06 States United States Global home appliances Forum: Wing-lok, speaking Chen Xi
CHEN: Assistant Minister Huang Hai respect, there are two today, the Chairman of the Forum, distinguished guests and friends from the media, Good afternoon!
Very pleased to stand here with you sharing and communication. It was said the morning is significant cross-age time, I feel a little cross-over time, but there is indeed a very important symbol. Because we both chains between enterprises and suppliers of contradictions or conflicts between, indeed we have a full consensus. The key is how one is able to continue this consensus and find solutions. From our chain of contradictions in terms, we have always believed that between us and the supplier should be a face among the common market, common to satisfy consumers, we are fighting side by side. In fact our business is to customers and suppliers have been slow in a position, we believe that we are consumers of services, but also for suppliers of services. The problem is that we did some time, whether it is the media, or, in the industry Ye Hao, theorists have all considered channels and suppliers, we have a lot of contradictions, or even a natural enemy. But in fact, I think a lot of things are formed by history. We recognize that our counterparts in foreign countries, their business is much higher than our gross margin, and we even in the planned economy, our appliance retail margin is 7% at that time, but the actual date, the market place earth-shaking changes, we are still very low margin business. The cause? Not that we put a lot of commercial retail enterprises into our gross margin rate, in fact, our development is
Market economy Era of rapid change, and our development is also in the process of rapid development, so the development process of these companies we actually put our process of these enterprises. Commercial profit is low, the morning of discussion when talking about a lot is due to the manufacturing sector in the past few years we
Brand Competition The process of formation of some of the habits.
Today is always a very sensitive topic is the price of the right to speak to who is based on who can determine the price? But from the perspective of our retail business, we think that the price of voice is not in the retail business, but always in the manufacturing industry. Because retail prices of goods manufacturing developed, the implementation of these prices is the manufacturing personnel assigned in our
Shopping Within Sell Personnel, that is the ultimate commodity prices, development and implementation in manufacturing. Of course, between our retail business
Price war , A price war between manufacturers, but in the end the price war is now very clearly the consequences of the manufacturing industry in the commitment. What is the reason? We even explored, and some say that we are domestic enterprises and foreign trade of different business models. Let us say we do foreign trade, our products sold to overseas companies, we certainly have the right to develop the future price of power flow in each other, we will not interfere with the manufacturing sector, he lost money Ye Hao, Ye Hao money, this is not our problem. However, the flow of business in the country is facing such a problem until today a large number of distribution companies and suppliers is that if the procurement of goods that we can not marketable, not very good sales, or how the kind of poor sales or We will find suppliers for return require make up the difference, a very heavy burden to suppliers, while suppliers are prepared to accept. As just mentioned end the control, in fact we are retailers and not fully control terminal, and more control of the manufacturing enterprises in the terminal behavior of our sales. A control and be controlled in the procurement of goods caused by our process, we do not put the main responsibility for the procurement of goods sold back, the main responsibility for the sales of goods is not transferred to our retail business, then we actually had the retail business also should not have to bear the risks and problems. Let us say we have to bear the risks and problems, then that day, that is, we integrate and foreign counterparts, our margins should not be commercial goods is now this state, but rather is 20%, 30%, 40 % or even 50%, while the commercial gross margin in fact we are often the single digits. Therefore, we can not afford not to bear the conditions in the process of intermediate goods sales price due to market factors change to the business of the stress. If that we are able to
Game Rules of dressing, of course, not far away, because we all have been aware of the unreasonable rules of the game, which is our Chinese
Appliance Retail Enterprises in the growth and development process, circulation, manufacturing together to create the original business model, business model appliances with Chinese characteristics, this model will certainly improve over time, and today we have full consensus, we believe that we should work together to improve. This has been a starting point, I believe the future there will be a more reasonable outcome.
Of course, with the deepening of competition, a fact that will exist, then that would be to set the size of enterprises, will become increasingly large and small enterprises will be phased out. Manufacturing to distribution firms formed was a sure thing. We also feel very fortunate, or that we have a chance. Guo president just talked about some figures in China today, many industries have actually
TNC Set, and we appliance distribution industry to date we have only overseas
Capital Without multinational companies entering the industry, of course, the industry is rather special, in some developed regions such as the United States, Japan, Europe, are also
Localization Business-oriented home appliances in China today has actually done this circulation step, our Chinese companies dominate the market. With our hard-working Chinese people, with our efforts of the Chinese people, I would like to further integration with the market, after the company scale, out of the door is inevitable. Thank you!
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2006 States United States Global home appliances Forum
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