Luo Qingqi: A City Of A Huge Bubble In Home Appliance Chain
When a butterfly in the balance
Balance Settled at both ends of either side, when the balance of the balance will be broken immediately. When the store chain’s stores across the region to any store in the win loss loss of direction toward the equilibrium point when the influx of chain stores began to close his business. Such a description sounds like a joke, but when we look at each one Jingxia Xin city shop in the game, we will see the relevant shop tide level cities in China have become the inevitable chain stores experience to the itinerary.
Chain enterprises Sell Increase is not entirely decided by the number of number of stores, but the decision by the local demand, demand will increase with the increase of the number of stores. Chain shop early is entirely non-chain business state replacement, at this time, each chain will be in one place with the stores sales volume increases, however, when a number of stores saturated region state when the new stores will open there the phenomenon of increasing marginal costs, when the marginal cost across this time, it is difficult to achieve profitable store closing is inevitable.
A city Home appliance chain Store store bubble has emerged. As of last year,
States United States , Suning , Three medium and large chain stores in Tianjin, the total amount of the market is only 25, but is expected by the end of September this year, coupled with just the three chains into Tianjin, Shanghai Yongle, the holders of the number of stores will surge up to 39, an increase of nearly 60%, the number of stores has been a serious surplus, not only in Tianjin, staged in the capital city shop in the game.
I estimate that chain stores bursting of the bubble time at the turn of the spring and summer of next year. In fact, there are already signs that some large store chains 10,000 m sparse crowd had a voracious these stores
Operation Costs, manufacturers must accompany each store has become the iron law of history, a lot of shops inside the store but did not enter the cost of sales and the relatively high, this store has become a complete factory burden, therefore, manufacturers began to have a choice in nature, caution chain’s new store openings.
Wenzhou real estate speculators in the group died down, the chain of commercial property giant to become the new new “real estate speculators Wenzhou group”, a rapid move up shop in fact pushed up the level of the city’s commercial property rental prices. Recently chain reported a surge in the cost chain, which in addition to the cost of a new shop to market costs, a cost the city’s shop contest is still accounted for no small part.
A city is the chain’s high-yield field, mainly referring to the so-called high-yield market concentration, the faster flow of goods, who should take the initiative in an occupied city, the stores have more chips, no one to have more bargaining chip with the manufacturers, also have the second and third grade material basis for market expansion. Although the major chains have already announced their layout in a city has ended, but the layout of the end of the main chain of stores that have all the tentacles out into the city level, but that does not mean that they no longer The city shop, on the contrary, they live in their own businesses in order to ensure the absolute advantage in a dense urban basically launched to promote the bunker-style
Strategy : Any of a so-called dead live, and continue to shop quickly Mi Zaza.
Has a leading-edge companies in order to maintain their speed advantage to shop, catch up with who is also a city to be its future should be based on the necessary conditions are still in a city Huoshaohuoliao to shop, from the any one chain point of view, this shop is correct and scientific way, but rational individuals have no reason to create groups, chain business in a city
Risk Growing. Not always have to accommodate the unprecedented large chain of commercial risk, the risk of accumulation in sufficient time equivalent bound to explode, to our surprise, this time the bubble burst is at an unprecedented pace to the level of the market chain stores coming, because no one want to overload the elevator on the withdraw.
Hyatt tide, if as expected, then should the spring and summer of next year, in 2005 Spring Festival season is still a chance to support the store, winter, spring and summer is the chain of payment of sales , which is not strong between the months of cash support for the chain of funds may appear tense or broken links, so close the stores is not surprising.
Chain network as a new industry in the forms is the basic infrastructure, in the Chinese home appliance industry, and non-chain link
Locks
State alternate times, chain of channels no doubt become the industry’s shortage of resources, it became a manufacturer in the eyes of consumers is more precious than treasure, but a short few years, channel resources in a chain of cities has become as surplus property as home appliances, household electrical appliances when you hurry to find a time when excess chain, as chain stores, when you hurry to find surplus then? Can be expected in 2006 in a chain of channels in the city when the bubble burst chain will be a real, clear understanding of the shortage of resources are not their own, only a shortage of things for future consumers. Then chain and manufacturing enterprises and the relationship with consumers will be fundamental change.
I am an expert from Cheap On Sales, usually analyzes all kind of industries situation, such as mothers billet , warm ultrasonic humidifier.
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