Service Enterprises Must Read: Three Or Four Line Cities Become "Fragrant Meat And Potatoes"

Because

Second tier cities tend to be saturated.

"In conjunction with this year's investigation and information analysis of the retail market of more than 10 cities and counties in five provinces in Hunan, Henan, Sichuan, Anhui and Jiangsu, we have judged that the three or four line market is like 5 years ago in the second tier cities and 2-3 years ago in the central and Western Cities: demand growth is rapid and supply is relatively scarce. The company that pioneered the sinking is short, rewarding and enjoying an extended feast."

Huatai Securities Research Institute issued a report on the current situation of domestic retail industry to make such an evaluation.

In fact, the competition in China's retail market is now heating up in the first and second tier cities.

Yesterday, Renmin University of China professor Huang Guoxiong told the Yangcheng Evening News reporter that foreign retail businesses mainly concentrated in China's first and second tier cities, and domestic businesses.

According to our survey, 10 years ago, department stores in the domestic first and second tier cities opened up shops for about one or two years. In the past two years, department stores opened up three to four years, and the rent of commercial property in the first and second tier cities increased by 30% to 50% over the past five years.

The development of retail enterprises to the three or four tier cities has become the trend of the times.

Huang Wenjie, executive chairman of Guangdong Circulation Industry Association, told reporters.

It is reported that in 2010, the top ten retailers in China chain enterprises have stepped into the three or four line cities, and listed retail companies such as BBK, Nanjing China Merchants, e Wu merchants, Hefei department stores, chengshang group, Guang Bai share and other large domestic retail enterprises have begun to win in the three or four tier cities.

Maintain rapid growth in the next ten years

Will many retailers join the three or four tier cities in China? Will they bring more?

The report released by the Huatai joint Securities Research Institute shows that since 2007, the three tier cities, especially the three tier cities in the Midwest, have replaced the first and second tier cities and become the fastest growing regions.

Based on the average proportion of department stores in the first and second tier cities, the total volume of the above three lines (including three lines) is 400 billion yuan.

Most importantly, the report points out that the three or four tier cities are still dominated by traditional retail outlets such as street shops, and the supply of quality retail is scarce.

"Because of the low urbanization and the lags of commercial development, the price of commercial land in the three or four tier cities is rising slowly; the government hopes to introduce retail enterprises to solve employment, bring taxes and enhance the image of the city.

Cost advantage and policy support reduce the risk of enterprise channel sinking.

We estimate that the opening efficiency of the three or four line stores will reach 6000 yuan, which is expected to be even. Many of our research companies have opened three or four new shops only for one year.

One data gives many retail businesses confidence to invest in three or four line cities: "these companies now have 20 million net profits and 5% net interest rates on many three or four line stores.

This high return is still expected to remain within two or three years and supply is still insufficient. "

"In the next 10 years, the development of China's three or four tier cities will continue to grow rapidly."

Huang Wenjie believed.

"Of course, there will also be some pain, for example, the three or four tier cities have a low desire to buy, and the market is smaller and more chaotic. Because of the" time difference "in comparison with the first and second tier cities, there is a gap between consumption concept and consumption habits.

With the intensification of competition, the survival of the fittest will emerge. "

First commercial network president Huang Huajun said.