Monday, July 26, 2010

Who made the prosperity of reduced memory Zhongguancun



Each of 20 shops, have a close leave. This is the Zhongguancun electronics store - the nation's largest consumer electronics distribution center, now presented in a recession: Flow reduction, volume reduction, people go counter space.

Storms, the computer and other IT products at one time a year earlier profit fell 4 percentage points, and even the world's semiconductor giants China Taiwan UMC and SMIC is also a huge loss.

According to the survey, China had Qicheng people affected by the financial crisis, coupled with the stock plunged, housing prices decline, high unemployment rate increase, many consumers began to Wujin purse for the winter, as a non-necessities of life electronic products, its sales of natural not optimistic.

Upstream squeeze corporate profits, lower consumer purchasing power continues to decline, on concern lower risk of time, become overwhelming external economic market businesses in Zhongguancun electronics stores the last straw.

On the surface, this collapse of the financial crisis is behind a wave of "murderer", but in my opinion, quietly issued force competitors and that have long business management is the real "Gravedigger."

First, the internal troubles die-hard. For a long time, the price of Zhongguancun store is confusion and lack of integrity is obvious. The industry has eulogized the "buy a computer, to Zhongguancun," long superficial, and now, "Zaike, fake, Kengmengguaipian" Zhongguancun has become synonymous with electronic stores.

In addition, since 2006, Zhongguancun store's rent is almost 15% annual growth rate. Fleece, businesses can not Yingkang rent can only be passed on to consumers.

Therefore, "to deceive one is one, can kill a pair of a pair of" Zhongguancun business have become common psychological. Knowing that fraud makes credit loss, but to a pressing need, they have time to take into account the long-term interests. Means of changing the sales and marketing channels emerging today, Zhongguancun electronic stores starting to prove twilight.

Second, the opponents force. At present, Gome, Dazhong and Suning Appliance and so on from the traditional stores, into a collection of household appliances, computers, mobile phones and other 3C products, a comprehensive shopping mall. And the Zhongguancun model similar to that of Beijing Buynow also open the store, but online shopping has gradually come into fashion. These new sales model for streaming into their rival businesses in Zhongguancun. Large, if not formal B2C website, dispersed remnant-like network of dealers have also launched the Zhongguancun IT store price shocks.

Rome was not built in a day cold. Disorder, falling profits, living hard, these objective reasons, a considerable number of businesses are making false prices, cheating customers; Honesty is word of mouth brought deterioration, traffic reduction, collapse is inevitable. Can be said that the financial turmoil is a failure of Zhongguancun electronics store incentives, the key is the core competitiveness gradually disappear.

Store in response to the decline in the experience of nearly 10 years of rapid development, the Zhongguancun area of Computer City, the rent reduction for the first time, several supermarkets have started to release the product sales price. But this is only a "stop-gap" in the occasional move to improve the business category and business management, upgrade distributors and service quality and brand to resolve the crisis is the root of the problem.

This will need to include the Consumers Association, including multi-store and consumer efforts.







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