Copying Gome Mode &Nbsp; Gome Sports Success?

Huang Xiuhong, who looks thin, is trying to lead the Wong Kwong Yu family with billions of assets out of the doldrums.

This time, she turned her attention to sporting goods retailing.

"In the next 5 years, Gome sports plan will set up hundreds of large stores in the whole country. The products will cover all sports and outdoor themes, and form a multi-channel collaborative sales mode with large retail chain stores, specialty stores and e-commerce."

Huang Xiuhong said.

Gome holdings investment group (formerly known as Peng run investment)

Founded in November 2009, Gome sports has opened 2 flagship stores.

Unlike other sporting goods stores, Gome sports copied Gome's model to sell sporting goods.

Although this mode has led Gome to win the title of the retail champion, but the sporting goods retail market is different from that of the electrical appliance market, can Gome sports succeed? The Gome holdings, which has just experienced the Gome competition, is badly hurt. Will it have enough funds to support Gome sports expansion plan?

Source of funds

"In 2011, Gome sports will open nearly 30 stores in Beijing, and plans for the future layout of coastal cities such as East China will be advanced to later this year."

A person familiar with the matter told the financial weekly magazine.

According to public information, Gome sporting goods Co., Ltd. was founded in November 2009. It was called "Gome". It was renamed "Gome sports" after new year's day in 2011.

Gome sports in Beijing has two stores, opened in May 2010 and October respectively, with an area of 5000 square meters and 4000 square meters respectively. The initial investment of the two stores is 10 million yuan.

According to this calculation, the Gome sports program opened 30 stores in Beijing in 2011, and the funds needed should be around 300 million yuan.

According to such expansion rate, is the fund of Gome holdings adequate? In 2010, Wong Kwong Yu's wife, cuckoo, was fined 200 million yuan for insider trading, while Huang's family only collected 50 million yuan, and the other 150 million yuan was funded by the Beijing Gome Appliance Co (hereinafter referred to as "Beijing Guo Mei").

In 2010, during the scramble for Gome competition, the Wong Kwong Yu family raised the Gome shares for a time, and the news came out of the tight funding chain.

Where does Gome sports fund come from?

Business registration data show that Gome's sharp registered capital of 50 million yuan, of which Peng run investment 35 million yuan, accounting for 70% of the shares, Gome group unlisted part of Beijing Gome invested 15 million yuan, accounting for 30% of the shares.

Since then, Gome's sharp stake has been changed, and Beijing Gome has pferred 10% of its shares to Peng run investment.

Currently, Peng run investment and Beijing Gome Holdings 80% and 20% respectively.

According to the financial data provided by Beijing Gome, a total of 372 unlisted parts of Gome were sold in the first half of 2010, achieving a total sales of 9 billion 617 million yuan.

"This can provide Gome sports with corresponding financial support."

A long-term concern for Gome insiders said, "according to Wong Kwong Yu's consistent" interactive, mutual assistance and complementary "investment philosophy, Gome's cash flow from commercial operations is complementary to real estate and has achieved good synergy.

Gome's business covers home appliances retail, real estate, construction, property management, pharmaceuticals, securities, asset management, information technology and so on. In mutual assistance and complementary ways, the funds needed for Gome holdings expansion should not be a problem.

Copying Gome mode

The Wong Kwong Yu family has been planning sports for a long time.

After a well known shareholder meeting in 2010, Huang family failed to win back Gome.

After the smoke dispersed, Gome's struggle remained unsolved.

As a result, the Wong Kwong Yu family began to make their hands to sort out the assets of its non home appliance sector.

At this time, the strategy of Gome sports officially emerged.

"It is hopeless to recapture the main business, and the family industry developed by the Wong Kwong Yu family is supposed to build a new platform for the future."

The industry concerned about Gome said.

"Since Gome trademark ownership has always been invested by Peng run, now Gome sports is crowned with Gome, and we hope to use Gome as soon as possible to expand the new industry."

Long before Wong Kwong Yu was in jail, he had been reluctant to make electrical retail and real estate. He had been looking for new investment growth points.

