Analysis Of The Business Model Of "Two Landlords"

< p > generally speaking, the expense rate of department stores leasing to the owners is 5%.

Of course, if the mall does not charge for the Commission, it will charge the merchants a fixed rent. The owners usually extract 30% of the rent from the department store.

For insurance purposes, the owners will agree on the minimum rent in the contract.

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< p > but on the other side, for merchants, the average discount rate of domestic shopping centers is basically around 20%, and the rate of high market shopping is slightly higher, about 22%.

In addition, businesses must pay a certain proportion of management, promotion and other incidental expenses.

The total cost rate of several shopping malls in Xujiahui is over 26%.

If the "average" factor is eliminated, a large number of small and medium-sized businesses have more than 30% of the cost rate in the department stores.

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< p > 5% rents, 20% rents out, department stores pick up 15% of the difference, two of the landlord's money will really be so good earn? < /p >

< p > a simple reason: why is the owner willing to let the two landlords make a huge profit and not rent them? This is certainly not possible.

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< p > < < a href= > http:// > www.91se91.com/news/index_c.asp > > Shanghai > /a > Hang Lung Plaza as an example, Hang Lung Plaza is a project of Hang Lung estate and has become a commercial landmark of Nanjing Road business district in Shanghai.

Hang Lung real estate is a real estate development company in Hongkong. It entered the mainland market in the early 90s of last century, and shifted its focus to the business in the early part of this century.

Hang Lung Real Estate focuses on the development of top commercial real estate. Another project in Shanghai is Shanghai port remittance (now renamed port Heng Heng Plaza), which is located in Xujiahui business circle.

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< p > > a href= "http://? www.91se91.com/news/index_c.asp" > Hang Lung real estate < /a > is a very pure real estate developer. It itself is not situated in the operation of shopping malls, it only receives commissions from merchants.

Thanks to the success of Shanghai Hang Lung Plaza and Hong Kong Plaza, the rental income of Hang Lung estate has also risen.

In 2005, the rental income of Hang Lung Plaza (only shopping malls) and Hong Kong remittance was 140 million Hong Kong dollars and 340 million Hong Kong dollars respectively.

But in 2013, the two incomes rose to 770 million Hong Kong dollars and 1 billion 70 million Hong Kong dollars respectively, up 455% and 217% respectively.

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< p > from the absolute rent level, the rental of Hang Lung Plaza has risen to 39.4 Hong Kong dollars / day / day.

This is still the rental cost calculated by building area.

Generally speaking, the business area of the shopping mall is only 60%-70% of the construction area.

If the area is calculated, the average rent of Shanghai Hang Lung Plaza will be as high as 60 Hong Kong dollars per day.

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< p > this amount is almost the same as that of international top a href= "http:// www.91se91.com/news/index_c.asp" > business circle < /a >.

If you want to set up a 100 square meter counter here, the annual rental cost will be about $1 million 800 thousand.

Sales of most stores in China even fail to reach that level.

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"P", so property developers are the biggest beneficiaries of China's business boom.

If you are the two landlord of Hang Lung Plaza, you can definitely become a star department store, but can you still make money? < /p >

< p > but if so, where is the logic of making money in traditional star department stores? Because they are not "two landlords", they are owners.

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Less than 50 years, the development of the state-run old department stores is basically unnecessary. Their main shops are all owned by P.

The new generation of star department stores that grew up in the 90s of last century, such as Yintai Wulin store, Jinying Nanjing Xinjiekou store, Bailian Qingpu olai, Wuxi of China and so on, are also owned by their own property. They have no worries about rent rising.

However, the cost of leasing the property of Huaqiang North store is relatively controllable.

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< p > earned money by lying on its own property, star department store and its department store behind it.

Correspondingly, the rental pressure of department stores with relatively small property ownership is increasing, and it is easy to drag down the company's performance.

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< p > actually, it is not just owners, but the government wants to have a share in the market.

Hangzhou Tower is a wonderful flower in China's high-end department stores. Its annual sales volume is over 5 billion, and its net profit is nearly 400 million.

However, because its origin is a Sino foreign joint venture, the land use period is only 30 years, and will expire in 2016.

Prior to that, the annual cost of land amortization for Hangzhou Tower is negligible, but from 2016 onwards, the annual land use fee payable to the government will be as high as 145 million yuan, and it will increase in five years.

The profitability of Hangzhou Tower has also been hit hard.

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< p > so it is not the two landlord but the landlord who makes money lying down.

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