How To Successfully Locate Chain Enterprises

As we all know, site selection is the key factor for the success of chain stores. There is a famous saying in the industry: "what is the most important part of a store? The first is location, the second is location, third is location." Successful site selection system is one of the core competitiveness of chain enterprises. However, due to professional and experience constraints, the success rate of domestic chain enterprises in location selection has not been high. Through consultation and contact, we conclude that most of the chain enterprises are puzzled at the following three levels:

1. site selection is based on feeling, without scientific basis. risk Very large. 2. the shops in mature business circle are hard to obtain, and lack of investment income prediction results in failure of decision-making. 3. lack of systems and specifications, location becomes the biggest problem of expansion.

First kind site selection Small and medium-sized enterprises often appear in the sense of situation. Business owner Judging from many years of experience and intuition, the location of a shop is often unclear. Speaking of their own location experience, most of them are predestined or feeling. There is no scientific basis, and the risk is very large. There was such a story that a female boss of a beauty chain introduced her experience of choosing a store and proudly said, "standing there and sniffing the air, you know if you can open a shop."

As a result, three companies failed in Shenzhen's development. Another chief executive talked about his location experience. He said he went to shops where thieves went to many places. As a result, the standards were totally not quantifiable. More of the shop owners took their subjective experience when they chose the site. They invested their money by feeling. Because there was no scientific basis, the risk was very large and they were separated by chance.

In the second case, chain enterprises already have certain location criteria and experience, and they also focus on strategic location and occupy a favorable position. But often shop is a shop to eat three generations, rarely change hands, mature business district store is more difficult to find gold, rent, high security deposit, if the site can not accurately predict investment returns, rental costs higher than the industry profit margins, will lead to the failure of the store business.

There is another type, some chain enterprises in order to reduce costs or avoid strong competition to achieve "rural encircling the city" strategy, choose the sub business circle for distribution, often because of the scientific and accurate prediction of the maturity of the business circle and become the end of the pit or marriage. Taking the site selection of Dongfang home building materials supermarket in Guangzhou as an example, as the first large-scale home building chain store opened in Southern China area, when Dongfang home was located in Fangcun in 2004, it chose to develop the immature business district in the urban fringe area, and it was expected that the future development of the surrounding property would bring about a growth income.

But because the location is too remote, the wholesale market is low, the consumption level is low and the traffic volume is too small. The whole market needs at least 2 to 3 years of investment to nurture the fruit, and the siting is inadequate. In addition, the shortcomings of the business practices, after 1 years of hard work and another 7 months of business closure, Fangcun shop was finally taken over by B&Q.

The chain industry must expand rapidly, so as to reduce the operating cost. Chain enterprises often have third situations when they enter the scale expansion. Because there is no establishment and perfection of site selection standards and specifications, there is a lack of organization and system. Once the batch shop is located, the personnel can not find the location of the store, and the expansion plan has to be delayed again and again. The site selection will eventually become the biggest obstacle to expansion strategy. The typical case is the chain pharmacies ranking first in the big people's pharmacy. After entering Beijing, after 6 years' team development team's two years' site selection and the three general manager's end, they finally opened second stores in Beijing and delayed the development opportunity.