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A good start! Kidswant’s franchise strategy has shown initial results. The secret behind the first store’s explosive popularity

2024-08-07

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Leading enterprises have always been a mirror, reflecting the trends and directions of the industry. Therefore, Kidswant has always been at the center of the topic for a long time. Take the opening of franchise this year as an example. Is it the right time or the trend to expand from direct sales to franchise? Is it a rapid change of direction or a move to expand the boundaries from first-tier cities to counties and towns? Many people want to find out.

It was not until July 26 that the new digital store of Kidswant parent-child family, the Sichuan Guanghan Bailun Plaza Select Store, officially opened its doors to customers, and all these questions were answered.

On the night of the opening, the Guanghan store welcomed a loyal black gold member of Kids King for many years. She lamented that she had to go to Chengdu to shop at Kids King before, but now Guanghan has its own Kids King store, which not only makes shopping more convenient for her children at home, but also makes it easier to give gifts to friends' babies. Taking advantage of the opening, she bought a number of gift boxed products at once, including the Huidiantang piano fitness rack, the Chuyimeng seven-piece set, and Liangliang's pillow.

It is reported that this store is located in Guanghan, Sichuan. The owner is a milk powder supplier with no retail experience. Boss Chen admitted that joining Kids King has fulfilled his dream of transforming into retail. From store site selection, layout planning to resource integration, event design, and member acquisition, Kids King has a professional team to assist in every link.

A detailed analysis revealed two key messages: first, to expand the layout downward and tap into potential to increase volume; second, to set up a model for franchising, provide whole-store output and full-process guidance, so that maternal and child retail business in China's counties and towns will no longer be difficult to do.

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Why did KidsKing become so popular?

Hot before opening, internet celebrity check-in spot, new city landmark... more and more labels are attached to the first selected store of Kids King. Although it is also a franchise, why is Kids King so popular?

The best strategy is to attack the enemy’s strategy, and insight comes first. For a long time, the maternal and infant offline retail industry has been in full swing, but most of them are squeezed into online cities or offline cities as a side job. At the beginning of opening the franchise business, Kidsland shouted out the slogan of "building an efficient channel for the maternal and infant market, striving to become an industry-leading retail service provider mainly empowered by technology, and becoming the Kidsland market in China's counties and towns". Behind this is not only its in-depth understanding of the pain points of the sinking market, such as "mostly loose franchises, pure supply chain output, and no technical support", but also the in-depth practice of "expanding business formats" in its "three expansions" core strategy, that is, from self-operated large stores to multi-scenario formats, launching franchise business in third- and fourth-tier cities, and making a difference.

Be personally involved and set a benchmark. Whether it is a directly-operated store or a franchise store, users are provided with the same quality of goods, experience and services. "Consistency" is fully reflected in Kidswant. Taking this first franchise store as a typical sample, it directly reproduces the essence of Kidswant from the macroscopic overall situation to the micro details.

Looking at the overall layout, taking into full consideration the advanced demands of the younger generation of parents for refined parenting, the Guanghan Selected Store follows the strategic layout of Kidswant direct stores, and specially sets up six special areas for mother and baby food, clothing, play, and travel, covering milk powder, supplies, snacks, nutritional products, children's clothing, and trendy toys. It is also specially equipped with mother and baby rooms, growth experience stations, and toy experience areas, so that mother and baby stores in the sinking market are no longer limited to single store sales, but can truly meet the one-stop shopping and entertainment needs of parent-child families in the county and town markets.

Focusing on the product dimension, from the category structure to the product display, the Guanghan store not only adheres to the same principles, but also emphasizes adapting to local conditions. Under the direct management of Kidswant, franchise stores can quickly build up product competitive barriers by relying on the experience of supply chain centralized procurement and the advantages of efficient synergy of their own brands.

At the same time, Kidswant will also focus on creating differentiated value based on the unique consumption habits and preferences of the sinking market. On the one hand, it will carefully select and prefer products with better quality-price ratio or directly provide targeted substitutes for big-name white-label products to respond to the diverse expectations of local parent-child families; on the other hand, it will break the traditional direct-operated store layout in the design of product placement, for example, by placing healthy snack shops that are more popular with middle-aged and older children in the front of the store.

