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In today's business environment, chain companies are like trees that thrive, and partners are an indispensable source of nutrients for the growth of these trees. The construction of partners is not a simple task, it requires the support of long-term business philosophy, systematic business planning, sound selection and training system, partner system and culture. As a leading fruit chain brand in China, Baiguoyuan's development history and business model have attracted much attention from the industry.
Since its establishment in 2001, Baiguoyuan has experienced the transformation from the franchise model to the direct sales model, the internal partnership model, and then to the franchise model. Especially in the implementation of the store partner system, Baiguoyuan has demonstrated its unique business wisdom and strategic vision.
Source: Yima Aladdin information
On March 28, Baiguoyuan Group (02411) released its 2023 annual performance report.
In 2023, Baiguoyuan Group achieved significant performance growth, with both revenue and net profit achieving steady growth. The annual revenue reached 11.39 billion yuan, and the net profit was 362 million yuan, a year-on-year increase of 11.9%.
Store partner system
An important move to turn losses into profits
During the exploratory phase from 2001 to 2007, Baiguoyuan experimented with the franchise model and opened 100 stores. However, due to the lack of an effective chain system and control, Baiguo Yuan has been in a state of loss for seven years.
The experience of exploration and trial and error during this period made Baiguo Yuan realize the importance of the chain system. In the case of tight funds, Baiguoyuan chose to cooperate with Yima Industrial Group to open the road of standardized replication and expansion, and then continued to deepen cooperation and opened Yima chain escort service. Through several years of hard work, Baiguoyuan has formed its own chain standardized operation system, and successfully achieved replication expansion and talent fission.
Subsequently, the construction of Baiguoyuan's store partner system is the key to its phased development and breaking the circle.
Source: Yima Aladdin information
This system allows the store manager to become the main investor of the store, and realizes the deep binding with the store manager and shares the profits of the store. This model not only solves the problem of investment in store opening funds, reduces store operating costs, but also improves employee work efficiency and job satisfaction.
Source: Yima Aladdin information
In terms of equity structure, the equity of Baiguoyuan's stores is jointly held by the store manager, the area manager and the regional franchisee. This structure not only ensures the decision-making power and management power of the store manager, but also gives full play to the professional ability and resource advantages of other shareholders. In addition, Baiguoyuan has also established a store manager training program to ensure that each store can output qualified new store manager candidates, providing a steady stream of talent support for the rapid development of the enterprise.
The construction of the partner system of Baiguoyuan stores has gone through a process of continuous exploration and evolution. With the changes in the market, the upgrading of the strategy, the improvement of the operation system and the need for brand expansion, based on the principle of co-creation and win-win ecological cooperation, the roles and responsibilities of partners are constantly adjusted and optimized, and gradually from "internal partnership" to "external partnership" - franchise model, so as to achieve both fast and stable, both connected and locked. This is the real charm of a successful chain business model - direct partnership, partner franchise, franchise direct operation.
The authorized franchise store of Baiguoyuan is the "common business" operated by the franchisee and Baiguoyuan, and it is a business partner. Franchisees and Baiguoyuan divide responsibilities and cooperate according to their different resources, and share profits in accordance with the "gross profit distribution rules".
Baiguoyuan's emphasis on the partnership system and its insistence on quality have enabled it to maintain a leading position in the fierce market competition, and provide useful reference and inspiration for the development path of chain enterprises. Through systematic business planning and layout, talent echelon training for core key positions and enriching and developing the store partner system, Baiguoyuan has gradually built an efficient, stable and sustainable chain fruit snack empire.
Chain enterprises at different stages of development
The four forms of a partner
In chain operation, the cultivation and replication of talents is the core challenge, and the expansion of stores is actually the expansion and replication of talent capabilities. According to different business scenarios and store characteristics, a variety of partnership models can be adopted to maximize the role of talents and achieve steady growth in performance.
For independent operation of single stores, or the distance between stores is far away and cooperation is inconvenient, chain enterprises can adopt a single store partnership model. Under this model, the income of the store manager partner is directly linked to the performance of a single store, and the growth of performance can significantly support the income of the partner, thereby stimulating the enthusiasm and creativity of the store manager.
When multi-store is an independent operating unit, and the stores need to cooperate closely with each other, or the performance growth of a single store is not enough to support the store manager partner to obtain high returns, the chain enterprise can adopt the multi-store partnership model, also known as the community system. Under this model, the store manager partners can share resources and complement each other's advantages through the synergy between multiple stores, thereby improving the overall performance.
In addition, for retail stores with large commodity capital occupation and key performance, such as clothing, mother and child stores, convenience stores, etc., chain enterprises can adopt the joint operation model. Under this model, the platform company provides the shipment and management system, and the store partners contribute capital to achieve timely account sharing and joint operation. The advantage of this model is that it can reduce the financial pressure of the store, and at the same time, improve the operational efficiency of the store with the help of the professional management of the platform company.
Finally, in order to promote the fission of stores and talents, chain enterprises can consider adopting the fission model. This model emphasizes simple management and fast talent fission, and realizes rapid business expansion by cultivating new store managers and sharing new store equity. For example, Xijiade's 358 mechanism is a typical case of the fission model, through which Xijiade has successfully achieved rapid fission of stores and talents, and promoted the sustainable development of the business.
The value of the partnership system to the development of chain enterprises
The partnership system plays a role in the integration of resources in the development of chain enterprises.
They usually have abundant capital, technology, connections, and other resources, which are essential for the expansion and operation of the chain. By working with partners, chain companies can use these resources more efficiently, reduce operating costs, and improve market competitiveness.
The partnership system plays an important role in market expansion.
They usually have geographical advantages and market insights, which can help chain enterprises better understand the local market demand and competitive situation, so as to formulate more accurate marketing strategies. In addition, partners can also use their personal connections to bring more customers and partners to the chain and further expand their market share.
Source: Yima Aladdin information
The partnership system also plays a key role in management optimization and risk diversification.
They can provide more scientific and efficient management solutions for chain enterprises through their own management experience and professional knowledge, and improve the service quality and operating efficiency of stores. At the same time, the partnership model can also transfer part of the risk to the partners, reduce the overall risk of the enterprise, and ensure the steady development of the enterprise.
The partnership system plays a pivotal role in the development of chain enterprises. Through their efforts in resource integration, market expansion, brand promotion, management optimization and risk diversification, they have become a key force to promote the continuous progress of the enterprise. Therefore, chain enterprises should pay attention to the selection and training of partners in the development process, give full play to their advantages and potential, and jointly promote the sustainable development of enterprises.
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