Casual: Introduction
Franchises may seem like a “common” role in the industry, but they are crucial partners for businesses. It is their silent dedication that helps companies and brands achieve some success and market recognition.
The “Zuliz Franchise Series Stories” aims to engage with outstanding Franchises of Zuliz elderly shoes, recount their entrepreneurial journeys, share sales techniques, and explore promising business opportunities.
In these stories, you may find some success secrets, touching narratives, or discussions about past challenges. Hopefully, these stories will inspire and provoke thoughtful reflection.
Zuliz Elderly Shoes Franchise in Chengde, Hebei – Peng Hua
“This store wasn’t opened for me, it was opened for the store staff.” In the interview, Mr. Peng seemed somewhat nostalgic.
In Chengde, if you want to buy Zuliz shoes, you can’t do without Mr. Peng. Indeed, this Franchise with 9 stores has carved out his own path in the Chengde market and brought tangible benefits to his store staff.
Peng Hua, a Franchise in Chengde, Hebei, currently owns 9 stores: Mashijie Store in Shuangqiao District, Jingtong Shopping Center Store in Shuangqiao District, Xinhua Road Street Store in Shuangqiao District, Andingli Store in Xidajie in Shuangqiao District, Shuangtashan Store in Shuangluan District, Guanchang Store in Luanhe Street in Shuangluan District, Yingzikuang District Store in Yingshidian Street in Yingshidian Street, Fumanjia Supermarket Store in Weichang Town, Weichang County, and Jiahui Clothing Wholesale City Store in Huaxing East Road, Luanping County.
Such is the bond with Zuliz, soaring together from the first step.
Opening the doors of Zuliz elderly shoes stores one by one, chatting with store staff about operations, joking with friends about life… all these elements converge into Mr. Peng’s densely packed daily routine.
These days were something he never could have predicted a few years ago.
Mr. Peng’s connection with Zuliz began in early 2017. Despite not being a local of Chengde, he had been operating businesses in clothing, bags, and dining in Chengde. Always sensitive to new products, he saw a Zuliz advertisement on TV at a time when his business was not doing as well. “I was thinking about switching to a new product category when I saw the Zuliz ad on TV. I was immediately drawn to this category, so I called for franchise information. They told me about the franchise meeting in Zhengzhou on March 16. I bought a ticket to Zhengzhou right away, paid the deposit on the spot, and started operating in the Chengde market,” Mr. Peng recalled.
Over the next two years, Mr. Peng rapidly expanded his business, opening 16 stores in Chengde, even setting up 7 stores on a single street in one area. Mr. Peng jokingly remarked, “Because I opened too many stores in the Chengde market, when Mr. Zhang came to inspect in 2019 and saw how lively the Chengde market was, he immediately decided not to open any more direct stores.”
The reminiscence of old times leaves Mr. Peng with mixed feelings. He once had a store at the entrance of the Summer Resort, which performed exceptionally well as a tourist spot. Another store opposite Chengde Railway Station also thrived, benefiting from high foot traffic and earning abundantly. However, the following three years of special circumstances dealt a significant blow to physical businesses, leading Mr. Peng to close several stores intermittently. Now, with business improving, Mr. Peng’s store count stabilizes at 9, all strategically located near bustling commercial streets and large communities.
In selecting locations for Zuliz stores, Mr. Peng has his considerations. “Previously, Wanda Plaza in Chengde invited me to set up a store, but after visiting the site, I found that this new mall attracted mostly young people and was somewhat remote. Elderly customers wouldn’t drive there to shop, so I chose not to set up shop there.”
Taking the example of community stores, Mr. Peng explains, “These stores are surrounded by residents, with many elderly customers, offering affordable rent and spacious storefronts. I regularly give small gifts or socks to elderly passersby. Over time, they develop trust in Zuliz, leading them to purchase from me throughout the year.”
To address the issue of small store sizes in community and commercial street locations, Mr. Peng rented a 400-square-meter warehouse. With a dedicated warehouse manager delivering goods every other day, he ensures all stores have ample inventory for sales, supporting his scalable operational model.
The effects of influencer-led group buying have been significant, resulting in increased sales and enhanced store performance. After noticing a decline in shoe sales post-Chinese New Year, Mr. Peng swiftly adjusted by creating a public account for customers to scan codes for coupons and implemented a “trade-in old shoes for new shoes” campaign in line with company policies.
Nevertheless, offline stores still lacked foot traffic. Starting in March, Zuliz fully embraced the Douyin platform for group buying, with Mr. Peng actively utilizing the company’s influencer subsidy program. By engaging 101 local influencers from Chengde in April for promotional videos, mostly V3 and V4 influencers on Douyin, Mr. Peng saw immediate returns. For the Mother’s Day promotion in May, a small store’s sales surged from 30,000 yuan to 90,000 yuan, doubling their revenue.
