Appliance store to occupy the site, "51" Trade War exploded in advance
While away from the "51" season there are 20 odd days, but to Hangzhou consumers have smelled the smoke thick atmosphere of commercial war. Five Star broad strokes a big way has talent, as "51" before the new store ready to open two, the country has also advertised the United States will soon open in the central section of the Yan'an Road No. 5 stores … … According to rough statistics, "51 "Former Hangcheng appliance chain stores will reach 11, around the city in the province will open 67 new, unprecedented intense competition. Industry analysis, two or three years ago when the chain of home appliance giant launched the first round of new recruits to Hangzhou shock, and now has entered the second round of the appliance store expansion and influence has penetrated to the core business district.
Cheap promotional war imminent "51" can be said in the first half of the most important sales season, merchants are all gearing up. Appliance store in 2005 called the "expansion", with the whole East China region has become a giant home appliance chain several scrambling for the "fat." Five Star last month, specifically to the General Assembly on this year's supplier held in Hangzhou, dished out 5.5 billion yuan of the purchase order. One shot by cheap goods, has become a major appliance store-tested magic. China entered the United States this month Yan'an Road, Pearl Villas, as the core business district to the city's first store, claiming to be in mobile phones, digital products to maximize the display space. Notably, the cell phone commercial monopoly basement has a "world phone" presence, price competition is inevitable. States United States official said that in some foreign mobile phone brands, they have direct, buy advantage, businesses "close fight" could form a small shopping district to attract more consumers.
To flat-panel TVs represented among the major home appliance store sales will be the focus. During this time, several supermarkets have thrown out orders, organizing supply. Stores have been declared, to "51" period, several flat-panel TVs will reach 30% of the rate of straight down. 42-inch plasma TV below 12,000 yuan, a 20-inch LCD TV break 3,000. Mobile phones, five or six hundred color phone everywhere, camera phone fell to 1,000 yuan less.
"Pie" the challenges facing the cost
East and West in full bloom to Hangzhou appliance stores, the expansion has been presented, "" pie "phenomenon. In addition to Hangzhou, the" May 1 "before the United States and other countries will be in Jiaxing, Shaoxing, Wenzhou, 23 City to open a few stores, five-star plans to out in Zhejiang more than 10 stores. Although each are claiming a huge market share in Zhejiang appliances, but the "cake" to be diluted is an indisputable fact. According to Commerce Department statistics, last year's Golden Week period, to Hangzhou appliance store sales has shown a slowing trend.
With more stores open more, the risk is also increased. Store rentals with fierce competition between stores soared. It is understood that the home appliance chain stores, the scale in about 3000 to 5000 square meters, this store in the downtown area, the annual rental price of at least 200 million or more. Expansion of low-cost model by home appliance chain industry, are also faced higher costs caused by bottlenecks.
It is understood, and the United States home appliance retail giant Best Buy 25% of gross profit, the Chinese home appliance chain industry average gross margin of only 10% of net profit of 1% -2% in general, format competition generally in the extensive management condition. It is reported that Best Buy has started this year, the first step to enter the Chinese market, will open the first stores in Shanghai. The golf market by price war, the Chinese home appliance chain enterprises, faced "foreign Wolf" is not just rely on price war, but more importantly to make their own brand rooted in the market.
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