Shanghai Gome Liu Yonggang: A New Blue Sea In The Red Sea Of Home Appliances

Born in the late 70s of last century. Liu Yong Gang It is 70 after all, but it is the more than 30 year old young man who controls the dozens of stores in Gome in Shanghai. In a short span of one year, the sales target completion rate of Gome in Shanghai is ranked first from the top of the Gome group. This achievement led Shanghai Gome to win the "Golden Eagle Award" of the highest award within the group, and also firmly occupy the leading position in Shanghai's home appliance retail industry. The secret lies in Liu Yonggang's "blue sea" which has been opened up from the Red Sea.

Dare to challenge the malpractice of the industry, this is Liu Yonggang's "killer weapon". The space of home appliance industry is large, but the competition is fierce. Price war is common. If we can not "go against the sword", even if we compete with our competitors, we will lose profits. Therefore, since Liu Yonggang served as general manager of Gome in Shanghai, the first thing to do is to change some irregular practices in the industry and strengthen credit management. At the moment, consumers can receive Gome SMS when they buy goods in Gome, and clearly understand the relevant information about the information they buy, the common sense of household appliances and so on. These services are aimed at changing the disadvantages of the original "heavy selling, light service" industry. At the same time, Gome does not evade the advantages of "foreign monks" such as Wan de Cheng in experience service, increase and strengthen the interactive links in sales, so that consumers can have a better understanding of the performance and price of products, help consumers to "clearly consume", and use these new services to gather popularity.

Accurate market control is Liu Yonggang's second secret. Liu Yonggang, who was first known to him, was usually hard to believe that he was after 70, because he had a steady look on his body. After being familiar with it, we can find Liu Yonggang's young people's aggressive, especially in the market development, especially "impulsive". For example, in the Zhongshan Park business district, the layout of Gome is very strange: there are two stores on the north and south sides of Changning Road, but over 100 meters away. In the whole industry, it is just the same thing to open two brands of appliance stores across the street. He admitted that the decision of the company was controversial at the beginning because he was in the Red Sea, and how to fight it? But after careful investigation of the distribution and sales of people in the Zhongshan Park business district, he found that the layout of the "Gemini" across the street is convenient for consumers to enter and exit, not only will they not "fight inside the street", but also can return the people who had gone to other stores to the stores of Gome. At the same time, with the change of consumption trend, the original stores have restrictions on the business area and product category, and the layout of Gemini can enrich the product line and better meet the needs of consumers. Indeed, under his strategizing, the sales of Gemini on the day of sale were over 100 million yuan.

At the same time, strengthening social responsibility and giving feedback to society through various forms of marketing are Liu Yonggang's rather important "alternative marketing". Marketing methods such as "letting profits" and "discounts" are not uncommon in home appliance retail business. Although producers and dealers have squeezed their profit margins, many consumers seem to be "gimmicks" over substance. Therefore, Liu Yonggang put forward that giving feedback to the society should enable consumers to feel that the social responsibility of enterprises should also be done in a real way. For example, during the teachers' day last year, Gome pioneered donation marketing mode, donated 5 million yuan to the city education development foundation, subsidized the city's teachers to buy appliances, and the average subsidy per household appliance was 10%. This practice has attracted much public attention and has been widely praised. Liu Yonggang said, "now, the promotion of Gome is based on the position of the common people. For example, we launched the activity of giving back to old customers. All consumers who hold the old invoices of Gome can spend 200 yuan in cash with old invoices, without any additional conditions. This kind of real discount can be known to the public at a glance.

For the current Shanghai home appliance retail market, Liu Yonggang is still optimistic: "far from saturated." Urban sub centers, suburban new towns and so on have fast-growing consumer groups, and they may become the next "blue ocean". He disclosed that Shanghai Gome will open at least 20 new stores in 2011. Among them, there are 10 new flagship stores in the urban area, and 10 to 20 new stores in the suburbs. And these stores will continue his "Blue Ocean Strategy" to provide consumers with better shopping experience.