From a service perspective, the Guanghan store also adheres to the principle of "going to users and coming from members", and fully considers what users think and needs in terms of convenient infrastructure, professional parenting consultants, parent-child interactive social networking, etc., showing love and warmth.

For example, franchise stores will rationally plan merchandise display and aisle layout based on product characteristics and customer needs. They will also set up fully-equipped mother-and-child rooms to provide private feeding and rest space for mothers and babies. In addition, they will also introduce same-city instant retail services so that mother and baby consumers in counties can also enjoy more immediate and convenient products and experiences.

It is difficult to copy the King of Children

It’s the “core” rather than the “shell”

"Others manage goods, we manage people" has always been the core of Kidsland's user service.

In order to break the curse that franchising is difficult, Kidswant has carefully polished its franchise model of "brand authorization + digital capabilities" whole-store model output, and created its own "six forces" model to empower franchise stores and promote industry upgrading with product strength, operational strength, synergy, service, scenario strength, and brand strength.

1. Product strength: provide consumers with what they actually need and provide franchisees with personalized products

The output of supply chain capabilities is by no means a copy and paste of all goods, but to truly meet the needs of users and alleviate the concerns of franchisees.

What do consumers need? The shopping expectations of mother and baby users in the sinking market can be summarized as "buying the best within their ability" and "safe, high-quality and reasonably priced". Based on this, Kidswant franchise stores not only respond in terms of price, selecting milk powder in the price range of 270-280 yuan and milk bottles around 150 yuan, but also further optimize the configuration and enhance the experience, such as putting related products on the shelves in line with the best-selling trend of A2 milk sources and organic milk sources, and insisting on using big brands and cross-shaped large-caliber milk bottles that are in line with the trend of consumption upgrades. In order to ensure that customers can purchase products of excellent quality, Kidswant franchise stores and direct stores implement the same standardized and efficient quality operation system to ensure that every link from the source to the terminal of the product reaches a better state.

What do franchisees want? It is nothing more than large customer flow, high customer orders and considerable gross profit. From the product dimension, one-stop supply, popular products that are easy to promote and high-gross-profit products are the key support. To this end, franchise stores meet demand from three dimensions. First, product coverage of the entire life cycle, actively responding to specific needs of each stage such as pregnancy, childbirth, parenting, and growth with a comprehensive and professional product portfolio, to gather more customer flow for the store; second, select the top brand products with high visibility, good reputation and sales in the subdivided categories to provide "tap water" traffic for the store; third, strengthen the development of the full category matrix of own brands and special products for big brands, to gain more bargaining power and profit space for the store. It is reported that as of now, more than 200 own brand SKUs have been exported to franchise stores.

2. Operational strength: Help franchisees get started and then help them on their way, escorting them to go steady and far

Boss Chen, who joined the first store, has personally experienced the operational capabilities of Kidswant and seems to have more say. "For the initial store location selection alone, we had more than 10 negotiations with Kidswant headquarters. In the two months of preparation for the opening, the franchise coach organized more than 20 employee training and teaching activities, including attracting new honorary members, recommending selling points of popular products, and planning the rhythm of activities. With such a strong team like Kidswant to help, I really saved a lot of trouble."

Not only Mr. Chen, but also the owner of a franchise store in Baotou that is about to open has a deep understanding of this. As a merchant with 10 small baby stores in the local area, he has long relied on two Iveco vehicles to shuttle between the small stores to distribute goods, which is cumbersome and time-consuming. According to him, he recognized the business model of Kidsland from the beginning, and contacted Kidsland as soon as he learned that it was open for franchising. Now, by joining Kidsland, he has finally realized his dream of opening a large maternal and child store.

Boss Wang also shared two of his insights on how to grow from a small store to a big store. He said that he did not have a systematic operating strategy before and had never done any work to attract new honorary members. However, under the full guidance of Xiaoxiao, the resident store manager of Kids King, he attracted more than 1,000 new honorary members in just half a month.

The owner of the first store in Zhejiang, Lishui, also gave positive feedback through personal experience, "Our team members had no experience in the maternal and infant industry in the early stage, but the professional team of Kidswant helped us in store layout, category planning, precise customer lock-in and other aspects. The store is currently in the process of intensive preparation and construction. I believe that our Kidswant Select Store will definitely serve the consumers in the entire Lishui city well."

