Gome Wants To Play Sports

Wong Kwong Yu family obviously has a wealth of retail experience. They believe that copying another Gome in the sports industry may not be a difficult task.

Gome Sports

Now, the news of Gome sports is finally available in the media, but it is not about opening new stores, but about management leaving.

A few days ago, including the Gome Sports General Manager Li Yan, brand director Li Li and other high-level companies have left, they all said that leaving is for "personal reasons", and earlier left the company's deputy general manager Bai Guangli is currently working in the company's logistics company.

What happened was related to the turmoil in the past.

Almost at the same time Chen Xiao left, the Wong Kwong Yu family began to adjust the board and management team of Gome.

Although Gome sports and Gome are two independent companies, Wong Kwong Yu sister and Peng run investment chairman Huang Xiuhong holds 80% stake in Gome sports, Gome Appliance Co Beijing (Gome non listed business) occupies the remaining 20% - but in fact, Gome sports can not stay out of this dispute.

The most direct link is Gome sports management almost all come from GOME.

For example, Li Yan served as IT Secretary of Gome and general manager of Gome, Suzhou.

Therefore, there is a possibility.

But for the Huang family, they need to adjust more than management.

Gome sports initially established a good vision for its own, a super large store, e-commerce, directory Direct Mail mode, and the help of Gome's members and logistics resources.

When announcing the large-scale shop plan, Gome sports judgement is that the market is characterized by the scale of 100 billion scale, the annual growth rate and two times the gross profit margin of the home appliance retail industry. The most important thing is that there is no large-scale famous sports chain brand in the country. At that time, the monthly sales volume of Gome sports stores has reached 4 million yuan, and the total revenue of the new stores in 2011 will be 1 billion yuan.

But now that seems too optimistic.

According to NetEase financial channel, Gome sports performance is very bad at present: two stores in Beijing are between 4000 and 5000 square meters, but there are few customers. The daily sales volume of each store is only around 10000 yuan, even paying the rent is not enough.

Management should be responsible for this, leaving the theory relevant.

But what is uncertain now is whether the beginning of a bad start will affect the judgement of the Wong Kwong Yu family. Are they reassessing Gome sports development plan?

Gome sports shop sells sports products including fashion, outdoor, extreme, technology and competitive sports. Its sports are large sports goods supermarkets. In shops, goods are not classified according to traditional brands, and are displayed on sports category.

There are also different experience zones in the store, such as the 7 meter high climbing wall, the international standard 18 hole golf simulation field and so on.

The closest thing to Gome sports is the sporting goods supermarket Decathlon from France, but the difference is that Decathlon is more like IKEA, which sells mainly its own brand, while Gome sports needs more dealings with sporting goods manufacturers and distributors.

Although Gome does have the brand, management, resources, network, capital and talent advantages in the retail sector, sports is another industry that is different from Huang's familiarity with electrical appliances.

Gome's strong position for suppliers stems from its size.

But the way that Gome expands is not applicable to the sports industry.

Gome sports can not roll up funds like Gome.

In the field of electrical appliances, Gome can collect entry fees, and can also take up suppliers' payment in the form of elongated accounts.

With these entry fees and suppliers' payment, Gome can start rolling shop.

But this model is hard to work in the sports industry.

In this industry, there is no entry fee, Gome sports also therefore declares that no entry fee is charged. Moreover, unlike the electric appliance industry, the sports goods manufacturers implement the futures mode, and each year, two large orders will be held. Dealers will have to place an order in advance for half a year.

However, the way of direct docking between factories and stores that Gome sports is committed to is still in the trial stage for manufacturers.

Moreover, in the light of Gome's practice of exploiting suppliers after gaining a dominant position in the industry, sporting goods manufacturers will also be afraid to cooperate with Gome sports.

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Beijing Da Xin Sports Develops Ltd (hereinafter referred to as Daxin sports) is China's largest golf product dealer, and also has its own golf products brand. It is one of the first suppliers of Gome sports cooperation.

Gome was originally responsible for the purchase of audio products, representing the Gome sports and Daxin sports negotiations. The former promised that Gome sports did not receive entry fees, and sales promotions were also staffs of Gome sports, and the commitment period was 7 days, and no other items such as margin were charged.

But there are still concerns about Daxin sports.

A person who did not want to be named said that he had worked with Gome for many years in mobile phone business, but that experience was not very pleasant. At the beginning, Gome also had a 7 day account for mobile phone suppliers, but then adjusted to 30 days, followed by 60 days, and other expenses and articles were also increasing.

Moreover, in the sports industry, large dealers have built up a strong barrier.

When Gome sports opened, the traditional sporting goods dealers had opened their stores to every corner.

The largest two are BELLE international and Taiwan Baocheng. The former is Nike and Adidas's largest agent in China. Its sports chain brand has more than 3200 stores in the country, while the latter is the world's largest sports shoe manufacturer, with the brand of Sheng Dao, and now has more than 8500 joint ventures and franchises.

This scale advantage allows them to get more discounts at the order meeting.

"In the field of 3C, the channel is more powerful, but the manufacturers and large dealers in the sports industry have stronger control power, and Gome has no advantage."

The head of Daxin sports said.

To build an advantage, Gome sports need to have a certain scale, but because there is no entry fees, the original account strategy is also difficult to work. To expand the scale, we need to rely on our own funds.

If we want to achieve the 27 store opening plan this year, the Wong Kwong Yu family expects to invest 300 million yuan at most.

But it is not clear whether they are confident enough to take a risk now.