Best Buy the end of first flagship store in Shanghai in
Gome, Suning two giants local stores are “not agree”
The world’s largest consumer electronics retailer with annual sales of 300 billion dollars of U.S. electronics chain Best Buy has finally confirmed yesterday, will open in Shanghai on the 28th of this month from a brand’s first flagship store in China.
Only do high-end market Site in China’s most prosperous city, Shanghai Xujiahui business district, store opening time is carefully chosen the week before New Year sales season, with just acquired in May this year, domestic appliance retailing, “Five” in Jiangsu Five Star Appliance dormant in China more than 3 years of Best Buy operations in the first step forward, obviously it has already been done a warm-martial.
Information, in addition to the direct acquisition of Jiangsu Five Star, “poached” strong regional competitors, the Best Buy as early as three years ago in Shanghai, Beijing and Shenzhen to set up procurement offices, annual procurement in China up to 100 100 million U.S. dollars, plus the competitive environment familiar with local market Best Buy, group vice president, Asia Pacific headquarters maneuvers Lv Weimin, president, Best Buy already in China and in North America and expand the sales of domestic consumer electronics manufacturers to establish a good relationship.
This time the direct forefront the shop, Wei-Ming Lu told reporters bluntly, the Chinese stores in payment method, business model and so a full replication of its mature North American model, while only do the high-end market, not to join their Chinese counterparts price war. Lu said China’s consumer electronics sales in 2006 expected to reach 85 billion U.S. dollars, and is expected to double-digit growth in the next decade. “Best Buy will occupy their own unique way of high-end consumer electronics market in China fair share.”
Domestic appliance manufacturers high hopes Best Buy
Around New Year’s Day New Year sales season the market could usher in “a good start,” Best Buy will no doubt be smooth based on China’s first test. And including TCL, Midea, Haier, Gree, including both domestic appliance manufacturers on Best Buy to introduce advanced management concept, the increasing consolidation of domestic sales of ruthless competition in order of high expectations.
“On China’s home appliance chain existing patterns of impact is positive.” Certain not to be named president of Home Appliance private comments to reporters, such as after the first paragraph goods, and suppliers to sign long-term rather than short-term agreement, not slotting allowance received, all use their own sales staff, etc., are likely to be present in domestic appliances chain “hidden rules” of the challenge. For outsiders, the most likely to encounter will be the impact of Gome, Suning. The former has just spent the successful acquisition of the Shanghai Paradise, set to double next year’s profit of Hongzhi, the latter is the leading home appliance retail companies, the largest market capitalization.
Huang Guangyu: the overall operation of the country does not constitute a pressure on the United States
The face of Best Buy’s high-profile, national Wong, Chairman of the United States when his family on the phone yesterday expressed disapproval to the reporter’s mind, “Best Buy into China, the United States overall operation of the State is not pressure.” Huang Guangyu said Gome main task of the next three years will continue to train well in internal organs, enhance the effectiveness of single-store operations, pursue and manufacturers, consumers harmony, “and strengthen the go overseas expansion, the country’s largest U.S. rival only himself.”
Zhang Jindong: Best Buy is not the main rival Suning
And Suning Zhang Jindong, chairman of the weekend in Nanjing to this reporter’s interview is to express the same view that the next three years, Best Buy are not on the existing pattern of domestic appliance stores a threat, “Best Buy to become the main rival Suning have to wait at least 3 years. “
Zhang Jindong, the reason is that Best Buy and the Chinese home appliance chain management categories in the structure of a big difference. Best Buy’s main products sold more than 90% audio and video products, digital and communications products, Suning 60% of traditional home appliances at Best Buy’s sales share of only 6%. Meanwhile, China’s home appliance chain has formed a certain scale, Best Buy, not the short term pressure on domestic competitors. In addition, Best Buy in the enterprise’s own management, brand advantage, the home appliance industry in China’s current competitive environment is harsher, Best Buy will not necessarily adapt.
[Key words]: Best Buy States United States
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