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 recently released statistics show that last year, home appliance chain store sales increase and the increase in the seven major retail formats in the bottom ranks. Among them, the 2008 annual Gome sales increase of just 2.2 percent, an increase of 33.5% stores, the total number of 1362; and 2006, the company’s 2007 sales growth in the size and number of stores were 74%, 92% and 18%, 24%.

Suning Appliance 2008 enhance in every year sales in 2006 from 53% in 2007 to 40% to 19.7%; enhance the total diagram of outlets by 2006 43% 2007 22% of the year 2008 modifications to 28.5% .

Suning Appliance, according to the 2008 every year journal divulged that Suning outlets than terminal year (referring to January 1, 2007 and prior to the date of possibility of all stores) diminish in sales periodically as prolonged as the year plunged 5.72 percent. Classified according to the market crosswise, Suning outlets in a market competent sales lessened by 6.02 per 100 year-on-year in the less important market, competent store sales lessened by 5.62 per 100 year-on-year, three-tier market in competent store sales lessened by 3.41 per 100 year-on-year. According to breeding of store, Suning flagship store competent store sales lessened by 5.39 per 100 year-on-year, the center outlets plunged by 7.27 per 100, the inhabitants diminished by 4.57 per 100 shop. Suning Appliance, said this was mostly with the Chinese home device retail market on the downturn.

Wong Kwong Yu, founder of Gome as a result of being suspected of economic crimes have not been the outcome 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 store Although the gap 550 leading Suning Appliance, but the country is the United States and the total operating income increased only 2.3 billion Suning, compared to a single shop, the shop in the United States alone annual revenues of 76.8 million yuan, only a single store Suning reached 126 million yuan to 60%, it is clear the country the United States “make” not “strong”, and its comparable store sales will not be optimistic than Suning Appliance.

Shanghai, house appliance industry associations towards wage the Secretary-General remarked that as the house appliance chain businesses within the frenzied growth of urban markets, the stock has already reached saturation point, with the Shanghai market as an example, the State of the United States (including Wing-lok) and Suning possess the many than 150 stocks within many than crammed shopping district of the phenomenon possess surfaced, a number of house appliances suppliers into three stocks at the equivalent moment possess towards endure again and again, single-store sales deteriorate is an inevitable phenomenon. Therefore, the appliance should be a clearer chain growth, shop cautiously, or it shall not alone injuries their own, but also dragged down house appliance suppliers.

China Electronic Chamber of Commerce Deputy Secretary-General believes that the existing Chinese home device chain enterprises, the main finance model is to rely on providers to receive advertising fees, marketing fees, admission fees and other “outside the main sales revenue” to profit, alternatively tangible Fine management. Home device chain enterprises ought leisurely diminish the “sales into the open the main finance income” dependence, and ultimately return to the main finance 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 towards Sun Weimin, president of Suning Appliance revealed, also towards “thousands of the county chain development” scheme, Su Ning also launched within rope with the aspects of the agricultural market environment, “township shop” project, try the frontier from the campaign, product mix, display mode, campaign mode criterions of the design of the greatest features of the agricultural consumption market within the township-level stock model. Suning Appliance within accordance with the Annual Report 2008 displays that within the domestic market of 34 stocks towards 134, reporting for 16.5% of the gross number of stores. Sun Weimin remarked that within the latest financial crisis, these 34 markets indicated powerful stock the compression of a single shop within the equivalent period last year there has been none obvious deteriorate within the agricultural areas from the side proved towards consist a taller house 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 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 expansion mode will repeat 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 appliance chain industry in the 10-year period the process of rapid development, urban and rural areas benefited from the popularity of sports, as well as home appliances of the listing and financing capital market trend has been to develop “a waste of a trend,” common in the industry. Especially in the open, clearance stores, etc., vis–vis the United States and Japan home appliance chain counterparts “the election of a shop for three years, raising a 10-year shop” the store expansion strategy, the Chinese appliance giant chain appears to be over-anxious, and even “very random . ” In fact, the number of competition, making the speed of China’s home appliance 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.

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