In the first two years, almost all brands were frantically chasing "human effect" and "ping effect", determined to spend the least money and do the most things.

As a result, many brands began to become "smaller" and "shrinked" the area, personnel, and dining space of their stores.

But with the gradual opening of the sinking market today, some leading brands have begun to do the opposite, opening large stores and achieving quite good results.

For example, Gu Ming, whose main customer group is young people in small towns, according to the news, has opened a number of theme stores in Jiangsu and Zhejiang, such as nightclub style, metal style and other different visual styles, with an area ranging from 150 to 300 square meters.

It can be seen that opening large stores in small towns seems to have gradually become the mainstream and has achieved good results. So why is this happening?

In a sinking market where the unit price per customer is relatively low, opening a tea shop with a size of several hundred square meters or even larger, is this business worthwhile?

For franchise entrepreneurs, what size store should be opened in order to gain a foothold in the local market, let Memeng choose to tell you the following!

ONE

"Anti-ping effect"? Why does Xiaocheng want to open a big store?

As we all know, Michelle Ice City has always been known for its super high cost performance, and relying on this feature, it quickly occupied the sinking market.

However, in a township under Shenqiu County, Michelle Ice City opened a three-story store, covering an area of about 200 square meters. The owner said that the sales volume of the store exceeded 200,000 in January. ! And since the opening, the worst day of business has also sold nearly 3,000 yuan!

It stands to reason that the consumption power of sinking cities is relatively weak, and brands need to rely on cost-effectiveness to win, so it is necessary to reduce the investment and operating costs of stores. Opening large stores seems to be "doing the opposite." Why are these brands? Would you do it?

From the perspective of entrepreneurs, we look at the four dimensions of market, competition, cost and development.

01. Market

From the perspective of the market, large stores are more in line with the market demand of the sinking market.

First of all, although the sinking market pays attention to price, they are more concerned about cost performance. They are also willing to pay for better products and a better consumption environment. Therefore, although the cost of large stores is relatively high, they can provide a better dining environment and consumption. People are also willing to pay.

Moreover, the pace of life in third- and fourth-tier cities is relatively slow, and consumers need such a "third space" for immersive consumption. Large stores meet this demand of the market.

In addition, more communication in the sinking market relies on word of mouth and word of mouth, and big stores are the best signs, which can quickly form a brand effect.

02, competition

From the perspective of competition, the brand competition in the sinking market is not as fierce as the first-tier cities. Consumers lack the inherent knowledge of the top brands. Therefore, if they can take the lead in opening large stores in the local area to achieve sufficient reputation and popularity, then the brand will have potential. It can also start rolling accumulation.

03. Cost

From the perspective of cost, the rents and personnel costs of the sinking market are relatively lower, and some good shops and locations are easier to use, so it is easier to open large stores with advantageous locations. This is the sinking market is conducive to opening large stores. Natural genes.

04. Development

From a development point of view, the expansion of the sinking market depends more on word of mouth and popularity. Only when the first store has a reputation, can the second and third stores be opened locally and continue to roll over the brand's potential.

In general

Small towns inherently have the conditions to open large stores. For entrepreneurs, opening large stores is also more "cost-effective", which can quickly establish a reputation and brand in the local area and form a spread.

TWO

"Anti-branding"? Why do you want to open a small shop in Dacheng?

Although more and more brands and entrepreneurs choose to open large stores and have achieved good results, large stores should not be copied blindly.

Especially in first-tier cities where there is a lot of money and fierce competition, especially for franchise entrepreneurs, opening a small shop should be a better choice.

Let's also take a look at why Dacheng should open a small store from the four dimensions of market, competition, cost and development.

01. Market

From the market point of view, the consumer market in first-tier cities is very mature, especially the type of tea, which has become the "just-needed consumption" of many consumers, and tea has become people's "daily necessities".

Therefore, it is difficult for consumers to sit down in the store and slowly drink a cup of milk tea. Most of them are takeaways, or leave as soon as they are bought, and come and go in a hurry. Therefore, the larger store area does not meet the actual consumption needs of consumers. .

02, competition

From the perspective of competition, brand competition in first-tier cities is also very fierce. Brands such as Heytea and Nai Xue have almost achieved the ultimate in large stores. At this time, going to large stores means directly competing with first-tier brands. It is better to open one. The small store does a good job of products, details, and cost-effectiveness to make the store more competitive.

03. Cost

In terms of cost, first-tier cities have an inch of gold, and gold is hard to find. Therefore, for most entrepreneurs, opening a large store naturally has extremely high thresholds and difficulties, and investment and returns are not equal.

04. Development

From the perspective of development, because of the large number of brands and stores in first-tier cities, it is very difficult to expand stores through word of mouth. Instead, let the store use the form of small stores to find out the profit model and quickly withdraw funds before opening a second store. Hesandian.

Overall

First-tier cities have high rent and labor costs, and good locations are difficult to get started. For entrepreneurs, the most important thing for entrepreneurs to open a store in first-tier cities is profitability and survival. Therefore, opening a small store with high efficiency and human efficiency is more cost-effective.

THREE

The logic is different, why love tea

Michelle Ice City does the opposite

When you see this, some readers will ask: Why does Heycha and Naxue open large stores in first-tier cities, while Michelle Ice City more often opens small stores in the sinking market. This is the opposite of the previous article!

First of all, we must be clear that they are more about thinking and decision-making from the perspective of the brand, and for entrepreneurs, they are more about making decisions based on whether they are profitable or not, so what we said above, More is to help entrepreneurs make judgments.

For brands such as Heytea and Naixue, the brand halo is more than everything for them.

Therefore, they are willing to spend a lot of investment and even open large stores in core business districts regardless of losses. Even if they are not profitable, they can achieve profitability and expansion in other stores through the accumulation of word of mouth, and even capital will pay for it.

Moreover, these brands themselves have certain right to bargain rent and location options, and they also have the innate genes for opening large stores.

But don't forget that from the recent Nayuki financial report, the brand as a whole is still at a loss, and the rent cost is nearly 40%. This also shows that the opening of a large store has a certain impact on his actual operation.

As for Michelle Ice City, he focused on the sinking market that the first-tier brands hadn't paid attention to before, so he adopted the small shop model to achieve rapid "savage growth."

But nowadays, consumption in the sinking market has also begun to be upgraded and subdivided. This kind of "barbaric growth" will no longer apply in the future. Entrepreneurs must find enough differentiated features when looking for brands, and opening large stores is one of them. one.

simply put

Brands such as Hey Tea and Naixue open large stores more out of brand considerations to prepare for the future financing and listing of the brand; while Michelle Ice City and CoCo can also store such small stores for rapid brand expansion. market.

For entrepreneurs, they must not blindly imitate the practices of these brands. Finding the most suitable store model for themselves and the local market is the key!

Concluding remarks

Big shops and small shops have their own advantages.

Large stores have a good consumer experience and are easy to form word-of-mouth and communication, while small stores are more efficient and require relatively little investment.

As far as entrepreneurs are concerned, blind imitation is a must, and they must not get caught up in the sight of others opening large stores, and blindly follow the trend regardless of market conditions.

After all, how big a store to open depends on the actual local market environment and its own investment needs.