subject: Business Week: States Still After All Of China's Top U.s. Companies - Gome, Huang Guangyu, [print this page] Familiar with the road innovation and brand value management concept is helping China's largest electronics retailer in the fierce market competition to become industry leaders
After 22 years of development, Gome Electrical Appliances has become China's largest electronics retailer. The company forecast its market share of about 12%, and as the Chinese economy and the company's growth, the company's size and market share will continue to trend upward expansion. The Chinese capital of Beijing-based consumer electronic and electrical appliances retailer, cut the middleman by purchasing directly from the manufacturer means low sales of televisions, air conditioners, refrigerators, mobile phones, computers and other goods, and gradually developed into a chain of electrical appliances in China dominant industry. At present, Gome (GOME system of its own unconventional spelling, the company's translations of the obvious should be GuoMei or "BeautifulNation") has expanded its business focus to selling Dell laptops, Apple Ipod and Motorola (MOT) mobile phones and other consumer electronic products. "Commodity stores will not take up too much space, but the growth and profitability may be better than traditional consumer appliances." Tsinghua University China Retail Research Center Executive Committee, the National Development Strategy of the United States business consulting project leader Professor Wang Gao said.
Gome's new strategy to help end the first 46 of its capacity to include a "Business Week Asia 50" The list alone. Q3 2008 Hong Kong-listed Gome's profit surged 110.74% to reach 239 million U.S. dollars; sales revenue growth of 20.4% over the same period, reaching 5.795 billion U.S. dollars. Goldman Sachs forecasts GOME will be at least 08 years from 72 billion dollars in sales revenue earned net profit of 394 million U.S. dollars. But Gome's actual profits and sales likely will be higher, because since June 2004 after the backdoor listing in Hong Kong, Gome Huang Guangyu actual controller's part of China's richest companies is not injected into the public listed companies. According to Gome's 2008 interim results show that, as of June 30 part of the company listed only 828 stores. However, Gome, said the group currently more than 1,300 stores. There were many non-listed part of the store selling hundreds of millions of years, a large flagship store level, therefore, China Chain Store & Franchise Association data showed annual sales of up to 07 outside Gome 102.35 billion yuan (about 15.007 billion U.S. dollars).
Optimistic rebound performance Although, GOME 10 at the end of 52 weeks the stock fell to its lowest level since the fall of over 80%. However, factors related to analysts attributed the plunge of financial crisis, Hong Kong Hang Seng Index tumbled more than 50% of the overall environmental impact. Since the beginning of 2008, Gome, like other Chinese companies, suffered a snowstorm in early years, in May earthquake in Sichuan Province and southern China since the spring of the adverse effects of floods, but the first 3 quarters of comparable store growth remains 3.18% of the high level. "(GOME) disappointing stock performance is understandable." DBS Vickers Securities retail analyst MavisHui Gome's share price rally on the space is still optimistic. "She further said:" Overall, in the second half will continue to be very good looking. "
Most Chinese enterprises should become the industry's largest companies, but few such as Gome success. The most fundamental reason is that those who try to achieve the industry's largest companies do not have the Gome constant innovation and revolutionary change in the capacity of business development. 20 years ago, 16-year-old founder of Gome dropped out of doing business and his brother from the street vendors selling imported electronic products started in the business start process. In 1993, the brothers began to Gome brand electronic products, then Chinese (manufacturers and retailers) Brand few.
"Is the key to its success: brand management is a concept of unlimited growth, especially in the development remains high single-digit growth in China market." Gome report co-authors of the Harvard Business School Professor Warren McFarlane
