Friday, May 08, 2009

State of the United States and the performance of a marked decline Suning appliance chain saturated alarm sounded

By Zou cheaponsale

Single-store earnings lessened as a home device chain enterprises in 2008's "common", Gome and Suning Appliance Chain couple giant sales were meaningfully smaller than the enhance in the diagram of outlets enhances, demonstrates that extensive deductions of the past has been the model competitions, and home devices by transferring to the scenery of rural land markets have not yet become the inevitable pick for home device 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 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 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 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, 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 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 will also be implemented in the near future large-scale "electrical consumption Huinong voucher scheme", in the existing 34 stores to launch the market with a face value totaling billion yuan in rural areas of the home 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 remarked the United States and round the nation many than 1,000 stocks across the nation are shops, but, as the profession of the national appliance vigorously herald the rural, the United States shall vigorously grow the agricultural market network chain. State of the United States within logistics, distribution and sales network towards cover agricultural areas, the United States shall grow outlets; not within the coverage of locally, State of the United States shall vigorously grow the franchise. At show, Gome has been predetermined up specifically towards herald agricultural areas of the house appliance center, franchise program has been grew 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 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, 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. - 2368

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