Consumer electronics in China

"Changes Are in Store for China's Electronics Retailers: Which Model Will Win?"

This article from the Chinese edition of Knowledge@Wharton provides an interesting case study of doing business in China. U.S. consumer electronics retailer Best Buy recently announced expansion plans in China. Currently, the company operates 6 stores in Shanghai, 1 in Beijing, and another 150 outlets through a Chinese subsidiary. The Best Buy sales model is in direct contrast to the sales model used by its two major competitors, Gome Appliance and Suning Appliance. Best Buy sells a variety of competing brands using its own trained sales staff. Gome and Suning both use a store-within-a-store model, where manufacturers hire their own staff and then sell their products within their designated store space. The entry and expansion of Best Buy is bringing even more change to the changing consumer electronics marketplace in China. "At stake is a large -- and growing -- consumer market that was worth US$120 billion in China last year."