Image to his followers to come out of Suning’s usual introverted attitude, high-profile adverse economic expansion. But line of view, not out of the country the United States traces Suning, one of the store expansion strategy even allowed to win the “Battle of the Soviet Union,” but the price also not cheap … …
Huang Guangyu
The lowered leaving the scene finally sees the old rivals Zhang Jindong, beyond hope. He developed this in Beijing, Shanghai and Hong Kong as the goal of “north”, “expansion” and “south” three battle plans.
2009 1 5,
Suning
Electric Fan Zhijun, vice president of high-profile announcement, this year plans to open 20 new stores Beijing, Beijing Suning stores will increase the number of 70. This is the
States United States
Became public after chairman Huang Guangyu, Suning stronghold in the country to implement the U.S. strategy of large-scale arms expansion. Beijing has always been a country of strategic importance the United States a year ago the company to 3.6 billion acquisition of Dazhong Electronics curve to contain the expansion in Beijing Suning, Dazhong Electronics now account for 66 stores in Beijing
Home Appliances
Leading retail market position.
And “north” corresponds to the “enlargement.” Prior to the December 29, 2008, Suning announcement that 2009 will be in Shanghai to open 20 stores. Suning management headquarters in Shanghai, said Ling Guosheng, president, “This is a conservative figure.” Suning stores in Shanghai currently amount to more than 50 expected in 2009 its market share in Shanghai is expected to more than half. The States United States in 2006 through the reorganization of Paradise, in Shanghai accounted for more than 80% market share.
Market in the South, January 7, 2009, Suning Zhang Jindong Chairman announced that after 2010, plans to advance into Hong Kong this year. As early as in 2003, the country’s store on the official U.S. entry into Hong Kong, outsiders have generally considered the move is its major attempt to develop overseas markets.
Industry analysts believe that a series of strong Suning and the National Development Plan is clearly the situation of the United States and the adverse. The expansion plans are realized, early, “U.S. powerful Su-weak” pattern of competition will be rewritten. However, Suning still keeping a low profile. Jin Ming, said its vice president, the next two years, China’s home appliance market, even if the slowdown of domestic demand, the total remains at 800 billion yuan more than the current market share Suning less than 10%, so there is great room for development . He stressed that the development of Suning entirely self-development and planning.
Model competition
Be conduits of Heaven. Sales network and channel resources are most chain stores rely heavily on the survival.
States Securities analyst Zhang Yan Jin believes that the traditional home appliance chain profit model is toward their suppliers receive rebates profit, in order to maintain rapid sales growth can only continue to expand the shop scale. In practice, the chain store market advantage can also use the same words upstream suppliers compete for the right of the price advantage. It was Wong Kwong Yu had the support scale, the strength of the suppliers keep the prices down, by appliance manufacturers as the “price butcher.”
The past few years, or both Suning GOME are staking their claims to the expansion of the number of stores to maintain their growth. However, GOME and Suning way the expansion is lopsided.
Gome Huang Guangyu under control even better use of capital consolidation. According to the statement Suning, Gome has integrated 27 large and small chain. Moves through a series of acquisitions, the National US-controlled stores in the country from 400 in 2005 to the current more than 1200, the industry boss. Just a few years, strong Chinese home appliance chain Gome and Suning only. Hai Tong Securities analyst believes that the country moves to the United States and a series of acquisitions a threat, while Suning, Suning also eliminated many regional competitors, can be described as advantages and disadvantages.
And the National United States compared to Suning in financing mergers weak, and his order to “endogenous growth” to expand the number of stores to compete for market share. Market analysts believe that while growth model adopted by Zhang Jindong, flexible and controllable, but the shop rate is much slower than the country the United States. Currently there are about 800 Suning stores.
Suning not without the idea of industry mergers and acquisitions.
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