Gome, Suning, D. Phone Running Out Of Phone Market

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07 4 15, Gome in Beijing Liuliqiao Hongtusanbao upstairs and laid them out in the doorway not far from a sizeable booth, snatched the top of the head of the limelight Gome door.

4 15, Beijing Liuliqiao South, Lotus supermarket as usual “handling” the waves of people, next to the pool of 100 million passengers Long malls also booming. Close to the ring, the then Beijing West Railway Station, the next coach station with Lize Bridge, north to intercept the flow of people from the Fengtai?? In Beijing city, which is a rare commercial. This perhaps explains why, Gome, D. Phone, Hongtusanbao, the complex telecommunications, Jinfei Hong telecommunications have opened a store here.

Had, as main business is the traditional home appliances, Gome almost no experience of this competitive pressure, abundant product category and competitive prices, Lotus supermarket sales of home appliances dwarf. But this situation is changing, with the 3C strategy of the United States to promote the country, whether di ICT, in the complex, Jin Feihong, or close to the computer, and just opened Hongtusanbao City, are beginning to become a competitor?? Comparison, , these professional stores, and prices in all product types have certain advantages.

And has spread a message, make this competition even more significant. In the April 15 meeting of the 2007 US-China summit on the global appliance forum, Chen Xiao, Gome president, announced the country the United States will no longer be the image of a simple appliance stores there this year will be gradually set up in major cities hundreds of mobile phone shops. China targets U.S. mobile phone sales in 2007 was 19.8 billion yuan, will capture 10% of the domestic share of the overall mobile phone market.

The same line of thought is also a direct competitor GOME?? Suning Appliance reflected upon. A day earlier, Suning said, will launch “DigitalSuning” (Digital Suning) separate sub-brand mobile phones, digital and IT products.

This, Analysys International analyst told reporters that in recent years, home appliances and IT 3C chain store channel has started eating into the traditional IT distribution channels. Traditional IT distribution channels becoming less and less profit. Three channels of a dispute between the king is being staged.

3C is prairie fire

“TMT (IT, Internet, communications) fusion is GOME, Suning the root causes of this transformation.” Xin-Gang Liang, senior analyst at Analysys International told reporters.

With the home appliance chain store sales of 3C products increased annually, as TMT is mainly reflected in the 3C products have also become key procurement categories. According to the United States before the country signed with many manufacturing companies the total amount of nearly 120 million purchase large orders, television, air conditioning and 3C products accounted for more than 85% of total purchases. And 3C products is Suning has once again thrown out of the 10 billion yuan purchase of a large single bright spot. Just last December, Suning has dished out 3.0 billion of 3C total big one.

“In Shanghai, has 12 mobile phone stores. 2007, GOME Group, sales of 3C products accounted to more than 20%, 40% or more within five years.” Gome president Chen Xiao told reporters.

To Gome, Suning determined to open up behind the 3C market is the rapid growth of 3C market. It is understood that in the next 10 years, China 3C related products market will more than 200 billion U.S. dollars, the growth rate far exceeds the growth rate of traditional home appliances market.

“Chinese home appliance chain store industry has been the traditional mode of electrical appliances and 3C consolidated operating mainly the development of two major appliances category is relatively balanced, clearly can not meet the extraordinary development of 3C electrical appliances.” Jin Ming, vice president of Suning Appliance told reporters . Corresponding with this line of thinking is that on April 21, Suning flagship store just 100 meters from the Xinjiekou the Suny Galaxy Department Store which opened its first store Xinjiekou “DigitalSuning”, as a pilot investigation. If this pattern received by the market, will soon spread rapidly across the country.

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