2022.06.15
Curious about franchising?
Establishing a new store from scratch can be difficult. That's why many are curious about the possibilities of franchising, starting a store with an established company's concept and brand. APPLiAnytt had a chat with Michael Larsson, sales manager and establishment manager at Electrolux Home about franchising.
The franchise concept involves Electrolux Home providing support with, among other things, marketing, signage and training – and providing a wide range of strong, well-known brands. Electrolux Home was established in 1995 and currently has around 30 franchisees with their own stores.
Why does Electrolux choose to grow through franchising, what are the advantages?
– The advantages are that we get to work with committed entrepreneurs who are skilled in their local market and know it well, both on the construction side and towards private consumers. We get local knowledge and they get a strong brand that is easier to reach out with and support that allows them to focus on their own business, says Michael.
What support do you offer your franchisees?
– We offer support from the head office in the form of business development, support and the strength of belonging to a larger company. We are involved in planning the store concept and how it should look, how the products are displayed and support with training in everything from product knowledge to sales skills. We are involved all the way through price tag systems, computer systems and support in all parts of the store. Marketing is developed centrally, but preferably with adaptation and local anchoring in social media, local radio or whatever it may be. We believe that many people shop locally.
How do you see the future of the physical store and how can stores best be integrated with e-commerce?
– For the customer, we offer a reserve/pick-up function and the local franchisees get to take part in the sales in their area. The web should be part of the experience of the brand, a tool, and not a competitor to the store. We see a clear purpose for physical trade, customers want to experience the products. Sometimes the customer journey starts online and then they go to the store. The customer wants to feel the material, color and shape together with a salesperson who can tell them about the possibilities. This is best done in the store with a personal meeting, which cannot be delivered online. It is a big investment with kitchens and appliances and in the store you can get the best support and overall experience. It depends on the individual people that the customers are satisfied and here the entrepreneurs together with skilled salespeople are fantastic.
Electrolux Home currently has 34 franchisees and the goal is to have 50 stores across Sweden within 5 years. Read more here and contact Michael Larsson if you are curious to know more!
What is franchising?
Instead of starting a new business from scratch, you can pay for the right to use the business concept and brand of an already established company. This is called franchising. A franchise system consists of a franchisor and a number of franchisees, where the franchisor rents out its brand and operating methods to the franchisee. As a franchisee, you are bound to run the business in a certain way so that the entire chain is managed uniformly. For the franchisor, franchising is a way to expand the business. Read more about franchising at Active.se.
