Increasingly competitive retail market, the old chain business model will subsequently change. Over the years, home appliance chain owner to rely on large-scale centralized purchasing, to exchange for the upstream manufacturer price concessions, while they also receive a variety of names through the fees, from the appliance manufacturer who "catch" the profits, such as "slotting allowance "promotional fees. But with the home appliance chain industry is gradually breaking the geographical restrictions, more and more competition between them fight almost naked. Increasing pressure from peers, home appliance chain industry must find new profit growth point to continue to develop.
Chain retail enterprises to implement the strategy can well realize the copy-run. However, cross-regional business enterprises in the process, easy to fall into a single cycle of store profitability. Happy Valley enclosure in the home appliance chain-type expansion process, most enterprises increasingly tend to non-rational, in order to expand the territory of scale, even excluding the interests of the gains and losses. Therefore, a single home appliance chain store sales and profit margins decline substantially Deng Jun, "after the expansion effect" is gradually revealed.
Early 2005, Huang Guangyu has predicted there will be this result, he said:
Through our operations and further training, including the competition more rationally, a single after two years to improve store sales. Therefore, the development of the country the U.S. in two phases, it is by the size, number of stores over the main; in the future after the scale reaches a certain level, single-store sales will increase.
Single store operator decline in net profit in particular, the quality may exist in a given period, the expansion process, the single-store performance and speed do not match sometimes. Generally speaking, the quality of single-store operators fell well below the overall rate of growth rate and overall profit.
Polarization of household appliances market is already very serious. Some stores will reach 67 million in annual sales or 89 million, some stores have only a 20 million yuan. Home appliance chain store enterprises invalid many chain stores truly are not many competitive.
And other home appliance chain enterprises when expanding at an alarming pace, and has not been corresponding return on sales or profits. GOME first half of 2005 sales grew by only 32%, while Suning 82% increase in size, while sales revenue increased by only 43? 1%. The prevalence of domestic appliances giant chain store profit margin declines alone.
2005 Suning's single-store average annual income of 87.85 million yuan, to 81.94 million yuan Gome, Yongle was 77.04 million yuan. Compared with the same period in 2004, three stores are single-store revenue fell 25%. In 2006, Gome third-quarter results, its operating margin from the same period last year 4? 7% down to 3? Seven percent, single-store sales fell 1? 9%, sales / square meter target 34% down .
From the second half of 2005, some domestic home appliance retail giant on its rapid expansion has come an "emergency brake" toward improving economic efficiency alone shop. Circulation throughout the home appliance industry into a very critical period of development, this period is the home appliance chain enterprises from quantitative to qualitative change the key turning point.
This critical moment in 2005, Huang Guangyu rapidly adjust business strategy, the Group's focus shifted from the store developed to enhance store operations and carried out organizational restructuring, the previous customer service department, logistics department, stores Management, Brand Management to upgrade other parts. Huang Guangyu hope fine management model will present the consolidated gross profit margin increased 11% to 16% level.
2006 acquisition of Yongle, the new country the United States set up its development strategy has made the appropriate adjustments from the original "size? Development? Efficiency", to adjust for the "development? Effective? Scale." In the new development strategies, national plans from the United States, "shop-driven," the extensive growth mode to enhance the "quality of single-shop operations," marked by intensive growth mode.
Huang Guangyu in a 2006 press conference, said the country from 1999 to 2005 is the period of the United States develop a national network, the National US-shop from the slow pace of 2006, major improvements in store operations and management efficiency, single-store management performance and refinement. I am China Metal Products writer, reports some information about washburn acoustic guitar , tom delonge guitar.
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