Gome Electric business strategy is accused of excessive defense staff said should be the first to do the supply chain

Source: Internet
Author: User
Keywords Wang Dan Wong Kwong Yu

In the face of the impact of the electricity business, Gome finally sat down. Recently, Gome issued a new three-year strategy, will focus on consolidating the first-tier market advantages and development of secondary cities, while the electric business mentioned strategic heights.

Industry insiders point out that, compared with the rival Suning, Gome's new strategy is not only half a shot slow, but also accused of too defensive. "I think Gome's strategy is still defensive, just to link up the line." But it is still an unknown whether it can be defended. E-commerce Observer Ruzenwang told the investor newspaper.

But Gome sees profitability as the most important. "Listed companies must be accountable to their shareholders and not be allowed to burn money indefinitely." We all want to practice the internal strength, then the force, so that there will be sustained growth. Gome official staff responded to the investor's report.

Gome's new strategy highlights electricity dealers

At the new strategic Conference, GOME President Wang Junzhou said that 2012 deeply appreciate the rapid development of e-commerce, especially in Beijing, Shanghai, these first-line market has constituted a tangible impact on the store.

2012, Taobao and the annual total turnover of the cat broke the 1 trillion yuan mark, only the day of the cat Taobao Singles Day turnover amounted to 19.1 billion yuan, increased by 260%. It is based on this understanding that the company has had to readjust its development strategy and refer its business to an equally important strategic height as an entity store. To be aware, in the early 2012, Gome is still insisting that the electric dealer is only the traditional store's supplementary thought.

For the future planning of the electric business, Gome to its two major electric platform for the integration and adjustment, Gome Online mall will be officially renamed "Gome Online", implement the proprietary strategy. Bowser network will be an independent mode of operation, focusing on the development of electric business platform.

"Gome in the electric Business Line integration of its functions and O2O mode, given its high expectations, the future of the electricity business only one entrance, Gome online including Bowser, Bowser is just one channel." "Gome, a management who declined to be named, told the investor newspaper.

Gome's new strategy, in addition to the power and in the first-line market to create a big shop strategy, in the future growth of the performance of Gome also hope that two or three of urban entities to expand the store.

Gome believes that China's two or three-tier cities are significantly better than the first-tier market. Therefore, Wang Junzhou said Gome will accelerate the market share and layout in the two tier market, and plans to open 200 new stores in the two-tier market in 2013.

This figure is staggering in the current depressed market. Public data show that as of September 30, 2012, the total number of Gome stores reached 1070, and in the first half of 2012 Gome only achieved a net increase in the number of stores 17.

However, it is noteworthy that gome this time to remove two words of electrical appliances, the outside world is more interpreted as the United States has expanded the category or department stores trend.

In this respect, Gome official staff told reporters: "Physical stores have not been the trend of department stores, but Gome Online mall will increase the department stores goods." Offline entity stores have not planned to expand the category of electrical appliances, even if there is a way to take a joint venture. ”

Strategy too defensive channel sinking not easy

In fact, Gome's new strategy for the industry, is not new, because its rival Su Ning as early as a year before the strategic planning is so. In essence, the external interpretation of the new strategy issued by the United States, more inclined to gome in order not to be abandoned, a comprehensive study to suning. But the strategy of passive choice makes the world feel that Gome only emphasizes defense and lacks of spirit.

"In order to rob Share, Suning easy to buy is offensive, constantly expand category and play price war." But Gome has not been integrated, the strategic path is not very clear, so Gome's strategy is not an offensive type. "Ruzenwang said, he does not take the initiative to change, sooner or later to be someone else's revolution."

For outsiders to question Gome's slow development in the electricity business. Gome, an internal management, told reporters that Gome was not slow to understand, but because the previous civil unrest led to the time until 2011 to be a strategic study of the electricity dealers.

Gome's slow development is due to the fact that the electricity business is still dominated by the price war. If we want to sacrifice profits in exchange for traffic, short time to do large-scale quickly. But we are more willing to first put the supply chain back into force. Why is Amazon strong, because the supply chain is strong, and we fancy profitability. Gome's official staff said.

And for Gome in the future will increase the layout of the two or three-line city, in fact, many people also have different views. Because in the two or three-line market to expand the physical store business is not a good choice.

As we all know, in 2004, home appliance chain Enterprises in the shouting channel sink, but shouted for many years also did not have much effect, even central China, Huaxi and other regions are not in-depth. Because these market environment and the first-tier city compared to a large gap, the model can not be replicated.

"In fact, the electrical business in the two or three-line market development is also very fast, not limited to the first market." Now many broadband has entered the township, these consumers also have the demand for online shopping. "said Liu Buzhong, chief advisor to the parent management consulting Agency.

China Household Electrical Appliances Business Association, the National Consumer Electronics Channel Alliance Secretary-General Wu Hanjian also believes that the real store expansion is at a standstill, relative to the electricity quotient, because the entity shop fixed cost is higher, the future entity stores in the three or four-line city development opportunities are small.

Compared to strategic decision-making gains and losses, in fact, the human factor in the United States is the most influential, because any strategy formulation and implementation need people to carry out. Interestingly, this time Gome's new strategic launch, "Be trusted is a kind of happiness" by the United States, I do not know whether intentionally pointed, or inadvertently inserted Liu. Industry insiders said that the big shareholder trust in the management of Gome is not enough.

"Huang should not meddle in prison, how to stay in jail than the outside people know more about the market, and the management of distrust, the old fear of management do not good, empty to dictate." Liu Buzhong suggested that major shareholders learn from Vanke's Wang Shi and skyworth Hongsheng and learn to trust and delegate.

Related Article

Contact Us

The content source of this page is from Internet, which doesn't represent Alibaba Cloud's opinion; products and services mentioned on that page don't have any relationship with Alibaba Cloud. If the content of the page makes you feel confusing, please write us an email, we will handle the problem within 5 days after receiving your email.

If you find any instances of plagiarism from the community, please send an email to: info-contact@alibabacloud.com and provide relevant evidence. A staff member will contact you within 5 working days.

A Free Trial That Lets You Build Big!

Start building with 50+ products and up to 12 months usage for Elastic Compute Service

  • Sales Support

    1 on 1 presale consultation

  • After-Sales Support

    24/7 Technical Support 6 Free Tickets per Quarter Faster Response

  • Alibaba Cloud offers highly flexible support services tailored to meet your exact needs.