Gome Huang Guangyu: direct blow to rivals at low prices – Gome, Gome Huang Guang

Someone once made the country the United States to compare with Wal-Mart, that Wal-Mart, in addition to "everyday low prices", the continued success it also comes from its company's system, processes and culture, and attract customers viability; the country but the U.S. domestic low-cost comparative advantage among the same industry, consumers choose low-cost countries because of the United States, not because it's service does not say it's loyal customers, so this advantage can easily be copy and replace. Huang Guangyu that this statement some one-sided:

Wal-Mart because of its long history, so sound system. However, because of local enterprises to adapt to China's national conditions and culture has its own unique advantages. Price is always the concern of everyone, I can say is that some people understand the country more gloomy U.S. prices. Can not say that the country no better than the U.S. where Wal-Mart, of course, the history and scope of Wal-Mart's advantage or to be recognized.

10 years, the country the United States in the service, credit, prices, recommended products to consumers than domestic counterparts have done, to some extent, it reached a similar level of international. Of course, historically, from the level, from the strength in percentage terms, the country the United States can not be compared with Wal-Mart, but on the strength of the country can reach the U.S. average, it does not Biwoerma bad.

So far, Huang Guangyu of GOME is still the price as the "nirvana." Offers the lowest price, best product, is the eternal purpose of GOME. Low-cost countries have infiltrated the U.S. brand, a business in the future to have the continuation of a tradition.

Enterprises to develop new markets, and achieved dominance in the market or keep the status has been the main method, no more than two kinds: One set price advantage, and second, to establish product superiority. Countries such as the United States purely commercial enterprise, it is impossible to establish an absolute advantage in the products. Circulation because it is not possible to develop, developed unique new technology, new products, other competitive advantages of enterprises can not make the country the U.S. monopoly. If the States United States to maintain a rapid development, enhance competitive advantage, only the characteristics of price and distribution of products to make big efforts.

Legitimate price competition is the most effective competitive business enterprises the means to have their own production of enterprises, product quality and price advantage with the advantage of living equal importance, the production enterprises a competitive advantage in the market to Since the product's "value for money." For not engaged in production and distribution of other companies only the flow of enterprise products, its competitive advantage in the market mainly from the price. As such, the practice of the United States is undoubtedly a success.

States United States to take a price war has its historical background. 90 years of the 20th century, China's per capita national income is low, the high price of household appliances. As the income level is not high, many consumers unable to consumption of expensive appliances. Thus,
Home Appliances
Retail price war at this time to get consumers more easily, and can easily against competitors. 90 years of the 20th century to the country home appliances business, led by the United States have a "price war" infuses the original cold appliance market, home appliances market grew and grew. Through the price war, the country established in the country nearly a thousand U.S. major home appliance supermarkets.

The same time, household appliance market saturation, coupled with the upstream manufacturers have not the core technology, leading home appliance business generated homogeneous competition. Reflected in circulation on the formation of a price war.

States U.S. start-up time, was facing the field of home appliances business, dominated by state-owned enterprises. As the high cost of state-owned enterprises, mechanisms, and inefficient, stick to the traditional system, when the States United States to low-cost competitive strategy, these state-owned enterprises are to take some informal market instruments, such as joint limit, forcing vendors out of supplies, etc. to "ban" GOME. This is because the long form of the low efficiency, high-cost business model, so that these enterprises are unable to carry out powerful low-cost competition. Therefore, countries in this competition, the United States soon won.

Development to date, the country's low-cost strategy for the United States still maintained a strong competitive. Huang Guangyu recognition from
Suning
The pressure is also great, but he exists as long as there is pressure on companies to participate in competition, the challenge is a business must face.

As Huang Guangyu and Suning will use any way to compete, he put it this way follows:
Suning
the war and now we have not yet begun to fight, fight … … and will be ferocious in Paradise after the merger, the country will lower the price the United States, it takes a low-cost direct attack on rivals.

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