Gome Group, following the announcement in March this year that it will invest 1 billion yuan in the “Golden Capital†of the Gome platform, its physical gold jewelry store will also open in Beijing tomorrow. It is reported that the multilateral gold capital super gold jewelry MALL is located in the Beijing West Third Ring Central Television Tower.
In the past few months, the multilateral gold has been displayed in the form of counters in the Gome store, and this time, 3,500 square meters of gold will be sold separately in the Dazhong Electric Zhongta store under the Gome. On March 18 this year, Gome Holdings Group announced an investment of 1 billion yuan to launch a new one-stop gold sales platform for the new business. Yingchi, the president of Multilateral Jindu, served as the special assistant of Huang Guangyu, the former chairman of Gome Electrical Appliances. It can be seen that the gold sales business is not in the position of Gome Group.
For Gome, selling gold is by no means the best business of its kind. How can it occupy a place in today's highly competitive gold retail market?
Judging from the sales strategy of the multilateral Jindu, it is replicating the “loss-for-scale†business model that Gome has succeeded in the field of home appliances. Earlier media reports said that in order to ensure low prices, Gome allowed multilateral gold to lose 100 million yuan each year and win the market in three years. In 2013, the total retail consumption of Chinese jewellery products exceeded 470 billion yuan, of which gold consumption accounted for a relatively high proportion, close to 1,200 tons (equivalent to 300-350 billion yuan), an increase of more than 20%.
Chinese consumers have great demand for gold products, and the gold industry is very optimistic. However, due to the popularity of the gold market, the competition is fierce. Like the famous gold jewellery brands in more than a dozen markets such as Chow Tai Fook and Laomiao Gold, the annual sales of gold products total 100 billion-200 billion yuan, accounting for about one-third of the entire market, and are still expanding, Gome If you only play a price war, it may not be enough to win the market.
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