State of the United States and the performance of a marked decline Suning appliance chain saturated alarm sounded
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by: Zoucheaponsale
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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 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 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 to the 2008 annual report revealed that Suning stores than last year (referring to January 1, 2007 and prior to the date of opening of all stores) decline in sales periodically throughout the year fell 5.72 percent. Classified according to the market level, Suning stores in a market comparable sales decreased by 6.02 percent year-on-year in the secondary market, comparable store sales decreased by 5.62 percent year-on-year, three-tier market in comparable store sales decreased by 3.41 percent year-on-year. According to type of store, Suning flagship store comparable store sales decreased by 5.39 percent year-on-year, the center stores fell by 7.27 percent, the community declined by 4.57 percent shop. Suning Appliance, said this was mainly with the Chinese home appliance retail market on 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, 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 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 rural market into a new growth point
With the implementation of the blueprint towards the rural house appliances, Gome and Suning possess wasted none moment within stocks activated towards rob 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 will also be implemented in the near future very many "electrical consumption Huinong voucher scheme", in the existing 34 outlets to launch the market with a face worth totaling billion yuan in surrounding lands of the home devices 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 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 said, will be closed this year, about 100 of the stores with poor performance, at the same time that some out of flagship stores and high-quality stores, the total has remained about the current 1300. Suning Appliance and declared 2009 the year to open 200 new stores, and even plans to enter the international market. Suning Appliance is expected by year-end stores in the Mainland will also be more 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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