Metro and Foxconn join hands to enter 3C stores, which may achieve a win-win situation
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On May 20, Metro, the world's third largest wholesale and retail group, announced in Shanghai that it would launch the "Media Market" retail brand of consumer electronics retail stores in China, and planned to open its first store in Shanghai in October this year. The shareholding ratio of the joint venture company of "Media Market" electrical appliances is as follows: Metro Group and the founder family of Media Market's parent company jointly hold 75% of the shares, and Foxconn Technology Group holds the remaining 25%. Metro and Foxconn will also jointly invest US$200 million in advance to establish a joint venture company to expand stores. Li Xuerong, a researcher in the circulation industry at China Investment Consulting, believes that the cooperation between Metro and Foxconn is an opportunity for both parties and is in line with the strategic planning of both parties. The Chinese market is an important strategic market for Metro's growth opportunities, and cooperation with Foxconn is conducive to the operation of Metro's own brands. For Foxconn, opening up the 3C channel is very important. Although it has tried many times, the results are not good. Cooperation with Metro may help it open up the domestic market. Media Markt is an electrical appliance chain distributor under the Metro Group. The supermarket is the largest electronics store in Europe and currently has 768 stores in 16 European countries. China will be the 17th overseas market that Media Market will enter. At present, the competition in the domestic 3C market is already very fierce. Metro has brought its consumer electronics chain Media Market to China for the first time, and plans to have 10 stores in Shanghai in 2012 and no less than 100 stores nationwide in 2015. This shows that Western companies are very optimistic about China's future consumer market and are full of confidence in China's rapid development and high growth potential. What are Metro's advantages in the face of strong competitors such as Gome and Suning? Foreign-funded enterprises have always attached great importance to multi-faceted innovation and continuous attempts and breakthroughs. Private brands will be one aspect of their differentiated operations. Private brands account for a certain proportion of large foreign supermarkets. For example, more than 90% of the goods sold by Sears in the United States are private brands. Carrefour in France, Marks & Spencer in the United Kingdom, and Daiei in Japan are all well-known for their successful operation of private brands. In comparison, the development of private brands of domestic retail enterprises is still far behind that of foreign supermarkets. If private brands operate well in China, they will undoubtedly become a major advantage and highlight in competing with domestic enterprises. As the king of OEM, Foxconn is very eager to establish its own huge channel system to gain more initiative, but it lacks experience in channels. Although it has Cyber Digital and Hongliduo, their influence is relatively small. Cooperation with Metro can not only promote products through Metro's brand, but also become an OEM for Metro's first-line brands and private brands, and can also grasp the sales of various products in real time and feedback to production in a timely manner. |
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