Problems and Solutions appliance dealers.doc

 PAGE \* MERGEFORMAT 13 Problems and Solutions appliance dealers Chinese home appliance Circulation is undergoing profound changes. With Gome and Suning Appliance as represented by the emerging channels is gradually becoming an important force in the field of home appliances in circulation, especially in the secondary market has occupied the dominant position clear. The rapid expansion of new channels for home appliances traditional channels had a tremendous impact, the traditional home appliances dealer facing unprecedented difficulties. In the face of increasingly fierce competition, the traditional home appliances dealer lost a secondary control of the market, while a single price war, promotions and other means of competition makes the cost of war rising, the profit is growing, and the downstream network is also a lack of effective management, ‘sphere of influence’ very insecure. At the same time, faced with the integration of the upstream appliance manufacturers, as well as the integration of the terminal, there is the value of traditional distributors are increasingly under suspicion. Very non-standard management model makes inventory, capital risks are too high, companies in the ‘sub-healthy’ state ... ... The reason why the traditional consumer electronics distributors faced such difficulties, mainly the following points: 1, new channels for expansion. At present, a secondary market in home appliance market is completely under the control of the emerging channels, the traditional dealers have no say. For example, in Beijing, Dazhong, Gome in Shanghai (after acquisition of Yongle), Suning and so on in Nanjing, known as the absolute market-driven forces. With the new channels in a secondary market, the layout completed, into three or four markets this last, the largest market to become an inevitable choice. For example, the country was officially launched the U.S. offensive of the rural market is through mergers and acquisitions, alliances, etc. quickl