The difference between chain stores and direct-operated stores is as follows:
1. Different concepts
Chain stores refer to many small-scale, scattered stores that sell similar goods and services Retail stores of the same brand, under the organizational leadership of the headquarters, adopt the same business policy and consistent marketing actions, implement an organic combination of centralized procurement and decentralized sales, and achieve joint economies of scale through standardized operations.
Direct-operated stores refer to chain stores directly operated by the head office, that is, the company headquarters directly operates, invests, and manages each retail location. The headquarters adopts a depth-like management method and directly orders all retail stores to be in charge, and the retail stores must also fully accept the command of the headquarters.
2. Different legal relationships
Directly operated stores mainly mean that the ownership belongs to the company and is managed by the company itself. Generally speaking, a chain store refers to a company opening several or more directly-operated stores in order to expand its market in various regions. The essence of the chain store we are talking about should also be a kind of direct-operated store. To put it simply, multiple directly-operated stores are Chain stores naturally belong to the company in terms of ownership. Generally speaking, chain stores have a unified CI.
3. Different characteristics
Chain stores have consistency in four aspects: business philosophy, corporate identification system, business trademarks, goods and services, and business management. Under this premise, professional management is formed and a centrally planned business organization network.
Using the principle of synergy, enterprises can accelerate their capital turnover, strengthen their bargaining power, and provide comprehensive logistics support, thereby achieving economies of scale, forming strong market competitiveness, and promoting the rapid development of enterprises. No matter where the retail industry goes in the future, it will move towards chain operations.
The ownership and management rights of direct-operated chains are centralized and unified at the headquarters. The centralized and unified ownership and management rights are reflected in the fact that all member companies must be single owners, owned by a company, a joint organization or a single individual.
Centralized leadership and unified management by the headquarters, such as personnel, procurement, planning, advertising, accounting and business policies are all centralized and unified; a unified accounting system is implemented; the managers of each direct chain store are employees rather than owners; Directly operated chain stores implement standardized operation and management.