The impact of group buying has been enormous, reducing the manpower costs of traditional advertising and attracting more young buyers. Mr. Peng notes, “I have a store in a mall basement where many young people come after seeing our products on Douyin to buy shoes for their parents. The sales of parent shoes are fast, with some customers buying two pairs at once. Once they experience the benefits, they become loyal customers who return for more purchases.”
Mr. Peng reported impressive growth in his Xinhua Street, Jingtong Shopping Center, and Mashijie stores in May, with increases of 235%, 73%, and 26%, respectively.
Balancing traditional and innovative approaches, Mr. Peng emphasizes excellent service for customers not engaging in Douyin group buying or those of older age. By providing attentive shoe fitting services and ensuring a comfortable experience, Mr. Peng builds trust and loyalty among all customers.
“The generous” boss cultivates “super capable” store employees
Effective incentive principles: High commissions coupled with quality service
Employee dedication is crucial for maintaining stable performance. Mr. Peng holds his employees in high regard, stating, “We currently have 19 staff members, all of whom have been with me from 2017. They are all elite salespersons, skillful at selling. Some of them can close a sale in just three sentences by understanding the customer’s hesitations, whether related to the product, price, or other concerns.”
“A key premise is ensuring that employees earn money.” Mr. Peng incentivizes his staff with high commissions, stating, “I let employees manage themselves, mainly offering higher commissions than others.” He has established commission rules for all employees: selling shoes below 100 yuan earns a 3 yuan commission per pair; 5 yuan for shoes priced between 100-200 yuan; 10 yuan for shoes priced between 200-300 yuan; and 20 yuan for shoes above 300 yuan.
However, as the boss, Mr. Peng prefers both volume and higher unit prices. He explains this concept to his staff, encouraging them to recommend higher-priced items. During inventory clearance, he generously increases the commission for specific old shoe models to 20 yuan, allowing a single staff member to earn over 100 yuan in commission per day by selling seven to eight pairs of shoes, a significantly high wage in the Chengde footwear industry.
Mr. Peng acknowledges that the current customer engagement methods differ from the past. Instead of traditional brand recommendations and giveaways, the focus is on providing emotional value and service. He says, “Many of our customers are regulars who know the brand well, and they trust us. We provide services like offering water upon entry, free shoe cleaning, and the option to trade in old shoes for new ones, which builds customer trust.”
Under the weight of high commissions, Mr. Peng’s employees consistently earn money, regardless of the season.
Market-oriented product allocation and open doors for stores
As a multi-store owner, Mr. Peng has significant control over local markets and ample room for adjustments. He ensures that customers do not hesitate to enter his stores due to pricing. He elaborates, “I adjust according to local market conditions, offering a diverse range of products that cater to the nearby population’s needs and various shoe preferences.”
With this operational strategy, products at the 9 stores align with the local market’s demographics, covering a wide price range. This approach instills confidence in store employees, knowing they can provide suitable shoe options for every customer’s preference.
Mr. Peng describes his approach as all-encompassing, stating, “I keep the doors wide open for customers, offering all types of shoes and discounts they desire, online coupon purchases with offline experiences, free shoe cleaning, trade-in programs, and everything customers want is available.”
(Three) Transparency and Professionalism Bring in Traffic
Mr. Peng places a strong trust in his employees and makes it clear to them, “This store wasn’t opened for me, it was opened for you all. Everyone sells diligently and earns money genuinely, and together we will progress and thrive.” Thus, his income distribution mechanism is very transparent, with the commission of each employee being publicly announced in the group chat every day, in addition to their base salary.
Furthermore, Zuliz encourages store employees to become professionals, promoting themselves and reaping benefits. Initially, the employees started by simply recording videos, but their persistence led to extraordinary results.
According to official Zuliz data, 7 out of the top ten sales performers nationally are employees from Mr. Peng’s stores, which is a remarkable achievement considering Zuliz’s vast network of over 3,000 stores. Employees who become professionals actively guide customers to place orders in their Douyin group buying videos, earning double commissions for each pair of shoes sold, boosting their motivation to the maximum.
Each profession has its secrets, and every individual has their own personality. Over the years, the store employees have overcome initial fears of customers being picky and not making sales. Their confidence in speaking and presenting products grew gradually as they supported each other, eliminating discomfort and growing together with the stores.
After seven years of partnership with Zuliz, Mr. Peng’s days have become more relaxed. Looking towards the future, he hopes the company will introduce more high-quality and affordable products to meet diverse customer needs. He will continue exploring suitable operational strategies for the market, providing better services for customers, and expanding and strengthening the Zuliz brand in the Chengde market.
In Conclusion
In the trillion-dollar silver economy, it is foreseeable that the market will see an increase in products catering to the needs of the elderly. As the market matures and develops, more consumers will gravitate towards leading enterprises. Over the past decade, Zuliz’s elderly shoes have achieved scalable growth and will continue leveraging their strengths to solidify their presence in the market and sustain growth.
