The old marketing model home appliance chain – the home appliance chain, Suning Appliance – Househo

feel about state store

Precise localization of store types, strong attack 3C consumer
Electronic
Products, home appliances chain behind to seek a face-lift is to expand sales and production, supply and integration of autonomy initial attempt.

2009 end
Suning
First settled in Shenzhen hunting Period Square boutique. Tiger followed the end of the first and second boutique also in Shenzhen Nanshan District Holiday Plaza Masuda rapid appearance. Relative positioning in the two states of a more high-end stores, and stores the difference between the traditional clear: the concept of product layout and weakens the brand, by product category and performance display; 3C consumer electronics products substantially increase the proportion and
Mobile
, Digital cameras and other electronic products out of the counter, “binding”, open-frame display free experience for consumers than the right.

In fact, as early as 2007, the international home appliance chain giant
Best Buy
Will experience the pattern into the Chinese restaurant, but the cautious pace of expansion closer to consumer demand to make the new ideas did not have access to rapid growth. In Shenzhen, home appliance chain paraelectric earlier the idea into practice, Vientiane City paraelectric museum and almost immediately following the launch of Best Buy’s lead. Second half of 2009, its stores are well Huaqiang North copy of the open-frame of the experiential model.

With overseas Corps were in formations in the Chinese market significantly faster, with Suning Appliance Chain represented long-awaited transformation of the business model has become increasingly radical. Have baked in the boutiques, shops experience behind, it is home appliance chain in order to expand the autonomy of the home appliance sales, improve profitability attempts carried out: detailed market position, change to self-associate to launch own brand names. CITIC Securities analyst Zhao Xueqin, chief retail industry that the Chinese home appliance chain is still in profit from squeezing suppliers to optimize supply chain transition phase, and from the experience of foreign home appliance chain, home appliance chain through the development of independent brands to upstream, the establishment of independent distribution system to lower the production, supply and integration model is the inevitable trend of future development.
Upgrade to speed up the pace of competition in transition

The past few years, relying on through “account of” occupier class supplier of funds
Financial
Mode (see Articles in September 2005 No. “GOME Suning type of financial survival”) to Suning, Gome appliance chain represented by enterprises from the network layout to the rapid expansion of sales volume. 2002-2008 years, Suning’s sales growth from the original 8.07 billion yuan to 102.34 billion yuan, the annual compound growth rate of more than 50% over the same period, Gome’s sales expanded rapidly from 10.9 billion yuan to 104.59 billion yuan, the annual compound growth 46% (Figure 1). The 2004-2008, respectively, both net profit level of 380 million yuan from 1.8 billion and increased to 21.7 billion yuan and 1.03 billion yuan (Figure 2). Mid-2009, Suning, and China have entered the United States and nearly 200 cities above the prefectural level, the number of stores were about 847 and 1212 (including non-listed part), basically completed in the secondary cities of the network layout , began to seek the third and fourth line the city’s expansion, established in the domestic home appliance chain store market dominance. On the other hand, although the domestic home appliance chain in 2008 the top three market share of only 29% of 2001 levels with the United States fairly, the United States, Japan and Germany, respectively the degree of concentration in 2008 reached 46%, 45% and 34%, indicating the Suning and Gome still has vast room for growth, but the negative effects of homogeneous competition has become increasingly evident. Whether the level of sales volume or profit, Suning and Gome is shown to slow the growth trend.

At the same time, in 2009, from the challenges of overseas home appliance chain giants increasingly become clear. The first is that in 2003 the Office of Best Buy entered China. Although the 2006 acquisition of
Five Star
75% of the shares, its market in China, “turtle speed” before the trip, in July 2007 opened the first store, and up to 20 months later, a second store was declared available, but with the 2009 2 Five Star was completed on the remaining 25% of the acquisition, expansion in the Chinese market obviously speed. After 2009, stationed in Beijing after the 2010 plan to present the country on the basis of seven new stores to open 4-5 stores.

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