Gome appliance store revealed large losses will open a store wars

"Our new store in Beijing in 2006

Planning

Just adopted, the task assigned by headquarters to Beijing are: double stores. "Yesterday,

States United States

Insiders said on the newspaper, "Beijing

Home appliance chain

Giant stores have large losses, this is our opportunity. "This statement has been clear that the appliance in the capital hit full swing shop giant war will continue to hit, really spell until the bitter end.

 

Tragic reality of unabated expansion ambitions

11 15 baked this "new network development, Gome in 2006 White Paper", in the country within the United States be considered "documents classified top secret," it is the country the United States in 2006 Beijing shop planning.

"White Paper" revealed that the number of U.S. stores in Beijing.

Will be 40 this year, based on double next year to reach 75-80 home appliance chain stores occupy more than half of Beijing, the Beijing market turnover also absolute boss. Specifically, countries expect the United States in 2006 the composition of stores in Beijing are: 8 world-class stores. Store area of 20000 square meters, appliances lead the world trend of commodity display, excellent shopping environment, providing ultra-

Five Star

Class service; 18 stores in Asia advanced level. Shop area of 10,000 -1.5 10,000 square meters, store image, service, merchandise display representative of the highest in Asia; 22 stores in China's advanced level. Store area from 5000 to 10,000 square meters, store the image, the service reflects the essence of traditional Chinese culture; 37 advanced-level Beijing store. Store area from 5000 to 10,000 square meters, offer the most complete consumer goods and best service.

"White paper" analysis, Beijing electronics market capacity is about 18 billion yuan a year. Currently

Competition

Situation, only the years

Sell

1.2 billion of stores to maintain normal

Operate

. The figure of the Beijing market can accommodate the number of home appliances chain stores about 150. The current number of four giant has more than 110 stores, close to saturation. Is particularly alarming is that the "White Paper" also revealed that some of Beijing

Appliance Retail

The total number of corporate stores account for the proportion of losses of stores has reached 45%, 65% or higher.

States United States predicted that next year's Beijing home appliance chain stores will reach 200 or more, but the market capacity of 150, this means there are two results: Some shop business plan can not be reached; opening new stores while closing the old store.

Loss crisis is not an alarmist

"The investigation is entertain the country the United States, they often compare their own as an example.

Suning

Whether the loss, as long as the look

Listing

Corporate earnings will know. "States United States for the disclosure of the" Beijing loss of some home appliance chain, "Suning Hua North District

CEOs

Fan Zhijun tit for tat.

Beijing Yongle veterans have the Ning said: "Paradise to Beijing only 5 months, only two stores, it is certainly not in the overall sales Gome, Suning ratio, but the effectiveness of Paradise better than a single store Gome low." Great Advertisement Promotion Department Manager of the Electric Beach, also said the U.S. should disclose what country the situation itself.

While the Big Three on the "loss" one that both vehemently denied, but the reporter learned from the industry this year, several large chain giant has been crazy in the Beijing market expansion, has led to a single shop has generally declined, and some giant has indeed occurred store more than a loss. China disclosed a loss of U.S. crisis, this is not alarmist.

Zhang Jindong, chairman of Suning Appliance has previously disclosed, the Beijing market many stores concentrated in the so-called "ring shopping", actually more than 30% of these stores is not valid store (not profitable stores). Paradise has the Ning admits, according to Wing-lok, evaluation, current market size of Beijing's store at 4000 sq m, profitability is difficult.

Even their own country the United States, also face the embarrassment of a single shop down benefit. According to the U.S. State semi-annual report shows that its first half sales increased 32% year on year, but only a slight increase of 4.5% net profit, sales profit rate of less than 2.9%, while last year was 3.9%. The entire first half, sales per square meter is also the country the United States fell 22.3%.

The State Council Development Research Center Deputy Director Lu Renbo market that the current ring number of the chain really has been too much. Incremental household appliance market, after all, Beijing is limited, so leave space for home appliance chain giant set up shop quickly reduced.

Liang Bai try to avoid multi-joint

Worth pondering is this month, Suning, Yongle in stores nationwide beginning on invalid "clean their own house", seems to be regarded as giants in the exploration, "Back to the days of operation."

A senior level within Suning said that Suning has made

Flagship store

Management shop, community store separate program, different for different grades of store shopping district opened. Next year, Suning stores by region for all the monthly

Assessment

, And elimination, fail to meet requirements of the stores will close. Wing-lok, consider the rental cost from the store, last month, in advance of "the first shop in Shanghai," moved another building.

Gome Beijing branch chiefs Zhaobao Min admitted that since the distribution is too dense, GOME has also appeared in a number of cities with the same type of home appliance chain

Marketplace

Street confrontation between the two stores, each pull-price situation, which ultimately lead to a single store layout diluted benefits, both sides will suffer, ultimately hampered the entire industry.

Lu Renbo said: "The single expansion point will no longer trade cloth sure, only in the service and product differentiation on competition, can the enterprise and the market more

Health

. "

This, Zhao Baomin disclosed that the United States currently has more than 1,200 nationwide commercial enterprises of different business state signed an alliance shops, including

Dining

,

Leisure

,

Home

, Home economics, education,

Insurance

, Commercial,

Financial

And other consumer services. Zhao Baomin admitted: "United States U.S. attempt to multiple formats

Marketing

, Just wanted to jump out of the circle hard-fought home appliances, look for new profit growth point. "

I am an expert from International Trade Community, usually analyzes all kind of industries situation, such as witura , anti shoplifting system.

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