States United States Removed And Suppliers “wall” Of Growth

Published in 2007 mid-year report shows that the first half of this year, Gome achieved a sales income of 21.157 billion yuan, up 73.88 percent; achieve operating profit 894 million yuan, up 106.47 percent; after deducting minority interests, net profit of 395 million yuan, up 14.50 percent; to achieve basic earnings per share of 0.13 yuan. If China does not consider the level of convertible bonds to assess the fair value of derivatives resulting from the carrying amount of the profit to reduce the impact of 411 million yuan, the company achieved net profit of 806 million yuan, up 177.9 percent.

GOME has released its semi-annual report, the data show that income grew 73.9%, profit up 106.47%, the average increase in revenue and profit growth of China’s economy 8 times. At the same time the country’s medium-term strategic partner the United States a dramatic performance increase: The base of the profit increase of nearly 40% of Haier, Changhong and the expected increase of 50% and America expected to exceed 100%. The other more rare phenomenon is, whether retail or manufacturing businesses have suffered different operating expenses decreased range of commercial and industrial decline in the percentage of stock. Chinese home appliance industry has entered a revenue, high profit growth, stock, good running costs and low growth areas.

Luo Qingqi appliance industry experts believe that the fact that “two high and two low” situation actually is not a chain because of the network expansion, but the country to promote the removal of the United States between circulation and supply the “flow for the Wall” result, which is the flow for companies to bring high-quality ERP docking operating performance. This is expected to remove barriers and by the National US-led campaign to drive the industry will continue healthy growth and optimization of the industry side will also expanding.

2007 promoted the first half of the country like the United States Haier, Sony, United States, the Panasonic 350 large and medium core suppliers and their ERP system to achieve the docking. The docking great significance, it realized the first time in history the Chinese distribution companies and suppliers of non-wall interaction, timely data, docking and exchange become a reality, distribution companies and suppliers of information flow, logistics, capital flow achieve smooth interaction. This result is for the Chinese home appliance industry facilities, manufacturing, retail supply chain to achieve a seamless connection for the first time, the original supplier and the distribution resulting from the Department of Enterprise combines a significant reduction in inventory has begun.

In the mid 90s of last century to the present time more than 10 years, China’s home appliance industry with a widely circulated prophecy: manufacturing scale up to 100 billion when wounded or dead. This is actually a true reflection of the growth of industries and enterprises, manufacturing companies throughout the industry began to think that 10 billion fate after its hard to grow and grow as manufacturers scale curse fate.

Luo Qingqi think that there is no curse, the curse is found to be subjective and Chinese home appliance industry, inefficient distribution and circulation of inaccurate inventory caused by a disaster. Network in the States United States such a large-scale circulation enterprises across the country before the birth, home appliances manufacturing enterprises by the thousands of small, non-chain distribution companies selling their products, when the firm size to achieve a certain level, it corresponds to The distribution companies greatly increased the number of positive, when significant increase in the number of distribution companies after the group, which means that the number of incorrect orders will be a large increase in orders and not accurate in fact produce a large number of stocks increases the opportunities, and the direct consequences of a large number of stocks is a loss, the national inventory losses and profits of the hedge after the sale of real sure it is a low profit or lose money.

Huge loss of manufacturing companies in turn to stay in their own context can control the size of stagnating, long the state has been without fruit continue. In this flow constraints, the entire manufacturing operations around the real focus of not to consumer demand, product development, market development, while the companies are the same as a mouse team in full control “inventory of the rat”, such The result is the industry’s progress is limited, and manufacturers have been suffering in a constant process of stagflation. After the birth of the chain, the supplier to their pain and pressure distribution in the chain who hate vent, which is the so-called contradictions in the supply and distribution chain, which is in fact a misconception.

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