01-10-2024, 02:30 PM
(01-10-2024, 01:04 PM)Bibi Wrote: I wonder how does Sheng Siong stores in China continues to make profit for the past few years despite presence of group buy and yong hui making losses.
Hi Bibi,
Comparing SSG's 6 stores in Kunming (capital of Yunan) to Yonghui's 1000+ stores in all major urban centers of China, is probably not a fair one.
I have a close relative who ventures deeper into (more) rural areas of Kalimantan to set up their own retail businesses. They were originally from Jakarta. When I understood why, then I slowly start to understand a bit more about Business 101 - (1) Money is made when things are less efficient, not more. (2) How you perform is not as important as how your competitors (if any) perform.
Unless we are talking about building "world class businesses", or else it is really about winning the losers' game and avoiding competition.