the art of selling fashion franchises through storytelling

The art of selling fashion

franchises through storytelling

Speaker

Haroldo Monteiro

The Apparel Retail Sector in Numbers

Some statistics show a difficult and challenging scenario, however, our

sector is not the worst – Monthly Commerce Survey - PMC

Graphic Translation

Previous SlideSlide 2

• Indicadores de Volume de Vendas do Comércio Varejista Acumulado no Ano (PMC: Julho/2015)= Indicators of Retail Trade Sales Volume Year-to-Date 2015 (PMC: July 2015)

• Veículos e Motos, Partes e Peças= Vehicles and Motorcycles, Pieces and Parts

• Livros, Jornais, Revistas e Papelaria= Books, Newspapers, Magazine and Stationery Items

• Móveis= Furniture;

• Eletrodomésticos= Home Appliances;

• Tecidos, Vestuários e Calçados= Fabrics, Apparel and Footwear;

• Materiais de Construção= Construction Material;

• Combustíveis e Lubrificantes= Fuels and Lubricants;

• Super e Hipermercados= Supermarkets and Hypermarkets;

• Outros Arts. de Uso Pessoal e Domésticos= Other Articles of Personal and Domestic Use;

• Artigos Farmacêuticos., Med., Ortop. e de Perfumaria= Pharmaceutical, Medical, Orthopedic and Perfume Articles;

• Equip. Mats. p/ Escritórios Informática e de Comunicação= Office, Computer and Communication Equipment;

Some statistics show a difficult and challenging scenario, our sector is

not the worst – Monthly Commerce Survey - PMC

Graphic Translation

Previous Slide• Slide 4

• Indicadores de Volume de Vendas do Comércio Varejista Acumulado em 12 meses (PMC: Julho/2015) = Indicators of Retail Trade Sales Volume Accumulated 12 months (PMC: July 2015)

• Equip. Mats. p/ Escritórios Informática e de Comunicação= Office, Computer and Communication Equipment

sector is not the worst– Monthly Commerce Survey - PMC

Graphic Translation

• Indicadores de Receita Nominal de Venda do Comércio Varejista Acumulado no Ano (PMC: Julho/2015)= Indicators of Nominal Retail Trade Sales Revenue Year-to-Date 2015 (PMC: July 2015)

sector is not the worst – Monthly Commerce Survey - PMC

Graphic Translation

• Indicadores de Receita Nominal de Venda do Comércio Varejista Acumulado em 12 meses (PMC: Julho/2015)= Indicators of Nominal Retail Trade Sales Revenue Accumulated in 12 months (PMC: July 2015)

The fashion franchising sector is one of the principal sectors in Brazilian

franchising – Source ABF - 2014

Graphic Translation

Previous Slide• Slide 10• Participação dos Segmentos= Share of Franchises by Industry Sector

• Negócios, Serviços e Outros Varejos= Miscellaneous Businesses, Services and Other Retail

• Alimentação= Food

• Esporte, Saúde, Beleza e Lazer= Sport, Health, Beauty and Leisure;

• Vestuário= Apparel;

• Hotelaria e Turismo= Hotels and Tourism;

• Acessórios Pessoais e Calçados= Personal Accessories and Footwear;

• Educação e Treinamento= Education and Training;

• Casa e Construção= Household Goods and Construction Material;

• Veículos= Vehicles;

• Comunicação, Informática e Eletrônica= Communication, Computer-Related and Electronics;

• Limpeza e Conservação= Housekeeping and Maintenance;

Fashion Franchise & Creativity

In times of

Reduction in Operating Expenses

Insufficient Availability of Debt Financing

Investments & Working Capital

We need to be

Thus an expansion plan by franchises becomes important

However, times require us to be more cautious

Companies need to expand “with quality”

Using modern management tools

Taking advantage of the “glamour” that the fashion industry offers

What is the importance of the fashion market ?

“Moda não é sobre classe social. Moda tem a ver com sonhos”. Ralph

Lauren= “Fashion is not about social class. Fashion is about dreams”.

Ralph Lauren;

Data from EUROMONITOR International

Globally, expenditures with clothing and footwear represent 6% of total world consumption

Cars, Motorcycles and other vehicles represent 4%

Expenditures on Communication represent only 3%

Fonte: Unveiling Fashion Business

In addition to its importance as a commercial activity, fashion is also a unique object to combine art and commerce

Jean Paul Gautier

Fashion has two sides: it is both an economic venture and an artistic activity

The power of fashion resides in its brand with the signature of designers whoa re

capable of transforming inanimate objects, raw materials such as cotton or silk,

into magical objects which carry status, class distinction, as well as significance,

through specific colors, forms or logos.

