Best Buy, the big brothers born in the United States to enter the Chinese home appliance chain, they indicated that the implementation of the procurement system of the spot in cash to the industry has challenged the unspoken rules
2006 4 months, the world’s largest home appliance chain Best Buy stores in China, first settled in Shanghai Xujiahui. However, the Big Mac in China was far less smooth sailing in the United States. More than a year later, the world’s home appliance retail speculators in China is still only one store.
Best Buy in the U.S. and Canada operates 900 stores in 2005, its sales amounted to 30.8 billion dollars. Three male domestic home appliance chain enterprises (Gome, Suning, Dazhong) sales together, and come anywhere close. However, the world’s largest home appliance chain enterprises to enter China are struggling.
Shop, buy nothing worth mentioning
2007 4 20, Best Buy personnel earthquake occurred, Senior Vice President, President and General Manager of China Lv Weimin was removed from the “General Manager of China” title, from Canada’s Raymond? Yang was named Best Buy Asia president and chief operating officer. This also confirms the rumors of the United States has been the headquarters of Best Buy’s business in China rumors of discontent.
Personnel changes no doubt Best Buy mediocre performance in the Chinese market. Some people even think that Best Buy is a prelude to the withdrawal of the Chinese market.
Best Buy may not withdraw from the reality, but its business has been slow but is a fact. As the world’s largest home appliance chain retailer, Best Buy has nearly a thousand stores in North America each year approximately 75 new stores. Other hand, the pace of their entry into the Chinese market, but was extremely slow.
2003, Best Buy opened in Shanghai in the first procurement center, but there is no direct shop. At that time, Best Buy planned to open stores stationed in Beijing, but the other side asking price too high, Gome stores eventually the flowers. Best Buy stores to be opened in Xujiahui, the time has passed for three years. In recent years, China’s rising real estate prices, shop costs and acquisition threshold gradually increased, making Best Buy for their hesitation to pay a high price.
Slow in the case of shop, Best Buy began to carry the M flag. May 12, 2006, Best Buy and the domestic home appliance chain was ranked fourth in the formal agreement of Nanjing Five Star, Best Buy by the investment 180 million U.S. dollars acquisition of 56% stake in Five Star. Five Star 2005 turnover of nearly 700 million U.S. dollars. After marriage with Best Buy, Five Star made it clear that plans to use 3? Five years, 800 in the China market? 1,000 stores.
However, Five Star is not a national brand, a limited number of stores, so the five-star Best Buy after the acquisition of Chinese home appliance chain is not too great. Best Buy Five Star has acquired more than a year, joint-venture company to truly integrate as a whole, for efficient operation, as well as five-star future direction, how the business model, and so on, the current uncertain.
Strength is difficult to contend with the domestic giant
Five Star Chairman, President and Wang Jianguo has been let off relentless words: “Five Star 3? 5 years will be the new 800? 1,000 stores, competitors are familiar with a range of home appliances sales old habits, unspoken rules will be broken, and by Best Buy – five-star scale replaced by a new set. “
With the industry analysis, “Best Buy is the habit of holding shares other side must be achieved. It is also very eager and the National US cooperation, but also must be controlled Huang Guangyu work, so the two sides failed to agree on.” Some analysis This is Best Buy will be thrown to the olive branch because the five-star appliances. Five Star Appliance Best Buy 56% of shares acquired since the star has been seen as an important gateway into the Chinese market. It is said that Best Buy is seeking 100% wholly owned Five Star, and has begun talks with Wang Jianguo.