A research showed that location A(The two) is found in Tsim Sha Tsui which is near major office systems, hotels and retail things while position B(Hyyan Centre) is located in Causeway Bay which is vibrant district with huge pedestrian flow.
For location B, the lease terms was more appealing ($16. 3/sq ft) in contrast to that of location a ($19. 5/sq ft) and a 16. 5% rent big difference was displayed.
Two types of competition had been reflected by research effects. We can compete with three or more small is yours if the new branch is definitely opened in location A or we will deal with a flagship store achievable branch starting in area B.
The study also revealed that the car parking service were comparable pertaining to both location A (380 parking spaces) and location M (420 car parking spaces). The key difference is that there were a valet parking with two car parks to get location A and a great onsite auto parking for position B.
Conclusion and Advice
To conclude, area B---Hyyan Centre is recommended for a few reasons based upon the above studies. Although equally locations were crowded and easily accessible with sufficient parking services, there is a better rent terms of $16. 3/sq ft and this of area B contradicted with the consideration which explained the lease should be under $18/sq feet. It was an important point considering that the rent damaged the correct cost and profit margin directly and it was controllable.
Another essential issue to get the advice was the competition in the community. Because of the a few small suppliers in site A, their target buyers, product lines and pricing strategies may differ having their own competitive advantages and form an even more complicated finalization environment. It could be hard for all of us to get the relevant data and anticipate our market with this complex scenario due to the rapid changes by simply 3 little retails.
Lastly, a joint promo scheme could possibly be organized while using flagship retail store if we exposed a new department in site B as we should have different...