“ The rent of the opposite store is one tenth of our rent here, which is equal to the cost of our competition in disguise!” said the owner of the operation of Lecong Furniture City. According to him, Foshan Jiabo City, not far from Le Furniture City, announced at a high-profile early this month that it would reduce the rent of shops to 1/10 of the traditional rent. When this news came out, more than 20% of the merchants “over the file” to the store, so that the surrounding stores shouted “top shun”.

Yesterday, the reporter called the Home Bocheng Marketing Department for verification and was confirmed. The person in charge of the store said that Jiabo City has set a “cap” on the rental price, the maximum is not more than 100 yuan/month per square meter, and the lowest is as low as 45 yuan/month, which is equivalent to the average of the surrounding traditional stores. one.

“Doing this, is there any suspicion of vicious competition?” In this regard, the person in charge denied: “As a key demonstration project for the renovation of the three old projects in Guangdong Province, it is our responsibility and mission to guide the standardization of the home market and standardize operations.”

As for whether the operational pressure will be too big, the person in charge is blunt and confident. He calculated the account for the reporter. It is the first phase of the home city, which can accommodate 2,500 merchants. Counting the second and third phases of planning, it is completely no problem to make up for the profit. The industry generally believes that there may be another round of shuffling revolution in the second half of the Foshan Home Revolution. The competition is fierce, and the ultimate benefit is consumers.

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