Home appliance chain: M & A slowdown in sales after another – Gome, Suning A

China Chain Store & Franchise Association recently released 2007 "China Chain hundred." Chain hundred sales volume exceeded 1 trillion yuan, up 21%, higher than the community

Consumption 16.8% of total retail sales of goods increase.
Experts pointed out that compared to previous years, chain
Retail The growth rate slowed down significantly compared with the previous years, competition in 2008 with the merger will be on the rise, which, particularly

Home Appliances Retail chains, supermarkets and
Supermarket The most prominent. Marked slowdown in sales growth In the "chain of hundred" in

States United States Electrical Group to 102.35 billion yuan sales volume, number of shops 1020 again ranked No. 1, Brilliance Group Co., Ltd., Suning Appliance Group, China Resources Vanguard Co., Ltd., Dalian Dashang Group Co Ltd to 87.14 billion yuan, 85.47 billion yuan, 50.29 billion yuan, 50.22 billion yuan of sales volume second to five, the top five corporate name and rank order in 2006, "Chain hundred" exactly the same.

It is noteworthy that the five years between 2003-2007, the "chain of hundred" sales volume has increased by 45%, 39%, 42%, 25% and 21%, has maintained the momentum of rapid development, but significantly slower pace than in previous years.

Situation as the industries, household appliances (including
Digital Communicate Products) specialty store thriving, there are five companies short-listed the top 30, that is, Gome and Suning, Five Star, Hongtusanbao, D. Phone. 5 enterprise size and number of stores selling an average increase of 28% and 34%, higher than the other . Department store chain through the management, performance may be raised. "Chain hundred" in the main department stores to the 12 chain, although the number of shops increased by only 5%, but sales increased by 23%.

More concentrated Overall size, in recent years, "chain of hundred" of the total sales volume an average of over 30%, the proportion of total retail sales of social consumer goods in 2003 increased 6.0% to 11.2% in 2007. In 2007, the "chain hundred" of the top 10 companies total sales volume 5029000000000000 yuan, accounting for "chain hundred" 50% of total sales, while in 2003 the first 10 companies account for "chain hundred" sales of the total 42%.

From a single enterprise view, the average sales size of 100 companies was 100.2 billion yuan, in 2005 the average size of 8.55 billion yuan sales increased by 17%. 2007, 100 companies in sales volume over the last 1.03 billion.

However, insiders pointed out that compared with developed countries, China's chain relative concentration is not high. At present the development of chain operation in China is still the main regional markets, small businesses nationwide expansion.

Recent years, chain retailers have increased foreign investment in China's development efforts. In 2007, the major 15 brands overseas sales account for "chain hundred" 18% of total sales reached 182.5 billion yuan, up 28%; its number of stores only to the "chain of hundred," the total number of 3.7 shop % to 3956, an increase of 17%.

2006 years, 15 the number of foreign brands in the stores and sales were 3387 and 143.8 billion yuan, accounting for "chain hundred" of 4.9% and 16.8%.

Mergers and Acquisitions increased

Direct shop in the same time, mergers and acquisitions have become an important means of chain expansion, compared to 2006 mainly by foreign-led M & A situations, the retail chain enterprises in 2007, more M & M to play from the main body of domestic enterprises, such as Beijing Jingkelong entered the former first Alliance Group, Gome acquired Dazhong Electrical Appliances, Commercial Alliance Group, founded in Wuhan, backgammon and other acquisition of Yiyang Alice.

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