Chapter 339: A shop is hard to find
In 2003, the retail industry in this period was very good, as long as you dared to do it, you basically made money, it was nothing more than making more and earning less.
Lin Fan started from scratch, with assets of nearly 100 million yuan in half a year; Li Dahai agent 'S horse', after several years of development, assets are nearly 100 million, and the new agent of the "urban mood" women's shoes, although not as strong as "Yaxi", but the overall performance is still good, the franchise store has opened six or seven, the response is not bad, the average monthly single point can be about 90,000, the average monthly goods are 50,000 yuan, Li Dahai has 15% profit margin in the middle of the link, even if the current situation is maintained, if the county-level market in the province is rolled out, a year to get tens of millions of goods, This alone can make a profit of 56 million.
Perhaps, whether it is a single store turnover or profit margin, it cannot be compared with "Sifan Commerce", but it is much stronger than many retailers, with an investment of 30 million and an annual profit of more than 10 million, which is already a return on investment of more than 30%.
Even "Daming Commerce" after opening a few franchise stores also found the investment income of the street shop, they opened a total of 3 franchise stores, a single store monthly single point can do 6-70,000, don't look at this month's single point is not high, because one of their three stores is a single room façade, an area of less than 40 square meters, the monthly single point of this store is only 50,000 yuan, so the overall average value is lowered, if according to this performance, as soon as possible the province will be opened, a year to achieve a profit of about 6 million is no problem, The premise is that the market can continue to be so good.
Of course, the market can't be so good all the time, and merchants see huge profits in it. Naturally, those landlords have seen it, so many landlords have begun to connect and start to raise the rent level. Rents of street shops began to increase by more than 20 percent per year, a trend that began with Chung Hai Pedestrian Street in Kyong Province and gradually declined to first-class business districts in cities and counties.
With the increase in rent costs and personnel costs, if the annual performance increase of each street shop cannot keep up with the increase in expense costs, it means that profits will continue to shrink, so during this period, Party A and Party B are negotiating contracts. As a tenant, Party B always wants to sign a lease for a longer period of time, 3 years, 5 years. The longer the contract, the better it is, because after the contract is signed, at least during the contract period, no matter how long the rent market is, it is not easy for the landlord to breach the contract to increase the rent during the contract period. As the landlord of Party A, he hopes to sign a visa once a year. Of course, you can sign for a long time if you want. Then let's agree on an annual rent increase during the contract period.
"Daming business" recent focus is still on the development of franchise business, do franchise has an advantage is that the investment is small, and in the cooperation with the franchise customers only make no loss, the disadvantage is that the profit margin is limited, want to become bigger and stronger will be subject to certain constraints, but Zhang Ziming and Zhao Hua are currently not considering in the women's shoes market in Qing Province and "Yaxi" to compete, never thought of being able to do Qing Province NO1, they are thinking about making money. It would be enough to make a little more money, so the development strategy they are formulating now is to fully liberalize the franchise market. Even the business districts of prefecture-level cities are also given to franchisees, and they only open directly operated stores in Zhonghai City.
Since the franchise has made a steady profit, why do you want to open a direct store, the reason is very simple, in the area where management is convenient, opening a direct sales is still more profitable than joining, and the company also needs a few stores to make an image, and assume the role of digesting inventory.
Zhonghai Pedestrian Street is also the first choice for "Daming Commerce" to open a store, but so far there is no target store, in this case, located in the Songlin Road commercial street business district of the shop jumped into the field of vision of the two, this business district at first everyone was a wait-and-see attitude, Zhang Ziming and Zhao Hua did not show too positive, until not long ago to get the news that the commercial street investment work has come to an end, basically 90% of the shops have been signed, the two of them paid attention to it, to understand the brand layout of the commercial street.
The brands in the Songlin Road commercial street basically include the street paving brands on the market, sports Adi, Nike, casual "S horse", "M Bang" and some well-known women's clothing, gold jewelry and ** brands, as well as the two people who are most concerned about "Yaxi" have been determined to settle in, and it is understood that "Yaxi" plans to open three direct stores in the business district Opening a store has become what they think is the best idea to open a store.
With the brand portfolio of Songlin Road Commercial Street and the consumption power of the surrounding people, coupled with the large customer collection points such as the "Kebiduo" supermarket, many people in the circle have become more and more optimistic about this new business district, and even many people are beating their chests and regretting why they didn't buy a few shops here for investment in the first place?
In fact, whether a business district can succeed, in addition to the regional location, passenger flow line, brand portfolio and business fullness are important factors that determine the life and death of this business district, in the early stage of the developer invited by the unprofessional investment team to give everyone a bad impression, many people are not optimistic about here, and the price of more than 10,000 yuan is not the bottom in this era, just when many people are still hesitating whether the shop can be bought, and even the developer invited a lot of marketing personnel to do work in many aspects or hesitate. Lin Fan and Zhang Wu boldly negotiated with the developer more than 95% of the shops in the entire commercial street, and directly took back the investment promotion work and operated the investment promotion themselves.
In order to make this commercial street successful, Lin Fan and Zhang Wu also invested a lot of money, such as Adi, Nike, this kind of brand is basically rent-free for half a year, and some brands have also given similar treatment, and during the opening of the commercial street, the two will also invest money to often do large-scale activities on the pedestrian street, as well as projects such as children's playgrounds to attract popularity, but these are not known to outsiders.
The prospects of Songlin Road Commercial Street are generally optimistic, Zhang Ziming and Zhao Hua also began to negotiate to settle in, but at this time there are not many shops left, Shi Kehua, Ye Shaofeng, the attitude of these two investment leaders has begun to get higher and higher, because the remaining shops are obviously not worried about empty shops, in this case, the entry of such a women's shoe brand as "Lifusi", the two will consider that after all, it is a competing brand with Lin Fan's "Yaxi", and its entry will have an impact on "Yaxi". So in the first round of negotiations, the two directly passed "Livus".
This time, Zhang Ziming and Zhao Hua were dumbfounded, they were originally not serious about the commercial street, but now people don't look down on themselves, people are under the eaves, and they can't be angry, besides, who is Ye Shaofeng, he is also the person in charge of investment promotion of the eLong Department Store procurement and distribution center, "Lifusi" still wants to cooperate with him in depth, so although Zhang Ziming and Zhao Hua held their stomachs, they had to pay for their smiling faces, and begged for "a Ye always help, give a chance". (To be continued......)