Base market: base strategy for chain expansion

Walking on the city's roads, strolling through the shops on the two streets, you will find chain stores everywhere. In the city's commercial center, department stores, supermarkets, shopping centers are all available; in crowded streets, convenience stores, pharmacies, restaurants, hotels can be seen everywhere. Since the beginning of this century, the "chain" has become a household name, and merchants have rushed out of the city and marched toward the country. Home appliance retail has produced two giants, Gome Yongle and Suning, Wal-Mart, Carrefour, and China Resources Vanguard are also well-known. Wanda Shopping Center and Dashang Department Store have also gone to the whole country. Home Inns and Little Sheep Hot Pot have created a chain of myths. However, the losers may not have caused too much attention. The Asian and Red Sorghums have long ceased to exist. Xinyijia and Bai'anju have just experienced the pain of connecting several stores. There are many, Tesco and RT-Mart, and there are more. Many unnamed chain companies have been merged and acquired. In this era of "worship success and forgetting failure", have people ever thought about what is the key to victory or defeat?

Asking the chain entrepreneurs around you, what is more important? The answers are not the same, but the terms “scale, cross-regional development, number of stores, franchise” and so on will definitely be mentioned repeatedly. Expansion is a long-standing topic. When a company starts in a city, chain expansion is always the pursuit of entrepreneurs. The question is, how to chain and how to expand? Enterprise development pays attention to fast and healthy, has a relaxed, both offensive and defensive, and must be down to earth, not bluff. When the market is in a rising period, if it fails, 100% of the reasons must come from the enterprise itself. This is undoubtedly the truth. For this phenomenon, people often give a very sloppy explanation: "The expansion speed is too fast." But is there a mistake in itself? Market opportunities are fleeting, and opportunities are a necessary condition for success, although it is not a sufficient condition. In fact, the speed of expansion is only a superficial phenomenon. The question is, how is speed achieved? In other words, what kind of development path has you chosen?

There must be a road to development! By choosing the right path, companies can develop quickly and healthily; if they go on the wrong path, they may fall into a quagmire. The question is, what is the right path? Chain management pays attention to “connecting the web”, what is the key to the network? It is a network node! These nodes are the fortress, the hub, and the "base" that can be attacked and retreated. Therefore, chain expansion must establish a base with competitive advantages as its own "base area", on the basis of which it is possible to develop. Of course, the "base area" mentioned here is not a remote market, nor a rural market, or even a third-tier city, but a core market with both offensive and defensive functions.

Let us look at the reality first. Bailian Group has 13 large shopping centers, ranking second in the country, 8 of which are in Shanghai. China's largest supermarket company, China Resources Vanguard, has 115 stores, including 20 in Tianjin, 27 in Guangzhu Shensan, and 11 in Xi'an, almost the same as the total number of stores in 33 other cities. In the end, Century Lianhua has 90 supermarkets distributed throughout the country, one-fourth of which are in Shanghai. There are 73 shopping malls in the top of the country, with 18% in Dalian and 80% in the Northeast. Best Buy bought China, and 6 of the 7 stores are in Shanghai. Even Wal-Mart and Carrefour are all intensively distributed in Beijing, Shanghai and Shenzhen. why? Because they are implementing the "base" strategy!

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