M & A To Speed Up The Rate Of Expansion: The New Wave Home Appliance Chain

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Five Star Qiao take Qingdao Jiangsu Five Star April 21 in Qingdao, stated publicly that it has acquired "in John Winton," jointly organized by appliance sales in the "Thai"?? Qingdao Yatai Electric Appliance Co., Ltd.. Qingdao Yatai's five stores in Qingdao will be replaced this year in June before the "Five Star" green yellow words LOGO, Qingdao Yatai former employees will be integrated into the five-star establishment, including some former senior members of Qingdao Yatai.



Five Star Development, said Wang Jian, executive vice president, Yatai a group of excellent staff, the stores in Qingdao from Yatai fundamental to the management staff. Five Star has been arranged based financial, planning, operations, business and other sectors related personnel to enter, to help complete the docking. Original Yatai with various appliance manufacturers signed an agreement to star in the broader market, as the case into the agreement. Through this acquisition, Five Star has been fully completed in eastern China, including Jiangsu, Anhui, Zhejiang, Shandong coastal line of the layout. Five-Star the next three years will continue to be intensive in the region of the network development to achieve the region's leading strategic objectives. 2.5 hard drive external enclosure

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"In John Winton" was in China in recent years



Home appliance chain Higher sales of the industry exposure of a name. The name of the organization from four home appliances business?? Beijing Dazhong, Shanghai Yongle, Henan Tongli, and Qingdao Yatai. Therefore, the five-star acquisition is complete, in fact, announced a "permanent Winton in the" coalition of the collapse.



"Rural revolution" five-star achievement



In the top four home appliance chain, the Five Star is the Bureau of the latest entry, but the growth rate is fastest. From state-owned enterprises to private enterprises, from wholesale to retail, from retail to the chain of Five Star born out of the province of delivery of the five companies, along the way, after six changes, every time ashes. Five Star's "killer" is "encircling the cities, the last major cities to win" strategy.



Five-star hair force, starting in 2005. In early 2005, Five Star began to pull pattern in the country, their plan is to be completed within a year in the country's overall layout, the plan now because Yatai acquisition has been initially completed.



Domestic home appliances in the current chain, the five-star in the Jiangsu, Anhui, in the absolute leading position, they also in Jiangxi, Zhejiang, Chengdu, Sichuan, Shandong successful distribution, coupled with the acquisition from Yatai Qingdao stores, five-star in China, the layout has been very clear that they were entrenched, including East China, Central China, Southwest China as one of the most densely populated, the maximum income a circle.



Within the five-star, there is a "1335" strategic plan, this strategy of explanation is that within 1 year in three provinces, an absolute leader, within 3 years in 5 provinces an absolute leader. Is defined as the absolute leader in more than 40% of the largest market share of competitors. 1 year should be identified is 2005, the three provinces there is no suspense is of Jiangsu, Anhui and Zhejiang. Shandong is listed as 3 years, the five-star to achieve the first four leading provinces.



Two five-star core strategy is to give up?? To give up the blind outside the main electrical diversity, to give up outside the main strategic focus of geographic expansion. To five-star scale is now the base, capital accumulation, coupled with years of corporate practice a philosophy and culture, should be said that stand in the position, is owed by one exploiting the boundary of the journey.



Coming home appliance chain bought Times



Five Star, said Wang Jian, executive vice president, five-star acquisition Yatai is a valid attempt. Wang Jian believes that by funding the acquisition of shares or control are used to channel development should be a home appliance chain enterprises in the future direction. Five Star will open my own business and buy both of two expansion models. Medium-scale regional strong home appliance chain, will be the focus of five-star next choice.



Market-driven revolution in home appliances to this channel has experienced three, the first stage,



States United States , Suning , Five Star and other household appliances enterprises represent the birth of the power channel the rise of private capital; the second stage, the rapid development of home appliance chains, department stores, appliance stores and other markets, and rapid decline of the old Yetai and out of the market; the third stage, John Winton in the collapse of the signs



Appliance Retail Giant has created barriers to entry, home appliance chain integration between channels started.



Present Suning, Gome, five-star chains such giants have developed a new expansion mode, opening the door from the store from the previous way of direct acquisition of mature store will be an extension of the way, GOME has recently acquired Black Swan is a good evidence. And home appliances brand, like the trend of increasingly concentrated, the future Chinese market is only 6-8 channels of business and home appliance chain Wal-Mart, Carrefour, BESTBUY such as competition in the Chinese market, Chinese home appliance chain's "Dinosaur" class enterprises will thus formation.



Analysis of the current list of home appliance chain industry can be found, the threshold for the Chinese home appliance chain industry has gradually formed. In 2004, Five Star's sales of 9.36 billion yuan, closely followed by sales of 6.4 billion in medium and large appliances, and then after that the home appliance chain enterprises in Wuhan, the highest sales of home appliances industry and trade, but also only 16 stores, 20 million in sales. Experts believe that, from the current development trend of Chinese home appliance chain, the Trade and Industry in Wuhan, Fujian think the text were the representatives of regional businesses across the threshold of possibility has little.



Experts to a wide range of goods, store featuring cheap form of modern



Retail One of the most important of the forms. If you want to store operators to sell the case of low commodity prices, profits, we must make the greatest efforts to reduce the cost of survival is directly dependent on store size. The reason is that, first, the chain store purchases large enough to ensure that retailers can get the best suppliers supply the lowest price and payment terms; second to fully reduce logistics costs as the goal of distribution centers and goods information system requires a huge amount of investment, but only in the number and size of stores where large enough clout to establish.



Present, the domestic home appliance chain enterprises have emerged the trend of channel integration, a national chain of stores and total sales have been growing, and this corresponds to their size advantage of the more and more evident. Relative to their own independent shop, the acquisition is undoubtedly a faster, more provincial resources, the expansion mode.