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 Slide
Slide 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)
• 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, however, our
sector is not the worst– Monthly Commerce Survey - PMC

Graphic Translation
Previous Slide
• Slide 6
• 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)
Articles;
Equipment;

Graphic Translation
Previous Slide
• Slide 8
• 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)
Articles;
Equipment;

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
for
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.

Risks
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
Nocaminhoparaacasadesuaavó,ChapeuzinhoVermelhopassavadentrodeumbosque,porisso,suamãesempre
aconselhava:atençãoecuidadoparanãoseperder,eviteatalhosenuncaconversecomestranhos=Onthewayto
hergrandmother’shouse,LittleRedRidingHoodusedtopassthroughaforest,andforthisreason,hermother
alwayswarnedher:payattentionandbecarefulnottogetlost,avoidshortcutsandnevertalktostrangers;
ChapeuzinhoVermelho=LittleRedRidingHood

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 fashion
Each 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
Oqueéisso?=What’sthat?
Minhamente=Mymind

• 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
sing.

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

Movie – 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
brand
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

KNOW
YOUR
BRAND
Dream
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
money

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

The art of selling fashion franchises through storytelling

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