Gome Reveals Five-Year Plan
Southern Metropolitan News, 6/25/10
Chen Xiao, chairman of Chinese home appliance and consumer electronics retailer Gome (0493.HK), revealed the company's five-year strategic goals in Shanghai yesterday. Chen said that by 2014, Gome plans to reach a total of 2,000 active store locations, with sales reaching RMB 180 bln, and for e-commerce to reach a scale of RMB 15 bln, accounting for 15% of the entire e-commerce market.
As of the end of 2009, Gome had a total of 726 retail locations attributable to the listed company, with an additional 446 stores under its Yongle and Dazhong subsidiaries.
Editor's Note: The Beijing Times reported that Gome issued its first self-branded 3C products yesterday: a "Haibao" mobile phone, the FlyTouch tablet PC, and a solar-powered mobile phone charger. Chen said that Gome would transition into a new "retail + manufacturing" model over the next five years.
Gome VP Mou Gui said the company would systematically analyze the sales data from its 40 mln existing member customers, which it would use to guide the direction of its product design and engage upstream manufacturers in joint R&D, to produce high-quality products that meet consumer demand.
"Over the next five years, 3C and life appliances will grow to over 50% of Gome sales," said Chen, noting that home appliances like TVs, refrigerators, washing machines and air conditioners currently account for over 60% of Gome's sales. Gome intends to cooperate with more multinationals on the production of customized products.
Keywords: strategy sales target Mou Gui Chen Xiao consumer electronics e-commerce hardware retail Dazhong Gome 3C home appliances Yongle 0493.HK tablet FlyTouch
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