Wang Junzhou: 700 new stores are expected to open at the end of 2014

August 23 Evening News, Gome's president Wang Junzhou today in Hong Kong media conference pointed out that Gome benefits home appliances to the countryside policy, and the real estate tightening policy on home appliance sales, home appliances sales are still exuberant, he is expected to open 700 new stores at the end of 2014.　　The following is a transcript of Wang Junzhou related speeches. Since the second half of 2009, the macro-economic environment has improved markedly, the State introduced a number of preferential policies, with the old for the new policy in June 2010 to obtain a continuation of the expansion of the coverage area, extension of the period, home appliances to the countryside policy to expand the subsidized product categories, and extended the period,　　At the same time we also see household electrical appliances cyclical replacement demand will continue to pull home appliances sales long-term growth. Gome, for example, as China's largest color TV distribution channel, will be the biggest beneficiary of the upgrading of the Chinese market from video tube television to flat-screen television. In addition, China's two-tier market in the acceleration of urbanization and subsidies to stimulate the policy, will also become the future development of home appliances industry an important growth area. A low volume of air-conditioning, refrigerators and other household electrical appliances sales in the next few years will increase in the level two market. Some people have been worried that the tightening of the property market will affect the demand of the home appliance industry, but we believe that the tightening policy is mainly targeted at investment property, and the impact on residential property is limited. Residential property is the home appliance sales have a certain positive link property.　　Therefore, we believe that the tightening policy on home appliances sales, the rigid demand for home appliances sales still exuberant. Facing the broad development prospect of China's home appliance retail market, the group has launched a five-year strategic planning blueprint, defined the group's development direction and concrete implementation plan, in order to seize the market opportunity, to build the most competitive industry leading enterprises, to formulate a clear and practical implementation plans. Five-year strategic planning will enable enterprises to make full use of existing resources, platforms, systems and management team to create more value for the enterprise, so as to achieve the maximization of the interests of all shareholders. The new five-year strategic plan clearly set the goal of continuing to expand the store network, and to improve the operating efficiency, enhance customer consumption experience, improve supplier relations, the development of new business growth points and so on specific implementation plan. The new five-year strategic plan is expected to bring the group 49 billion to 69 billion new sales. Revenue from the new business is likely to exceed 20 billion yuan.　　At present, the management team has a wealth of industry experience, and experienced a crisis after the test to become a staff, shareholders can rely on the best management team, management has confidence, ability to fully implement and implement the five-year strategic planning, to eliminate all difficulties, to lead the United States back to glory! From this diagram, we can see that the management of the company has made a comprehensive and scientific analysis of our existing market network by referring to the international development planning of the same industry, combining with the current store network, logistics network and brand influence in these regions, and has identified five key development areas in the next five years (PPT). Summing up the expansion strategy of the store network, based on the experience of the group's initial entry into level two market in the past five years, China has a vast territory withSome two-tier market populated, economic development and per capita disposable income has not yet reached, the lack of promotional personnel and so on, so the group decided to make full use of the existing level of the market for radiation expansion, in the already existing level of market areas penetrate into the surrounding level two market. To continue to maintain a first-class market leadership while increasing Gome's market share in the two-tier market.　　Because the difference store management, will improve the enterprise in different markets, different areas of competitiveness, the group in the future in the two-tier market to open the market demand for the stores, one or two key cities in the core business opened Super Flagship store, clear plans to open 700 stores, is expected to double the number of stores in 2014, more Opening about 700 new stores, continue to store expansion plans, the end of 2014 is expected to open 700 new stores, each store is expected to invest 1.003 billion, the establishment of a national regional Logistics Center 11, store network layout is conducive to supply, improve logistics turnover. The country's existing stores in accordance with the new model for a comprehensive transformation, continue to transform existing stores to enhance customer experience, is expected to have more than 400 stores need to be transformed, each store needs to invest 10 billion yuan. Since the construction of the Super flagship store five-plan 11, is expected in the first market has 4, each need to invest in RMB 400 million, two-level market 7, each investment in RMB 150 million, complete the new ERP system full line, to improve the gome retail and supply chain management is critical, is expected to invest 4.5 billion.