Choosing the wrong locations will lead to low sales and production. Furthermore, it also negatively affects the brand’s expansion strategy. To show us how to avoid such costly mistakes, the webinar “Choosing Your Next Location Based on Data & Facts” took place in collaboration between the CEO of GapMaps Asia and the Middle East – Mr. Tim Shaw, and Mr. Sean Ngo – CEO & Co-Founder of VF Franchise Consulting.
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GapMaps is an intelligence location consultancy. GapMaps uses a platform that helps businesses set appropriate market planning and network strategies. This platform also helps them to make intelligent fact-based location decisions and introduce fact-based processes. You will gain insights about this area to select the right location for your businesses.
Many global leading enterprises have trusted and used GapMaps for their business expansion in Asia, Middle East, and Central Africa. They’ve helped businesses in many sectors: retail, real estate, child care, schools, fitness clubs, fuel stations, restaurant chains, and many more … Almost any business can benefit from GapMaps location intelligence tool!
In general, data from the internet or government are often old and inaccurate. It is nearly impossible to use them for market development and expansion planning.
In today’s “digitized” era, choosing a business location no longer needs to be based solely on gut feel, but should be based on data and analysis to make fact-based decisions. Preventing one single location mistake can save a company hundreds of thousands of dollars!
GapMaps builds its own, up-to-date, accurate data system to help businesses understand a local area:
There are many reasons why businesses make the wrong decision when choosing a business location. Mr. Tim Shaw listed these top 4 mistakes that his clients often face with:
1/ The “trap” of low rental deal
Many businesses have made a decision on their business locations just because of low rent and without taking the store performance into consideration. The “good” rent does not have much impact on the store performance.
The stores perform well if they are in a really strong catchment area. GapMaps will help businesses analyze and select the correct catchment area, in line with the brand development strategy.
2/ Playing too “safe”
Without good data to determine why mistakes happen, sometimes a retailer will fail in a location and then avoid that type of location forever. This can lead to a brand completely avoiding potential high street locations, residential areas, or even shopping malls due to a single failure. They feel that by playing it “safe”, they can be successful, while really it is leaving money on the table and opening up the way for competitors to overtake that brand’s expansion. Mr. Tim Shaw said this is a huge mistake made by many.
Malls make product distribution efficient, but not always optimal. According to Mr. Tim Shaw, shopping centers should be considered as part of the network development strategy, and not be the only development strategy for many brands. Other locations can generate higher profits than shopping malls if the right catchment area is selected.
3/ Misunderstanding the convenience test
Many retail businesses misunderstand the convenience test in business. No matter what you are selling, we’re in the convenience business. Unless the location is convenient to the customers you’re trying to serve, you’re going to find that the trade sub-optimal.
“The Convenience test” is understood here as to how this particular location enables that customer to seamlessly slot in that purchase decision for their brand as part of their normal daily activity. This is a strategy that needs to be analyzed and planned specifically with data.
4/ The importance of data is underappreciated
Many businesses in Asia, in general, do not attach importance to the importance of data. There Are two main reasons for that: relatively poor quality data; and the data is not “big” enough for a large area.
With an intelligent and latest data system, GapMaps will solve the above two problems, helping your business choose the right business premises. Don’t waste time and money due to choosing the wrong locations.
Please CONTACT VF Franchise Consulting via [email protected] to receive information about GapMaps and one FREE demographic report.
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