Yongle taps digital communications market
16/2/2004 13:06
The Shanghai Yongle Household Electrical Appliances Co Ltd will
open its first digital communications specialty store next month, with the
number of such stores expected to reach 50 this year, the Shanghai Morning Post
reported today.
Such stores will mainly sell mobile phones, digital cameras
and digital videos.
Yongle will replace the original sign 'L' by 'YOLO', and
plans to raise the number of its chain stores in Shanghai to 50 this
year.
Yongle boasted 6.5 billion yuan in sales volumes in Shanghai last year.
Yongle's move aims to claim 11 billion yuan (US$1.3 billion)-valued market
shares in the local household appliances market this year, an industry analyst
pointed out.
Digital products are one of the most profitable products in the
IT market, and for Japanese household retailers, sales of computers and digital
products account for 40 percent of their total sales revenues, the analyst
said.
The traditional household appliances market in Shanghai is valued at 12
billion yuan to date, and the comprehensive household appliance market value is
expected to reach 20 billion yuan if including the 4-billion-yuan handset market
and 4.8-billion-yuan digital and IT product market, according to data.
To
date, household appliances hypermarkets' foray into the digital product market
has a little impact on the traditional IT specialty stores, and those
hypermarkets should be cautious of the different sales channels, manufacturers
and service institutes in operating digital products, the analyst said.
The
Guomei Electronics Appliances Co Ltd and Nanjing Suning Electric Appliances
Group, the other two leading household appliances retailers, are also planning
to tap the digital communications product market in Shanghai.
Wendy Zhang/ Shanghai Daily news
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