Market report: Gome in China

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Founded in January 1, 1987, Gome is the biggest chain store of household electrical appliances in mainland China. In 2009, it was recorded by China World Records Association as the biggest biggest chain store of household electrical appliances in China.

The major types of goods sold at Gome are household electrical appliances and small consumer electronics such as MP3. After 25 years of development, Gome turned from a small shop with an area of less than 100 square meters to the 22nd largest commercial company chain in the world. It now has more than 1,200 stores in over 160 cities over China and 42 branches in first and second tier cities. It also boasts the most locations of any electrical appliance chain in China’s first and second tier cities such as Beijing (北京), Tianjin (天津), Shanghai (上海), Qingdao (青岛), Xi’an (西安) and Shenzhen (深圳). In 2004, Gome became listed in the Hong Kong(香港) Stock Exchange. Gome ranked the 14th on Forbes list of the Top 50 Listed Enterprises of Asia. Gome was the only Asian chain store of household electrical appliances on the list. Now, Gome is expecting to become one of the most respected household electrical appliances retailers in the world by 2015.

Market Research for Gome

With the development of the E-commerce, more and more big companies are turning their eyes to doing business online. Since there may be some real obstacles in expanding their physical business to third and even fourth tier markets, online business is proving to be a more convenient way to access consumers in less developed areas.

On March 25, 2012, Gome began selling its products on the famous E shop Dangdang. And later, on April 17, 2012, Gome and 360 reached an agreement. Gome formally came to use 360’s online commerce platform and they are now partnering to build a household electrical appliance online retailing platform.

Competition

Gome’s main competitors are 360buy(京东商城), Yongle(永乐家电),Suning(苏宁易购), and Dazhong(大中电器).

With such fierce competition, Gome is taking measures to attract consumers. It launched a promotion from October 18 to October 28, 2012. In addition, it greatly lowered the prices of mobile phones, computers, and digital products despite its success in its Mid-autumn Festival and National Day vacation promotion. Gome believes that only by bringing profits to consumers is the value of an enterprise fully displayed. Thus, the price that Gome offers is usually the lowest among the major online retailers.

According to the analysis of industry insiders, Gome’s continuing discounts not only provides convenience for consumers, but also highlights its dominance in this industry. It can be predicted that its leading position may not change for a relatively long time.

Daxue Consulting Market Report in China

Market Report in China

Sources:

Picture SourceSohu

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