Fashion beyond fashion – In their communication strategy Renault and

Citroen used the French fashion and creation market as a reference:

Why Fashion Matters

• Fashion is important for the economy, society and each of us personally

• Quicker than anything else, what we wear tells the story of who we are

• It shows what we want to be

• Fashion is the most immediate and intimate form of self-expression.

Needs X Desires

So often we convince ourselves that we need something, when we really only want

that “something” because it is in fashion

Why is franchising in the Fashion Business market so attractive ?

• The fashion market is a dream!

• It dazzles with “glamour”;

• It gives status to owners of this type of franchise;

• Mainly among women it awakens the desire to become part of the

fashion business world.

• For men, it creates an opportunity to give dream presents to their

sweethearts;

• All these factors give fashion franchises a special sales appeal for

franchisors.

How franchisors should work to reach their growth objectives, and

help their franchisees achieve success?

In general, there are several factors which need to be considered for a growth

strategy through franchising to be successful. However, the fashion franchise

business requires special attention!!!!!!!!

Why selling a fashion franchise is not simple ?

The mere sale of a fashion franchise by a franchise salesman to a simple candidate not identified

with fashion may make all the difference between the success and failure of the operation if

both the seller and buyer are involved with the “glamour” of fashion.

To have a fashion franchise, capital is not the most important thing

How should franchisers act to reach their growth objectives, and

make their franchisees successful?

Identification between franchiser, brand and type of business needs to be evaluated

first.

Deception with the business franchisees only perceive long

afterwards that they had no identification with the

franchise/product/brand in the first place..

Consequences

Sales team motivation is shaken

Customer service quality suffers

Almost always the performance of this franchisee will not be among the best and

thus financial return will be affected.

How should franchisors act to reach their growth objectives, and

Brasil fica em penúltimo em pesquisa sobre simpatia de vendedores= Brazil finishes next to last in survey on friendliness of sales personnel;

Your franchisee wants to know your story!!!!!!!!

What are the benefits of the use of storytelling in the sale of

franchises?????

On the side of franchise candidates

Motivates franchisee candidates

Creates franchisee involvement with the brand

Generates passion among franchisees for the brand

Consequences

Increases performance of the sales team

Improves quality of customer service

This franchisee’s performance will be one of the best, increasing

financial return

What are the benefits of the use of storytelling in the sale of

franchises?????

On the side of the brand as franchisor

Increases the company’s visibility in the market

Consequences

Increases the chance of attracting new franchisees

Improves the quality of franchisee candidates

Generates a self-feeding “wave” of credibility for your business

What is the origin of storytelling?

Source: New York Museum of Natural History

Fonte: Museu de história natural de New York

The communicative power of storytelling involves the listeners and encourages some

of them to repeat what they have heard to others, further increasing the influence of

the storyteller and the story itself

No caminho para a casa de sua avó, Chapeuzinho Vermelho passava dentro de um bosque, por isso, sua mãe sempre

aconselhava: atenção e cuidado para não se perder, evite atalhos e nunca converse com estranhos= On the way to

her grandmother’s house, Little Red Riding Hood used to pass through a forest, and for this reason, her mother

always warned her: pay attention and be careful not to get lost, avoid shortcuts and never talk to strangers;

Chapeuzinho Vermelho= Little Red Riding Hood

Storytelling can be utilized in different ways in different businesses

Nós falamos para as crianças que elas estão recebendo a

fórmula secreta de um super-herói. Isto torna a

quimioterapia um pouquinho mais fácil= We tell children

that they are receive the secret formula of a superhero. This

make chemotherapy a little easier to take.

Devotee of Padre Cicero, a Catholic priest who lived and died in the State of Ceará,

Oliveira guarantees that the products he sells have Padre Cicero ‘s blessing. “This little

plate with five pastries has a special price of R$ 2. If you eat them, you will pass the

ENEM college entrance exam. Padre Cicero blesses the food", he swears.

Maceió (AL) – Street vendor sell blessed

pastries and miracle water (Photo: Jonathan

Lins/G1)

Even in the world of fashion!!!!

What is the importance of storytelling in the business world

Storytelling is more than a marketing tool. It is a management tool

Como se Realizar na Vida Financeira= How to Make it in

your Financial Life

Storytelling legitima liderança em empresas=

Storytelling legitimizes leadership in companies.

What is the importance of storytelling in the business world

In open-stock companies, corporate storytelling is extremely important.

Investors adjust the price of assets, cost of capital, return on investment and growth.

The stock market, unquestionably, is the best barometer of future prospects for companies.

For listed companies, corporate storytelling is about how to show investors why they should bet

on you.

Storytelling as a management tool

Telling stories is one of the most important elements in building an organizational culture

The importance of storytelling for the world of fashionEach company establishes a brand culture through stories

Creating the perception that the brands are superior.

