It’s a huge investment to open a retail store.
We need to pay for the rental deposit, hire people, stock up inventory, and even get a contractor to construct the store or kiosk.
Then, operating it is also not an easy task either.
We need to monitor the employees and ensure they are making enough sales to cover the cost of the rental, salaries, and utilities, etc.
But according to Sir John Chung, during our#MentoringMonday session last week, stores could also be considered as a self-liquidating advertisement, especially if they are located in high foot traffic areas.
When you put your store in the malls, people will start to notice your brand, experience your product, and talk to your employees.
It’s like advertising in newspapers or billboards, except the customers will have a more immersive experience and best of all, they can buy right away!
In addition, it will also lend more credibility to your brand if you have a physical store in a prestigious mall. They will associate it with “stability.”
Yes, the rest of the world is going online but here in the Philippines, people still love to go to the malls and it will probably take 5 or even 10 years before we fully embrace e-commerce.
In the meantime, you can build your brand and have a self-liquidating advertisement that will pay for itself by putting up a physical store!
So if you are still thinking whether it’s good or not to put up a physical store, then you should definitely consider these additional benefits.
What do you think? Please share your thoughts below.