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Dongguan Appliance Industry Infighting From The Pack To The "three Pillars" - Gome, Suning

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Core Tips

"Guancheng Legend," the only remaining one, Gome acquired Yongle, Fashion strategic Hing Wah ... ... In 5 years, Dongguan appliance industry is difficult to place too much is expected to do. Looking back at this period of five years, the number of linear Dongguan appliance stores increased. Among these 5 years, some extremely brave appliance retailers, earn bowl full of pot is full, some appliance retailers depressed and curtain call.

Then battle the leader in this business, in turn exciting interpretation of what? Who Controls the next in turn? We will see.

Key words: pattern

Appliances five staged "Three Kingdoms"

Dongguan in 1984 the first real electric city "Li Sheng Electric" was established until 2002, Dongguan appliance industry has been dominated by domestic appliances, "Guancheng Legend" Wah Hong, Mei , leap, beautiful sound entrenched Guancheng, while fashion and Hing Wah Chang were Humen and party hegemony.

Appliance manufacturers in Dongguan area, according to a person in charge said, when most of the local appliance store business model is to rely on more traditional channels, to earn a certain net price. This lasted nearly 20 years of home appliances market structure, the country in late 2003 after breaking the U.S. into Dongguan.

2004 7 months, 20-year history of the beautiful sound of all Circuit City stores all ceased operation. April 2005, the U.S. new home appliance business was acquired Su Ning, fought in the development of fine line of home chain. Then less than 4 months, leap give up more than 10 years of appliance industry, turned his main attack dominant car audio industry, "Guancheng Legend" also left China Hong air conditioning, a.

This three domestic appliances

the fall of the city, and Gome and Suning settled in such foreign brands are not unrelated. December 2003, the National US-lead Swagger into the city, "price war" so that the local appliance surprise. June 2004, up into the Dongguan, Shenzhen Ming. September 2004, Shenzhen, Dongguan paraelectric into. April 2005, two other giant national home appliance chain Suning, Yongle period stationed in Dongguan, and the door opens.

Chain giant force in the country under attack, "Guancheng Legend" have been out of home appliances market in Dongguan, and native channels in a dark horse, Humen fashion electrical origin in 2002, had Sharu Guancheng, by virtue of her years of intensive, in December 2005 after a successful strategic cooperation Xinghua Electric to form a stylish, Gome, Suning three of the competitive landscape.

"Chain in the country and other regional franchise brand competition, the market shares of local brands is gradually reducing. Dongguan appliance pattern than previously, has been greatly changed." Dongguan Su Ning, general manager of Wu Zhaokun that Although at this time there are still many areas of Dongguan, home appliances, "mom and pop", but with the national chain's settled, this situation will gradually disappear.

Keywords: Open for Business


From "separatist party" to "close fight"

In the "Guancheng Legend", due to the entrenched major local stores each side, and do not occupying the site, seems to reach a "gentlemen's agreement." In 2002 to 2007 that short five years, with Gome and Suning, the fashion chain, represented by household appliances household appliances market in Dongguan accounted for more than 70% share, and some large supermarkets such as Wal-Mart, Carrefour and other diversion of some home appliances market, plus some scattered "mom and pop" and monopoly channel only about 20% share. So far, the fashion appliance has been out in Dongguan, 16 stores, 15 stores, Gome, Suning 9, plans to again and again about 4.

Reporters found constantly in the home appliance chain last year, "started taking", the shop is still stores each year, a common goal.

by: gaga
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