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Dormant for 3 years time as the biggest enemy of Best Buy - Best Buy, Gome, Five Star - HC Network A

By: HotBoy

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Dormant after 3 years to meet the Best Buy is still a loss, let anxious that, even in Shanghai, this piece of Best Buy had the most suitable soil consumption growth, the financial statements have not let up moisture. Shanghai Xujiahui in Best Buy's flagship store in huge amounts of money invested after the break has not crossed the point. In Suning, Gome started taking the time to continue, the world's largest home appliance retailers are trying to change industry rules, the stability of its cautious strategy is intriguing. Strategic restructuring is a major trend for all retail, when the country announced that the U.S. reconciliation with the upstream vendors, when Best Buy was a surprise knife wielding prices in Shanghai, it will sell Nokia mobile phone to the freezing point, which is more like Best Buy localization strategy of a signal. Best Buy is facing a huge market for consumer electronics products in China in 2007 the retail market will reach 85 billion U.S. dollars, in 2010 will increase to 100 billion U.S. dollars. McKinsey predicts that by 2010, China's home appliance retail sales will reach a quarter of the world.

At Best Buy continue to shop at the same time a snail pace, believe in "Big is beautiful" country the United States, the pace did not slow down. Not long ago, China passed the United States announced that it will allot and issue of convertible bonds to raise the 838 million U.S. dollars, to support its massive expansion plans, and strive to consolidate and maintain the position of China's largest home appliance retailer. And Best Buy's weakness compared to the results announcement showed the country the United States, in the first quarter, its profit jumped 75 percent, to 169.2 million yuan; revenue growth 80%, from 5.6 billion to 10.09 billion yuan. The Best Buy in the doldrums at this moment is the global spread of the financial report shows the first quarter of this year, Best Buy's gross margin fell 1.5%. So far, Best Buy's gross margin has declined for two consecutive years. Financial report, referring to Best Buy's profit weakness, noted that particularly in China outlets.

Gome and Suning have home advantage, in 10 years, the integration of mergers and expansion of enough resources, but also behind its big expansion seem to see much of the crisis. China latecomer to the market a large body of Best Buy though, but hard to accumulate power in a short time, breaking the market bottlenecks. In China, Best Buy is at a low ebb on how to adjust, how to meet consumer tastes, how to build a distribution network, while maintaining the scale to ensure profitability. "The Best Buy, this is an art, but also science behind it, that is how to scale transformed, while meeting the needs of local customers." Management consulting firm Bain, Head of North American Retail Dare Er? Regal ratio (DarrellRigby) said.

Best Buy make every effort to attract customers, abandoning the previous display mode in accordance with the respective brand so as to display their unique charm. Best Buy's approach is all the product categories and specifications in accordance with the display, there is no enthusiasm over store promoters, sales persons, does not rely on sales to earn commission, etc., all seem fresh and new feeling. For manufacturers, the Best Buy where they most attractive is that it uses the first payment getting goods procurement. All this seems to be difficult to help resist the local Best Buy retail giants in the network layout, bundled promotions and price competition, the impact force. Local retail giant retail outlets of quality resources for almost every collection bag, Best Buy's store expansion has been difficult. In the past three years, Best Buy to focus all efforts focused on global sourcing, collection and investigation of China's market data on consumer preferences, whether this is a mistake? Prior to this, Best Buy has never set foot in any of the regional market outside North America.

"Best Buy hopes to retain in the Chinese birth to a Best Buy not only personalized and appropriate for the mature markets in North America outside of the sales model. In the high cost of land in the downtown business district, Best Buy customers to walk to convenience, the aisle stay was unusually wide, and also set up payment waiting area, to avoid long lines and customers because of anxiety. In addition, Best Buy's main colors used are orange, lit store, using an open counter. However, alone they can whether the dominant local rival to win customers in China, are still unknown. "frankly, a retail expert.
For
retailers ahead of the competition, or have a cost advantage, or have a differential advantage.

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