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Zhou Dafu'S New Round Of Expansion: The 345 Line City In The Future

2014/7/17 13:08:00 29

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In 1998, Zhou Dafu took Beijing as the starting point for entering the Chinese mainland market. There were only 100 stores in that time.

By 2010, the number of stores was 1000.

In 2014, there were 2000 breakthroughs.

Among them, the total proportion of the number of three or four tier cities has increased from 20% to 40%.

this < a href= "http://sjfzxm.com/news/index_cj.as" > /a > has increased faster in the last year.

Of Zhou Dafu's new jewellery retail outlets, 63.8% are located in three lines and sub cities, such as Yanling County in Henan province and Baiyin in Gansu province.

Judging from the current rate of return on investment, Zhou Dafu executive director Chen Shichang believes that it is stronger than a second tier city.

"Before 2010, we paid special attention to the second tier cities, because their economic foundation was relatively stable, and many people would say that you did not go to the mainland of China to develop." Chen Shichang said, "we can't belittle the three or four tier cities now."

although self retailing is an important business model for jewelry retailers, Zhou Dafu's store system is more dependent on the "self run + Affiliate" mode in the following ten years of expansion.

Generally speaking, the cost of opening a self run shop is about several million yuan, and the authorized franchisee only needs to pay the franchise fee.

Therefore, this mode saves the cost of expansion.

In the vast mainland market of China, this has become the main way of expansion for Zhou Dafu in the secondary cities.

In May 2014, Zhou Dafu's retail network in mainland China has expanded to 1965 stores, covering 467 cities in the country, including 70% of self owned stores, and 30% of the other 30%.

Before the large-scale expansion of "a href=" http://sjfzxm.com/news/index_cj.as "> /a >, the Zhou Dafu expansion strategy focuses on whether it is consistent with the economic policy planning of the country.

This kind of policy information is an important measure for Zhou Dafu management when deciding the expansion route.

"We will pay special attention to where the economic lifeline of the future will lay in the framework, and we will follow it."

Chen Shichang said.

since the Chinese government promoted the urbanization to the national strategy, Zhou Dafu's retail channel has been sinking more obviously.

These trends mean new business opportunities for them, and urbanization will increase the consumption power of the 345 tier cities.

GDP, population size, city matching, urban core industry and household disposable income are all the preliminary data indicators of Zhou Dafu's visit to a city.

However, based on the data in the business circle, the data are more important.

This dimension includes the distribution of department stores, the number of pedestrian streets, and the sales of peripheral brands.

To judge a location is not suitable for opening a shop, Zhou Dafu mainly passed a set of rating weighting system of the operation Department, and the total score was 75 points as the eligibility standard.

The whole inspection process takes only two or three days to make a decision. This set of location scoring system is not based on the survey data of the third party organizations, but also relies on Zhou Dafu's experience of location selection in the past fifteen years.

"many four or five line cities, if you do not go to inspect in person, you will lose many opportunities."

Chen Shichang said.

For example, Kaixian, Chongqing, which is a new emigrant town after the Three Gorges project, the per capita GDP belongs to the national poor county level.

Its combined score is far below Zhou Dafu's 75 point composite requirement for stores.

to judge the real purchasing power of consumers in these cities, apart from their scoring system, Zhou Dafu also focuses on acquiring consumer data from mature department stores.

When the new century department store opened in Kaixian, Zhou Dafu chose the jewelry brand, the second line cosmetic brand and the clothing brand as the reference for opening a shop. Then they found that the floating population in the local business and migrant workers brought the city strong consumption power.

Similar situations have also occurred in cities like Yibin, Sichuan, Inner Mongolia and Ordos.

in the early expansion path, department store is the development path of Zhou Dafu's penetration of offline cities.

This is closely related to the investment strategy behind Zhou Dafu group. Wangfujing, new century, Bailian, Baisheng and other department stores are all Zhou Dafu's strategic partners.

In the past few years, the proportion of Zhou Dafu's department stores has reached 90%.

Less than P, but by 2014, the urban path of expansion relying on department stores had not satisfied Zhou Dafu's current expansion needs.

According to the ten year plan of < a href= "http://sjfzxm.com//business/" > < < /a >, Zhou Dafu has to add at least 200 new stores a year, but it is particularly difficult to expand in four or five line cities. These cities usually have only one or two shopping malls, and most of them belong to the old shopping malls in the old city districts. "P"

"Our regional general manager and franchisee told me that Zhou Dafu wanted to open more stores, but he really had no place."

Chen Shichang said.

to cope with the bottleneck brought by expansion, Zhou Dafu thinks that it needs to start a rapid reaction from itself.

Wang Pu became the choice Zhou Dafu began to reconsider.

