- How do dealers face rising rents?
As China's real estate industry continues to heat up, the lighting industry is also in full swing. According to dealers, shop rents are generally rising accordingly. What effect does this have on the dealer's operations, and will it change the way dealers operate? This issue of the dealer forum will discuss this, to see if the dealers can break through in the "up" sound.
Field investigation
Nanjing: rent increases by 5%~10% per year
According to the survey, there are more than 20 lighting markets in Nanjing. The market with the highest store rent is Nanjing Jinsheng International Home Jiangdongmen Store, 145.62 yuan / square meter? Month, the lowest rent market is Nanjing Red Sun Decoration City, 28 yuan / square meter? month. In recent years, Nanjing Real Estate has been developing in a large number of projects. The key projects include Nanjing Jian'ou Ou Ou Center, Jiangbei Area, etc. The lighting market is also constantly upgrading.
In 2004, the rent of Nanjing Jinsheng International Home Jiangdongmen Store in the lighting market was 40 yuan/m2. In 2005, the rent after renovation and renovation in 2005 was 119 yuan/m2. The current price was 145.62 yuan/m2. In 2004, the rent of Nanjing Red Sun Decoration City store was 20 yuan / square meter? Month, the current price is 28 yuan ~ 32 yuan / square meter? According to dealers, the Nanjing lighting market maintains a 5% to 10% annual increase in store rents, with a maximum price of 145 yuan per square meter. In a good business market, the price that the dealer can accept is 100 yuan / square meter? Below the month, the market with poor business should adjust the store rent according to market conditions. Judging from the increase in rents in Nanjing in recent years, the market has eliminated many dealers, such as Nanjing Taobao Lighting, Aodaqi Lighting, and Aoli Lighting.
Annual rents
According to Ni Jinguo, general manager of Jinguo Lighting Co., Ltd., the largest dealer in Nanjing, the total area of ​​their stores has reached 2,800 square meters. Located in Jinsheng International Home, Jiangdongmen Store has the largest total area of ​​1,000 square meters, with a floor area of ​​119 yuan/month. Last year, the store rent was 1428,000 yuan/year. In August this year, the rent increased by 26.62 yuan per month per square meter, the annual rent was about 1,747,440 yuan, and the warehouse rent was more than 100,000 yuan per year. Ni Jinguo believes that store rents have risen and have to be accepted. I should think more ways to reduce my own pressure. Of course, small dealers may also be eliminated by the industry in a competitive environment, which is an inevitable process.
Zhao Baoming, general manager of the gorgeous lighting of Jiangsheng International Home Furnishings in Nanjing, said that their store has a business area of ​​600 square meters. Last year, the store rent was 856,800 yuan / year, and the store rent for this year was 1,048,464 yuan / year. In the face of annual rents of up to one million yuan, Zhao Baoming felt a lot of pressure, and said that rents can only be positively faced. He hopes that the marketing department will give more support and help, advertise more, and engage in promotional activities to boost market sentiment. As long as everyone is doing a good business, the market should properly adjust the rent.
Dealer perspective
Survival of the fittest
Ren Guoping, General Manager of Nanjing Renhua Electric Appliance Co., Ltd.
Our shop rents are also rising, ranging from 25% to 30%, but this has little impact on us because rents account for less than 10% of our operating costs. In a mature market, the popularity will naturally lead to rising rents. Some brands and weaker small businesses may not support it. Those who cannot afford to rent may be forced to close, but this is also the market survival rule for survival of the fittest. I also have some small stores that have withdrawn from the city.
For the increase in rents, the operating costs will increase, and merchants will generally not raise the price of the products. And now the wholesale profits are relatively low, and the engineering profits are slightly higher. Some small businesses will go to the factories, schools and other units of the project. In the face of rising rents, lighting companies are mainly relying on themselves, and the outside world can't help anything. Businesses must rely on big brands and consolidate their strength to survive in this highly competitive market.
Do a good job of the Bank's strength
Miao Haijun, General Manager of Taiyuan Haitian Lighting
Rents are generally rising now, and we are following up here. This has no small impact on our business.
I think that the increase in rents has little to do with real estate. The competition with the industry is not very big. It is mainly the unilateral behavior of the market. Not only that, but the market is also lacking in management and investment promotion. I hope to improve. Merchants who are affected by the situation will generally not switch to wholesale or engineering. After all, they can play better in the fields they are familiar with.
Transformation is difficult to integrate
Lin Peng, General Manager of Linyi Zhengda Guangming
The rent increase here is about 20%, which has little impact on the operation. As the market develops, the lease of the store will become more active and the rent will increase. The entry of more merchants also affected the rise in rents. Higher rents lead to higher operating costs, but if dealers want to raise prices for products, the difficulty is quite large, unless new products are introduced. As for changing the way of doing business, such as engineering, engineering does not mean that you can do it if you want to do it. This has restrictions on the business environment and network resources. Besides, some projects now seem to be earning on the surface, but they are actually losing money because of the phenomenon of arrears.
