Gome to Integrate Online/Offline Procurement, Adjust Operating Model
Sina Tech, 12/21/12
Chinese home appliance and consumer electronics retailer Gome (0493.HK) has announced strategic adjustments to its procurement and operations units in order to meet the company's online and offline development goals. Gome Senior VP Li Juntao will take charge of the company's procurement unit and Senior VP He Yangqing will take charge of the company's operations unit. The company's strategic adjustments have received approval from Gome's Board of Directors and Wong Kwong Yu, the former Chairman of Gome and largest shareholder in the company.
According to documents released by the company, Gome's 2013 strategic development plan is as follows:
1. Shift the company's business model from a supplier-focused, brick and mortar-based operating model to a product, customer, and online/office dual-development model.
2. Integrate online and offline procurement platforms and unify backend management and resource sharing through: integrating Gome's e-commerce procurement system into the company's existing procurement unit and expanding product distribution channels to strengthen Gome's offline and online product offerings.
3. Divide Gome brick and mortar operations units into first-tier city and second-tier city units. The company's flagship store operations until will be renamed the "first-tier city operations center," responsible for all Gome brick and mortar stores in first-tier Chinese cities. Gome's standard-store division will be renamed the "second-tier city operations center," responsible for second-tier city brick and mortar operations.
Li will coordinate household appliance, 3C, accessory products, and online store procurement. Mr. He will take charge of Gome's tier-one city operations center, tier-two city operations center, chain-store development center, customer service center, and member management unit.
Editor's Note: For more background on this topic, please see "Gome Emphasizes E-Commerce in New Development Strategy" MD 11/18/12 issue.
Keywords: He Yangqing Li Juntao Wong Kwong Yu consumer electronics e-commerce hardware distribution procurement strategy Gome business model home appliances B2C retail
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