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Best Buy next trip to China should reflect on the beginning - Best Buy, Five Star Appliance - Network Appliance Industry-hc360 HC
"Enclosure" is over
Local planes States United States
Suning
Strengthen the construction of deep plowing back stronger position differential is difficult to shake the market strong
Best Buy Five Star
stop shop intractable regional markets high-end strategy of confusion, "adverse economic acceleration" uncertain future
Best Buy trip to China next step should reflect the beginning
Five years ago, Best Buy Log in Chinese, the media are all excitedly spread the news of "crying wolf"; two years ago, Best Buy's first store in China, was officially settled; during the fourth largest in China and then
Home Appliances
Five Star channel business marriage, people illusion of Best Buy China's strategy has been initial signs. However, while people who arouse the interest of foreign giants to focus on where to go next move the occasion, since it gives the Chinese home appliance chain competition Yetai the changes brought about almost negligible. Settled so far from the first store, Best Buy trip to China to sound out each step, can be said that the retail giant in North America's biggest failure is that five years into China has not formed an effective Chinese model.
What is your intention to buy the five-star
Can be said that acquisition of Five Star Best Buy indeed a wise move at the time, but over time, probably outside the Best Buy - star of the "consortium" has been gradually forgotten. Five Star was before the acquisition is China's fourth largest home appliance chain, in the Zhejiang and Jiangsu province have a decisive position. In fact, Best Buy is the use of this acquisition, they can find local sources with GOME, Suning competition weight.
But why, after marriage the five-star Best Buy does not make trip to China to fast track the development of it? The author believes that this is Best Buy on its own clear understanding of the role of investors is directly related. For Best Buy, this is the deal should result in at least three aspects of the role. First, the elimination of the "Five Star" The local Chinese competitors, the foreign giants are just now realized that the most basic of goals; second, the acquired business for the brand, concept and business model completely "brainwashing," which Five Star is clearly unacceptable, but to maintain the operation of dual brand Best Buy seems to care only about the Best Buy brand development. Third, integration advantages, powerful combination; that rely on Five Star second-tier regional cities in the edge "by chicken-," or of the Five Star in Jiangsu and Zhejiang, Sichuan area of distribution for key construction projects. With Five-Star Electric 8 provinces across the country over the years, more than 70 cities, more than 136 professional and lay a solid foundation chain stores, Best Buy is not difficult to have the competition in the Chinese home appliance chain place.
Today's reality show, Best Buy brand to take root in China light "seed" is not enough. At Best Buy when the first anniversary of the five-star joint venture Hou, Five Star has a high-profile announcement in 2007 to consolidate market share in the advantages of the region, added 25 stores, but in the end just out of more than 20 stores. Effectiveness and efficiency of single-store getting worse, so in 2007 in a row had to shut down nearly 10 stores. In fact, from 2005 to 2007 is the steady growth of local channels golden. In fact, the National US-200 is an annual pace of new store expansion step in the country. 2005, Five Star has also ushered in his "History of the expansion," the most glorious era, no less than the speed shop "the Soviet Union," the two giants. Suppose the five-star then hang in there, at least not end up today still limited to the regional market level. Best Buy had expected to find a development with a new starting point of the Five Star, its pace of expansion has finally stopped short. As the interests of the community, Best Buy naturally rare that any development. Makes one wonder: Best Buy acquired the five-star trying to do? Best Buy is also reflective of the most important issue urgently.
"Few but" Restricting
Best Buy "realized" the brand positioning determines its development model in China is different from the "National U.S. men" staking their claims. But the so-called "focus on customer experience and service," the fine line is only superficial work, it is easy to learn and master. In fact, Gome, Suning, represented by local high-end home appliance chain store in the building is valued.
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