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Gome Cross Border Attack: Selling Household Appliances &Nbsp; Selling Shoes On Side (1)

2010/7/6 10:50:00 22

Gome Footwear

In April 30, 2010, Gome was on its way to open the first "sharp sports store" near Haidian Park, Beijing.

Flagship store

It covers an area of 4600 square meters and costs about 30 million yuan.


Why does the home appliance retailing giant turn to the irrelevant sporting goods industry?


Gome's sharp market department, Jiang Xiang Bei explained to reporters that Gome began preparations for entering the domestic sporting goods market in 2007, after 4 years of market research, including overseas, especially in the vigorous development of the sports industry in Europe and America.

China's huge population base and the growing demand for physical fitness are all reasons for Gome's entry into the sporting goods retail industry.


Some analysts believe that the sporting goods market has a bright future. The retail business of the industry reaches a maximum profit rate of 30%, far exceeding the profit margin of about 15% of the household electrical appliance retail industry. This is an important reason for Gome to enter the sporting goods market. The profit of the durable consumer goods industry is becoming more and more diluted, which is also the inevitable trend of the development of modern industry.


China

Sporting goods industry

It is gradually coming to a corner, that is, a fringe area where new strategies are needed to develop.

In the sporting goods industry, there are more and more discounts.

Even when new products are listed, they will be discounted in a short time.

Especially in the large number of stores, the sporting goods market is more competitive.

At the same time, for sporting goods providers, the design, quality and cost are no longer the top brand patents, and the market control threshold is getting lower and lower.


As the "aircraft carrier" of the domestic chain industry, the layout of the Gome in the retail market of sports goods may produce "catfish effect" and intensify the channel dispute with the sports product Shopping Mall mode.


  

Gome sharp

The business model has the business lineage of "Gome Empire", and the strategy of Gome popularization and low price operation.

The rise of domestic appliance retailing industry is earlier than that of sports goods retailing industry.

We will learn from the successful experience of the last 20 years in the field of sports products retail.

In the industry entering the price war stage, Gome has rich experience and business mode to maintain considerable profits in the price war.

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