The combination of "direct management" and the dedicated support service model of "helping franchisees get on the right track" provides all-round protection for franchisees, which once again proves the value of the phrase "Join Kidsland and create a better future together".

3. Synergy: Sharing digitalization makes quality and efficiency improvement a reality

As a pioneer in digital construction, digital capability seems to be an "insignificant" advantage of Kids King. But returning to the franchise itself, it is precisely based on Kids King's long-term digital cultivation that the quality improvement and efficiency enhancement of franchise stores have become a reality.

Through several key words, we can further explore the unique synergy of Kidswant: 1. "24 hours". Generally speaking, the business hours of physical maternal and child stores are mostly 8 hours. By introducing online B2B platforms and B2C applets, franchise stores can operate 24 hours a day; 2. "Online and offline linkage". Through a series of attractive online activities such as bargaining and flash sales, users are guided to experience the store, and online traffic is converted into offline store traffic; 3. "Digital tools". Scientifically use intelligent recommendation systems and member management tools to enhance customer experience and accelerate transaction conversion.

4. Service capability: user-centric, service far exceeds industry standards

With multiple identities including parenting consultant, nutritionist, first aid worker, maternal and child care worker, and child growth trainer, each real and vivid case once again demonstrates the professional service capabilities of every KidsKing person.

The same service power transmitted to franchise stores will inevitably be a key link in attracting user favor and strengthening user minds.

5. Scenario Power: In-depth understanding of user usage scenarios and response to experiential consumption needs

From materials and capacity to functions and features, tips for product selection can be seen everywhere in the store. For example, based on the different age stages and growth characteristics of infants and young children, the focus points for toy selection are clearly listed; the differences between baby bubble shampoo and liquid shampoo are disassembled from the aspects of ease of use, cleaning feeling, dosage control, etc., so that parenting guidance and product recommendations are coordinated and more accurate... By adding materials and small props that "let the product speak", the selected store really allows consumers to make targeted purchases.

The unique store attributes of Kidswant, "commodity + service + social interaction", are retained, and franchise stores also have service scenes such as children's play that are more suitable for parent-child families. Taking the Baotou Selected Store, which is about to open, as an example, it is different from the small stores opened before, and has set up a 200 square meter+ children's playground area in the store, aiming to become a unique existence that can not only meet the one-stop shopping needs of parent-child families, but also provide social interaction and education through entertainment.

"Scenes are born out of need." All of the above are guided by Kidswant's dedicated personnel. They are a concrete presentation of its scene power, and they are also solutions for the pain points of in-store users in product selection and experience optimization. In addition, Kidswant is well aware that franchisees have little experience in opening large-scale maternal and child stores. Therefore, based on the floor plan operations of nearly 1,200 large stores (including Leyou), it also provides professional store decoration and layout display capabilities, helping stores to construct floor plan layouts, renderings and construction drawings, aiming to enhance consumer experience through vivid, scene-based display layouts, so that consumers can buy with confidence and shop comfortably.

6. Brand Power

With the powerful empowerment of the "Six Forces", Kids King is bound to create a storm in the franchise market. We look forward to elites from the maternal and child industry, elites from the general retail industry, and more entrepreneurs who recognize Kids King's whole-store model output franchise model to join Kids King and work with it to redefine its retail business.

Born Different

Continue to explore and create hidden assets

With the first store being the first to make a sample and six strong supports, the multi-dimensional hard power makes the franchise business of Kidswant full of infinite imagination. However, if we dig deeper and break it down, we will find that the soft power of Kidswant is the underlying logic that makes its franchise business healthy and sustainable and helps the company achieve long-term high growth.

Born different, Kidswant's soft power can be summarized as "continuous discovery and creation of hidden assets where others cannot see." The first is temperature, that is, the user's perception of brand temperature. In the interaction with customers, customers can personally feel Kidswant's high-quality products, professional services and ultimate experience. The trust of more than 90 million members across all channels is also due to their recognition of Kidswant's corporate culture. The second is the organization and delivery capabilities of the products and services provided by the brand. Taking products as an example, what is demonstrated behind them is Kidswant's pursuit of safety and its determination to pursue efficiency.

If "focusing on user experience and creating user value" is the belief of the Kids King team, then next, "making every childhood in the county and town markets better and becoming the preferred retail service provider for maternity and infant stores in county and town" will become the responsibility of Kids King's franchise business.

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