By the end of August, all the shops in Taihua Supermarket were rented out, which was much shorter than they expected.
The main reason is that the customer flow brought by Taihua Supermarket is too great. Since its opening, Taihua Supermarket has quickly become the most famous location in any city, including big cities like Beijing and Shanghai. There are even several supermarkets. The city has become one of the landmark units.
Moreover, the background strength and development potential displayed by Taihua Supermarket are too great. Other companies are also very smart. If they do not seize such a good opportunity, it will be a loss.
Someone has said that the success of companies such as KFC and McDonald's is mainly due to two points. The first point is brand; the second point is location selection.
To give a very simple example, if KFC and McDonald's open in rural areas, even if everyone in the village knows that they are a big international brand, they still cannot make money because there are few people and because the per capita purchasing power is too low.
Why do KFC and McDonald's franchise stores have specialized people to inspect and select locations? Because they believe that stable passenger flow is the most important thing. Not everyone will go all the way to eat at you just because you are a world-famous catering company.
To be honest, the taste of fast food is not that good, and many restaurants can make the same taste. This is also the reason why so many similar fast food restaurants were able to develop later. They just chose a good location and similar tastes, and they were able to do good business.
Although Taihua Supermarket has rented out all the shops and the rent is paid annually, the first year's rent is really not very high. To put it bluntly, both the companies that rent the shops and the Taihua Supermarket Group Testing.
Taihua Supermarket Group wants to test the profitability of other stores to decide whether to raise prices next year. If the price increases, how much should it increase? Other companies are also worried that the popularity of Taihua Supermarket is only temporary. What if it goes downhill in two months? The rent was too high and they didn't dare to decide so quickly.
So many shops for rent. Including the brand deposit for entering Taihua Supermarket, the total sum is not a small amount. But after Fu Guangzheng saw the popularity of Taihua Supermarket, he felt that opening 20 supermarkets at the same time was too few. It would be best to build more than 100 supermarkets across the country as quickly as possible. Ensure that every province has at least three Taihua supermarkets. Some more developed cities and cities with larger populations can open more.
Because he received news that Carrefour has been doing market research in China and heard that it is preparing to enter the Chinese market next year. There are only two cities currently being inspected, Beijing and Shanghai.
For the time being, they do not believe that China is suitable for opening super hypermarkets. That is because they have not seen the potential of the market. China has such a large population, and this kind of super hypermarket has great market potential.
Think about when Carrefour first opened its supermarkets in France. France's economic situation is far inferior to that of China now.
There is also the person in charge of Wal-Mart's Asia region. I heard that he is also interested in entering the Chinese market and is currently in the investigation stage.
If these two large groups see that super hypermarkets can be completely successful in China, then they will definitely quickly enter the Chinese market, and then two of their strongest competitors will appear.
That's not all. Fu Guangzheng also learned that in many cities, people have registered companies and want to copy the model of Taihua Supermarket Group. Open a supermarket chain.
Many of these companies have government backgrounds, and with the support of local governments, they are likely to develop more smoothly than Taihua Supermarket Group.
They may not be able to open such a large-scale hypermarket, but they will only open one supermarket. Still no problem. Even if it develops well, you can directly open a chain of supermarkets.
For example, in Bingcheng, there is currently a state-owned supermarket in preparation for opening. It was so fast that Fu Guangzheng didn't even react. He should have been prepared for it long ago. It is expected to open in October this year!
Taihua Supermarket Group. Among the Chinese peers, it has become the public enemy of the entire industry! If the good locations are occupied by others, it will seriously affect the expansion of Taihua Supermarket.
That's why Fu Guangzheng became so eager, and Li Zekai agreed, and even Li Chaoren and Fu Rongbing agreed.
There are several options now. The first one is that everyone continues to invest more in proportion, and then there will be money to open more chain super supermarkets.
The second type is loans. Although Taihua Supermarket Group has a lot of registered capital and real estate, its brand value is not high and the amount of money it can get is not much. At least Fu Guangzheng and the others are not satisfied.
The third option is to continue to overdraw the profits of Taihua Supermarket Group and divert most of the working capital, including using the margins of those merchants, etc.
At this time, Feng Yu proposed another plan.
"Of course it's not too difficult for you to increase investment in proportion. But you should also know that if we open chain stores so quickly, there will inevitably be some that are not very profitable. In other words, our funds will be occupied for a long time. It will take a long time. This is not a wise investment choice. The time we spent inspecting the first twenty stores was not short. Now that we are pursuing speed, there will inevitably be loopholes."
"Of course we know this, but the scale of our Taihua Supermarket Group is still incomparable to multinational retail groups such as Carrefour and Wal-Mart. Once they enter, there will definitely be some relevant policy support. If they can gain a firm foothold, , part of the market has been given away in vain. There are also people who follow suit in those places. They will also seize our market. If all the good locations are occupied by them, it will be too difficult for us to enter. Now we need to be the most Quickly, stand down and sign the agreement first." Fu Guangzheng said.
"I know what you said. I'm not against expanding now. It's just that we don't need to invest more. Loans are one way. Although the amount won't be too much, it should be enough to open ten super supermarkets. What I want to say That is, I think it is a good way to overdraw the profits of Taihua Supermarket Group." Feng Yu said with a smile.
"Brother Feng, overdraft profits can raise a lot of funds in a short period of time, but once there is any problem, the company will quickly fall into paralysis. Of course we can continue to inject capital to save it, but it will definitely have a big impact on the brand and make it worse. People think we are just a shell company." Li Zekai said with a frown.
Li Chaoren has promised to continue to inject capital into him, so he is very opposed to overdrafting profits, but not to loans.
"It seems that our Taihua Supermarket hasn't launched a membership card yet? We haven't promoted shopping cards, right? In my opinion, the potential of these two cards has not been tapped at all!" Feng Yu said mysteriously. (To be continued.)
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