“Gold and silver” madly occupies the county: the profit margin can reach up to 100%, and the water-shell model is “guaranteed”

Blue Whale News, March 5 (Reporter Hao Yan)After the Spring Festival, the price of gold, which had been soaring all the way, began to ride on a roller coaster.

Recently, the price of gold has fluctuated sharply. On February 28, the price of gold plunged sharply and became a hot search on Weibo. However, on March 4, the price of gold rebounded again after several days of decline and returned to the top of the US$2900/ounce mark. Whether gold prices rise or fall not only puzzles investors, but also puts many gold stores in trouble again.

According to Chao News, due to market fluctuations, Hangzhou has a gold store with 0 transactions for five consecutive days, and the previously developed gold and silver began to occupy the market.

The gold store invested 5 million yuan in the early stage, and the profits of the water-shell model became thinner.

The ones most affected by fluctuations in gold prices are various brand gold franchises. Under sales pressure, franchising brand gold stores no longer seem to be a good business.

A brand franchise specialist said that the initial investment to open a gold store generally starts at least 5 million yuan, including brand franchise fees, decoration expenses, store rent, purchase costs, etc. Among them, the proportion of franchise management fees is not high. Blue Whale reporter learned that most of the franchise fees for gold stores of brands such as Chow Tai Fook and Saturday Fook do not exceed 100,000 yuan/year. When selecting and inspecting franchisees, brands pay more attention to site selection and investment scale.

Photo source: Visual China

Some commissioners further explained that gold is a capital-heavy industry, of which goods input accounts for more than 80%. Based on the current gold price, the first batch of goods may cost at least about 5 – 7 million yuan.& ldquo; If a 100-square-meter store does not have 7 or 8 kilograms of goods, the counters will not appear dense. If the goods are small, it will directly affect store sales.” rdquo;

The high upfront investment and capital operating pressure have discouraged many entrepreneurs from branded gold stores and turned to investing in Shuibei gold stores. Blue Whale News reporter learned from many Shuibei gold practitioners that although there are many gold shops named after Shuibei in many third-and fourth-tier cities, in fact Shuibei is only the main gold supplier in Shenzhen. There is no so-called Shuibei gold joining in the place where the merchants gather. If you join, you will also join the local gold shop brand.

Photo source: Visual China

Compared with brand gold stores, the model of Shuibei Gold is closer to gold purchasing. After entrepreneurs solve the store and related business qualification issues themselves, they can get goods through their own Shuibei Gold merchants. Many merchants even accept it. Start with one thing.

Unlike brand gold stores, which often invest millions of dollars, Shuibei gold stores are frugal and frugal.

A practitioner told Blue Whale News: Hundreds of thousands of yuan may be taken with less goods. It is also okay to place more samples at the counter. Customers can ship them from the shellfish if they have a fancy. However, as Shuibei gold has gradually entered the public’s view in the past two years, the information gap has been infinitely narrowed. The profit margin of Shuibei gold has become thinner, and the labor costs have become very transparent. Sometimes the flow of water seems to be huge, but in fact, it can be calculated to protect the capital. Very good. Wholesale and retail gold shops originally make money by relying on small profits and quick turnover.

Huangjin Pingdi occupied the county seat, and merchants said they would recover their capital within a year at the latest

Taking into account the objective demand for gold ornaments that still exists even as gold surges all the way, the gold-covered silver business is accelerating its expansion, pointing directly to the sinking market.

Blue Whale News reporter learned from the multiple Jinbao Silver franchise manuals they received that currently the Jinbao Silver brand targets its target audience mainly consumers in third-and fourth-tier cities, and provides franchisees with relevant site selection suggestions for sinking markets. ldquo; Rents in the county are cheap, and many people are no longer pursuing value preservation. They are all doing it as decorations. Gold covered with silver is a substitute for gold. The wearing effect is the same as gold, so there is naturally a lot of demand, a practitioner told Blue Whale News reporter.

In the descriptions of the franchising staff of this kind of brand, the initial investment of gold and silver franchises is only tens of thousands to hundreds of thousands, but the profits they earn are quite high. Some have sales of hundreds of thousands a month, and at the latest, they can recover the cost in a year, and some stores can recover the cost in half a year if they sell well or even within half a year. rdquo; In the mouth of different practitioners, the profit margins of gold-covered silver range from 35% to 100%, which are much higher than the current profit margins of brand gold and Shuibei gold.

“The reason why the Jinbao Silver brand is eager to expand is not only the hot market itself, but also related to the fact that the entire industry is still in a wild period.

A gold-wrapped silver practitioner told Blue Whale News: Everyone has a clear idea of the model of water shells, but there is still a lot of poor information in the gold-wrapped silver industry. Of course, there will be no information in a few years. Therefore, while the industry has not yet been shuffled, they are now eager to occupy their seats.

Although many gold and silver brands claim that every item has a national inspection NGTC certificate and cannot be sold for 100% recycling, there are still many loopholes and scams.

According to the Securities Times, when reporters interviewed the recycling business of many gold jewelry stores, they found that gold jewelry less than 1 gram would not be recycled. Some testing agencies also said that it was difficult to accurately detect the weight of gold-coated silver jewelry. According to information disclosed by China Judgment Document Network, there have been many cases of mortgage and fraud in the name of gold-covered silver products in recent years.

As the market gradually matures and supervision strengthens, industry reshuffle is inevitable.