Feilong Road business district, Zhang Wu knows, before in Zhonghai City, in addition to Zhonghai Pedestrian Street is the most prosperous Feilong Road business district, Feilong Road business district is also a regional business district, the radius of radiation is only 10 kilometers around and consumers along the bus, the business district attributes and Songlin Road commercial street is almost the same, the only area is that the Feilong Road business district is very mature, and Songlin Road commercial street is still a new business district to raise, but Songlin Road has a great advantage, that is, Songlin Road commercial street is a pure commercial pedestrian street, And here to eat, drink and play Tesco one-stop, and Feilong Road because it is an old business district, the basic layout has been formed, and there is no unified investment plan, basically the landlord is the one who pays the high rent to whom, so the layout of the business is a little chaotic, and there is no large-scale catering and entertainment facilities such as Songlin Road Commercial Street.

The rent of Feilong Road Commercial Street has now reached the level of 180,000 / year / room, recently because there are many businesses into the rush shop, there have been people asking for rent at a high price, shouting to more than 200,000 / room / year price, if Songlin Road Commercial Street can really catch up with the Feilong Road business district, the rent can be rented to 150,000 / year, then each can be sold for almost 3 million, equivalent to 60,000 / square unit price, then Lin Fan's price of 50,000 / square is really not high.

However, even so, the price soared from 8,500 yuan / square meter to 50,000 yuan / square meter, which is 6 times the original purchase price, and no one can accept it.

"Another point, I said that the future of Songlin Road Commercial Street can be on par with the Feilong Road business district, not that the rent of the shops in the Songlin Road Commercial Street should be compared to the current rent level of Feilong Road, because in the next few years, the rent of all street shops will rise sharply, from the recent high price of rent, I believe you can see that the signs are coming, the future of the Feilong Road business district of the single room rent can not be 200,000 / year, may be 300,000 / year, or even 400,000 / year is still difficult to find."

"Wouldn't it? Will rents go up so fast? Someone to rent? ”

Lin Fan smiled. Zhang Wu doesn't know how crazy the sports brand was around 2008, it was not renting a store at all, but robbing the store, which is strange, everyone couldn't understand why sportswear was popular to that point in that period, and what I couldn't understand was that the Chinese people in that period actually liked to use sportswear as work clothes and home clothes, and it seemed that in addition to participating in banquets, a set of sportswear would be fine. It seems that this is popular.

On the one hand, factories continue to produce, on the other hand, they continue to expand stores, pay high transfer fees, raise rents, and some intermediaries maliciously raise prices to make profits, so that rents rise like flips, and almost all landlords have become uncles by that time. As long as you have a good shop in hand, you can receive calls from tenants almost every day, 365 days a year.

As a result, landlords almost always renew their contracts. will be compared to pulling up the rent, and even which one can raise the rent to the highest level in the business district, this person has contributed to all the landlords in the business district, because when other landlords renew the terms of the contract. It will be talked about according to this standard, and even a little higher, and for rent seekers. Isn't it expensive to rent a house? That's good, you let let, there are people waiting in the back, isn't it tens of thousands of dollars more expensive than the surrounding area, what's there, just when I make less than these tens of thousands of yuan, this situation leads to the fact that as soon as the house comes out, if you don't hurry up, you will be signed off immediately.

On the one hand, this situation arises because the retail market is good, there are many tenants, and the good shops are in short supply, so they can sit on the ground and start the price, but also reflect the overall rent level of that period is not high, the street shop business is easy to do, and the return on investment is high.

How high is the return on investment? For example, the rent of a store in Zhonghai Pedestrian Street of "Yaxi" is 580,000 yuan per year, the personnel cost is 600,000 yuan a year, the decoration is 100,000 yuan per year, the logistics cost plus water email is 50,000 yuan a year, and the operating cost of "Sifan Commerce" is allocated to the store at 300,000 yuan per year. And this store now has an average monthly sales of 2 million, annual sales of nearly 25 million, its average gross profit margin can reach 60%, the gross profit of a year is 15 million, throw out all the expenses, the net profit is more than 13 million, there is such a high profit, even if the rent rises to 5 million, can this store be opened? Of course, it can be opened, because there is still a profit of 8 million, and in addition to the profit, the potential value of the advertising effect and clearing capacity of this store has not been calculated, so what is strange about the rent of Zhonghai Pedestrian Street rising sharply in the future?

Some people may say that "Yaxi" is now because of the small market competition, and its sales are high, not universally representative, then take "urban mood" as an example, its current sales average of 1 million per month, because of the promotion efforts, the gross profit margin should be about 55%, according to the above calculation method, its net profit a year is also 5 million, for it the rent rose to 5 million, it will continue to do, although the profit will be less, only seven or eight hundred thousand, but the advertising effect of this store is huge for them to do the franchise marketInventory clearance is also an important consideration.

So now there are people in Zhonghai Pedestrian Street who are asking for rent at a high price, 100 square meters of shops, asking for 800,000 yuan, or even 1 million yuan, if there are shops in front of Zhang Daming now, even if it is 1.5 million, he will take it down ruthlessly, and the result of taking it down is that there will be shops in Zhonghai Pedestrian Street in the future, it will only be more than 1.5 million, and the rent will be pulled up in this way.

The same calculation method is applied to the Feilong Road business district, "Yaxi" two stores here, 100 square meters of annual sales of nearly 5 million, gross profit of 3 million, even if the rent rises to 1 million / year, he can also make a lot of more than one million, so the Feilong Road business district will rise to 400,000 / room / year in the future is inevitable, and even until a large part of the entire business district A large number of tenants will lose money, only a small part of their own products are good, and those with strong management can make a little profit, which is the future trend of street shops. It is precisely because Lin Fan saw this that he did not consider taking the street shop channel when developing a new brand, because in the future, the street shop is such a situation, the rent is rising every year, competing products are increasing every year, and the business is becoming more and more difficult to do, and what is even worse is that the impact of online shopping on the street shop brand in the future is simply catastrophic.

At that time, all the businesses based on street paving will fall into a huge confusion area, the cost will rise year by year, the cost will rise year by year, the gross profit margin will decline year by year, and the sales will decline year by year. (To be continued......)