Wendy Zhang/ Shanghai Dailynews

The Shanghai Yongle Household Electrical Appliances Co Ltd, one of the leading home appliance retail giants, plans to tap into the building material market, with its first store to open next month, eastday.com reported today.
The first store, with an area of more than 50,000 square meters, will open at the Caobao Road on June 25.
It is just the first step in Yongle's diversified development plan, said Huang Guorong, general manager of Yongle's home furnishing business.
The building material business will develop independently from the home appliance chain business in the future, with the two to support each other, Huang pointed out.
As successive price wars have narrowed profits for home appliance retailers, Shanghai Yongle has begun to seek new engines of growth, he stressed, adding that building material industry has comparatively higher profits.
Last year, the building material market in Shanghai was valued at more than 25 billion yuan (US$3 billion), and if home furnishings and appliances are included, the total value was more than 80 billion yuan, making it the second-largest market, next only to the real estate market.
However, its rivals (Guomei, Suning and Dazong) don't plan to risk following suit.
Many building material retailers such as B&Q and Homemart have already gained success in the sector, so it is hard for a new comer to survive in a mature market, said a spokesman with Guomei.
Yongle wants to use its established sales platform to develop new business, but it will have huge risks, said Pang Yahui, a home appliance expert.