Ministry of Commerce has just announced the 2004 national ranking of retail business chain, Gome to 23.88 billion yuan in sales ranked second reelection as the first Chinese home appliance retail industry. In the same year, China successfully listed on the United States, completed the basic layout of the country; to the end of the year, Gome’s Direct stores across the country has reached 200.
Industry, said 2005 will be China’s home appliance retail chain fast-growing year, with the full opening up of retail, it will be the most competitive year. But with the maturity of China’s home appliance retail sector, foreign investors will be smiling strength strong “invasion.”
It is learned that China’s home appliance retail market capacity is about 400 billion yuan per year, while the profits of manufacturers and businessmen between the annual showdown between the lower. But in the face of the home appliance retail market is quite complex, and not a big market capacity, large chain enterprises rely on their industry and markets mature, still maintained a good momentum
With the December 11, 2004, after China’s accession to WTO to protect certain sectors of the end of 3 years, China’s foreign retailers to fully realize the “three open”, which means that unlimited foreign retail companies will flock to China . According to statistics, more than 10,000 supermarkets in the country store, whether business area of 5,000 square meters, or 10,000 square meters or more, foreign retailers have been overwhelmingly dominated. Clearly, foreign retailers are increasingly threatening the local retail enterprises in China.
However, China’s home appliance retail sector, so far, no foreign investment into too much of the impact of China’s home appliance retail industry remains “promised land” look.
Because its strength has grown, local home appliance retailers in the face of foreign “invasion” is very comfortable. GOME Ho, vice president marketing, said Yang Qing, China 18 years with the United States created the situation today, will not be foreign-funded enterprises by shaking overnight. He said that foreign retailers can not state at present the slightest threat to the United States.
However, China’s retail
fully open to foreign investment, still indicates that China’s home appliance industry has been in circulation to the critical period of change. According to Ministry of Information Industry, CCID, IDC and other institutions, in 2005 the domestic market alone will reach the digital IT scale of 400 billion yuan; America’s largest home appliance chain Bestbuy also predict that China will become the world’s largest consumer market. Such a huge market potential and development space for China’s home appliance retail industry provides a huge space for development, the face of the unknown gradually into the market and foreign-funded enterprises in China, has entered a mature phase of the appliance retail industry will move towards where we wait and see.
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