There are 56,441 franchised outlets in Italy, with a total of 980 franchisors and a total turnover of 26,154 million euro, according to data from the latest Assofranchising Italia report. The advantages offered by this business formula are in fact diverse, as we have already recounted in a previous in-depth study dedicated to the subject, and several eCommerce sales channels are also moving to create a dropshipping franchise network.
There is also no shortage of realities supporting this business. GEL Proximity, for example, enables networks and chains of shops by easily connecting them with the online shopping world and ‘networking’ the retail world with a network of thousands of Pick-up Points and Lockers active throughout the country. Another reality that acts as a franchising business facilitator is YouBusinessNetwork. We exchanged a few words with the founder, Fabrizio Mantovani, to try to understand how, from his point of view, this business will evolve in the near future.
Fabrizio, let’s start right away by asking you about the company you founded, YouBusiness Netowork. How did the idea come about?
From the intuition, which is also a conviction of mine and my partner Dario Pessina, that there is a need for structured, high-level support to support business start-ups and development. By enterprises I mean both large and structured retail networks and micro and small enterprises joining existing Franchise formats.
Which product sectors are the best performers in franchising today? Are there any sectors to watch out for in the near future?
Food retail is proving, after the difficulties related to the forced closures during the lockdown, to be on the upswing and to be able to grasp people’s need for escape. In general, there is a good buzz at the moment both from the Franchisors, who are working to resume a good pace of development of their Networks, and from the Franchisees, who are looking for and selecting new opportunities.
From your point of view, what does a Franchise Network need? In that sense, what kind of support does YouBusiness Network offer?
Retail Networks always need to grow, because even if they reach the maximum possible coverage in one country they have the possibility of expanding into other countries. For this reason, one of the main needs of Networks is to have an effective development plan that can count on support, facilitation and facilities for entrepreneurs who become part of their distribution system. Giving an answer to this need is the objective of YouBusiness Network, which focuses its action precisely on being a business facilitator.
What do you think about the ongoing transition from physical to digital space? How are the franchise networks doing?
I am not saying anything new by emphasising that in today’s market, and most probably in the future as well, the physical and the digital must both be present and integrated. The challenge is to progressively find the most suitable solutions to achieve effective integration, with the awareness that one can never stop, but must proceed with a continuous and constant search for new answers to the changing needs of people and the environment.
In a recent in-depth article on the GEL Proximity blog, we talked about the possibility for those with an eCommerce sales channel to create a Franchise Network in dropshipping. Is this a trend that you are observing and what do you see as the advantages that an online store can gain from a Franchise Network?
The physical store can certainly be a complement and support for online commerce, but the feasibility of a new Franchise Store Network to handle online sales depends on the projected profit and loss account of the typical shop, which must be able to cover the costs and generate profits that meet the franchisee’s investment and operations.
Among GEL Proximity’s technological services dedicated to the Franchising world is the possibility of building new Proximity Logistics Networks. Do you have any evidence of franchise networks that are turning into Collection Point networks open to receive products from other shops as well?
We have been evaluating for some time now with several of our partner networks the opportunity of making franchisee and direct outlets become pick-up points, also for specific products requiring special conditions. Franchisors are showing interest in scenarios of this kind, so in the near future this could be an interesting area to focus on in order to develop solutions that have not been tried so far.
What advantages do you see for Franchisees in this type of service applied to the Franchising world?
Growth of traffic in the shop and greater knowledge on the part of proximity customers of the products or services offered in the shop.
We would like to thank Fabrizio Mantovani for speaking on our blog and we look forward to seeing you in future articles, which you can find updated weekly on the GEL Proximity website, and of course in upcoming interviews!
