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Red flags are planted all over China in 7 days (1)

From the moment we opened our first store, we have given priority to opening stores in small towns. This strategy has enabled Wal-Mart to stay away from the brutal competition in big cities for a long time. When we paid attention, it quietly grew into a forest. Later, we chose a location next to a suburban highway, which catered to the trend of American urban population moving from the city center to the suburbs. Everywhere we go, Wal-Mart stores are opened densely at intervals of about 20 miles, making the local retail market saturated. This will not only prevent other companies from entering, but also give full play to the efficiency of the distribution center and reduce distribution costs.

——Sam Walton's autobiography "The Richest in America"

In December 2005, as 7 Days's five stores in Guangdong continued to be fully booked, the board of directors of 7 Days Both the management and the management breathed a sigh of relief. 7 Days has finally overcome its first difficulty as a company and has no problem surviving. The next mission of 7 Days is to grow as quickly as possible.

For budget hotels, scale is a problem that must be faced head-on. The full name of a budget hotel is a chain hotel. The word chain is also the key to a budget hotel. Without a chain, there is no way to build a chain hotel. Due to economies of scale, the headquarters' growing operating costs cannot be shared. Take Home Inn as an example. By the end of 2009, it had nearly 50 more stores than 7 Days...