Set up a stall in summer vacation, and take 5 minutes less detours. I see.

5 minutes to understand the "exclusive protection" of market stalls

What is exclusive protection?

What are the benefits of exclusive protection?

What is the scope of exclusive protection?

What kind of market has exclusive protection?

Under what circumstances can I apply for exclusive protection?

What is exclusive protection?

"Exclusive protection" refers to limiting the number of merchants in a certain format in the market, and only one merchant is allowed in a certain format. For example, if you are a merchant selling handbags, before applying for exclusive protection, there may be multiple handbag merchants in the market, and the market will not interfere.

When you apply for exclusive protection and pay the exclusive fee, the market will announce that you are the only handbag merchant in this market. At this time, the market will give the remaining women a time limit for their appearance. After the time limit, the remaining handbags either appear or stay to operate businesses other than handbags.

What are the benefits of exclusive protection?

If you choose a popular stall category, there will be many peers and a lot of competition. In the same venue, there may be three or five peers selling goods similar to yours. Or, when your business is good in the market, such as people in line, someone will be interested in your business, study your model and process, and plan to copy an identical stall.

In either case, you are faced with the diversion of business. The more choices guests have, the less opportunities they will be assigned to you. In particular, some businesses disregard the market order, break the rules and compete at low prices. At this time, the disadvantages of category collision will be more prominent.

Exclusive protection can provide a better living environment for capable businesses.

What is the scope of exclusive protection?

Exclusive protection is not unlimited protection, it has certain constraints. First, it only protects the products you sell. For example, you are currently engaged in a category of women's bags. After applying for exclusive protection, the market will protect the category of female bags. If you add accessories in the future, you need to apply for protection again. The market will judge whether to protect new categories according to the actual situation.

The second is the duration of protection. There are two kinds of protection fees, one is one-off, the other is monthly, quarterly or yearly. If it is the latter, when you fail to renew the exclusive fee within the time limit, the market will continue to open category recruitment and allow your merchants of the same category to enter the market.

What kind of market has category protection?

Not all markets have category protection. Generally speaking, the development of new stations generally does not impose too many restrictions on categories. At this stage, the role of the market is to attract as many merchants as possible and make the venue active.

If category protection is done at this stage, there are two problems. First, it has improved the entry threshold for businesses and increased the difficulty of recruiting people. Second, it is difficult to screen manufacturers who are not familiar with business capabilities. In case the bad money drives out the good money, the good position is left to the seller with strong funds and poor ability, which has laid a pit for the long-term development of the venue and the influence of the market brand.

Looking forward to the maturity of the venue, the market will steadily carry out investment promotion for all stall owners. Proper protection at this stage can activate the greater value of the venue.

When do you apply for category protection?

Although category protection can ensure the uniqueness of the categories sold, reflect the scarcity of your products and master the pricing power within a certain range. But it is not recommended that you blindly apply for category protection.

First of all, you have to pay an exclusive fee to apply for category protection. The exclusive fee is determined by the market and is generally not low. Whether you can get higher income after paying the exclusive fee needs to be considered comprehensively according to the specific situation.

Secondly, exclusivity means that you have to go all out. If you have won the exclusive right to operate a certain category, but the operating conditions do not match it, then you are not only under great financial pressure, but also reassess whether there is a more suitable exclusive merchant from the market perspective.

To sum up, it is not too late to consider applying for exclusivity when you are basically successful in a certain category, have sustainable profitability and can produce a flagship effect.