How to Set up A Store.docx

How to Set up A Store.docx

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HowtoSetupAStore

1.Introduction

Asmankindentersintotheeraofcivilization,peopleneedfood,clothing,housing,transportationmorethanever.Thenwiththespringingupofconsumption,thewordofcommerceappearedatthesametime,theretailingbegantoinfluencepeople’sdailylife.Nowadays,thecompetitionbecomesmoreandmorefierce,andconsumptionlevelofpeopleisalsoimproving.Merchantsareaboutlookingfortheobjectiveenvironmentintheirfavor,suchastheaddressofstores.Gradually,somepeoplewithspecializedinsightsputforwardtheirideas,mostpeoplethinkthesecretofsuccessofrunningstoreowetoitsspecificaddress,thisistheinitialfactor.Evensomepeoplethinkthattheaddressofstoresaffectssuccessandfailureofopeningupastorewhichisnolessthan70%.Furthermore,thebusinessorstoreisasynonymformakingexcessiveprofits,businessmanseekforagoodplaceinordertocreatemaximalprofits.However,howtochooseagoodaddress?

Hereinafterisreferredtoaskeypoint.

2.Thecharacterofchoosingaddressforretailchainstores

Thepurposeofretailchainstoreistopursuemaximalprofit.Neitherbusinessmanbuyapieceoflandtobuildnorinvestmuchcapitalinchoosingaddress,thebestwayistorentaplacewhichpriceisreasonable.Theyneedtopayoffrentinthecontractperiod,aswellasrentalofplace,andspentmuchmoneyonthelight,fixedassets,appearance,etc.Intermsofretailchainstore,thecharactersarelargescale,firmplace,andhavelargecapitaltoputintoproduction,moreover,longercontractbekept.Forthesereasons,thefixedplaceisverydifficulttomove,inaddition,thewaysofmanagementhavetobechanged,andthenthebusinessmenhavetospendmuchtimeonit.Ifthebusinessmanintendtoopenthestoreinthelimitedconditions,thentheyhavetobuyapieceoflandtoconstructstoreandconsequentlyitisnoteasierthanrentifthestorewillbemoved,becausetheyhavetospendseveralmonthsorevenlongertimeinfindingagoodseller.Iftheplaceofastoreismoved,theywouldfacesomepotentialquestions,apartofloyalcustomersandemployeeswillrunoff.Thefurtherdistancetheymove,themorelossestheywillcost.Ontheotherhand,thedifferenceofmarketcircumstancebetweennewplaceandoldplaceisexisting,thenthestoreneedtochangethemanagementstrategy.Thefixedassetsanddecorationofoldstorecouldnotbemoved,ortheydon’tdealwithitwellduringtheirmoving,itwillcausefundsrunoff.Accordingtotheaboveanalysis,wecometoaconclusion:

theaddressofretailstorehascharacterofrelativetimefixed,seekprofits,butithasnopossessofflowing（侯丽敏、郭毅，2004）.Ingeneral,managementstrategyofmoststoresisbasedongettingfewprofitsbutsellingmoregoods,thatistheyaretryingtosubstitutetimeforprofits.Onthecontrary,storeismovedwillcostsmuchmoney,timeandlabor.Therefore,thesentenceinadditiontochoosingagoodaddresswehavenototherchoice（姚礼萍，2002）isdescribedtheimportanceofchoosingagoodaddressforstores.

3.Setanexampletoexplain

AsknownbyeveryonetheWal-Martisfamousforretailing,andithasimportantpositioninthewholeworld.Now,Iwanttoanalyzeitsadvantageanddisadvantageofchoosingaddress.

3.1SuccesscasewegetfromWal-Mart

Earlierin1992,Wal-MartwasobtainedpermissionbygovernmenttogetintomarketofChina,butbeyondeveryone’sexpect,thestorewasnotsetupuntill1996,during4years,whatwasWal-Martdoing?

Theyalwayssurveyedthetransportation,entrance,competitionanddevelopedstructureofCBD,sothatchoosingagoodaddressforstores.ShopfrontofWal-Martwassetupaccordingtodevelopedstrategy,becausethecompanyhasasetpoliciesofdevelopment,allofactivitiesarebasedondevelopedplanwhichpurposeispreventthelayoutofstorefromover-disperse.Distributionofshopfrontalsohaslongtimeplanandbeofcertaincentralize.ItisbenefitthattheGeneralHeadquarterscarriesoutmoreexcellentandscientificmanagement.Thesemeasurescansavelabor-force,material-force,economic-force.Theshopfrontwasbuilt,whichisserviceforentireenterprise,andbeofcentralityofWal-Mart.TheproductionsupplychainofWal-Martiscompactlylaidoutasawhole,savingtheextracapital,andthenputcapitalintoproduction,itcouldraisemoreprofits.Inourmind,wearenotonlylocatinginrightrevenue,butalsoobtainingthatallofappropriateproductsinthisrevenue,SamWaltonsaid.

