Study On The Profit Model Of The New Storesof Rainbow Departmentstore In South China

The global financial crisis has pushed the world into the "Period of Rebalance". The profound changes of global trade fall, global division of labor and monetary system will bring fundamental changes for the economy development during China’s "12th Five Year Plan", China’s export driven economy and order flow; meanwhile, the speeded up urbanization, following by the adjustment of society structure, the outstanding income gap of citizens and the change of the population mobility and the harmony of the society, will bring new structure for the economy development. While the growth pole and growth model with the support from the cities started to change the growth order, it will also bring new changes and challenges for business growth model.The new stores in South China of Rainbow Department Store (mainly refer to new stores in Guangdong province, especially for stores in Shenzhen, Dongguan, Huizhou, Zhong Shan and Zhuhai) are facing the severe global finance situation and various domestic challenges. As the pressure of the company sales and profit growth becoming larger, the new stores are facing problems such as longer incubation period and slower profit realization. The South China Region, as the base of the whole company, takes the important and main position, in terms of the stores numbers and scale, sales and profit contribution. Because.of the above reasons, the study of the profit model becomes an urgent and key issue for the extending company.Based on the above internal and external problems, this paper aims to have a systematically study for profit model of the new stores in South China of Rainbow Department Store. The paper combines the current profit status of the new stores, the internal and external opportunities and challenges, based on the specific market environment, using profit model theories and chain operation theory, trying to come up with an improved profit model. The improved profit model provides a systematic solution, including the implementing and controlling tactics, based on the analysis of the marketing elements, model formulation and feasibility. Finally, the study tries to find out solutions to the extended incubation period of the it from the perspective of improving the original profit model, and solutions to reach the break-even point in a shorter period of time. These solutions will also be reference for retail industry corporations who are exploring their profit model.