of Madura Fashion & Lifestyle, a division of Aditya Birla Fashion and Lifestyle is one of India’s largest and fastest growing apparel companies. It is a premium lifestyle player in the retail sector. After consolidating its market leadership with its own brands, it introduced premier international labels, enabling Indian consumers to buy the most prestigious global fashionwear and accessories within the country. The company’s portfolio includes product lines that range from affordable to luxurious, high-end styles and cater to every age group, from children and youth to men and women. Madura Fashion & Lifestyle is known by its brands — Louis Philippe, Van Heusen, Allen Solly, Peter England — that personify style, attitude, luxury and comfort. It also includes India's first fast-fashion youth brand, People ; India’s largest fully integrated fashion multi-brand outlet chain, Planet Fashion ; India's largest premium international brand retailer, The Collective and the British fashion icon, Hackett London's mono-brand retail in India. ABFRL has acquired exclusive online and offline rights to market the global brand – ‘Forever 21’ and its existing store network, in the fast-fashion segment in India. To expand its international portfolio, ABFRL entered into exclusive partnerships with two of UK’s most successful fashion brands, ‘Simon Carter’ and `Ted Baker’.
Allen Solly, with its Anglo-American heritage, has gone for a brand rejig, the first one since the Aditya Birla group obtained the world rights to the chain in 2001.
out trenims—a hybrid between trousers and denims—around October. A few months ago, it had come out with Friday Dressing for women as well.
On whether any other brand owned by Madura Fashion & Lifestyle had undergone a brand change, a company executive replied, “none right now”. Besides Allen Solly, the brands under the Madura fold include Louis Philippe, Espirit, Van Heusen, Peter England, People, The Collective and Planet Fashion.
Towards the end of the 20th century, Allen Solly was taken over by Madura Garments (now Madura Fashion & Lifestyle). In 2000, the Aditya Birla group acquired Madura Fashion & Lifestyle, and one year later got the worldwide rights to the Allen Solly brand. While 75 per cent of the chain’s revenue comes from work casuals, another 25 per cent comes from casuals. Also, against 75 per cent revenue from menswear, 25 per cent comes from womens wear.
Franchise Owned Company Operated (FOCO)
This model is adopted by Companies when they want to reduce their capital expenditure and expand faster in an already established market or in a known market. In this model the franchise owns the business but the brand and the operations is handled by the company with regular reporting done to the franchisee on performance of the business. The franchisee can oversee the business and question the Company in case of poor performance. This model is usually signed under profit sharing
basis where in the company gets a bigger share of the profit compared to the franchisee as it is company operated. A good example for this model are Exclusive Brand Outlets in fashion and lifestyle retail segment where the brand operates the business with its staffs as per its standards and the business is owned by a local or national franchise.
Process & condition of acquiring the franchisee
license:
Firstly, the interested party has to apply to the desired brand’s website with details of the location of store, the population of that particular area, initial investment capability, financial strength of the party etc. Then if the franchisor is interested in his proposal, they will send an official to conduct a location survey in order to verify the details and if they are satisfied with the results, they will allow to the applier to start the franchisee in that particular location.
The details which the company looks for in the interested party before going for the franchisee contract are as follows:-
Different Process involved in running business:-
Training is conducted by the franchisee end in almost regular basis to empower each CCEs in different fields such as billing, handling system work, inventory update, customer management etc. Training is provided by an eminent brand trainer in mostly regional offices and the key area of concentration is on product knowledge, Customer management skill, communication skill, situation tackling skills etc.
There are detailed operating manuals for franchisees and the franchisee training is provided in Delhi, Bangalore, Mumbai, Pune, Ahmedabad, Hyderabad. Field assistance is also available for franchisee. An authority from the Head Office provides assistance to franchisee in opening the franchise. Employee management is also done by the brand. The employees
are generally called Customer Care Executives (CCE) or Fashion
Consultants, who helps customer to choose appropriate apparels
and try to upsell certain apparel through different sales techniques.
These executives are given targets and if they achieve more than
the target, they are awarded with incentives and appreciation
through awards such as “Star Performer”, which is important for
employee retention.
Day to day challenges faced by the Franchisee
in running the business:
Return policy:-
Ladies apparels are among the most frequently exchanged items in the outlets which are to be handled with care. The normal return policy for product is within 15 days of buying. If some customer comes with a complaint that the apparel bought has a problem of color fading after 2 – 3 months then first the store manager try to handle the problem & if not solved then the apparel is sent to the company for further verifications. If the product is found to be a genuine case, then the apparel is exchanged for a new apparel of
same amount or same variety. If it was found not to be a genuine case or found to be tampered or mishandled by the user then the whole problem is narrated to the customer and some benefits are given if the customer is a loyal purchaser of that Outlet.
Role of the manager in decision-making:
If a particular store manager is not satisfied with the current offers provided by the particular outlet, he/she can freely give his/her feedback & the offers can be improved according to the demand of the location. Offers according to the regional festivals & special occasions can be improved by the brand outlet manager.
Competitor Analysis:-
Apparel outlet of RELIANCE TRENDS (Patia) can be currently considered as the closest competitor of Allen Solly operating in the same line of business in the same region.
Reliance Retail Ltd. is a subsidiary company of Reliance Industries. Founded in 2006 and based in Mumbai, it is the largest retailer in India in terms of revenue. Its retail outlets offer foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods, and farm implements and inputs.
Surprise Audit:
An authority of the brand would make surprise visits to the franchisee’s outlet in order to ensure high standards of performance. The element of surprise in an audit can be both with regard to the time of the audit, that is the selection of the date at which the auditor visits the client’s office to carry out the audit and the selection of the items which are subjected to audit. 3. Surprise checks are mainly intended to ascertain whether the system of internal control is operating effectively and whether the accounting and other records are prepared concurrently and kept up-to-date
Other Learnings:
