Gome's Huang Guangyu: The Biggest Advantage Is Localization - Gome, Huang Guangyu Of Gome - Hc

Retail enterprises in China should be how to face the situation of increased competition

? Turning to the issue, Wong Kwong Yu said:

Is global interest in China market and actively participate in China's market. Less powerful is a difficult domestic retail enterprises, as long as the confidence to develop entirely possible from weak to strong, but look at what local retailers have a growing environment. Indeed, there are still some difficulties now, take the business environment for foreign capital or foreign retail enterprises better than the local retail incentives, such as tax benefits, while some places, foreign policy has been tilted, foreign-funded enterprises attention, respect and support for local retail enterprises can not enjoy preferential treatment, this imbalance of foreign retailers has accelerated the pace of development in the Chinese market, which undoubtedly impede China's local enterprises bigger and stronger confidence.

However, Wong Kwong Yu also pointed out that in China domestic market, China's retail industry has great advantages of localization and have some resources available, while foreign-funded enterprises is different.

Retail and manufacturing various high-tech industries. Retail itself is not high tech, the key to victory or defeat is not the level of technology, but familiarity with the market, control capability. Therefore, in the Chinese market to our advantage more pronounced. Because no one can be more than the Chinese people to understand their consumption patterns, we have every reason to do business masters of their own markets, China's retail industry by the Chinese people themselves do.

China is a vast, deep culture, each region has a differentiated consumer environment. Compared to foreign retail enterprises in China can do more in-depth understanding of retail consumer demand, from the development process of foreign retailers can see their wide range of consumer markets in China, also are experiencing a lack of acclimatization, their development path is not smooth sailing. For example, foreign retailers in China for nearly ten years the outskirts of the subscription model is not successful, suburbanization in China had to abandon the route into the heart of town, in order to carry out genetic recombination. So we just homage to home for so long, to adhere to, persevere in every detail, do a solid job every point, and emphasizes good faith, we will be able to get out of retail management with Chinese characteristics, the path of development.

Foreign retailers in China have developed smoothly or not, first of all to China to "localize" the customs, they are not to change Chinese people's consumption habits, but to integrate into the consumer environment in China come their success or failure, mainly to see the Chinese community can come together.

2005 10 about a month, Huang Guangyu who have been the world's largest electronics retailer, Best Buy's invitation to visit the United States. Through investigation, Huang Guangyu a conclusion:

Their models are not suitable for the Chinese market. Their stores are not large, many of them are OEM products, and underwriting of, custom, is unique, there are differences, and compared with the industry, the product overlap less than 30%, gross margins high, the actual , entered into a very mature consumer market, but consumers are not sensitive to price as a precondition. Stores in China, only the difference between service and price, product similarities of 70%.

Their models, at least in China, it is not feasible within a decade.

But to see them, let us see the country the United States for 10 years, 15 years after the sales model. This allows us to see farther, earlier know the future.

Best Buy in North America depend on the success of the strategy, that is, away from low margin commodity products for high consumption groups organizations, adhere to the principle of parity, and to a better shopping environment, the services to attract customers and differentiate competition. Therefore, Huang Guangyu through Best Buy's study, also presented take the high road, Eagle Electric is the country the United States on a copy of Best Buy model is its high-end stores in the first experiment, although the high hopes Wong Kwong Yu, Peng Run-end appliances is still miserably.

by: gaga

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