The rapid development of large chain-store operators such as GOME and Suning, has facilitated a dramatic increase in the level of industry concentration in recent years. In many large cities, such as Beijing and Shanghai, the industry concentration level is much higher, with major companies forming oligopolies. In recent years, mergers and acquisitions have become more frequent, which also substantially increased the industry concentration level.
Physical Store for Electric Products: Suning, Gome
There are two major electric retailers in mainland China now, Suning and Gome. The competition between them is fierce. Suning Appliance Company is one of he largest privately owned electrical appliance retailers in China, headquartered in Nanjing, Jiangsu. It has over 700 shops in Shanghai, Beijing, Guangzhou, Zhejiang, Anhui, Shaanxi, Fujian, Jiangsu, Hunan and Shanxi. It was listed on the Shenzhen Stock Exchange in 2004.
Gome Electrical Appliances Holding Limited is one of the largest privately-owned electrical appliance retailers in Mainland China and Hong Kong. It was founded by Wong Kwong Yu(Huang Guangyu), a Chinese businessman, in Beijing in 1987. It was listed on the Hong Kong Stock Exchange in 2004.
Online Retail: 360Buy.com, Amazon, Newegg
Newegg, 360Buy, Amazon are the major online retailers of electrics and electrical products. With the wide spread of world wide website, more and more trades are done on the internet. The electrics are one of the most important products sold on line in China nowadays. The goods sold on these website include mobile phones, TVs, Air conditionings. Founded in 2004 on a business model similar to that of Amazon.com Inc., 360buy sells a broad range of products, such as electronics to cosmetics. It forecast revenue of 10.2 billion yuan ($1.54 billion) this year, up from four billion yuan last year. Amazon is an American multinational electronic commerce company with headquarters in Seattle, Washington, United States. It is the world’s largest online retailer. It also produces consumer electronics, notably the Amazon Kindle e-book reader.
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