#精品长文创作季#
Mixue Bingcheng is not simply collecting a wave of franchise fees and doing one-time business, but controls the supply link and does a long-term business by supplying franchisees.
Author: Lv Xinyi Editor: Hexiang
出品：零售商业财经 ID：Retail-Finance
Regional protection policy?huh~non-existent.
Have you noticed that the density of Mixue Bingcheng stores in the streets and alleys is increasing? The store of "three steps and one pair" can't help but make people sigh that the whole world is a huge Honey Snow Ice City.
Source: Brand
Is this grand occasion really just because of the popularity of our Snow King? Regardless of traffic, from the perspective of business logic, the fundamental reason is that the franchise system of Mixue Bingcheng is slightly different.
Generally speaking, in order to protect the interests of franchisees, brands will give a clear distance range when formulating franchise policies, so as to avoid the two stores being too close to each other and the phenomenon of fighting themselves occurs.
In 2008, the area protection policy was 1-2 kilometers, and there was only one Mixue Ice City within this range. Later, it was shortened to 500 meters, 100 meters, and until today's zero protection distance.
Zero protection, good, good, this wave of Honey Snow Ice City has been installed by you.
On the surface, stores are blooming everywhere, but behind the scenes, there are franchisees who are not fully protected, and they are secretly crying.
Although guarding the signboard of Mixue Bingcheng, there is no shortage of traffic after the store opens, and the revenue has been guaranteed to a certain extent.
But franchisees not only have to be busy competing for business, but also have to worry about whether the "relatives" on the other side will compete with them for customer flow.
Source: Internet
From a more macro perspective, Mixue Bingcheng's actions are also quite inappropriate.
It should be clear that the stores in a city belong to the stock resources, and the stores with superior locations are even more scarce resources, which should be fertile soil for cultivating all brands, and are also important offline scenarios for consumers to diversify their shopping.
When five Mixue Bingcheng are opened on one street, it is not only a waste of store resources, but also invisibly cut off the diversified shopping needs of consumers and affect the expansion process of other brands. In terms of the feelings of franchisees and the principle of market competition, this approach is too radical and needs to be balanced.
So the question is, why does Mixue Bingcheng, as a brand, cancel the franchise distance protection policy, does it really want Snow King to rule the world?
The answer is very simple, because Mixue Bingcheng relies on this to make money! The key point is not to simply collect a wave of franchise fees and do one-time business, but to control the supply link and do a long-term business by supplying franchisees, so of course the more stores, the better!
Source: Mixue Bingcheng prospectus A storage base in Mixue Bingcheng
According to the prospectus of Mixue Bingcheng, in 2022, the income from franchise fees and management fees will only account for 2% of the business income. Most of the remaining 98% is supported by the sale of raw materials to franchisees.
Snow King also started a production base, made its own sugar, milk, and plastic cups, and reduced the cost of raw materials and freed up more profit margins through the model of self-built supply chain.
In 2022, the gross profit margin of Mixue Bingcheng in merchandise sales will be 27.8%. According to "Late Finance", in 2021, Mixue Bingcheng sold 3.516 billion cups, 8,507 tons of tea and 51,071 tons of fruits to franchisees.
Snow King, when we fly forward, can we see the current situation of joining. He is making a lot of money, but sooner or later this franchisee will have to afford infighting.