The expansion of China's commercial real estate over the past few years in the two or three tier cities has led to a new increase in the number of shopping malls and street shops in Zhou Dafu.

compared to department stores, Chen Shichang believes that the service experience and rent cost of independent Street shop are more advantageous. "Service experience is the competitive point that Zhou Dafu is now slowly inclined to."

Wuhan Optics Valley world city has become a new attempt of Zhou Dafu in service experience.

The consumers here are mainly students and teachers nearby. They like to shop and have a younger mindset.

Although the Optics Valley business circle is a new development zone, Zhou Dafu believes that the consumption potential of Optics Valley can be equated with the pedestrian street.

In early 2014, Zhou Dafu opened the first experience flagship store, covering an area of about 730 square meters. The store had 3D stereo jewellery display machine. Consumers can try on products in front of a large screen consisting of 16 40 inch TV sets, while the shop also supports mobile phone online payment.

from the perspective of strategic deployment, Wuhan has now become the center of Zhou Dafu's real significance in the mainland of China.

to cope with the pressure of production, logistics, inventory and sales brought by the expansion of the whole line, two years ago, Zhou Dafu decided to set up a new industrial base.

In the nationwide urban survey conducted in 2012, the location evaluation factors included comprehensive GDP, preferential urban policies, pportation network, hydropower and other infrastructure, and even natural disasters were included in the considerations.

In the overall score, Wuhan and Chongqing scored the same score, but Wuhan's attraction to Zhou Dafu was due to its talent matching and economic pportation radius.

Wuhan's Central Plains pportation network can be covered throughout the country. Products can be delivered from Wuhan to stores across the country, and daily delivery can be done. This turnover frequency ensures minimum inventory backlog.

"The base of Shunde and Shenzhen has reached the limit.

We hope to maximize the use of Wuhan Industrial Park, which is why we need to build a 400 thousand square meter base in Wuhan.

Chen Shichang said.

the central Wuhan area centered in 2013 became the highest annual growth rate in Chow Tai Fook.

But Chen Shichang believes that the number of Chinese cities currently covering only more than 400 to 10% to 12% is far from saturated.

Therefore, in the next ten years, Zhou Dafu will continue to grow.

the new line in Chen Shichang's eyes.

reporter: what are the weighting factors that determine whether a city is suitable for Zhou Dafu expansion?

executive director Chen Shichang of Zhou Dafu Jewelry Group: we are most concerned about what the government thinks.

If the GDP announced every year is growing, we must pay attention to it.

Second is the population and the population is also a major factor, because the retail industry has a very simple saying, "there is a head in the head."

Third, we should consider the local matching, such as the network of pportation or people's preferences.

And fourth, where is the core capacity of the city? For example, there are large cars or coal mines, some of which are retail tourism, which we consider.

In addition, the key is matching, what large department stores around, or walking street, some brands including cosmetics, with food and clothing after the matching of life, for example, girls buy clothes and cosmetics consumption situation, that means she has extra money to buy jewelry.

So we have to look at it from several latitudes, but not all of them, but there will be weight scoring.

reporter: what is the site selection process of Zhou Dafu?

Chen Shichang: there are almost 700 of the 2000 shops in Zhou Dafu now, which are strategic partners, such as Wangfujing, new century, Bailian and Baisheng.

Our first concern is position, and second is management.

If there is a good location and no good management, then a big brand will not be able to go in later.

A new department store may not be able to provide data to you. I can only consider the surrounding area, for example, how much per capita sales of the department store next to us. In fact, we value the growth of the same store.

reporter: what kind of market strategy has Zhou Dafu changed in the past few years?

Chen Shichang: before 2010, we paid special attention to a second tier city.

Because their economic foundation is relatively stable.

But since 2009, it has been gradually pformed.

Zhou Dafu has a strategic department to specifically count what countries have recently released and what areas the future economy will be biased towards, and make decisions for our executives.

In recent years, rural urbanization and accelerating urbanization have brought us many business opportunities.

In the cities dominated by iron and steel industry, I do not need to expand now. The income from the second and third industries is only two thousand or three thousand yuan, and now it may be twenty thousand or thirty thousand yuan.

After living well, you can buy something outside your life, which is also good for driving jewelry sales in general.

reporter: what is the difference between jewelry consumers in the three or four tier cities and a second tier city?

Chen Shichang: Companies in a second tier city read magazines and go shopping, but not necessarily in the three tier cities.

They want to see that you have many stores, you need to see advertisements, you can see that they feel good about wearing your products. Magazines may see, but you may not fully believe that consumers in the three or four tier cities believe in word of mouth.

In addition, there will be differences in regional preferences.

For example, the difference between the north and the south is that the northerners are tall and thin. They are more heroic. They wear things more openly, while male consumers prefer rough gold chains. But the southern girls are petite.

This standard will be left to the head of the district to decide.

70% commodities are unified, and the rest can be matched according to market preferences.