State of the United States and the performance of a tagged diminish Suning device chain saturated alarm sounded

Saturday, May 2, 2009

By Zou cheaponsale

Single-store revenue decreased as a house appliance chain businesses within 2008's "common", Gome and Suning Appliance Chain two giant sales were considerably lower than the increase within the number of stocks increases, displays that broad growth of the beyond has been the theory exams, and house appliances via transporting towards the rural of agricultural land markets possess not yet become the inevitable choice for house appliance chain industry.

Extensive deductions mode by competitions

China Chain Store & Franchise Association, according to newly set free statistics demonstrate that terminal year, home device chain store sales enhance and the enhance in the seven principle retail formats in the bottom ranks. Among them, the 2008 every year Gome sales enhance of just 2.2 per 100, an enhance of 33.5% outlets, the total diagram of 1362; and 2006, the company's 2007 sales growth in the elevation and diagram of outlets were 74%, 92% and 18%, 24%.

Suning Appliance 2008 increase in annual sales in 2006 from 53% in 2007 to 40% to 19.7%; increase the total number of stores by 2006 43% 2007 22% of the year 2008 changes to 28.5% .

Suning Appliance, according towards the 2008 annual inform revealed that Suning stocks than last year (referring towards January 1, 2007 and prior towards the date of gate of everybody stores) deteriorate within sales periodically around the year collapsed 5.72 percent. Classified according towards the market grade, Suning stocks within a market parallel sales decreased via 6.02 percent year-on-year within the lowly market, parallel stock sales decreased via 5.62 percent year-on-year, three-tier market within parallel stock sales decreased via 3.41 percent year-on-year. According towards model of stock, Suning flagship stock parallel stock sales decreased via 5.39 percent year-on-year, the center stocks collapsed via 7.27 percent, the settlement deteriorated via 4.57 percent shop. Suning Appliance, remarked this was mainly with the Chinese house appliance retail market onto the downturn.

Wong Kwong Yu, founder of Gome as a outcome of being alleged of commercial crimes possess not been the event of police investigation, from November 24 last year, the suspension date, the relevant financial data is not released. From the China Chain Store & Franchise Association statistics, the Gome stock Although the gap 550 leading Suning Appliance, but the nation is the United States and the gross operating income increased alone 2.3 billion Suning, contrasted towards a single shop, the shop within the United States independently annual revenues of 76.8 million yuan, alone a single stock Suning reached 126 million yuan towards 60%, it is noticeable the nation the United States "make" not "strong", and its parallel stock sales shall not be hopeful than Suning Appliance.

Shanghai, home appliance industry associations to pay the Secretary-General said that as the home appliance chain enterprises in the frenzied expansion of urban markets, the store has already reached saturation point, with the Shanghai market as an example, the State of the United States (including Wing-lok) and Suning have the more than 150 stores in more than crowded shopping district of the phenomenon have emerged, some home appliances suppliers into three stores at the same time have to suffer again and again, single-store sales decline is an inevitable phenomenon. Therefore, the appliance should be a rational chain expansion, shop carefully, or it will not only damage their own, but also dragged down home appliance suppliers.

China Electronic Chamber of Commerce Deputy Secretary-General suspects that the latest Chinese house appliance chain businesses, the primary corporation theory is towards rely onto suppliers towards compile publicising fees, selling fees, admission fees and else "outside the primary sales revenue" towards profit, rather than solid Fine management. Home appliance chain businesses should gradually dampen the "sales outside the primary corporation income" dependence, and eventually replace towards the primary corporation sales.

The agricultural market into a novel increases point

With the implementation of the plan to the countryside home appliances, Gome and Suning have wasted no time in stores started to take a ride "into the rural" plan.

Suning Appliance has recently announced the formal start "the development of thousands of County Chain," initiatives in order to open up the market 34. According to the plan, Suning will focus focus on more than 3000 counties in the country with high spending power of the county-level markets, a chain of development plans.

Suning Appliance shall also be executed within the alongside future large-scale "electrical consumption Huinong ticket scheme", within the prevailing 34 stocks towards launch the market with a face importance totaling billion yuan within agricultural areas of the house appliances category coupons.

According to Sun Weimin, president of Suning Appliance revealed, in addition to "thousands of the county chain development" scheme, Su Ning also launched in line with the characteristics of the rural market environment, "township shop" project, try the area from the operation, product mix, display mode, operation mode aspects of the design of the best features of the rural consumption market in the township-level store model. Suning Appliance in accordance with the Annual Report 2008 shows that in the domestic market of 34 stores to 134, accounting for 16.5% of the total number of stores. Sun Weimin said that in the current financial crisis, these 34 markets showed strong store the compression of a single shop in the same period last year there has been no obvious decline in the rural areas from the side proved to contain a larger home appliances market potential.

Gome Group spokesman said the United States and around the country more than 1,000 stores across the country are outlets, but, as the work of the national appliance vigorously promote the countryside, the United States will vigorously develop the rural market network chain. State of the United States in logistics, distribution and sales network to cover rural areas, the United States will develop outlets; not in the coverage of local, State of the United States will vigorously develop the franchise. At present, Gome has been set up specifically to promote rural areas of the home appliance center, franchise program has been developed and implemented.

Suning Appliance joint representative investigative body has liberated a "rural home devices consumer report" demonstrates that the rural market for flat-panel TVs, air-conditioning, computers, digital penetration in the surrounding lands, such as goods with smaller appeal highlights.

Extensive deductions mode will restate itself in the market 34

He yang qing remarked, shall be finished this year, approximately hundred of the stocks with destitute operation, at the equivalent moment that a number of out of flagship stocks and high-quality stocks, the gross has remained approximately the latest 1300. Suning Appliance and declared 2009 the year towards open 200 novel stocks, and even blueprints towards enter the international market. Suning Appliance is expected via year-end stocks within the Mainland shall also be many than 1000.

Chinese home device chain industry in the 10-year time span the process of swift expansion, urban and surrounding lands benefited from the popularity of sports, as well as home devices of the recording and financing finance market trend has been to create "a sewer of a trend," regular in the industry. Especially in the free-spoken, clearance outlets, etc., vis--vis the United States and Japan home device chain counterparts "the election of a warehouse for three years, elevating a 10-year shop" the store deductions strategy, the Chinese device giant chain arises to be over-anxious, and even "very illogical . " In sighting, the diagram of competition, generating the speed of China's home device chain has become a giant "open competition" of the main features.

Shanghai, house appliance industry associations towards wage the Secretary-General suspects that despite the increase within functional effectiveness of the stocks has become a home electric appliance chain industry, the latest consensus, but "Happy Valley enclosure" model of broad growth of the short term it is difficult towards distort, the vested interests of house appliance chain businesses allow endless infiltration from the top-down, it can be predicted, "crowding" phenomenon within the next few years shall be a repeat of three or four markets. - 20764

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