Each fashion brand is situated within the popular culture, in the hope of becoming

part of the social order and a cultural context

Can you imagine a world without Levi’s or Nike?

How to utilize storytelling – Creating a convincing story

Como o storytelling pode ser usado?= How can Storytelling be Used?

Concepts of corporate storytelling

Often stories of large corporations are deceiving because their stories are poorly

conceived or told.

Como o storytelling pode ser usado?= How can Storytelling be Used?

To say that your company offers an “exceptional customer service” does not

inspire any perspective, because your competitors do or say the same things as

you do.

Source: The Corporate Storyteller

In the business world a corporate story begins with an idea, the same idea which

is the basis of the business plan.

What is the company’s reason for existence?

What is its promise to corporate customers or consumers?

What great idea should be the basis of the company’s story? "

Reflect on the fundamental principles which define a company and its

personality. Source: The Corporate Storyteller

O que é isso?= What’s that?

Minha mente= My mind

• Storytelling in the corporate context is more specific than just “telling stories”

• But knowing how to tell stories, and what is the context are critical

• Create content that is relevant for your target public.

• Tell a story with authenticity and emotion

• Find the right story to tell or create a story, if the right one does not exist

STORYTELLING = Method + Emotion

Provocative incident

A provocative incident radically disorganizes the balance of

forces in a main character’ life and he or she must react to

the provocative incident

Progressive Complications

Progressive complications are challenges that increase and

are complications which change the course of history and

bring about the crisis.

Crisis

Problems, questions, difficult periods. What entrepreneur has

not gone through those difficulties which, at least

temporarily, brought to mind the idea of giving it all up?

Climax

The climax is the high point of the tension. The decisive

moment, the “now or never”. The climax occurs when a

conflict is developed, immediately below its conclusion. It is

the most dangerous point in a story

Solution

This is the end of the story. The “and they lived happily ever after” happy ending. It is

the conclusion after the climax, which puts a definite end to the story.

Storytelling can be used in different ways and using different types of

channels

Transmedia Storytelling : one of the great trends in marketing due to

fragmentation of information, proliferation of information, proliferation of media

platforms and information overload

All processes of each different media to be used are projected based on the

characteristics and behavior of the fans/customers.

“A transmedia story is split through multiple media platforms, each one with a

new text, making a distinct and valuable contribution to the whole”.

Utilizing storytelling as a franchise selling tool – Telling stories and

delighting your franchisee

• Every entrepreneur has nice stories to tell about his or her business. The

entrepreneurial odyssey is always exciting and moving.

• But, a greater number of business people think that there is no room for emotions,

only objectivity.

• But that’s not how it works. Stories speak to our non-rational side and, that is the

best way to make a business grow: telling beautiful and exciting stories

Encantando seu Franqueado= Delighting your Franchisee;

As pessoas não são criaturas lógicas; elas são criaturas de emoções= People are not logical creatures; they are

creatures of emotions;

Emoções conduzem aos desejos, bem como as decisões e ações= Emotions lead to desires, just like decisions and

actions;

Varejistas têm que tocar nas emoções mais profundas do subconsciente de seus clientes em direção ao DNA de sua

marca= Retailers need to touch the deepest emotions in their customers’ subconscious in the direction of the

brand’s DNA;

A emoção é um fator crucial durante toda a experiência de compra do consumidor= Emotion is a crucial factor

during the consumer’s complete shopping experience.

Delighting your franchisee . What are the most relevant stories for your brand?

An entrepreneur willing to run risks

The entrepreneur who sold to Mesbla

The brand appeared in the Rio de Janeiro market, in the 1990s after having been suppliers to

Mesbla, a once-prominent Brazilian department store chain.

Since then, Enjoy grew from a small retail store to a large store chain, located in several Brazilian

regions.

Today it has 26 owned stores, 18 of which in the State of Rio de Janeiro (16 in the capital city, 12

of them in shopping centers and two in Niterói), five in São Paulo and three in Belo Horizonte

Source: ESPM

After her mother’s death, Chanel was placed in an orphanage by her father, who worked

as a street vendor. She was raised by nuns who taught her how to sew. During her brief

career as a singer, Chanel gave presentations at clubs in Vichy and Moulins, where she

was called "Coco". Some say that the name comes from one of the songs she used to

Storytelling is an effective way to give meaning and mystique to a brand through

telling enthralling stories.

Stories allow for connections of energy and authenticity, define identity and slowly

enter your heart

The franchisee wants to know your story!!!!!!!!

Tell me the facts and I’ll

learn. Tell me the truth and

I’ll believe. But tell me

a story and it will live in

my heart forever.

- Native American Proverb

For a time Adidas ignored its asset, its identity was mixed up, and its strategic focus was lost.

