Ann: JAT to open its Shanghai Maternity and Infant Boutique, page-59

Just want to give you guys some ideas on the rental costs in Shanghai as I lived there for more than 10 years.

Rental in Shanghai is extremely high, one example below:

https://m.fang.com/zf/sh/FAGT_365965002.html?listtype=1&listsub=16

This is a small shop outside the Nanking Road (West） Subway, I wouldn’t call it prime location but it’s good enough for a comparison.

As you can see the shop is only 140sqm yet the rent is around 230000rmb per month = $48000 AUD. If you add labour (6 workers + insurance + out goings you be looking at $60000 a month easy.

Now this is just a small shop with an ok location, imagine the costs if it’s in a prime location with shop space of say 500sqm????

Let’s just say each tin sells for $60 with a margin of 40%, in order to break even JAT needs to sell $60000/($60*0.40)=2500 tins a day. JAT better sell a lot of formulas or it’s a doomed experience before it began..........

Expect to be ignored and attacked by many here..........