Why is Sanmao Group so strong in Kaifeng? Background?

Drinking words on TV: the most important thing to open a supermarket is the location, followed by the purchase channel. In Kaifeng, the boss's surname has a low income level and is generally reluctant to buy too high-end things. Therefore, the competition within the supermarket industry is generally based on low prices. If you pay attention, you will find that many things of Sanmao are produced by Sanmao's own cooperative factory, which saves the cost of intermediate channels and reduces the cost.

But after I came back from Zhengzhou, I found that some things in Sanmao are even more expensive than those in Beijing Hualian Zhengzhou Store, and this phenomenon is very common. But why didn't other supermarkets enter Kaifeng? The answer is simple: one. The inertia of consumption habits. After more than ten years of business development, the boss's surname witnessed Sanmao's process from weak to strong, and produced a sense of identity from the heart. When consuming, when the cost performance is not much different, they will tend to choose old brands; Two. Kaifeng is backward in economy and low in income. The situation in Kaifeng and Luoyang is very similar. Luoyang was greatly discounted, squeezing out all the strongmen. It is also a monopoly because it has an unusually low price. Kaifeng is adjacent to Zhengzhou. Geographically, no one in Zhengzhou is willing to buy services that can be owned locally in Zhengzhou from Beijing Hualian, Century Lianhua or Carrefour after coming to Kaifeng, so if these large supermarkets come to Kaifeng, they will only face the consumer groups in Kaifeng. At this point, they have no advantage at all. The relative concentration of an industry in a certain range will lead to fierce competition, which is obviously not necessarily the result that businesses want to see.