Best Buy Route Through The Five-star Trip To China Could Well All The Way - The Five-star, Best Buy
By the size of the domestic home appliance chain environment
, Best Buy store business philosophy and value of service-oriented business model, it will be difficult develop their long. Especially with the five-star culture, management, there is a big difference in how the better after the acquisition as quickly as possible through the run-in period, which are full of variables.With the acquisition agreement, rumored for several months, Best Buy regarding the acquisition of Jiangsu Five Star Appliance finally settled. May 12, Best Buy and joint-venture agreements, Jiangsu Five Star Appliance, Best Buy to 180 million U.S. dollars in total investment Five Star Holdings, of which 122 million U.S. dollars for the new capital injection. Best Buy finally route through the five-star starting point and enter China.
However, as experts said, due to the size of the domestic home appliance chain environment, sticks to Best Buy's own philosophy, his trip to China not clear for everyone, especially with the five-star culture, management and other aspects very different, how better after the acquisition as quickly as possible through the run-in period, which are full of variables.
He sacrifice the long corner blocked national distribution
Best buy for the main five-star matter,
States United States
Sun, general manager of electrical operations center of a small, said, "where value is hard to say. Five-Star Best Buy may be a springboard into China, but its resources on the Best Buy store's contribution is not significant. Best Buy's business line decision it does not need some of the rural network. "
Suning CEO Sun Weimin
also believe that we had to avoid direct confrontation with Suning, Five Star stores are mostly chosen more times a city, while China's market environment, with the United States is different from the gap between the large, high-end consumer groups are still concentrated in the spending power of the city.
It is understood that the network has already covered Five Star stores in Jiangsu, Zhejiang, Anhui, Shandong, Yunnan, Sichuan, Henan and Jiangxi provinces, the main product lines include
Air conditioning
, Audio-visual products, home appliances and digital
Communication
Equipment. In the Commerce Department released "2005 National Commercial Chain 30" rating, the Five Star to reach 14.6 billion yuan annual sales, size of 193 stores, home appliance chain ranked fourth in the Mainland. The top three giant Gome, Suning and Yongle after the merger of medium and large, the number of stores were more than 400, 350 and 300.
It seems that in China only by the scale of retail is still to benefit the larger environment, Best Buy will certainly not be limited to five-star status of local brands, while the order to expand in the future will inevitably have to go crazy The "enclosure movement" in. The present, the domestic home appliance retail chain
The supplier
Several years of rapid development, have occupied most of a second-tier markets, to form a stable customer base, and thus constitute a potential market entrants, certain barriers to entry in the market share enjoyed a first mover advantage in product procurement and Marketing to enjoy home advantage and a better understanding of their markets and consumer demand, leaving room for Best Buy will not be much.
No wonder Gome's leader
Huang Guangyu
, Suning Appliance, Sun Weimin, respectively, announced that Best Buy's acquisition would not pose a clear threat to the domestic appliance market, because the Five Star in Beijing, Shanghai and other large cities, or a blank, they have a lot to do.
Nevertheless, there is also a phenomenon worth pondering. Earlier this year the Big Three once slowing the speed shop, but a sudden acceleration into April. Suning May 1st day out in 32 stores nationwide, plus on April 22 opened 13 stores, Suning week out a total of 45 stores. State senior, said the United States, States United States the rate of expansion this year will be far more than any rival. The merger of Dazhong Paradise, it seems more proactive way.
Difficulty thinking
store services
Public
Consumption
, Of course, Best Buy to do something in China, in addition to Five Star he sacrifice the long delay in the corner of the status quo, some of its own inherent business philosophy with the current consumer attitudes and habits of the Chinese does not necessarily coincide.
We all know, Best Buy's store compared in terms of China's home appliance chain are "trivial", the largest of 6,000 square meters also.
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