Best Buy China's president, five-Star Electric CEO week to achieve the performance of the attack

Absrtact: A year in office, Best Buy China's president, five-Star Electronics CEO week to achieve the performance of the reverse attack. The latest results show that the five-star electrical appliances not only 2013 years to win, the first quarter of this year operating profit also achieved more than 30% of the rise, which in Best buy

A year in office, Best Buy China's president, five-Star Electronics CEO week to achieve the performance of the reverse attack.

The latest results show that the five-star electrical appliances not only 2013 years to win, the first quarter of this year's operating profit also achieved more than 30% of the rise, which in Best Buy overseas market ranked best. At present, Best Buy in China mainly rely on five-star electrical business.

May 13, Zhou Mei accepted Tencent Technology exclusive interview disclosed that the five-star appliance in China's strategy is still to promote the main store profit, in the short term will not expand the number of large stores.

Five-star appliances on the line business development is more cautious. At the end of last year, five-star electrical appliances opened online mall, currently mainly engaged in mobile phones, small household electrical appliances, digital and other small-scale electronic products, and with Shun Fung cooperation for the national distribution. But Zhou Mei that the online business is not profitable in the short term, O2O is the future of the retailer, so the future of the five-star electrical appliances to seek to open up with a third-party platform for cooperation.

The CEO who took office during the downturn

In May 2013, Zhou Mei, president of Best Buy China, was CEO of five-Star electric, when five-star electrical appliances were in the doldrums after Best Buy withdrew from China, their performance slipped and their morale was low, and Wall Street was cautious about the prospect of best Buy.

Zhou Mei in front of a fact is that suning gome (micro-BO) has already completed the national layout, stores are more than thousands, and five-star electrical stores only more than 200, and mainly concentrated in Jiangsu, Anhui two major provinces. For a regional chain enterprise, in the home appliance 3C retail business overall growth slows down, the market demand drops situation, the promotion performance is not easy.

But Zhou Mei does not believe that retail business has entered the "sunset" period. "The fine management of the physical store and the expansion of the electric business is not a conflict of theme, should be synchronized development, mutual integration, and do not discriminate between the formation of confrontation." There is still ample room for the real store to be excavated. ”

Zhou Mei that, home appliances products began to ' intelligent ' upgrade, the next few years, some new forms of home appliances will usher in two times to buy the tide, intelligent products can not be separated from the experience under the line, as long as the store in the environment, demand in line with the expectations of people to buy, it will have

In order to make the store more efficient, flat, Zhou Reggie five-star electrical structure from the four (Headquarters-district-division-stores) reduced to three (Headquarters-branch-store), and set up a strategic and key projects to promote the office, directly to its management.

He also pushed forward to "increase sales, make profits, reduce costs" as the core of the "Reshaping blue" strategy, return to the essence of retail. The number of five-star stores dropped 10% last year, from 211 to 190 now. Through the implementation of membership system, 3C store flagship store reform, private brand development, new category introduction, and other ways, five-star electrical appliances also realized the rise in profits.

Transforming stores and introducing new categories

Store renovation is the core of the reform of five-star electric. Since last year, compared with Suning's flagship store from electronic products to home, department stores to expand the transformation. Five-star to take mobile phone-oriented 3C shop renovation project, introduced in 2012 Best Buy its mobile phone franchise brand Best Buy mobile, and its experience using the transformation of 66 five-star stores. By inviting games, travel photography, COSPLAY, sports and other grassroots people to shop to attract young users.

Best Buy Mobile following Best Buy America's unbiased shopping features, more than 50% employees are their own employees, they can according to consumer fees, mobile phone use, to help consumers buy mobile phone/carrier tariff package, to provide one-stop service. There are also remote service support and paid extended warranty service in the aftermarket. This model has now been extended to the five-star chain of mobile phone sales model. It can make profit by carrier subsidy/accessory/service etc. under the condition that the handset hardware profit is low.

Zhou Mei to Tencent Technology revealed that Best Buy mobile at present to five-star electrical overall profit promotion contribution rate reached more than 50%. According to the GfK of the five-star operating area of the retail market monitoring data (excluding online), the second half of 2013, the overall mobile phone market sales growth of 11.99%, five-star for 19.09%; in the first quarter of 2014, the overall mobile phone market year-on-year decline-17.1%, five-star growth of 8%.

Another reform of the five-star appliance is the emphasis on developing new products for young people. Five-star in the existing category to develop such as Beats headphones, Korea hui people original juice machine, a variety of wearable equipment, such as high-end imports of small electricity, as well as the development of its own brand, custom underwriting models to enhance operating profits; In addition, five-star electrical appliances set up a new product development department, focusing on the development of the game, health care, home, sports four

Zhou Mei, the real retailer's vitality is to return to the essence of retailing, namely, price, service, experience, including innovation. "Not space is gone, but to constantly dig new market space." ”