Medium And Large Stores With Off Three Alarm Appliance Stores?

Medium And Large Stores With Off Three Alarm Appliance Stores?

The number of stores currently ranks Beijing

Home appliance retail chain

The first of the large and medium electrical industry, in close succession this month, Beijing District 3 area of 3000 square meters operate the stores. Opinion heard of awe: major appliances

Marketplace

Crazy expansion finally sounded the alarm.

According to the China Chain Store & Franchise Association

recently released the 2005 list the major home appliance chain enterprises, the number of stores among the top seven difference is

States United States

Appliances,

Suning

Electrical appliances, triple Group, Yongle Home Appliances,

Five Star

Guangdong earth, medium and large appliances. Among them, Gome, Suning, Yongle appliances, Five Star, the number of medium and large electrical stores by 2004, 227, 193, 110, 120, 72, soared to 426, 363, 199, 193, 120. So crazy expansion of "enclosure movement" people feel Cautious. Hi, is home appliance chain

Retail

Increasing the formation of scale, the worry is over-stepping ring expansion of "mines" the day is not far off. Annual Report published from Suning see it as a giant home appliance chain second child fill of the sweetness of the performance of substantial growth. In 2005, Suning Appliance net profit of 350,629,900 yuan, up 93.50 percent over the previous year. Suning said that in 2005, as the company set up shop in Wuhan Jianghan Road, the city in a key distribution declared the work complete, full chain from the horizontal expansion to the development of vertical infiltration, two, three urban linkage development of primary results.

Store restructuring is inevitable

Dazhong Electric Appliance clear to close three stores because these stores operate too small, the shop is only 20 thousand kinds of goods, while the internationally accepted types of home appliances shopping mall has 800,000 kinds of goods. Can be seen to be, close is not only "business is so small," simple as that. In fact, the appliance stores hypermarkets inevitable structural adjustment has shown a trend. Last year in November, Yongle Home Appliances in the

Customs

Closed its first chain store?? Paradise New World stores, and stores this reform program started, all the stores across the country re-screening, do not meet the "new standards" to close down stores. This store adjustment inevitable trend, largely brought about by the same competition. Impact of the original scope of your market, and now peer stores sprout up, will certainly lead to market redrawn. Whether consumers consider shopping for the nearest, or directed at a more affordable price, customer loss will be inevitable.

This year, Gome, Suning, Yongle Home Appliances in Beijing to speed up the pace of expansion, the three companies were intended to present the number of stores from the 39, 21, 4, to the end of the year rose to 70, 36 , 24. Compared to the three squeezed

Capital

Market

Financing

The power and prestige, medium and large electrical appliances can imagine the situation facing the competition. Held by insiders, if Beijing Gome appliance chain up to accommodate the market analysis from 120 to 150, according to the present various expansion plans, this year will be a serious appliance shopping mall over the phenomenon. This dangerous phenomenon also will sooner or later appear in other major cities. It is reported that chairman of Gome

Huang Guangyu

Not long ago, Shanghai China to the United States issued a "general attack order", and allocated substantial funds from the headquarters, urged Shanghai country before the United States by the end of June this year, the total number of stores in Shanghai completed 60 tasks, so that the number of stores in Shanghai's beyond Yongle Home Appliances. At present, Gome has 33 stores in Shanghai.

Profit model will be tested

Over-reliance on store expansion, indicating that a domestic home appliance chain

Retail profit model problems. 2005 annual report, Suning Appliance Other operating profit up to 912,034,300 yuan, equivalent to 2.6 times net profit. Compared with the previous year, other business profits grew 152.13 percent, an increase of more than the increase in net profit. Report said that Suning Other operating profit increased substantially due to the increase in the number of chain stores and chain expansion and improvement of the network size. On the one hand, for suppliers the ability to provide integrated services strengthened

Package

Including organized for suppliers

Promotions

Activities to provide product demonstration, product marketing, etc.; the other hand, the supplier chain network system with its goods to the breadth and depth of marketing to improve the supplier to pay the promotional fee, site fees have increased substantially .

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