subject: Suning Electrical Retail Patterns Have Changed The Future Fate Of The Geometry [print this page] 2008 11 months 2008 11 months
GOME Electrical Appliances
Founder
Huang Guangyu
In custody for old rivals
Suning
Electrical accident benefit. But the face of increasingly sluggish consumer market, and industry concentration is not high pattern of Suning's strategic future of the past, counting on the continued effective?
Pattern of change in the electrical retail trade
Consumer confidence and behavior change will affect the industry's business model. Economic downturn and weakening consumer confidence, demand for all types of electronic products slowed. Macroeconomic and housing market will affect the basis of major home appliances, such as
Air conditioning
, Kitchen consumption. Consumer color TV, refrigerator, washing machine, stereo and other appliances and replacement demand will be affected by delays due to consumer confidence.
Small appliances
And communications products, consumer elasticity is relatively large.
Network development, gradually changing consumer behavior, e-commerce sales in the field of home appliances have do something. The end of 2007, China has more than 210 million Internet users; huge network groups gradually changing people's consumption habits. Taobao transactions in 2007 topped 43.31 billion yuan, a figure higher than the China Resources Vanguard (379 million), a large business group (361 million), Carrefour (24.8 billion), Wumart (231 million), jumps Taobao, China's second-largest integrated store merchandise sales rank the top ten fastest growing commodity in a household appliances, were up from last year's 15th to fifth.
Retail channels operating costs of the changes will catalyst structural changes within the industry. If the channel operating costs such as labor, rent, transportation, energy, water and so may increase, so will the industry's overall profitability and cash flow because of cost-reduction pressure, and vice versa. Chain management can strengthen the sharing of resources, the most complete chain as an integrated category of home appliances and electronic sales channels, increasing concentration of the supply of resources to promote the advantages of scale. General industry decline in profitability, the chain because the channels will be more dominant market share.
If an individual is facing the development of short-term stagnation of the main competitors, industry competition pattern might undergo massive changes. Country United States as a major competitor Suning, the stagnation or change the distribution of produce for market share with direct impact. Since 99 years home appliance retail chain into the era, Suning and Gome compete in a series of re-integration of the industry, the forces of other chains, and finally began to take shape in 2006, ranking among the highest in the market situation. China Chain industry concentration is not high, Suning although successful performance, but to be on the thriving market share is still in suspense. By 2008, home appliance chain channel business in the country's market share of about 20%, still considerable room for development. Share of the Japanese home appliance chain channels 75% channel share in home appliance chain in Western Europe 50%. The international giant
Best Buy
And Yamada electrical appliance chain in China market are ambitious.
Suning win by differentiation
Suning basically adhered to take the line of differentiation strategy, the pursuit by
Service
Difference is different from its competitors. Focus on the customer experience strategy reflects the difference between Suning's business ideas. The first period, Suning winning air conditioning service sales experience has embodied the pursuit of its differentiation. Membership marketing strategy successfully combines Suning chain size and attractiveness to customers of its policy of "customer service center" marketing. 2006 The new "3C + flagship store" model, from store environment and service shopping guide, open display and other details of experience has given Suning chain innovation and international image.
The supplier side, Suning actively promote "win-win cooperation." Ended in mid-2008, Suning has nearly 716 stores; economies of scale help to optimize the supply chain, Suning, and improve the quality of cooperation and manufacturers. Relying on SAP information system, to achieve the 2005 Suning B2B docking with suppliers, so that both data sharing, online reconciliation, electronic orders, etc., saving management time and docking costs. Differences in management, mainly through providing value-added services for consumers to create profits, attracting those who are particularly sensitive to the consumer price limited effect.
Suning Electrical Retail Patterns Have Changed The Future Fate Of The Geometry