Recently it used its story, which is full of memory processes, experiences and product signature

which could be used to project the future; they didn’t use this strategy sticking to tradition, but

thinking in a different way about strategy, innovation and products.

Utilizing storytelling as a franchise selling tool – Telling stories and delighting your

franchisee

Building a Brand

How it all started

Building a Brand

How it all started

The story of Maria Filó began in 1997, when Célia Osório surprised women with her knit

creation, which delighted everyone with their richness of colors and details

Sustainability of your brand

Osklen se inspira em tribo Ashaninka para nova coleção= Osklen gets inspiration for its new collection from

the Ashaninka tribe

Sustainability of your brand

delighting your franchiseeMovie – the making of your product – From creation to consumer sales

The Festival des Métiers, of Hermès, puts on an edition in São Paulo

Movie – The making of your product – From creation to consumer sales

Ricardo Almeida Brand

SHOE STORE

Storytelling Ideas

Tell the story of the first store – photographs, the difficulties, take the candidate to this store

Bring the testimony of a major customer, asking for him to tell why he is delighted with the

The idea, the entrepreneurial spirit, the difficulties, creation of the brand, the brand’s DNA

But it is wrong to think that any story can be considered as a form of storytelling. For the

technique to work, the story must contain provocative and moving elements which impact the

person who is listening. Making customer identify themselves with what is being told is

essential to the campaign’s success

Be authentic

TrustInvolve

Entertain

Excite

How to avoid failure in selling a franchise – Identify the anti-profile

of a fashion franchisee

Como você é?= What are you like?

Sou superbronzeado, uso cavanhaque e adoro

uma balada underground= I’ve got a great tan,

I use a goatee and I love the underground

dance scene

How to avoid failure in selling a franchise – Identify the

anti-profile of a fashion franchisee

Definition of anti-profiles of franchisees is essential

We have identified 4 anti-profiles

Anti-profile 1

The franchisee candidate who thinks the only important thing is to make

Anti-Profile 1

The franchisee candidate who thinks the only important thing is to make money

• If the franchisee candidate’s objective is only to make money: don’t sell the

candidate a fashion franchise .

• Making money is not what is important, first of all is personal satisfaction

• The franchisee must first transform his or her point of sale into a point of

emotions so that retailers are able to develop sustainable relations with their

customers.

• We are material creatures. We sense, feel and touch things. Fashion is part of

a material experience of the time we have on Earth. It really adds beauty and

quality to our lives – Tom Ford

Anti-Profile 2

If franchisees say they are excellent salesmen- Avoid them

Anti-Profile 2

If franchisees say they are excellent salesmen- Avoid them

• Actually, a franchisee candidate should be someone who pleases consumers,

making them dream and feel they look nice.

• The store’s sales team should be made up of brand “ambassadors”, and thus

be able to explain the brand’s essence or DNA.

• Product sales is just the final result

Anti-profile 3

Unfocused candidates : If interviewees say they are evaluating different types

of franchises – They don’t serve as fashion franchisees

Anti-Profile 3

Unfocused candidates : If interviewees say they are evaluating different types

of franchises – They don’t serve as fashion franchisees

• Fashion franchisees should have synergy with the industry

• Franchisers run the risk of having franchisees who don’t how to differentiate

the subtleties of selling clothing and pastries.

• The challenges and complexities are significant, and the risk of lack of

motivation is great.

Anti-Profile 4

If franchisee candidates think they are stylists or even think they are cut out for

that – Avoid selecting them as franchisees

Anti-Profile 4

If franchisee candidates think they are stylists or even think they are cut out for that – Avoid selecting them as franchisees

Your fashion franchisees should be people who are enchanted by the essence of your brand. Many people who think they are stylists want to change something in a collection, or do something not in line with the company’s strategy, thus hurting the brand’s visibility.

Remember that this is not something new!!!!!!!!

Charles Frederick Worth, was the forerunner of Haute Couture, as he called himself an artist, as he signed his creations and didn’t accept the opinion of his customers, who were supposed to use what he thought was right. His customers were supposed to dress based on their social status. He didn’t just create clothing, he created a whole concept (MUELLER and SMILEY, p.84)

Then why sell fashion franchises with storytelling???

Storytelling may seem an old-fashioned tool and today it really is

That’s what makes it so powerful

Life happens in the stories we tell to each other.

A story can go where a quantitative analysis can’t; in other words: our hearts

Data can persuade people, but not inspire them to act; to do that you need to break

up your vision into a story which awakens the imagination and moves the soul.

Storytelling talks to the emotions of the target market, which, in exchange, becomes

loyal to the company

Contact

THANK YOU!

Haroldo Monteiro

haroldomonteiro@planningconsultoria.com.br

Phone:55-21-997344863

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