3.2Data

IfweconsiderWal-Martasacountry,accordingto15billiondollarsamountpurchasedinChina2003,itwasthesixthexportmarketandtheeighthbusinesspartnerofChina.However,theincomefromsalesofproductsreached25.63billiondollarsin2003.Treatitaseconomicalentity,theWal-Mart’sincomefollowSaudiArabiatightly,arrange30thinthewholeworld.ThesuccessfulcaseofWal-Martshow:

ithasspacelimitationofsettingupastorethatiszoneoflayoutofstore.Ifthestorehasrationalproductionsupplychain,itcouldcreatemorecapital,SamWoltonsaidthatagoodconditionofstoreisguaranteetogetmoreprofits,becauseretailingnotalikeotherprofessionwhichneedskill.Onthecontrary,theretailingisfacedifferentperson,differentproducts,sochoosingagoodplaceismoreimportant.

4.ThelossofWal-Mart

Themostsuccessfulretailstoreisnotalongerwinner,italsohaslossesinAsiabecausethebadchoiceontheplace.

4.1InJapanandKorea

TheAmericanarepuzzledaboutcommonformulathatmakingaprofitofWal-MartisnotsuitableforJapan.In2004after3year’smanagement,thetradenetlossreached11.89milliondollarsinJapan.Thereasonistheproductioncouldnotmeetcustomers’requirement.WithreferencetoMid＆Advancelevelconsumptionidea,theJapanesecannotacceptit,Japanesewouldnotliketobuytheproductsthatarecheap,theypursueagoodqualityandhaveadvanceconsumptionidea.ThefailureofWal-MartfromJapan,letusknowthattheaddressiskeytosuccessofstore.

4.2InChina

Wal-MarthasnevergottenintoShanghai,thiswouldbeonebadstroketillnow,Shanghaiisprohibitedtogetinismeanthatlosemanychance,manychoice,andalsoleadtoloseanyprofitsineconomy,becauseShanghaiiseconomiccentreofChina.However,itadoptSouth,North,Southeast,SouthwestofChinainsteadofShanghai.Anditlayoutdisperseinthisfourplate,thislayoutmakestheWal-Mart’slogisticssystemhavedifficultinbringingprofitsforstore.Therearetworeasonstheoneislogisticandproductionsupplychainaredifficulttoformentity,andanotherisimpossibletobeofeconomicalscale.ThereasonsofWal-Mart’ssuccess,ononehand,islowerprice.Ontheotherhand,largelogisticsandproductionsupplychainhascloselink.Atpresent,Wal-Mart’s40chainstoresaredistributedinSouthdistrict.FewstoresaredistributedinspaciousNorthdistrict.Solayoutisdispersethatlargenumbersofdispatchingcentreweresetup,itisresultincapitalwaswasted.Nevertheless,itisdifficulttobreakdownthecosts.Onthecontrary,lackingofthelogisticcentre,whichwillinfluencequantityofshopfronttoexpand.Moreover,itwillcostmuchfreightifthereisover-largedistanceoftransportationandconsequentlyqualitycannotequaltoprice.Itwilldeviatefromheartofvalueofchainstore’smanagement.FromWal-Mart’ssuccessandfailurecases,tosumup,ofcourse,itcouldreflectthattheimportanceofchoosingagoodaddress.Agoodaddresscouldraiseprofitforstore,andsavemorecosts.Secondly,wehavetoanalyzeobjectivefactsofsettingupastorethatisdistance,costsandplace.Surely,ifweknowclearlyhabitsofconsumer’slifeandtheconditionsofacountry.Itissuperiorityfactortochooseabetteraddress.

4.3Largelosseswerecausedbecauselackedofanalyzingbeforechoosingaddressforstore

PriceSmartofShiJingShan,itwasclosedonthetraditionalChineseFestival2003.Themainreasonisthatchoosingthedistrictforstorewheremotorcyclesareprohibitedtocome.Itleadstomanycustomerswhoridemotorcyclesinsteadofwalkingareinconvenienttoreachthere.Therefore,ithasabadeffectonstoreofmorepeoplecannotcomethere,causefewpeopletobuyproducts,theprofitsrateislower.Moreover,PriceSmartofShenyangisdefinedasMid＆Advanceclassstore,thecustomerswhoareMid＆Advanceincomearetreatedasconsume-orientation,thisplaceismoreremotethancentreofcity.Thecustomerswhosurroundingswithstorearegivenfirstplacetopopularconsume.Butpersonalcarsusedpopularizeratearelowerinthisdistrict,itisdifficulttoassurethatalargenumberofshoppinggroupcometotherebycar.Asaresult,surveyorhavenotinvestigatedandanalyzedwhereitisunrealistictosetupastore.Finally,addressischosenwhereisnotappropriateforstore.Fromwhathasbeendiscussedabove,weknowtheobjectiveofsettingupastoreistopromotecommercialvalue,sothegoodaddressisfoundationforsettingupastore,thereiswidespreadphenomenonofsameproductionorsamemanageralwayshavedifferentbenefitofretailchainstore,asfarasthisdispatchisconcerned,wecanexplainthisgapinobjectiveviewpoint,thatisaddress.Inadditiontorunningstrategy,thebusinessmangetlargeprice-gapthroughconditionofstore.Clearly,choosingagoodplaceisveryimportant.Firstandforemost,weknowclearlythattheaddresshasnessaryplace,buthowtochooseagoodaddress,whatfactorsweshouldpayattention?

5.Themainregionofsettingupstores

5.1Settingupstoresincities

Thecharactersoftheretailchainstorearelargescale,