Rush itinerant appliance chain industry, presents the end of the three pillars - Gome, Suning, Yongle - HC Network Appliance Industry

Rush itinerant appliance chain industry, presents the end of the three pillars - Gome

, Suning, Yongle - HC Network Appliance Industry

Yesterday (December 14, 2005), medium and large electrical appliances and Paradise suddenly announced that the two sides will set up a joint venture, the two sides is still relatively weak regional market, a common set up shop together

Operate And the development of the market.

For co-operation, is an industry leading position

States United States , Suning Did not express too much comment. But industry analysts say, with Beijing and Shanghai Dazhong Paradise main market advantage, the expansion through this cooperation, will bring

Home appliance chain Market evolved from the Warring States period Gome, Suning, Dazhong + Wing-lok's "three pillars" state.

Joint venture next year (2006) Registration 12 11, Dazhong and Yongle secretly signed a framework agreement to form a joint venture to develop the market. "During the year to apply for registration of industrial and commercial joint venture possibilities have not." Dazhong Electric relevant sources, although not yet complete registration, but both sides of the preparations have officially begun.

In accordance with the bilateral agreement, the new joint venture company invested 50% of each side, the joint venture responsible for developing the two sides are still relatively weak regional markets; regional market within the store management, unified managed by the joint venture; operating profit and risk both sides equally.

Both the contents of the public also showed that bilateral cooperation in the regional market, the new joint venture company in the procurement,

Marketing , Development and Human Resources will operate independently. "The new management of the joint venture will employ third parties to maintain their independence." Paradise relevant responsible person said that the current candidates do not rule out the new company hired directly from abroad, and to absorb some of the operating mode of the advanced concepts.

First attack Xi'an, Qingdao

Paradise News spokesman Huang Jianping, said the two sides cooperation in the region, could only choose one

Brand Entry, selection criteria may be in accordance with market demand. According to large and medium terms, both sides may choose to enter the region of their respective markets were not the pilot, now Xi'an, Qingdao, two new joint venture has been selected the first target of attack.

Phrase has become "tripod"

Sized electrical sectors, said the cooperation with the Wing-lok, do not fully address

Competition Rival Gome, Suning's rapid expansion, mainly wanted to improve its cooperation with the Wing-lok, the network also hopes that more home appliance chain enterprises to join. Although a few months ago, Wing-lok and the National United States have jointly carried out a large procurement, but has the desire Gome, Suning the final match of the Wing-lok, or "the Company's strategic considerations" has cooperated with the medium and large.

Fact, Dazhong and Yongle in Beijing and Shanghai have a greater market advantage. The disclosure of the information displayed in both "home base", both market share than 50%, while in other secondary cities cloth point is slightly behind Gome, Suning.

Rush end of the rivers and lakes

For appliances with Locks Intense competition, the Ministry of Commerce has recently published the "professional appliances

Marketplace Management Specification "(draft), which clearly states: New stores to open stores with similar professional will be controlling the distance between the 1,000 meters away.

This, the industry Expert That, at present, Appliance Retail Industry profits have been very low, if not quite the scale is difficult to continue in existence, some small appliances

Retailers Can only choose to sell or cooperation.

And the Paradise and Dazhong Electronics cooperation, so that domestic appliances

Retail Formed a tripod pattern, and this pattern will allow the market to stabilize in a certain period of time. Secretary-General of China Chain Store & Franchise Association which Pei Liang agrees, "Without

Capital

Re-transplantation, and chain retailers, financial problems, that the three pillars of the pattern will continue for some time. "

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