Open Shop VS Rental Counters: Marketing Strategy Game Of Entrepreneurship

Many people in Beijing know that to buy hardware and stainless steel products, they will go to these places such as Xiao Wu Ji and Cheng Shou temple in Chaoyang District. There are many small shops and large number of business outlets, and special streets have been formed to specialize in these products. Therefore, many businessmen from other places choose to set up exclusive stores in this area.

With the development of this industry, some professional large markets have also come into being. Do they continue to open small shops or rent shops into the market? Is there any opportunity to expand their business in such a choice?

When the reporter walked into the small Wuji stainless steel market built two years ago, we saw hundreds of shops in nearly 20 thousand square meters of business area.

Mr. Lin, who was interviewed by reporters, is a native of Hebei. He rented a shop here for over a year. Before that, he had been opening a small shop nearby.

Mr. Lin said that when he first came to Beijing in 2000, the industry was relatively good, and the profit in the year was about about one hundred thousand yuan.

Such a scene lasted for two or three years. At that time, the characteristic street of hardware and stainless steel products was formed near wuwuji bridge in the East Fourth Ring Road. Many merchants rented shop faces, the rent increased, and the competition became more and more intense. They could only earn sixty thousand or seventy thousand yuan a year.

Mr. Lin's business has really been hit hard by the major market such as the Chao long market nearby, the North District of Chao long hardware market and so on. Many businesses like him have entered these big markets, rented out shops, and no longer worked as soldiers. Tourists were soon attracted by these big markets, and the profits of Mr. Lin's shop opened up to thirty thousand or forty thousand yuan.

Finally, Mr. Lin made up his mind to rent a shop near 20 square meters in the new Wuxiao stainless steel market in 2006. The annual rent is about 40 thousand yuan. After 1 years of operation, he earned nearly 100 thousand yuan in profits.

However, Mr. Lin is facing the burden of 20% of the rent of the shops in the past second years. At the same time, there are new professional big markets opened around the world, and more businesses are coming. Everyone is fighting for this business opportunity. Is he worried that he can still keep his profits?

Ma Chunqiang, President of the Beijing Nonferrous Metals Industry Association of Commerce and industry, told reporters that at present, the stainless steel nonferrous metals industry in Beijing is a new industry. With the development and demand of Beijing's modern metropolis, the industry has formed a very large and very important product demand chain, and the market prospect is still broad.

In the past, there were nearly 2000 employees in the industry, mainly distributed in Xiaowuji, Cheng Shou temple, Xiaohong gate, big country Pavilion and so on. Due to their flexible operation, these enterprises have achieved good economic benefits. However, with the development and deepening of the reform, this mode has been difficult to meet the market demand. Therefore, the establishment of some major professional markets, such as Chao long market, Xiao Wu Ji stainless steel market, and Chao long hardware wholesale market, has provided new prospects for the industry.

At present, these large professional markets have reached nearly 100 thousand square meters of business area, and there are strict entry systems for the commodities operated by merchants, and full-time inspectors carry out inspections. There are corresponding measures for customer complaints and after-sale services, so these markets have won a certain degree of trust and popularity.

Small and medium businesses should choose to enter the big market.

Xi Yonggang, the senior investment manager of Cci Capital Ltd, is the main line of development in the next 20 years. Not only consumers have such demand, but also operators must cater for this trend and demand, otherwise they will be eliminated.

Against this background, the roadside shops gradually withdraw from the market stage and enter the big market, which is an inevitable trend for the development of many consumer goods sales.

After entering the big market, adopting uniform standard and standard layout and decoration can bring better consumption experience to users, but reputation and trust degree are brought by the big market itself, highlighting the brand of big market, and the brands and characteristics of each shop are weakened. Therefore, how to highlight their image and voice in the big market is the next step that these large market merchants must consider.