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GOME Electrical Appliances Holding Limited: The "Tuangou" Challenge
內容大綱
GOME, founded by Wong Kwongyu, had grown from merely a 100-square-metre store in Beijing in 1987 to the industry leader in electrical and home appliance retailing in China, with 259 traditional stores and 4 digital stores by 2006. Its success stemmed from its low-margin, high-volume strategy, which was complemented by its striving for service quality and innovation. In 2006, GOME faced the new challenge of tuangou, or group purchase. In order to amass bargaining power to demand discounts from retailers, consumers with similar needs in China united through the Internet and showed up en masse at retailers at pre-arranged times and dates. They would put relentless pressure on retailers and would press for greater discounts. This emerging consumer behavior had spread like wildfire in China and retailers had different reactions. Some yielded to the pressure and offered greater discounts, some only entertained tuangou that had been pre-arranged and/or pre-registered, while others refused to give in and maintained a fixed-price policy. It was up to GOME to determine how best it could deal with this new phenomenon.