News Background
11 2, Shanghai Yongle Home Appliances longevity store incident occurred in a fight, was hit by two suspected as the identity of the object
States United States
Appliances caused by the industry staff attention.
An industry veteran who is not without emotion, smiled and said, now
Home appliance chain
Between giants
Competition
Is getting lower and lower levels, and funds from the initial fight, fight store, spell products, price-cutting, to now only a physical fight. The source pointed out that even domestic appliances
Locks
Extraordinary in recent years the rapid development of home appliance chain between some of the irrational behavior of other people worried about competition. Giant home appliance chain will likely lead to excessive competition
Home appliance retail chain
Reduce the overall value of the industry.
States United States
Suning
Paradise and several home appliance giant chain are called, household appliances retail chain should remain rational, differentiated, high-level competition, so as to ensure the industry
Health
, Orderly, sustainable development, to open the retail sector in China after the giant home appliance chain and international competition in an invincible position.
Huge giant rapid expansion of the market
Data show that China's home appliance market share in more than 600 billion, more than 30,000 retailers, while in the United States
Appliance Retail
Less than 1,000 enterprises, such as BESTBUY top four in the chain for more than 90% market share. In Japan, the home appliance market is small island, Yamada and other 45 companies carved up the retail chain. In China, the top five chain retail enterprises in the overall consumer electronics market share of less than 20%.
2003, the three
UMC
Backdoor listing Zhengbaiwen device; 2004, Gome, Suning two major home appliance chain enterprises are successfully listed in Hong Kong and Shenzhen; Wing-lok, in July 2005 also listed in Hong Kong, and Morgan Stanley received 50 million U.S. dollars capital injection.
Huge market and abundant external and internal funds from the Big Three were given to the conditions for rapid expansion. The rival stores in the "personal" competition and snatch the upstream suppliers of resources, but also feel more pressure to the Big Three. Coupled with the domestic retail market liberalization, foreign giant retailers influx is so that they are facing an unprecedented crisis. Just recently, the world's largest consumer electronics retail, distribution and services group United States
Best Buy
High-profile announcement of its Asia
Operation
Moved its headquarters to Shanghai, and announced in the next 12 months through acquisitions or self-built channel network, push into the domestic home appliance retail market. "Crying wolf" threat that Suning, Gome, Yongle and other embattled retail giant, the most obvious move was crazy enclosure shop.
According to incomplete statistics, in 2005, according to the Big Three original expansion plan, China plans add more than 130 U.S. stores; Su Ning plans to open 150-170 new stores; Paradise is scheduled to reach 250 total stores, and has been successful in years to enter the Beijing market.
Different positioning a powerful weapon for competition
Industry
Expert
Analysis, "princes strive for hegemony," the emergence of a situation is largely due to the current lack of competition among home appliance chain caused by differentiation. In the home appliance chain model, the company has shown a relatively similar mode of operation, selected from the facade to the entrance hall display, from the staff
Promotions
To after-sales service, the only difference is that enterprises are in competition with price differences and chase, in the eyes of consumers, the chain is just the difference between the price level, lack of differentiation in household electrical appliance chain has been in a low-price competition levels of operation.
It is understood that most chain competitive differentiation considered only limited service differentiation,
Marketing
Differences between varieties of business strategy. Including varieties of positioning, pricing strategies, promotional package, etc., depending on chain stores in the regional market position of the various markets in which the adoption of different varieties of differentiation strategy, which means breaking down the same standard of store operations, these common differentiation strategy is not to play in practice the number of effective, leading to the homogenization of home appliance chain competition great.
Experts say is the difference in positioning companies to achieve competitive superiority in weapon, no competitive differentiation is low competition. Whether or between different Yetai different enterprises competitive industry, home appliance chain enterprises are different localization of their most powerful weapon.
How meager profits, "premium" profit
Meager profits home appliance chain industry in China has been a common phenomenon. And the U.S. consumer-electronics retailer Best Buy 25% of gross profit, the Chinese home appliance chain industry average gross margin of only 10% of net profit of 1% -2% in general. I am an expert from China Chemicals Products, usually analyzes all kind of industries situation, such as laars pool heaters , swimming pool floats.
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