GOME combination Suning: HyperTerminal profit Breakthrough – Gome, Suning, home
In a market increasingly saturated home appliance retention, single-store shops benefit falling gradually to the country represented by the U.S., and Suning HyperTerminal to the field of telecommunications and IT development.
Recently, Suning, the country began actively planning for the U.S. telecommunications and IT field in the layout, not only were with Motorola, Nokia and other phone giants form strategic partnerships, and Suning separately registered "Digitalsuning" trademark, the city plans to first-line out a number of operating IT, communications products for Digitalsuning chain; States United States this year will focus on cities as the breakthrough point, and the mobile operators to expand the depth of cooperation, while major cities across the country to establish 100 mobile phone stores.
Gome and Suning
to represented HyperTerminal communications and IT areas to expand, is its retention in an increasingly saturated market, home appliances, shop one shop down the situation becoming more effective completion of the primary market channel for traditional home appliances layout, power and size of development to this stage, the inevitable choice. Chairman Huang Guangyu said the United States as the country, operators no domain, symbiotic. From the present viewpoint, is the profit in a market breakthrough in the long run, to further strengthen its strategic move to channel edge.
First of all, the traditional phone business channels than GOME, Suning is also slightly smaller, with Nokia and Motorola on behalf of IT for the consumer goods manufacturers, they will actively take the initiative of the large channel operators show good co-operation with the best conditions can contribute to win-win situation.
The one hand, although communications have been in ICT domain and Di professional chain stores, however, Gome and Suning with than in financial strength, platform scale, network coverage and capacity do not end retail management in a the order of magnitude, Gome and Suning such giants to enter, in terms of its own power on the existence of an opportunity. On the other hand, due to the field of mobile communication products to the channel from the competition is very fierce, the profit will become increasingly diluted, as brands such as Nokia and Motorola, needs the Gome and Suning such as HyperTerminal to achieve its large-scale sales, through scale advantages to reduce costs, enhance its market competitiveness. Such cooperation is profitable, will be ripe.
Second, the traditional home appliances market has matured, the decline in growth as a listed company Gome, Suning supermarket chains and other companies also face the challenge of sustainable profits and pressure, and high demand for mobile phones, high-profit, is very good new business direction.
The one hand, the traditional home appliance market in a mainly basic is updating, some large cities such as Guangzhou, Shenzhen, Beijing and other places in the market growth rate showed a downward trend. Coupled with the crazy pre-shop, making a single store profits and benefits falling gradually. On the other hand, the entire household appliances have shown the brand's highly concentrated, but the brand's highly centralized HyperTerminal is not good for, as an integrated retail platform, more brands and categories to carry and support its large-scale stores and running.
Mobile phone has become in recent years upgrading fast consumer electronics, the demand for space is huge. More importantly, communications and IT industry has become a popular consumer products to civilians, even in highly competitive circumstances, the profit margin is still considerably higher than conventional home appliances. In fact, such pre-Gome and Suning have also started some of its regional communications and IT product sales attempt, from the effects of view, much of its profits and returns than traditional appliances.
Again, communications and IT products in consumer buying habits, access mode, the terminal display and management, and traditional home appliances are many common characteristics, not difficult to enter.
As communications and IT, has now become popular with traditional consumer products like home appliances, then the channel will also go from the previous highly specialized and comprehensive public terminal sales platform, and this change in line with the consumer more to buy consumption habits. In addition, the channel model similar to the greatest degree of integration of existing information, logistics, human resources, sales and management, and terminal platform edge.
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