2006 Chinas home appliance chain industry faces two challenges.docVIP

 PAGE \* MERGEFORMAT 3 2006 China’s home appliance chain industry faces two challenges In 2006, the Chinese home appliance chain development of the industry people feel dazzling, dizzying. Year, the U.S. appliance giant chain Best Buy (Bustbuy) announced its entry into the Chinese market and, ultimately, in May to spend 180 million U.S. dollars acquisition of Five Star Appliance; followed by holders of 20% stake in Yongle Appliance Morgan Stanley shares have begun to Kuangpao Yongle ; However, soon after, Wing-lok, said the way through the stock exchange merger with Dazhong; June, Suning Appliance Youyi price of 48 yuan per share, 2,500 additional shares, raising total funds of up to 1.2 billion, called again to open 100 stores during the year , and implied that he would move the capital Shanghai; in July, the National US suddenly announced to 5.268 billion Hong Kong dollars ‘equity + cash’ Paradise in the form of mergers and acquisitions; two after the merger, the number of stores across the country will exceed the sum of 800, with annual sales estimated up to 80 billion yuan. Clearly, the pattern of Chinese home appliance chain has been disrupted, the entire home appliance chain industry, filled with change and uncertainty. Noise behind the frequent moves of home appliance chain industry is faced with two seemingly insurmountable problems. How to digest a lot of mergers and expansion problems caused by Future, if you use the word to sum in 2006 China’s home appliance chain industry, I think there must be a ‘merger’. It is Best Buy (Bustbuy) and National-US acquisition, respectively, completely disrupted the warlords have carved out the industry trend. Best Buy Five Star is a typical acquisition of capital entered the model. Data show that in 2005, Five Star Appliance to expand its stores from 50 to 136, the entire fiscal year a turnover of nearly 700 million U.S. dollars, an increase of over 50%. In accordance with their development objectives, to the en