subject: More Than 23 Appliance Stores Worries Into The Market Or The Cemetery - Appliance Stores, Products, [print this page] Yongle Home Appliances has announced the launch of a large-scale campaign to reduce costs, including downsizing, pay cuts and close shop; Hongtusanbao layoffs and store transformation plan will start after 3 months.
Wing-lok, Hongtusanbao case of confusion Yongle Home Appliances has announced the launch of a large-scale campaign to reduce costs, including downsizing, pay cuts and close shop. Allegedly, this is because the Yongle Home Appliances goal difficult to achieve the expected profit.
Similarly, Hongtusanbao layoffs and store transformation project will be about 3 months after the start.
Layoffs and store the two reform plans, to the world a first reaction? Appliance supermarkets would never fall into a crisis? Let the outside world as surprise,
Suning Electric "Lightning" The additional 1.2 billion refinancing, non-public offering of 2,500 shares have been 7 to 48 yuan fund management company / stock price subscribed. The public equity from shareholders through the issuance of the end of the motion to issue less than a month, was approved by the Commission from raising funds to place only two days.
Refinancing Suning, Yongle may increase the feeling of home appliances and Hongtusanbao are "cold." After winning the 1.2 billion fund-raising, Suning will use 820 million yuan of which way rental store in north, northwest, central, eastern and southern regional development 100 chain, new business area of 351,900 square meters. According to the forecast, will form the 8.537 billion yuan of annual sales volume.
China Chain Store & Franchise Association
released under the 2005 ranking data, home appliance chain enterprises, Suning, Yongle Home Appliances, Hongtusanbao were ranked 2, 3, 7, the number of stores was 363, 199 a, 75. Ranks first in the industry, Gome has a number of 426 stores. Suning Appliance obvious purpose of refinancing, through further store expansion to overwhelm opponents. Gome, Suning, Yongle Home Appliances have been landing the capital market, the advantages of its financing facilities to accelerate their expansion, so Hongtusanbao feel the pressure. Hongtusanbao a strong domestic IT retailers, the first known, but industry sources said the reason why the implementation of layoffs and store its transformation plan, because of Gome, Suning, Yongle Home Appliances and other home appliances chain in the "siege." Beginning last year, the three giant home appliance chain quietly increased the proportion of 3C products, home appliances and even intention Yongle end of this year, will be digital products in the stores in the proportion from 45% to 60%. Hongtusanbao similar sales patterns, the number of stores where disparities are facing tremendous pressure.
Hongtusanbao in Shanghai, Jiangsu, Zhejiang, Anhui region has more than 80 of the chain stores, but not yet out of the East China region, the company plans to use 3 to 5 years, the majority of provinces and cities nationwide chain store . Wing-lok, an ambitious home appliances with more foreign investment to "gamble" program, to no later than 2009 net profit to 7.5 billion yuan, which won the foreign shareholders to transfer the management Yongle's 4,697.38 million shares in Paradise , while its net profit in 2005 still only 289 million yuan.
Yongle Home Appliances and Hongtusanbao adjustment, reflecting both the confusion encountered in the operation. On the one hand, and shop with the competition led to rapid expansion, despite the various operating characteristics are sought, but objectively similar products, services similar the end, is "shopping" price war. In recent
Air conditioning Price wars among firms on the "attack each other," who exposed the home appliances in supermarkets do not want to give up the price of the selling points. Then let's use Hongtusanbao, the face of Gome, Suning, Yongle Appliance to frenzied pace of eating the digital product market, the limited overall size, price advantages become obvious. On the other hand, persistently high cost of store expansion. In fact, the current chain of any industry to do businesses have complained about shops in the stubbornly high price of development of the "stumbling block" in stores now rent and Gome, Suning, Yongle and home appliances than the beginning of the development is simply a starting "disaster." Said a reduction in the cost of the Yongle Appliance campaign spokesman Huang Jianping said Paradise, saving the cost of a single shop operator rigid, mainly reflected a number of operating efficiency for the closure is not high, high property rental stores, because the current rent
