r e tail
Luxaflex
UNRIVALLED SUPPORT FROM A WORLD LEADER
why clever beats innovation the three p’s of franchising
VOL 11 ISSUE 02 jan/feb 2017
FEATURE : r e ta i l fr anch isi ng
c ov er sto ry: lu xaf l e x W I N D OW FASHI O N S
UNRIVALLED SUPPORT FROM A WORLD LEADER
In an industry worth over an estimated $1 billion per annum in Australia alone, Hunter Douglas is a world market leader. Innovative and iconic, this award winning brand is renowned for quality and service. Established in 1919 and manufacturing in Australia since 1954 the Hunter Douglas Group is now established in more than 100 countries, with a worldwide reputation for innovative products that are technically superior and aesthetically unique.
AN AUSTRALIAN SUPERBRAND Hunter Douglas’ flagship brand Luxaflex Window Fashions is Australia’s only window covering Superbrand, with over 60 years of brand history and the highest level of unprompted brand awareness in the category. Consumers voted Luxaflex Window Fashions as one of the best known and trusted brands in Australia, with over 62 per cent consumer brand awareness earning
it the illustrious title of one of Australia’s Superbrands. Offering high quality and durable window coverings for inside and outside the home, the Luxaflex Window Fashions brand range includes traditional blinds like Venetians and Verticals as well as premium ‘patented products including Luxaflex® Duette® Architella® Shades and Luxaflex® Luminette® Privacy Sheers. All Luxaflex products are made to measure to the exact size of the clients window and almost all of the products are still manufactured in Australia. Supply and service varies from the packaged blinds available in hardware stores. The Luxaflex program instead offers consumers a personalised experience offering solutions to their design, heat, light and privacy requirements in the state of the art showrooms and in-home consultations. The window coverings are then manufactured to order and sent to the licensee to provide the installation service.
STATE OF THE ART A group of independent businesses operating under a licence agreement with Hunter Douglas, Luxaflex Window Fashions is not a franchise. There are two options in the Luxaflex
38 Business Franchise Australia and New Zealand
Alliance program. The Luxaflex Gallery program is the premium full-line retailer, with access to the entire range of products and business programs offered by Hunter Douglas while Luxaflex Showcase is a smaller program that still provides retailers with access to a comprehensive range of product and a generally within a smaller retail environment. The licence provides you access to brands, trademarks, unrivalled training and support and a retail programme designed so that consumers can visualise how the Luxaflex products will transform their home. The Luxaflex Alliance programs are based on five key elements: 1. Effective presentation and merchandising – The Showroom; 2. Advertising and marketing; 3. Digital engagement; 4. Training; and 5. Business administration & advertising support tools.
1. The showroom
The Luxaflex Next Generation Gallery and Luxaflex Showcase display systems create a showroom environment that offers a superior consumer experience.
FEATURE : r e ta i l fr anch isi ng
“Supply and service varies from the packaged blinds available in hardware stores to the personalised design, manufacture and installation service provided by installation specialists.” The Luxaflex Gallery program is the premium retailer, with access to the entire range of Designer, Classic & Living products and business programs offered by Hunter Douglas. Luxaflex Showcase is a smaller retailer with access to the Classic & Living product range and selected business programs.
The retail fit-out features exceptional attention to detail in terms of colour schemes, accessories, functionality and stunning blinds on display. Large displays replicate the consumer’s windows, providing a real life experience of the choice of operating systems, style and colours. When consumers visit their local showroom they see things they had not considered and this often leads them to buy higher value products thereby lifting the average sale and conversion rates.
2. Advertising & marketing
Marketing support and communication tools that work on both a national and local level are provided and depending upon the Alliance program chosen include television, digital & print advertising, local area marketing, point of sale, direct mail campaigns and printed catalogues and brochures amongst others. Complete marketing support is offered by the Marketing team who provide a host of marketing resource tools via a secure web portal including both the large scale marketing campaigns run as part of the co-operative advertising programs and the local area marketing; targeted to the individual stores needs and budgets, providing templates and programs to support each store.
3. Digital engagement
Brand websites include detailed product information, photo galleries, brochures, product videos, specifications, blogs and much more! As a Luxaflex Alliance Dealer you benefit from leads received via the website’s Dealer Locator pages alongside the use of Google Adwords, SEO campaigns, Social Media marketing, eBrochures, sponsorships and much more which also drive direct store traffic & calls.
4. Training
Exclusive training programs give you the power to makes sales and the ability to outsell your competition. From classroom settings to interactive online learning, a programme designed for individual learning styles makes you the most knowledgeable window coverings professional in your local market.
A dedicated training team offer support with installation guides, videos and in-depth production information which allows licensees to train their installers on the full range of products available.
5. Administration & advertising support
Dedicated teams are in place to support each Alliance Dealer including ongoing business development and coaching support as well as access to dealer portals that provide a host of resources and tools including HD Live (which allows electronic ordering and order status updates) as well as a Price List app so you can easily price and quote your customers in the home, in the showroom and on the road. Comprehensive business support is provided. Whether it be access to the Technical Support desk, recruitment advice, financial advice Hunter Douglas will provide support. There is even an installation service for selected areas to support licensees with complex installations or during busy periods
BECOMING A LICENSEE There are no ongoing fees to be a part of this group of Independent businesses which operate under these licence agreements with Hunter Douglas, The costs are in the
initial showroom fitout cost. Completed by a contracted shop fitting company, a typical Gallery showroom fitout costs between $100,000 and $120,000. As all products sold are made to measure, there is no start up inventory required, and no provision for obsolete stock or stock loss required. Ongoing costs for the showroom include the regular upgrade costs for maintenance, introduction of new products to be displayed, sampling updates and merchandising and an allowance of $5,000 p.a. in most years is sufficient. Another annual cost incurred is the marketing levy, currently $3,518 p.a. for the top tier Luxaflex Gallery dealers and invoiced monthly as well as a contribution to the advertising program. The cost of advertising varies according to the dealers territory and population. All money collected is used for the promotion of the Luxaflex brand, driving quality leads in a wide range of consumer faced media and the usage of this is reviewed and agreed by the Gallery Dealers on an annual basis. Finally, Luxaflex Gallery & Showcase Dealers attend an annual conference, which incurs travel and accommodation costs. Usually held within Australia but occasionally overseas, the conference is an opportunity to see and learn about new products, new technology and new programmes. It is also an opportunity to network and share ideas with your colleagues from similar businesses all over Australia. Luxaflex Window Fashion license opportunities are available now in selected parts of Australia. To find out more about joining this innovative and world leading brand call Mark Futeran at: 02 9638 8000 mark.futeran@hunterdouglas.com.au www.luxaflex.com.au
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