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As China's real estate industry continues to heat up, the lighting industry is also in full swing. According to dealers, shop rents are generally rising accordingly. What effect does this have on the dealer's operations, and will it change the way dealers operate? This issue of the dealer forum will discuss this, to see if the dealers can break through in the "up" sound.
Field investigation
Nanjing: rent increases by 5%~10% per year
According to the survey, there are more than 20 lighting markets in Nanjing. The market with the highest store rent is Nanjing Jinsheng International Home Jiangdongmen Store, 145.62 yuan / square meter? Month, the lowest rent market is Nanjing Red Sun Decoration City, 28 yuan / square meter? month. In recent years, Nanjing Real Estate has been developing in a large number of projects. The key projects include Nanjing Jian'ou Ou Ou Center, Jiangbei Area, etc. The lighting market is also constantly upgrading.
In 2004, the rent of Nanjing Jinsheng International Home Jiangdongmen Store in the lighting market was 40 yuan/m2. In 2005, the rent after renovation and renovation in 2005 was 119 yuan/m2. The current price was 145.62 yuan/m2. In 2004, the rent of Nanjing Red Sun Decoration City store was 20 yuan / square meter? Month, the current price is 28 yuan ~ 32 yuan / square meter? According to dealers, the Nanjing lighting market maintains a 5% to 10% annual increase in store rents, with a maximum price of 145 yuan per square meter. In a good business market, the price that the dealer can accept is 100 yuan / square meter? Below the month, the market with poor business should adjust the store rent according to market conditions. Judging from the increase in rents in Nanjing in recent years, the market has eliminated many dealers, such as Nanjing Taobao Lighting, Aodaqi Lighting, and Aoli Lighting.
Annual rents
According to Ni Jinguo, general manager of Jinguo Lighting Co., Ltd., the largest dealer in Nanjing, the total area of ​​their stores has reached 2,800 square meters. Located in Jinsheng International Home, Jiangdongmen Store has the largest total area of ​​1,000 square meters, with a floor area of ​​119 yuan/month. Last year, the store rent was 1428,000 yuan/year. In August this year, the rent increased by 26.62 yuan per month per square meter, the annual rent was about 1,747,440 yuan, and the warehouse rent was more than 100,000 yuan per year. Ni Jinguo believes that store rents have risen and have to be accepted. I should think more ways to reduce my own pressure. Of course, small dealers may also be eliminated by the industry in a competitive environment, which is an inevitable process.
Zhao Baoming, general manager of the gorgeous lighting of Jiangsheng International Home Furnishings in Nanjing, said that their store has a business area of ​​600 square meters. Last year, the store rent was 856,800 yuan / year, and the store rent for this year was 1,048,464 yuan / year. In the face of annual rents of up to one million yuan, Zhao Baoming felt a lot of pressure, and said that rents can only be positively faced. He hopes that the marketing department will give more support and help, advertise more, and engage in promotional activities to boost market sentiment. As long as everyone is doing a good business, the market should properly adjust the rent.
Dealer perspective
Survival of the fittest
Ren Guoping, General Manager of Nanjing Renhua Electric Appliance Co., Ltd.
Our shop rents are also rising, ranging from 25% to 30%, but this has little impact on us because rents account for less than 10% of our operating costs. In a mature market, the popularity will naturally lead to rising rents. Some brands and weaker small businesses may not support it. Those who cannot afford to rent may be forced to close, but this is also the market survival rule for survival of the fittest. I also have some small stores that have withdrawn from the city.
For the increase in rents, the operating costs will increase, and merchants will generally not raise the price of the products. And now the wholesale profits are relatively low, and the engineering profits are slightly higher. Some small businesses will go to the factories, schools and other units of the project. In the face of rising rents, lighting companies are mainly relying on themselves, and the outside world can't help anything. Businesses must rely on big brands and consolidate their strength to survive in this highly competitive market.
Do a good job of the Bank's strength
Miao Haijun, General Manager of Taiyuan Haitian Lighting
Rents are generally rising now, and we are following up here. This has no small impact on our business.
I think that the increase in rents has little to do with real estate. The competition with the industry is not very big. It is mainly the unilateral behavior of the market. Not only that, but the market is also lacking in management and investment promotion. I hope to improve. Merchants who are affected by the situation will generally not switch to wholesale or engineering. After all, they can play better in the fields they are familiar with.
Transformation is difficult to integrate
Lin Peng, General Manager of Linyi Zhengda Guangming
The rent increase here is about 20%, which has little impact on the operation. As the market develops, the lease of the store will become more active and the rent will increase. The entry of more merchants also affected the rise in rents. Higher rents lead to higher operating costs, but if dealers want to raise prices for products, the difficulty is quite large, unless new products are introduced. As for changing the way of doing business, such as engineering, engineering does not mean that you can do it if you want to do it. This has restrictions on the business environment and network resources. Besides, some projects now seem to be earning on the surface, but they are actually losing money because of the phenomenon of arrears.
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