Liu Buchen; Best Buy china Strategy Is Still Exploring by tuananh1080


									                                         2006 5 12, the U.S. home
appliance chain giant Best Buy to spend 180 million U.S. dollars holding
Jiangsu Five Star Appliance. So far, foreign investment formally opened
channels of the domestic appliance market, the big screen, Best Buy has
also started to become household appliances industry hot topic. The last
week of 2006, the Chinese market three years after dormant, Best Buy in
Shanghai Xujiahui out its first store in China to take "with
suppliers to take payment before getting goods", "Promoters by
Best Buy Inc. employment "," products on display by type rather
than brand "new way, while the domestic appliance industry is not
shy about the price of war. In the press meeting at the new store opened,
Best Buy executives made it clear the Group, Best Buy do the Chinese
market first, and publish "not copying the American model, in no
hurry to Happy Valley enclosure, is not shy about the price war,"
and other Chinese strategy. Surface calm but ambitious Best Buy for the
future addition of the Chinese home appliance market, a layer of variable
channels. Liu Buchen, a famous Chinese home appliance industry observers,
the Chinese Writers Association. Served on the army attack plan,
Guangzhou Management Consulting strategy director, TCL Group's TV
spokesman, "Nanfang Daily", "Nanfang Dushi Bao"
columnist, contributing commentator, Sina, China's marketing
communications, sales and marketing, People's Network, vPro Management
Online and other media columnist, "forward talks" ad hoc
experts, "New Marketing" magazine expert advisory members.
Daily: Best Buy Shanghai store has been included in Best Buy's global
sourcing system, but Five Star has also begun to establish itself with
Best Buy's global sourcing platform. Lv Weimin said, with the global
procurement system, Best Buy Shanghai store in the slotting allowance is
not income under the premise of not only guarantee the company's gross
profit margin, and competitive prices. Global procurement system in the
end you think that has much power, Gome, Suning no advantage at all in
this respect it?Liu Buchen : Best Buy to implement global sourcing, Best
Buy for the whole group, there is no doubt that advantage is obvious, it
can not be denied. However, it should be noted that Best Buy is currently
only one store in China, even if the next 1 year to 1 year and a half
developed to the 2-3 stores, still does not embody the number of scale
advantages. So, for now, Best Buy's global sourcing in China, little
substantive meaning. In fact, the global home appliances are mostly
MadeinChina, Best Buy's global sourcing is in fact more procurement, for
the most common home appliance products, Best Buy will not be purchasing
advantages than Gome, Suning more. Daily: Best Buy has admitted that the
Shanghai store's gross profit margin than its stores in the North
American market. But Best Buy said he was very optimistic about the China
market, at Best Buy the list of professional assessment organization,
occupied the first position of the Chinese market. Best Buy executives
made it clear that in Europe, India and Japan, the Chinese are more
development space, Best Buy, "do the Chinese market first, although
this will take some time." How do you think the current Chinese home
appliances chain industry? Foreign store channel business strengths and
weaknesses are what?Liu Buchen : Best Buy optimistic about China's home
appliance chain store market in reason, because China is the world's most
growth in the market, not only home appliance chain, many industries have
a great space for future development. From the share point of view, the
current turnover of China's home appliance chains account for about 35%
of all appliance sales, and more than 80% of the developed countries
there is still a large gap, therefore, the future development of space is
still available is great. Now look to foreign investors, led by Best Buy,
home appliance chain, and in GOME, Suning Appliance Chain headed home
than are significant differences between the strength is expected within
the coming three years is impossible to form a substantial threat to
domestic appliances and challenges. This is the disadvantage of Best Buy.
However, it should be noted that Best Buy from the world's most developed
countries, the United States, successful, mature operational experience,
a number of relatively standard operating method, the "Chinese home
appliance chain must be standardized operation" increasing demands
for Today, Best Buy's practice will be a threat to domestic home
appliance chain, forcing the Chinese home appliance chain must break the
rule, so transition to standardized operation.

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