Appliance retail strategy into the era of feudal duel melee Who Controls.

<p> extensive traditional strategy difficult to sustain, the traditional home appliance retailers are aware of the problem, trying to find a sustainable direction of growth of the strategic transformation. .To the direction of strategic transformation efforts can be divided into low-cost strategy, differentiation strategy and mix of both strategies. .</ P> <P> <P> <p> appliance industry was once a low-cost strategy for the upstream firms profit by way of compression achieved, but this is not sustainable. .Best Buy to see the practice, the essence of low-cost strategy is, first of all to save daily expenses, and demonstrate the business prospects of each store, there is no prospect of a store front to shrink the method to save costs; Secondly, to enhance the entire supply chain through .integration to obtain cost savings, such as through inventory management, information collection and processing, financial management, optimize the industrial chain and value chain, thereby saving costs. .</ P> <p> differentiation strategy is mainly based on the needs of different customers to differentiate on the stores, there are like online shopping that can on the shop, there are like cheap and convenient can enter the mall, there is more attention to improve the shopping experience .the shopping environment. .</ P> <p> low-cost strategy and differentiation strategy is a certain contradiction, in a brand is difficult to carry out the same time, so multi-brand strategy can be implemented. .</ P> <p> strategic management based on resource-based theory suggests that strategy is not groundless, must have the resources for all aspects of business support, corporate strategic planning and implementation need to be based on existing resources. .Changes in the competitive environment to enable enterprises to search for sustainable business practices continue to expand the store at the same time the number began to available resources according to their own strategic transformation. .</ P> <p> Gome's new strategy </ p> <p> Chinese home appliance retailers Gome "a brother" status now seems to be from Suning Appliance (002024, stock it) challenge. .Released by the China Chain Store & Franchise Association's 2009 list of China Chain hundred, Gome, Suning beyond the top ranks. .Although the United States is a multi-brand group that the operation of their own, with Yongle, Dazhong, etc. still have the edge, but it is undeniable Gome turnover of approximately 42.7 billion yuan last year, down 7.02%, while Suning is about 58.3 billion yuan, an increase of .was 16.84%, overtake the Gome. .Visible to the entire Group, the United States the number of its stores, sales are still over the size and Suning, but the growth rate has slowed down considerably. .Must say this is defensive tactics adopted country the United States to repair its brand by Huang affect the case. .Contraction of the U.S. side of the front side of the country practicing internal strength to achieve strategic transformation, the official said "started to network optimization and upgrading of the core profitability of single-store transition strategy." .</ P> <p> First of all, the United States by Bain Capital last September by issuing convertible bonds to raise 5.3 billion shares, on the one hand to play the role of the enhanced financial strength, on the other hand played the introduction of strategic partners, dilute Huang .The role of family business color. .</ P> <p> Second, turn off to save the cost of operating 189 stores bad. .</ P> <p> Finally, the transformation of existing stores, such as in stores like Best Buy's model of the "new living museum", the difference reflects the development strategy. .Contraction and the transformation of the way they seem to play a role, namely the United States is not only essential to hold the current scale of operation, but also in the case of turnover fell slightly to achieve a substantial shareholder of 34.45% increase in profits. .However, the profit growth is not related with the business, operating profit actually decreased 1.58%, but taking into account the "non-business / special items" and last year turned negative than positive that this factor was a substantial increase in profits for shareholders. .The above analysis shows, the United States despite the cost savings and bent chain integration, but the basic is the main use of the defense and the following strategy. .Second and third tier cities in distribution, logistics center, the building of online trading platform has not been given due attention. .In this strategy, its style and Suning tune had come full circle. .</ P> <p> underestimated opponent </ p> <p> Gome, Suning experience to take advantage of the rapid expansion of the occasion Huang case, although the hidden worries, but it is also worth noting. .Suning use of market advantages, to borrow the capital to push hands, in 2009 to achieve a 66% increase in total assets, which greatly expanded scale. .In this aggressive expansion strategy, its sales profit rate reached 4.96%, 4.35% more than in 2008 also increased slightly, can not be said to be a great success. .Of course, not kept pace with expansion of the management efficiency of the steps, the total asset turnover ratio fell from 2.64 to 2.03, its return on assets dropped significantly by 23%. .Meanwhile, Suning, Best Buy is also learning to increase the efforts in building high-end stores. .In addition, second and third tier cities Suning also continue distribution, logistics center and Internet sales platform, so Suning look almost full bloom. .However, Suning basic by the rapid expansion of the old model may also be difficult for future strategic transformation. .</ P> <p> even though coastal primary and secondary market has become a "Soviet" of the world, but the two companies and not enough attention to the mainland coast of third and fourth level secondary and tertiary markets and market opportunities, which gives .a regional appliance business development opportunities. .These regional appliance chain in the "home appliances", "trade" under the impetus of the two New Deal, to seize the development opportunities, access to development opportunities. .These regional appliance chain in the past decade by the couple stores, shops and other small-scale rural development model of cultivating the market and the mainland coast of third and fourth level secondary and tertiary markets, the network layout has been accounted for a market advantage. .It is reported that sales of home appliances registered 692 billion yuan, the China and the United States, Suning's sales accounted for less than 5%. .Although the two giant markets in the third and fourth level the number of stores, nearly 600, but in competition with the regional electronics chain Falling under the wind. .</ P> <p> China's huge market has also attracted international home appliance retailers to actively expand business in China. .Best Buy 2009 turnover of 49.7 billion U.S. dollars in home appliance retail has made remarkable achievements and accumulated rich experience. .Best Buy to open shop in China have achieved a higher gross profit, gross profit sector in China reached 23.6%, expanding by 0.95 percentage points, the international part of the gross profit reached 25.4%, indicating that its operating efficiency is very high, .chain management is very strong, and shop sales experience is satisfactory. .At the same time its acquisition of the former China's fourth largest home appliance retailers achievement was striking. .Best Buy can be expected to use its strong capital advantage, management capacity and market experience to achieve steady growth. .</ P>.