Million City to enter the electric business: Multi-channel strategy 1 plus 1 can be greater than 2?

With the online mall on the line, Pusaubo, the CEO of the city of Bulbssalb, has submitted a report to the board of directors in China for the past three years-a satisfaction that will determine the fate of the city's future in China.

From the beginning of 2010, the city officially entered the Chinese market. In the same year November, the first flagship store was opened on Huaihai Road in Shanghai's busiest commercial street. For more than 3 years, the city has been working in Shanghai and has 7 stores, more than 160,000 gold and silver card members, and announced its foray into E-commerce last month.

Today, the city hopes to produce a "1+1>2" effect through multi-channel strategies. "Because of the changes in the market, our main focus now is on the online mall, but we never give up the physical store." "Pusaubo told global entrepreneur," in foreign countries, the city has also achieved considerable success through multi-channel way. ”

The day when Best Buy returned to China was the time when the city of WAN was exerting its force on China, which also cast a shadow over its prospects. Industry no longer superstitious foreign appliances retail brand "wolf" story. This is a more cautious way of capturing the Chinese market for the Germans who work in a rigorous manner.

The most important purpose of the city is to find the right business model for 3 years of China's water test time. The city chooses a road that is a far cry from Best Buy, and its stores are mostly located around the residential areas outside Shanghai's central district rather than the mainstream commercial sites. The city has had the opportunity to open more stores, but because of the high rents it has given up, it has greatly reduced its operating costs and increased the likelihood of offering low-cost products to consumers.

Beyond that, The apprentice started all over China. The location of the third Dahua store in a new shopping mall on the street, the surrounding residents have a strong consumption capacity, which provides a new location for the city of the possibility. and Pudong Fairview store more remote location, the city foresaw its future air-conditioning refrigerator washing machines and other large household appliances demand larger. And the big shop is simpler to set up, and there is no carpet, "We want to know the different mode of the shop, including the required funds and speed." Yang Chulen, chief strategy officer of the city, says this simple model experiment makes it more likely that they will be able to shop quickly.

The sales figures for the 7 stores over the past 2 years are the most valuable data in the city in China, which will be used as an important reference for site selection in the future. "For example, do we need to open a shop in some of the more consumer shopping districts?" Whether every store needs to reach 5000 to 7000 square meters. After E-commerce, the number of stores will have a lot of impact. "Yang Chulen said. Although the city did not disclose specific Chinese sales figures, "our turf is one-fold higher than our competitors," he said. ”

This mode of operation allows the city to give Chinese consumers a brand impression they expect. According to their research, referred to the city, the customer's impression is: "Shopping environment is good, many goods, no marketing pressure, product pricing is not expensive." ”

The city has the inherent stubbornness of the Germans. Some of the more obvious things are also hoping to get answers through their own practice, which also cost them a lot of money.

At first, the city wanted to replicate its full range of business ideas from Germany to China. This includes China's declining DVD products. As a result, the city finds that this is a situation that cannot be reversed by its own power.

Mobile phone accessories is also one of the symptoms of acclimatized. The foreign custom is that if you buy a mobile phone in a retail store, consumers will buy 4 to 5 pieces of accessories at the same time. These ancillary products in the city's stores occupy a higher proportion, but also one of the sources of store profits. But in the domestic average number of 1.5, if a waiter can sell 2 pieces of matching goods, it is definitely called "good Job." Fortunately, this number is improving.

"These things we all slowly to see, can not say wrong, this is our business philosophy to try the spirit." We have gone some way farther, but we also hope to take a different path. Yang Chulen to global entrepreneur.

What has never been expected of the city is that in the past three years, China's market environment has undergone drastic changes. Especially this year, the old local home appliance retailer, including Suning Gome, has a rapid decline in real-store performance and an instant rise in E-commerce. "This is no longer the age of the spell shop. "Yang Chulen said.

The history of Media-saturn, a parent company in Wan Cheng, is not long. Last March, Media-saturn bought an e-commerce platform Redcoon. Redcoon was founded in Germany and sold more than 24000 products in 10 countries before being acquired, with annual sales of € 354 million. The brand will be parallel with Media-saturn, can provide better complement to its e-commerce business and provide more rapid experience.

China's E-commerce has its own independent team. It takes nearly a year to prepare, build a team, build a system of operations, and coordinate work. Currently on the country's official web site, 40% of offline products are available online, and 3000 to 4000 items per month are transferred offline.

The city has not yet set up a separate warehouse for E-commerce, and more in favor of customers to the physical store for delivery, they give customers such behavior more points reward. This will not only reduce the cost of the city in freight costs, but more importantly, in this way can attract customers to the physical store, more experience and consumption.

Open platform is currently in full swing by the electricity business, Jingdong Suning even includes a shop all hope that through their own main category to attract passenger flow, thus driving sales to attract more businesses stationed. The city will focus on doing home appliances, and not like Suning and Beijing-East big platform. "The two trends of the future million city electric dealers, one is to provide more product information, and second, and suppliers to provide customized products." Yang Chulen says the latter has a precedent in Japan. But in China, this model can not attract more clicks. Although from the city itself, did not immediately put themselves in the position of Suning Gome's rivals, they put investment in the next 5-10 years. But the bad news is that Su Ning has also begun to adjust its own shop operations, hoping to bring consumers a better shopping experience.

The experiment in the city of Vantaa continues. It can be seen that, in September this year, Tong Shaolen visited the Wuxi Bureau of Commerce, which may be one of the expanding areas of the city's planned expansion around Shanghai. This January, the chief strategic officer of Yang Chulen visited Chengdu Wuhou District party committee Secretary Liu Shoucheng, the two sides on the city of China in Wuhou District investment in the relevant matters were discussed. During the year, Yang Chulen and Wuhou officials have visited each other 5 times, and Chengdu is highly likely to become the second radiation base in the city of Vantaa outside Shanghai.