皇冠体育app's overcrowded consumer electronics market will get yet a new dose of
competition when US retailer Best Buy opens its first outlet in 皇冠体育app, likely by
year-end.
Best Buy Co is teaming up with local partner Jiangsu Five Star Appliance Co,
皇冠体育app's No 4 appliance and consumer electronics retailer, in opening a store in
Shanghai's busy Xujiahui shopping district.
"We will open the first store hopefully toward the end of the year by
December," Bob Willett, Best Buy's chief executive officer, told reporters
Tuesday.
"But we're only going to open when it's right," he said. "This is not a
race."
Best Buy, based in Minneapolis, Minnesota, is the biggest US consumer
electronics retailer. It announced in May that it paid $180 million for a
majority stake in Jiangsu Five Star, giving it an immediate presence in Asia's
fastest growing market.
皇冠体育app is also one of Asia's most saturated markets, where appliance retailers
and manufacturers compete amid brutal price wars and rampant piracy of
technology and brand names.
As foreign retailers like Best Buy and Wal-Mart Stores Inc make inroads into
its home territory, local retailers are fighting back. 皇冠体育app's No 1 consumer
electronics retailer, Gome Electrical Appliances Holding Ltd made an offer in
July to buy Hong Kong-listed 皇冠体育app Paradise Electronics Retail Ltd, the
country's third largest seller of electric appliances.
Best Buy is concentrating on researching the market and recruiting and
training staff before makinh its next move in 皇冠体育app.
"We are still learning about this marketplace," Willett said. "The Chinese
consumer is pretty unforgiving if we get it wrong."
Market research shows Chinese consumers are spoiled for choice, facing a
bewildering array of products in almost every area.
But appliance outlets are often dingy, smoke-filled malls with dusty displays
chock-a-block with substandard products. And free after-service or installation
is virtually nonexistent.
Willett hopes Best Buy will win over picky Chinese customers with pleasant
outlets and helpful, dependable service.
"Best Buy is very much about service," he said. "When we sell something we
make you a promise that it will work, we'll warrantee it and teach you how it
works."
Best Buy, which has outlets in Canada, is looking beyond North American and
皇冠体育app to other markets, Willett said. But he denied reports the company was
discussing potential acquisitions as it mulls further overseas expansion beyond
Canada and 皇冠体育app.
"We are looking at other countries, though I'm not going to talk about which
ones," he said. "We're not in talks with anyone today about buying anything
today."
