subject: Best Buy China's First Store Opened This Month To Avoid Price Competition - Best Buy, Home [print this page] North America's largest electronics retail chain??? U.S. Best Buy (NYSE: BBY) today announced that its first store in China this month trial operation in Shanghai last week. Reporter was informed that, in the Gome and Suning, Yongle Shanghai encirclement of more than 130 stores, Best Buy's first store in China trying to avoid a price war, to find their own "blue ocean strategy (avoiding homogenization, low-profit competition)." However, Suning, Yongle has Buyiburao to 1,000 meters away from the place to find their stores, Best Buy price war may not be able to escape the vortex.
Best Buy hidden trick to avoid war
Gome, Suning to "cheap" as the flag, into the nation's two biggest home appliance retailer. Intense competition in this area as a "new" Best Buy how to deal with the increasingly fierce price war? When a reporter threw this issue, president of Best Buy China, Lv Weimin, he has to "commercial confidentiality" as an excuse avoid answering. "The price war is certainly not what we want to do." Best Buy spokesman for the China News Ying told reporters that they done a lot of customer research for the new store opening, store the focus is to meet Chinese customers a number of "unmet needs" "For example, customers now buy a washing machine if you want to, so he may spend half a day's time to go shopping in different areas to select the brand for a long time, it may not be able to find the right product. Best Buy will change this the situation. "It is reported that Best Buy flagship store in Shanghai accounted for four floors, located in Xujiahui Flying Eagle International Building (formerly Empress building) of three to six, with a total area of about 8000 square meters. And general home appliances chain stores is different is that inside the store brand will also include three professional areas: high-end audio for consumer products, Magnolia Need video world, providing complete kitchen solutions, "Men of the kitchen" area, and to provide professional computer technical services GeekSquad. This reporter learned that Best Buy store merchandise will be placed according to categories such as washing machines will be concentrated in the same area, saving customers the time selected. Also, the non-commission system for Best Buy salesman recommend products based on customer needs, not those who seek to sell high margin products for businesses. Industry analysis, Best Buy now in China is still in the experimental stage shop, and did not want to clear the concrete practice in China, but the basic idea is to present the home appliance chain and domestic makers differ. "If you can provide better service, I do not care about the difference between tens of dollars." One of Mr. Yuan told reporters that he thought the current service home appliance chain industry can not keep up, want to provide better service appliance chain appear .
Domestic appliances business disdain Best Buy
These realities to Best Buy stores unveiled the first exciting, but the high cost of foreign-funded enterprises can operate in a price war raging in the home appliance chain industry take place, Best Buy and not full of odds. It is reported that Best Buy has a large expatriate Chinese headquarters, leased the lot is located in Lujiazui, Shanghai Aurora Building, regardless of the cost of office or labor costs are higher than domestic firms, which doomed it must maintain a high margin strategy, Ying Peng prices can not and domestic enterprises. Meanwhile, China's first store it at a distance of about 1,000 meters on Zhaojiabang, Suning, Yongle began active site, let Best Buy "relaxed" opened. "Within 3 years we will not worry about a threat to Best Buy." A well-known home appliance retailer's "Master" told reporters that he believes Best Buy will take a long time to get familiar with the Chinese market, so it has developed to be giants and domestic home appliance chain stores to compete in size, will be 3 years later things. Best Buy was founded in 1966, Minnesota, USA, owns the U.S. Best Buy retail, the "future shop", top brand-name electronics specialty stores, Best Buy, Magnolia and the music and entertainment brand hotline Entertainment.
