Need Advice on business competition

**Bizgirl** · 11-24-2007 07:30 PM

Hi everyone

,

I need some professional advice on business competition. Thanks in advance.
My friend and I started a small business in China and this business model is explained as below: It's a little bit complicated but I hope I can explain it clearly to you.

I rent a space in a shopping mall and I build a hundred of small display boxes inside my store. Then, I will rent those display boxes to small business owners so that they can show and sell their products for minimal renting fees. I will also charge them on a small percentage on their profit as commission.

The business has been started for more than half year and it's doing pretty good until last month when more and more people notice the potential market and enter the industry. Obviously, the new entrants squeeze some of my profit and I need some new strategies to deal with the competition.

If you have any idea or experience on dealing with a similar situation, please feel free to share. I really appreciate your help.

Thanks a lot,

Bizgirl

**yaksowmi** · 11-25-2007 12:22 AM

very good idea u hav there. i like ur idea v much. but saddly, u hav no way to stop free competition. hope can help u with these ideas.

1) improve ur services
2) set very high service standard (so customers can distinguish non-authentic brand n service)
3) branding ur services
4) patent (but this is expensive n in china, intelluctual rights are not highly recognize).

i am from singapore. i can understand china biz.

**drackox** · 11-25-2007 03:42 AM

I dont know what to say for busniesses over seas,

But in general, I would do a survey with your current customers and see what you can do to improve your services...

See what they want - because it is "they" who are giving you money.

**BusinessAdviser** · 11-25-2007 10:56 AM

I don't think that a patent is an option. However, there may be other ways for you to be successful. A customer survey is a good idea in order to find out what they think is most important when searching through your store - low price? wide selection? friendly service? Once you find out what is most important to your customers, focus your efforts on delivering that to them. Be creative.

**ltressel** · 11-25-2007 11:32 AM

I like your idea-very clever. Besides the survey which is very good. Is there a way you can do memberships? Maybe you can get the support of your sellers to give further discounts to loyal customers.

Text alerts or email alerts of sales items? Reward system? DSW is a shoe retailer here in the US. They carry all sorts of brands. They reward their customers $ amounts for every points they accumulate while buying shoes. Every so often a customer gets $10-$20 dollars of spending money (certificate).

Just a few ideas.....not sure if that will work in the Asian Market.

LT

**luemob** · 11-25-2007 12:04 PM

You might want to create some kind of incentives to promote your service, maybe consider free displays without any rents if a certain amounts of items sell well . Creating incentives can definitely make you stand out from your competition.

**Bizgirl** · 11-25-2007 12:07 PM

Thank you so much for all the ideas. It really helps me brainstorm. The survey idea is really good...i will discuss with my partner on how to implement it together with the gift certificate (as our profit margin is not very high)...Please feel free to give me more advice.

Thanks, guys!

Bizgirl