Chapter 649
Words:1575Update:22/06/30 10:01:11
It was the end of August, and all the shops in Tai Hua Supermarket were rented out. This was much shorter than what they expected.
The main reason was that Tai Hua Supermarket had attracted a lot of customers. Since the opening, Tai Hua Supermarket had become the most famous supermarket in every city, including Beijing and Shanghai. Tai Hua Supermarket had even become one of the landmarks in a few cities.
Also, Tai Hua Supermarket had shown its power and potential. The other companies were also smart. If they did not make use of this opportunity, it would be a loss for them.
Someone once said that there were two main reasons why companies like KFC and McDonald's could succeed. First, the brand. Second, the location.
For example, if KFC and McDonald's were to be set up in a village, even if everyone in the village knew that they were international brands, they would not be able to make money. This was because there were not many villagers, and the purchasing power was too low.
Why did KFC and McDonald's need professionals to scout the locations of their franchises? It was because they felt that a steady flow of customers was the most important thing. Not everyone would travel all the way to your restaurant just because it was a world-renowned food and beverage company.
To be honest, fast food didn't taste that good. Many restaurants could make fast food taste the same. This was also the reason why there were so many similar fast food restaurants later on. They just needed to choose a good location and have a similar taste, and their business was good.
Although Tai Hua Supermarket had rented out all their shops, the first year's rent was not high. Both the companies that rented the shops and Tai Hua Supermarket Corporation were testing the market.
Tai Hua Supermarket Corporation wanted to test the profits of the other shops and decide if they should increase the prices next year. The other companies were also worried that Tai Hua Supermarket's popularity was only temporary. What if it went downhill after two months? The rental rates were too high, and they did not dare to make a decision so soon.
The rental of so many shops and the deposit to enter Tai Hua Supermarket was not a small sum. But after Fu Guangzheng saw the popularity of Tai Hua Supermarkets, he felt that setting up 20 supermarkets was not enough. He should set up more than 100 supermarkets in China as soon as possible. He wanted every province to have at least 3 Tai Hua Supermarkets. He also wanted to set up more supermarkets in the more developed and populated cities.
Fu Guangzheng had received news that Carrefour was doing market research in Hua Xia. They were going to enter the Hua Xia market next year. Currently, there were only 2 cities being surveyed. Beijing and Shanghai.
They still do not think that Hua Xia was suitable for setting up a Hypermarket. That was because they did not see the potential of the market. Hua Xia had a high population, and these Hypermarkets had great potential.
When Carrefour first opened their supermarkets in France, France's economy was not as good as Hua Xia's.
Also, Wal-Mart's Asia representative is interested in entering the Chinese market and is still in the observation stage.
If these two companies knew that Hua Xia's Hypermarkets were successful, then they will enter the Hua Xia market. At that time, there will be two strong competitors.
Not only this, Fu Guangzheng also found out that many people had registered companies in many cities. They wanted to copy Tai Hua Supermarket's model and set up supermarket chains.
Many of these companies were backed by the local government and had the support of the local government. Their development might be better than Tai Hua Supermarket.
These companies might not be able to set up a large-scale Hypermarket, but it should not be a problem for them to set up a supermarket. If they were successful, they could also set up supermarket chains.
For example, in Bing City, there was a state-owned supermarket that was in the midst of opening. It was so fast that Fu Guangzheng did not even have time to react. It should be ready to open in October this year!
Tai Hua Supermarket Corporation had become the public enemy of the industry in Hua Xia! If all the good locations were taken by others, then it would affect Tai Hua Supermarket's expansion.
This was the reason why Fu Guangzheng was so anxious. Li Zekai, Superman Li, and Fu Rongbing also agreed.
Now, there were a few options. The first option was for everyone to increase their investments and set up more Hypermarket chains.
The second option was to get loans. Although Tai Hua Supermarket Corporation had a lot of registered capital and real estate, the brand value was not high. The loans were not high, and Fu Guangzheng and the rest were not satisfied with the loans.
The third option is to continue to use Tai Hua Supermarket Corporation's profits and use most of the cash flow, including the deposits from the merchants.
At this time, Feng Yu suggested another option.
"Increasing our investments according to the ratio is not a problem for all of you. But all of you should know that if we set up the chain stores so soon, some of the stores will not be profitable. That means our funds will be held up for a long time. This is not a wise investment. We had been looking at the first 20 stores for a long time. If we want to speed up, there will be loopholes. "
"We know this. But our Tai Hua Supermarket Corporation's scale cannot be compared to Carrefour and Walmart. Once they enter the market, they will get some support from the government. If we let them gain a foothold in the market, we will be giving up a portion of the market. Those imitators will also snatch our market share. If all the good locations are occupied by them, it will be hard for us to enter the market. Now, we must set up our locations as soon as possible. At the very least, we should sign the agreement. "Fu Guangzheng said.
"I know what you are saying. I am not against expanding now. But we do not need to increase our investments. Getting a loan is one option. Although the amount will not be a lot, it should be enough to set up 10 Hypermarkets. What I want to say is to overdraft Tai Hua Supermarket Corporation's profits. I think this is a good idea. "Feng Yu smiled and said.
"Brother Feng, using up our profits can raise a lot of funds in a short period. But if there are any problems, the company will be crippled. We can continue to inject funds into the company, but it will affect our brand. People will think that we are a shell company." Li Zekai frowned.
Superman Li had agreed to continue to inject funds into the company. That's why Li Zekai was against using up their profits.
"Our Tai Hua Supermarket Corporation still has not introduced membership cards. We also have not introduced shopping cards, right? I think the potential of these two cards has not been discovered yet! "Feng Yu said mysteriously.
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