Data Show That Sales Of Household Appliances Into The Plight Of Rising Profits Fall - Gome

Established since 2004 to 2008, consumption

Electronic Products B2C Internet retailer Jingdong Mall's sales were 10 million yuan, 30 million yuan, 80 million yuan, 3.6 billion yuan and 1.32 billion yuan. Jingdong Liu Qiang, CEO East is expected that by 2010, this figure will be 10 billion. However, another suspicious fact is that the scale of Jingdong fierce pursuit of profit while they ignore the past four years, is almost zero profits Jingdong operation.

However, the same as the retail and distribution companies, much longer than Jingdong qualifications and GOME

Suning After a wild pursuit early after the scale has been attached great importance to the control of a reasonable profit.

Year GOME Electrical Appliances Significantly reduced capital spending, not expand, or even eliminate backward stores, focus on improving effectiveness of a single store; Suning, while maintaining high-speed expansion in the earlier proposed "big store strategy" based on such strategies, but also will expand its ability to store aggregate consumer demand, will increase the sales category, to increase output per unit area stores and profits.

The relative distribution companies, manufacturers more than the Mini.

If LCD TV Market recover this year, once occupied by foreign brands market share, the domestic LCD TV brand is no longer as crazy as in the past

Price war Means of competition. In fact, the price war it had to snatch market share of foreign brands main weapon, brutally suppressed the manufacturer's profit margins.

Domestic LCD TV is trying to fit the Chinese market with more additional features such as network streaming media support, USB interface and so on and so much more rich to win the favor of consumers and to protect the reasonable profit margin. As for foreign brands, the impact of economic crisis and no longer active large-scale price war broke out, and also to protect profits in the crisis to concentrate the impact of initiatives to give up the scale.

For high-end luxury brands of electronic equipment, giving priority to the profit performance of the more prominent. Luxury B & O audio-visual equipment brand executive director of the Asia-Pacific Region LarsMyrup recent interview with reporters, said that despite the subject

Financial Crisis, the company's global sales down about 30% full-year profit will be expected to bear, the company was founded 84 years suffered the biggest losses. But LarsMyrup commodity prices will not discount, in order to avoid brand damage, but will store parts of the management structure and means of contraction of the scale to achieve cost reductions.

Accenture Greater China President Li Gang expert opinion: the limited size of the benefits

In a "multipolar world" the competitive landscape, this "economies of scale" effect is often not come out to play. Li Gang said that as the rapidly changing market environment, new technologies and emerging competitors, customer needs are changing, these large-scale enterprises are often unable to respond quickly lead to severe decline in business performance, a "scale of economy" situation. While companies need to have a certain scale in order to guard against hostile takeover, but after that, if the expansion is still blindly is often unhelpful.

Fact, in some industries with higher degree of openness, such as

Home Appliances And alcoholic beverages and food industries, those who achieved sustained profitable growth performance of the best companies are small but smart business response. Although the structure of your industry, success factors and business models are constantly changing, but always with these companies the flexibility of its unique ability to successfully respond to new competitive landscape.

Investment adviser in Car Industry analysts Lisheng Mao: The Structure of unreasonable profits dive

"The automobile industry does not increase the overall yield was mainly due to small displacement and micro-cars accounted overweight, while more profitable large displacement and senior sales of cars were tested in decline, only three percent market share. "Lisheng Mao analysis, since the second half last year, the automotive industry's raw material cost has dropped significantly, while the enterprises at the end of the car has begun layoffs, reduced investment, reduced marketing costs, increase productivity and other cost reduction measures.

by: gaga

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