Advantages:

1. Low investment

Merchants do not have to bear too much rent, and partners can also provide part of the publicity work, saving the promotion costs of merchants, which is a win-win situation.

2. Easy to manage

This joint venture model is generally managed by dedicated personnel, and the image of the store can also be controlled to a certain extent. Merchants can save a lot of management energy and increase the consumption rate of users.

3. Save worry and effort

The preliminary work is simple, and there is no need to run around to apply for the "three certificates" or contact relevant departments. You can directly sign a contract with the mall. The work in decoration is also relatively simple.

4. Increase sales

Merchants are not fighting alone. The brand effect of the mall's own positioning will have a greater driving effect on the performance of merchants. Merchants can choose to use the new retail system to understand the operating conditions of the store in real time and change their business strategies in a timely manner.

5. Suitable for new brands and foreign brands

For brands, this model allows them to better enter new markets. After the mall bears part of the risk, merchants can also operate better, and in the later stage, they can use the brand to attract users.

Disadvantages:

1. It is difficult to enter

The requirements for merchants and brands are high, and they need to show various certificates, sales performance, etc. Generally, it is difficult for small merchants and brands to enter.

2. No independent management rights

Must cooperate with department stores to carry out discounts and other activities. Regardless of whether the merchant’s own development strategy and financial conditions allow discounts and promotions, they must cooperate with all activities held by the mall.

3. It is difficult for merchants to highlight their brands

In order to shape the characteristics of the project, the deduction-point commercial project has uniform clothing, etc., and the shops given to merchants are generally small. It is difficult for merchants to highlight their brand positioning.