Gome intensive exchange will regain expansion strategy: bet on B2C or compete with Suning (VC341)

One year after seizing control of Gome from Chen Xiao, the domestic home appliance giant began to adjust its organizational structure and personnel adjustment on a large scale. In addition to Wang Junzhou continuing to serve as president, Fang Wei served as the chief financial officer of Gome. This time Gome also added a number of vice presidents, and many Gome provincial and municipal companies including Chongqing changed their coaches.
Behind Gome ’s senior management ’s “relocation”, Gome foretold that it would regain its “expansion” strategy, but what is interesting is that in Gome ’s new expansion plan, like its main competitor, Suning, they chose the e-commerce business to play the role "Pioneer" role, and on March 7, Gome announced an alliance, confrontation with Tmall (Taobao Mall), Jingdong Mall and old rival Suning Appliance, destined to have a profound impact on the entire domestic B2C pattern.
Chongqing Gome changes coach
Gome disclosed the latest large-scale executive personnel change plan. In addition to the headquarters operating in full accordance with the business department, a number of senior vice presidents were added. In the Chongqing area, Chen Yunlong, who has been the general manager of Chongqing Gome for many years, was transferred to the general manager of the Chengdu branch, while Song Huohong, the former chief financial officer of the Western District, officially took the helm of Chongqing Gome.
In fact, the personnel changes in Chongqing are just a microcosm of the Gome's national staff arrangements in the past two days. The "post-Chen Xiao era" Gome has begun a new round of personnel adjustments, but many people in the household appliance industry believe that this round Behind the personnel adjustments clearly bears the bold color of the old Gome. It is understood that this major personnel adjustment has a major connection with Gome's "surname Huang" again.
In addition, Gome announced that it has made personnel adjustments to its e-commerce platform Kuba.com, CEO Wang Zhiquan no longer holds the position of CEO due to illness, and from Gome internal news, the successor of the CEO of Kuba has been determined as Ding Donghua, former general manager of Shenyang Gome.
Regain old Gome expansion strategy
"Open a new store, open a good store." Song Huohong, the new general manager of Chongqing Gome, repeatedly emphasized that Chongqing Gome will accelerate its expansion in 2012, with 10 to 15 new stores in its jurisdiction, half of which will be opened in sales with faster growth. In the tertiary market, at the same time, despite the nationwide decline in the home appliance industry, in Song Huohong's view, the rapid economic growth in Chongqing has allowed the entire Chongqing home appliance market to maintain a 20% growth rate, leading the country.
It is worth noting that after Chen Xiao left Gome, while emphasizing the improvement of the profitability of a single store, Gome again mentioned large-scale expansion. Obviously, when competitor Suning Appliance, under the background of "Walmart + Amazon" expansion strategy, after the expansion speeded up, Gome once again sent its banner of expansion, which became an important weight against Suning.
In terms of business format, compared with Suning ’s diversified operation of “Go Appliance”, Gome has repeatedly emphasized that it will use its newly built ERP system and the company ’s business unit system to improve its competitiveness. Against the backdrop of full-scale "business contact", Gome is betting its expansion on B2C business this time. Gome released news that Gome will set up Gome Online, which will fully integrate the dual brands of its Gome Online Mall and Kuba Shopping Network.
US-Soviet hegemony in B2C
"By 2014, Gome will account for 15% of the country's B2C business." Gome President Wang Junzhou first revealed Gome's ambitions in the B2C business field. Obviously Suning Tesco quickly seized the huge domestic B2C market share by virtue of its logistics and distribution advantages in 2011. Let Gome see its huge market space, and Kuba, which has a certain basic customer base, and its own e-commerce platform.
Industry observers believe that in the face of the challenge of a weak global economy, the sluggish demand in the home appliance market has led to great pressure on the performance of the home appliance retail industry. To maintain stable and rapid growth, the home appliance retail industry needs urgent transformation and upgrading. Whether the adjustment of Gome can achieve the expected effect remains to be seen, but it is undeniable that this will drive a new round of business competition model upgrade in China's home appliance retail industry.
Gome confirmed that in mid-March, it will join forces with Dangdang in China, which is responsible for Dangdang's home appliance product sales and logistics distribution. "Obviously, this strong combination will make domestic B2C competition even more fierce." Internet analysts Wang Zhaoxu pointed out that, in addition to Tmall and JD.com, the "US-Soviet hegemony" in the home appliance and 3C sectors in 2012 is very likely to be burned from offline to online.
Industry observers believe that in the face of the challenge of a weak global economy, the sluggish demand in the home appliance market has led to great pressure on the performance of the home appliance retail industry. To maintain stable and rapid growth, the home appliance retail industry needs urgent transformation and upgrading.

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