Appliance retailer Gome reveals three-year plan
Appliance retailer to expand in second-tier cities and diversify its web commerce, but critics fear three-year strategy comes too late
Is electrical appliance retailer Gome merely following its rivals or will its new internet-driven strategy truly jolt it out of the doldrums?
China's second-largest home appliance chain operator has rolled out a three-year strategy to increase its presence in lower-tier cities and expand into online food and cosmetics sales.
Yet some analysts doubt how much the new strategy would help the loss-making retailer.
The Beijing-based company is making major strategic changes over the next three years to catch up with its rivals, such as Suning Appliance and online shopping portal 360buy.
Wang Junzhou, president of the company, said Gome plans to open 200 stores next year in second-tier cities and adopt new models to work with suppliers.
E-commerce business will be placed on the same footing as bricks-and-mortar shops and the product mix will be expanded from home appliances to baby-and-mother items, cosmetics, food and beverage as well as healthcare products.
Wang added that Gome's 1,000-plus street stores will also expand their product mix, in the mould of online shops, in future.
