Wanted City to change the handsome now buy out to expand the e-commerce can have a chance?

HC Home Grid Original: Unlike the rhetoric of Wonder City when it first entered the Chinese market, the coaching change on July 14 was very sudden. The city of Wonder City opened its first store in China last November. The sudden change of executives in less than eight months in China has caused an unusual discussion. After Best Buy exited the Chinese market, this change made the outside world more sensitive to the future development of Wonder City, which partly reflected the fact that the Wonder City model is not yet adapted to the Chinese market.

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I have to admit that in the home appliance sales chain market, the Chinese market seems to be a region where “the needle can't be inserted into the water and can't enter the water”. The local home appliance chain firmly grasps the market share. The operation of Gome and Suning is based on the rental counter. The model has lower operating costs and faster capital recovery.

Best Buy, Wonder City and Yamada Denki adopted the buyout product operation in the business model, namely, order payment and spot cash. Although the relationship between the store and the supplier has been improved, one of the root causes of Best Buy’s defeat in China is also It is the business model of buying out products: the store rental cost is too high, the decoration fee can not be passed on to the supplier, the scale is limited, and the purchase price is not advantageous, so the net profit is limited. This change in the city of Wande once again reminds people of the delisting of Best Buy, and focuses on whether the business model of “buy out business” is suitable for the Chinese market.

Although Wonder City has adopted a localized operation model that fully delegates power to the store manager. Without the approval of the German headquarters, the store manager of the city can decide on the pricing of the goods, decide which products to buy from the store, and have a lot of power, so it can be changed immediately according to the needs of Chinese consumers. At the same time, the incentive mechanism of Wonder City is also very characteristic, the store manager and department manager can enjoy the dividend of the store profit, the store manager can get 10% of the profit of the store.

However, some insiders believe that, similar to the predicament faced by Best Buy, due to the high price, many domestic consumers will use the real-life sample of the Wonder City store as an “experience center” and “play only”. The situation is quite a headache for the city.

In the face of the Chinese market, foreign chains have their own inherent disadvantages. As a major home appliance manufacturing country, many local brands have matured their products, and many international brands have established production bases in China. Therefore, the price advantage of foreign chains is not obvious. . And the home appliance chain in China's first-tier cities is already very saturated. Foreign chains rarely involve third- and fourth-tier cities and rural markets, resulting in narrow market coverage and excessive over-reliance on primary and secondary markets.

Can the electric shock network channel become the road to victory?

In recent years, traditional retailers frequently “touch the net”. In 2010, the chain top 100 list showed that 34 chain enterprises have launched online retail sales with a sales scale of about 3 billion yuan. Since the beginning of last year, the online shopping trend in China's home appliance retail market has been surging a wave, in addition to attracting professional e-commerce companies such as Jingdong Mall, Taobao Mall, and Xinqitian Electrical Network, Haier, Chigo, TCL and other home appliance manufacturers and Suning. , Gome, Wuhan Industry and Trade, and other offline home appliance chain retailers have seen the huge interest in online shopping temptations have been involved in online retail channels.

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