Zhou Dafu Will Set Up 2000 Branches In China In The Next 10 Years.

Zhou Dafu in the next 10 years

2000 branches will be opened in China.

Huang Shaoji, Zhou Dafu's managing director, said that the mainland market alone was enough to increase the number of stores in Zhou Dafu in the next 10 years to 4000, equivalent to 2000 new outlets.

He said that Zhou Dafu now has 460 cities covering the mainland market, and 10 years later, with the growth of per capita income, the middle class is growing stronger. He estimates that the mainland market coverage will increase to 700, plus the existing ones.

There will also be more outlets. In the next 10 years, 2000 new outlets will be added to the mainland market.

Zhou Dafu's income from the mainland now accounts for about 65% of the total revenue, while the remaining 3 and 4 become the Hongkong market.

According to the average annual opening of 200 new stores, the number of new stores last year was only about 170.

He explained that it would be adjusted according to economic performance. The first 3 years were faster, with more than 200 new stores every year, but last year as the economy slowed down, he expected the number of new stores to be around 160 to 180 this year, mainly for the mainland.

However, Hongkong will close 1 or 2 less profitable branches this year, but the output value of Hongkong's overall branches is still relatively high.

Looking forward to this year's business environment, he thinks that it is almost as challenging as last year. But he is optimistic and believes that the mainland market will improve in the second half of the year. Although China's economic growth is still slowing down, the mainland stock market will increase rapidly this year. The wealth effect will benefit the retail market. "Investors will reward themselves by buying things." in the second half of the year, the retail market is expected to be a "U" stable rebound, but "V" is unlikely.

He described "China's most difficult period has passed, and has bottomed out".

The situation in Hongkong is not as fast as that in the mainland.

Because the situation in Hongkong is very passive. Because other countries have relaxed their visas for Chinese tourists, mainland tourists travel to other places more convenient than before. With the devaluation of many currencies and the strength of the US dollar, the number of visitors to Hong Kong has thus been affected.

He believes that the retail market in Hongkong is still not bottoming out.

Last year, Zhou Dafu spent 850 million yuan on his own property in Hongkong. He emphasized that as a headquarters in Hong Kong and Macao, its location is good and its price is reasonable. It is a long-term investment and helps the group reduce costs.

At present, there are also 5% self owned properties in the Hongkong branch.

In April this year, the group also invested RMB 150 million yuan to set up a 20 thousand square foot shop in Shenyang, with a total investment of RMB 200 million yuan.

If there is a proper opportunity, the group will still set up its own retail store.