Recently, Jiangsu
Five Star
Limited successfully acquired “in John Winton,” jointly organized by sales in home appliances
Qingdao
Appliance Co., Ltd.. Relative to their own independent shop, the acquisition is undoubtedly a faster, more provincial resources, the expansion mode. Wang Jian, executive vice president of Five Star believes that by funding the acquisition of shares or control are used to channel development should be
Home appliance chain
Enterprises in the future in one direction.
Appliances channels undergone three changes
Market-driven channels to this appliance has experienced three changes: the first stage,
States United States
,
Suning
Five Star appliances and other enterprises represent the birth of the power channel the rise of private capital; the second stage, the rapid development of home appliance chain enterprises to department stores, specialty stores and other home appliances market and the rapid decline of the old Yetai and out of the market; the third stage to the permanent marked by the collapse of Winton,
Appliance Retail
Giant has created barriers to entry, home appliance chain integration between channels started.
The past five years, home appliance chain
Retail
Is one of the fastest growing industries. According to Han Bin Chau consultants estimate, from 2000 to 2004, China’s 7 of the electronics retail chain, the average growth rate of 172%, has been eating, including Beijing, Shanghai, China, including 27 city-level Nearly 40% of the market. Chinese urban residents to buy electrical appliances each year, more than one-fifth were purchased from the seven retailers.
Present Suning, Gome, five-star chains such giants have developed a new expansion mode, opening the door from the store from the previous way of direct acquisition of mature store to the extension of the method, the country’s recent acquisition of U.S. black swan is a good evidence. Industry forecasts, and home appliances brand, like the trend is gradually concentrated in the future the Chinese home appliance market will only 6-8 channels of business with Wal-Mart chain, Carrefour, BESTBUY other competition in the Chinese market, Chinese home appliance chain’s “Dinosaur” class enterprises will thus form.
Home appliance chain industry threshold gradually
The current threshold of Chinese home appliance chain industry have been gradually formed. In 2004, Five Star’s sales of 9.36 billion yuan, 6.4 billion in sales in medium and large appliances. And then after that the home appliance chain enterprises in Wuhan, the highest sales of home appliances industry and trade, but also two billion yuan. Experts believe that, from the current development trend of Chinese home appliance chain, the regional business potential across the threshold has been basically no.
Expert analysis to a wide range of goods, store featuring cheap form of modern retailing one of the most important of the forms. If you want to store operators to lower prices in the sale of goods where profitability, we must make the greatest efforts to reduce the cost of survival is directly dependent on store size. The reason is: First, a sufficiently large chain store retailer purchases to ensure that suppliers get the lowest price and best supplier payment terms; Second, reduce our logistics costs for the target information system of goods distribution center and the need to a huge amount of investment, but only in the number and size of stores where large enough clout to establish.
Present, the domestic home appliance chain enterprises have emerged the trend of channel integration, a national chain of stores and total sales have been growing, more and more obvious size advantage.
[Link]
Qingdao: home appliance chain contested business
Jiangsu Five Star Appliance Co., Ltd. acquisition, “in John Winton,” jointly organized by appliance sales in Qingdao Yatai Electric Appliance Co., Ltd., announced the fact, “in John Winton” coalition of the collapse, thus establishing the home appliance chain ago top four position. “In John Winton,” including the four home appliances sales company??? Beijing Dazhong, Shanghai Yongle, and Qingdao Yatai Henan Tongli. Qingdao Yatai in 2004 to achieve sales of 673 million yuan, sales of home appliance chain enterprises in China, ranked 13th in Qingdao of Shandong Peninsula as the center represents the largest market share.
Significance of this strategic acquisition, change the whole trend of home appliance chain: one highlights the Dazhong, Gome, Suning, the five-star semi pattern, thus establishing the leading home appliance chain position of business conditions. Second, firms
Dealers
Chain shortening, circulation costs.
Resident population in urban areas less than 200 million people of Qingdao, the domestic home appliance chain top three??? Gome, Suning, the five-star all in place, and another old appliance vendors Shandong triple this as home base. Present in Qingdao, China the United States has four stores, Suning has three stores, while the five-star after the completion of the merger, sitting on the original Yatai 5 stores, coupled with pending signing of a five-star outlets, will have in Qingdao 6 store.
Qingdao become a strategic battleground, with its direct and underlying causes. Qingdao two million urban population, Qingdao, home appliances market share should be about 1.2 billion to 1.5 billion, plus some neighboring three markets, the total capacity of Qingdao, home appliance market of about 1.5 billion to 18 billion.
Five Star president, chairman and Jian-Guo Wang believes that the strategic significance of the acquisition Yatai is a platform for docking with the upstream business: Qingdao is one of the leading home appliance manufacturing base, gathered
Haier
,
Hisense
, The three major heavyweight Aucma appliance maker. This will flow distribution companies reduce procurement costs, product upgrading and technical services to provide strong support.
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