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Research on business area
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Research on business area by BeiFangZongHeng

The main body of this research

“Business area” is the market space and geography region to attract customers by distribution companies. The size of business area depends on operating ability of the enterprise, the density and quality of population in this area, consumer purchasing behavior and the external basic environment.

The abstract of this research as below:

Internal elements: Industry and sector, size of the enterprise, reputation of the brand, operating ability.

Carrying the research of the enterprise in different industry and sector, we must according to the current proportion, influence of the brand and operating ability, in order to make sure the effectiveness of the result for this proposal.

Population elements of the business area: Density of the population, population distribution in local area, structure of the population and quality of the population.

Consumer is the significant participants in whole process of the activity of market transaction. Elements of population in the business area are the most important factor in the external environment for enterprise. Have a correct recognize about the primary data of population in the region of local business area is the most important factor to grasp business opportunity correctly.

External environment: Construction and equipment, social economics environment and the market competition.

Social economics environment include the policy of industry development, design and construction of local council and regulation of finance and tax.
Construction and equipment environment include building facility, resident accommodation status, transportation and different level of local council.

Consumer behavior habit: The choice of shopping place, how often of shopping, amount of individual cost and transportation.
Investigate on the consumer purchasing behavior, in order to understand the different life style of consumer, the demands and choice for each brand, so that we can grasp opportunity of market and advantage of per competition.

The determine model of business area by BeiFangZongHeng

The investors with different sector, aim market and different products, will have different points of view regarding to the analysis.

According to the difference of research project, we use different methods to distinguish the style of business area.

According to attraction by consumers: central business area, secondary business area and marginal business area.
According to stability of consumer: business area for residents, business area for working staff, business area for students.
According to transportation used by consumers: walkers business area, non-vehicle business area and vehicle business area.
According to different operating style by enterprise: retail business area, wholesale business area, FMCG business area, special purchase business area and so on.

“The determine model of business area B&C”: rely on particularity of the location for the project, we determine the definition of business area.

Successful domestic enterprise and global retail operator, they have different opinion about the determination of business area. Having long-time experience, bei fang zong heng investigate on the idea and practice of business area determination by lots of successful enterprise. At the same time, we applied the most popular determine regulation and model (such as retail gravitation regulation, law of Huff customers attraction, kompass district model and Nippon households provincial district model), given B&C business area determination model creatively. We have started to use it in customers service practice.

Business area search based on Comprehensive comparison

Most of investors will draw conclusion of where to invest and how to invest depends on how prosperity this area is, basic equipment construction, transportation status, density of population and market competition environment. Some investors will invite professional consultant use professional methods to analysis the area they want to choose to make sure whether or not to invest on this area. So, how can they decide “the investment area”?

  • First methodology:Decide the area firstly, and then investigate on the business and population environment. They don’t apply comprehensive comparison here, only research on some certain area they have already focused on. Lots of enterprises choose where to invest depends on this.
  • Second methodology:Decide business area based on comprehensive comparison. Here, we emphasize study on the whole business environment and distribution of population of entire city. And then, based on the analysis and comparison, we confirm the best region to invest finally. So that, we can carry the research one step deeper of the aim district.

We have examples to demonstrate that some successful investors who do not use comprehensive comparison. But, we must recognize that the bad cases are much more than comprehensive comparison users.

Based on investigate in successful business area choose experience by global enterprise, bei fang zong heng initiate investors choose business area according to comprehensive comparison and we provide data support to investors for their invest purpose. We hope this service can help business investors choose area successfully.

Research on residents’ purchasing power

City council and residential area is the basic individual unit in modern commercial market. People divide by groups. Consumers living in different area has different consume behavior and purchasing power. The different region caused different living district and council.

The proposal of research on purchasing power in different region carried by bei fang zong heng, used population data, consumer behavior data and living environment data to distinguish different city residential region and given different levels such as “high purchasing power”, “medium purchasing power” and “low purchasing power”.

The proposals of research on purchasing power in different region based on data analysis of purchasing population combine with the development of GIS data.

The proposals of research on purchasing power in different region can give the answer to some questions as follow:

  • In China, which is the district that you have the biggest number of aim customer?
  • Which area is the region for rich people and poor people and council house?
  • Which area has the “highest purchasing power?” “high purchasing power?” and “medium-high purchasing power?”
  • Which area has the largest number of local residents? And labors?
  • Which area has the largest number of foreigners, such as Amercian? European? Korean? And Japanese?
  • Where they live in the whole city? How is the density and quantity of their living? What is the affection to purchasing power caused by population quality and quantity in these living area?
  • ……………………

The decision of choose business area, usually given the area firstly. And then, consider the business and population environment in this region. Hence, given comprehensive comparison methodology, focus on business environment and distribution of population in the whole city at first. And then, based on analysis and compare as a whole, we confirm invest region and carry on research of this area one step deeper. The proposals of research on purchasing power in different region can provide data support for both of these two methodologies of business area chosen. For those enterprises which had already finished investment distribution or had set up several sale terminals, they even can evaluate current business service region through the proposals of research on purchasing power in different region carried by bei fang zong heng.