In the market research, Huang Xiuhong found that the sports industry is a bare gold mine. With the development of China's economy and the improvement of people's living standards, the demand for differentiation of sports brands is becoming increasingly obvious.

However, due to the continuous growth of sales costs and commercial rents, many sports brands have been dropping out of shopping malls, and fewer and fewer sports brands in high-end shopping malls.

However, the single brand stores have relatively high rents and personnel costs, and the cost load can only be pferred directly to consumers. This mode also causes the dispersion of commodity sales to increase, which makes the comparison and choice of consumers lower and indirectly increases the purchasing cost of consumers.

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At the same time, the new products are sold in the exclusive stores, and the off-season products are sold in the factory stores. The mode of selling outdated goods at discount stores is very damaging to the brand of the products, which easily leads to confusion of consumers' cognition of brands and the psychological gap of consumers. It is fundamentally not conducive to the long-term construction and promotion of brands in the Chinese market. This has gradually become a bottleneck restricting the development of China's sporting goods industry and the brand of sports products.

After more than 2 years of research, Huang Xiuhong is familiar with the drawbacks of the current sporting goods market.

"Gome sports will work to solve these drawbacks."

Huang Xiuhong said.

Huang Xiuhong's positioning for Gome sports is: comprehensive chain stores.

At the age of 19, he entered the business of Huang Junqin and Wong Kwong Yu founded by his brother, from the initial financial staff to the head of the Huang family. After 20 years of experience in shopping malls, Huang Xiuhong was familiar with the business model of the hypermarket.

Huang Xiuhong has repeatedly said that the advantage of Gome sports lies in the integration ability of brand products and the integration ability of the market.

After more than ten years of development, Gome has consolidated its professional channel status.

"When Gome entered the electrical retail business, it was seen that the industry still had no mature business model. After the entry of Gome, the cake was bigger."

Brand double-edged sword

In the view of the industry, when Gome entered the field of electrical appliances in the year, it was the age of scarce household appliance stores in the domestic market. When Gome sports entered the sporting goods market, it was faced with fierce competition from Decathlon, Baosheng, sports 100 and other distributors and existing stores.

"The retail industry of sports goods is still a very traditional and primitive state."

For the above view of the industry, Huang Xiuhong expressed different opinions when interviewed by the financial weekly.

After investigation, she believes that the sports market today is very similar to that of the household appliances market more than ten years ago.

More than ten years ago, when consumers bought appliances, they had to go to the department stores and stores of the shopping malls. At that time, there were no specialized commercial channels, and the current sporting goods market did not have special commercial channels to do marketing and sales. Brand building had always been their bottleneck.

But Gome's

Speaking of Gome, consumers know more about selling appliances. At the beginning of Gome sports and Wanquan Road store, there was an old man who was holding the hand of Li Yan, general manager of Gome, and asked, "boy, what floor is the color TV on?"

Despite such embarrassment, Gome sports still need to use the "Gome" brand.

"I can't go to beautify the country."

Li Yan, who has worked in Gome for over ten years and has rich experience in retailing, suddenly returned to Beijing on a business trip in 2009, which has aroused the burden of Gome sports. He is also the first employee of Gome sports.

"Without the two words of Gome, Gome sports may be an innovation group, not a company."

Li Yan believes that the brand value of Gome has a profound impact.

However, he also admitted that although Gome sports copied Gome's mode, there are still many differences between selling and selling electric appliances.

"Gome sports and Gome are two industries under the same brand, one is sales resistant products, the other is fast selling products. Gome sports is a new retail field that is parallel with Gome."

Li Yan admitted that after a year's operation,

For the operation of Gome sports, Li Yan expects the first store to make profits in the autumn of 2011, and the second shops are expected to make profits at the end of the year.

As a new version of the Wong Kwong Yu family in Gome, will Gome sports become the capital platform of Huang Jia Xin? For the future plan in the capital market, Li Yan, general manager of Gome, said that it was not so far away, and the opening time of the two shops was still less than one year.