Single-store revenue decreased as a home appliance chain enterprises in 2008’s “common”, Gome and Suning Appliance Chain two giant sales were significantly lower than the increase in the number of stores increases, shows that extensive expansion of the past has been the model challenges, and home appliances by moving to the countryside of rural land markets have not yet become the inevitable choice for home appliance chain industry.
Extensive expansion mode by challenges
China Chain Store & Franchise Association, according towards newly freed statistics appear that last year, house appliance chain stock sales increase and the increase within the seven principal retail formats within the bottom ranks. Among them, the 2008 annual Gome sales increase of just 2.2 percent, an increase of 33.5% stocks, the gross number of 1362; and 2006, the company’s 2007 sales increases within the volume and number of stocks were 74%, 92% and 18%, 24%.
Suning Appliance 2008 increase within annual sales within 2006 from 53% within 2007 towards 40% towards 19.7%; increase the gross number of stocks via 2006 43% 2007 22% of the year 2008 corrections towards 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 result of being suspected of fiscal crimes have not been the aftermath of police examination, from November 24 terminal year, the suspension date, the relevant economic knowledge is not released. From the China Chain Store & Franchise Association statistics, the Gome store Although the distance 550 directing Suning Appliance, but the countryside is the United States and the total operating profits enhanced simply 2.3 billion Suning, equated to a single warehouse, the warehouse in the United States alone every year revenues of 76.8 million yuan, simply a single store Suning came 126 million yuan to 60%, it is remove the countryside the United States “make” not “strong”, and its competent store sales not able to be optimistic 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 newly informed the ceremonial activate “the industry of thousands of County Chain,” initiatives within order towards open up the market 34. According towards the blueprint, Suning shall focus focus onto many than 3000 counties within the nation with tall spending power of the county-level markets, a chain of industry 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 divulged, in supplement to “thousands of the county chain development” approach, Su Ning also launched in row with the aspects of the rural market setting, “township shop” endeavour, endeavour the paddock from the task, goods blend, show in public mode, task mode aspects of the arrange of the climaxes of the rural consumption market in the township-level store model. Suning Appliance in accordance with the Annual Report 2008 demonstrates that in the worker market of 34 outlets to 134, accounting for 16.5% of the total diagram of stores. Sun Weimin said that in the existing economic calamity, these 34 markets demonstrated forceful store the compression of a single warehouse in the same time span terminal year there has been no noticeable diminish in the surrounding lands from the side proved to retain a expanded home devices market potential.
Gome Group spokesman said the United States and round object the countryside more than 1,000 outlets across the countryside are outlets, but, as the task of the national device definitely promote the scenery, the United States will definitely create the rural market network chain. State of the United States in logistics, distribution and sales network to bind surrounding lands, the United States will create outlets; not in the coverage of provincial, State of the United States will definitely create the franchise. At prevailing, Gome has been initiate overtly to promote surrounding lands of the home device center, franchise program has been created and implemented.
Suning Appliance joint businesswoman investigative body has printed a “rural house appliances consumer report” displays that the agricultural market for flat-panel TVs, air-conditioning, computers, digital penetration within the agricultural areas, such as products with lower require highlights.
Extensive deductions mode will restate itself in the market 34
He yang qing said, will be sealed this year, come seal 100 of the outlets with broke performance, at the same time that numerous out of flagship outlets and high-quality outlets, the total has stayed come seal the existing 1300. Suning Appliance and documented 2009 the year to free-spoken 200 novel outlets, and even prepares to enter the worldwide market. Suning Appliance is in all prospect by year-end outlets in the Mainland will also be more 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, home appliance industry associations to pay the Secretary-General believes that despite the increase in operational effectiveness of the stores has become a household electrical appliance chain industry, the current consensus, but “Happy Valley enclosure” type of extensive expansion of the short term it is difficult to change, the vested interests of home appliance chain enterprises allow endless infiltration from the top-down, it can be predicted, “crowding” phenomenon in the next few years will be a repeat of three or four markets.