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“These are times of turmoil, but also opportunities,” he says. Ferenz Feher, Founder and CEO of Feher advice, which gives an overview of how consumers will change on the Internet Post-coronavirus era and what strategies can both franchisees and franchisors implement?
During their conversation Franchise against COVID-19: challenges and opportunities as part of the HomeSchool initiative, organized by s y IEBS Business SchoolFeher told what the world of the franchise is like.
On the one hand, franchisees work with an emergency fund and see how little or no sales are made through traditional channels. Franchisees continue to act as brand ambassadors, but with closed units, problems with paying the name and minimum sales. What about license fees? Ferenz points out that each case must be analyzed to determine whether the license fees can be postponed, halved or waived.
The relevant thing is “Try to keep the economy going”he says. In front of a consumer who is more careful with his portfolio and who buys out of necessity today.
Ferenz is asking the entire franchise community to implement solutions as quickly as possible. There is no time to waste.
- Listen to your franchisees
- Listen to your employees
- Listen to the market
How will the consumer change after this pandemic?
The time of illusions ended. The sooner you figure out how to adapt to the effects of the corona virus, the greater your company’s chances of survival.
Jeff Bezos, Amazon.
To adapt to change, you need to understand how the world will develop for consumers in terms of health, food, shopping habits, finance, use of technology, entertainment, work and transportation.
“If the world changes, we also have to change,” says Ferenz. The question now is, are we ready to change in every way? And the answer is that we have to be ready when the closure is over to face the world Creativity and customization.
According to the EY advice, these will be the most important changes for the consumer.
In the face of adversity, you have two options: grow or die.
Jorge González Moore, Colombian writer.
Unfortunately, many people will lose their jobs due to this eventuality, and others will retire early.
Many of these people will have some capital and an exceptional age to continue working, and there is scope for growth in the franchise industry.
Ferenz Feher shares 10 opportunities and challenges with us.
1. Challenge: Don’t have strategies after the crisis
Opportunity: Work as a team with your franchisees.
2. Challenge: Disinformation erases the calm of franchisees and the world.
Opportunity. Improvements in communication with digital applications.
We have no time to control what we cannot control. Let us work with information that is real.
3. Challenge: Franchise companies are closed.
Opportunity: New growth and omnichannel plans. It’s time to stop thinking about traditional channels and thinking about the entire planet as I sell to my neighborhood and country.
4. Challenge: A lot of effort alone.
Opportunity: New ways to increase economies of scale.
5. Challenge: Redesign of the business model.
Opportunity: Greater opportunities to be the first. Let us think outside the box and see opportunities that others do not see and be the first.
6. Challenge: Network breakdown due to poor communication.
Opportunity: Use of new digital / learning tools for learning.
7. Challenge: Create a sustainable company.
Opportunities: Birth of companies with greater social meaning.
8. Challenge: Products / services are not for sale.
Opportunity: Creating new ones to sell more and better fees (big data).
9. Challenge: Doubts between franchisees, danger from arsonists.
Opportunity: Speak clearly and personally with everyone, in isolation, to deal with special cases.
10. Challenge: Customers will no longer search for our brand.
Opportunity: Recreate the experience to captivate you again.
Some examples of franchise companies that are already taking steps to adapt to changes.
New separations to comply with hygiene measures.
Offer thorough cleaning or hygiene services.
Departments to adapt to sanitary measures.
Gyms are not being replaced, but today they can be supported with online courses.
Loyalty programs with greater benefits for reopening stores.
Finally, Ferenz Feher talks about the importance of cooperation between the franchisor and the franchisee. “In our role, we have to learn to be better entrepreneurs with everything that means.”