Best Buy Lost China Two Times And Failed Again And Again.

Why did best buy lose China for the two time?

BestBuy is located in

It is the largest retailer of consumer electronics products, personal computers, entertainment software and electrical products in North America.

The company mainly operates retail stores and online supermarkets, and sells to consumers in more than 1900 retail outlets in the United States, Canada, Puerto Rico and the American Vilgin islands.

It is doubtful whether a company that has withdrawn from China three years ago will have great development with the help of "parasite".

The reality is that in 2011, best buy announced its withdrawal from China, and in 2014, the ownership of the Five Star appliance completely dropped out of China.

Three years ago, best buy was defeated by Gome and Suning.

When the best buy came into China in 2005, China's appliance manufacturers had deep expectations for it. Gome and Suning's "distorted" business model has been overwhelming the appliance suppliers. As the largest appliance retailer in the world, the entry of best buy is bound to change the competitive situation.

Best buy's "buyout", "cash in stock" pure.

Undoubtedly, the most important thing is to return to the essence of retailing and to represent higher business civilization.

Gome and Suning take the way of affiliate sales and distribution. They pfer business costs to other partners in the business chain.

For example, subleasing the sales area to different household appliances manufacturers, collecting rent from them, and extracting a certain proportion of factory sales to make profits, even promoters are also manufacturers.

The rapid expansion of Gome and Suning was achieved by charging suppliers' entry fees and postponed repayment.

Gome costs only about 1 million yuan for opening a 4000 square meter ordinary store, while a 10000 square meter store only needs about 10 million yuan.

Home appliance chain operators pfer many promoters' salaries, site fees and so on to the manufacturers, so the operating expenses rate is very low.

By contrast, the cost of best buy is much more than that of Gome and Su Ninggao.

This is the first thing to pin down the scale of best buy stores. Best buy in China has only 9 stores in 6 years.

Without the advantage of scale, it means that best buy has no bargaining power on home appliance manufacturers, nor can it provide consumers with more competitive products.

China's consumers and suppliers are also not satisfied with its performance, and best buy has no reason to survive in China.

Best buy has always been hard on the Chinese market.

After 2011, its idea was once realized by means of five star electrical appliances.

Best buy has also implemented a differentiated survival mode for Five Star appliances, such as the introduction of Beats, Hui people and other more than 30 imported electrical appliances brands by five star appliance, trying to form a commodity strategy based on high-end import appliances and fashion trend cards to avoid gleam of Gome and Suning.

But in just two or three years,

Great changes have taken place in the home appliance retail market.

From Jingdong, Ali and other electronic business platform strong rise, Suning and Gome are also worrying, constantly seeking the pformation of e-commerce.

The impact of a five-star electric appliance that is lagging behind is understandable.

This time, best buy has lost the market environment brought about by the changes of the times.