Consumer Appliances & Electrronics Retailing in China 2009: A Market Analysis

Consumer Appliances & Electrronics Retailing in China 2009: A Market Analysis

REPORT COVERAGE


This report covers the market retailing of consumer electronics and white goods in China. The following consumer electronics sectors are included:

All colour TV
Set-top satellite/cable decoder boxes
Video cameras/camcorders
Digital cameras
DVD players
Digital photo frames
Home audio & HiFi
In-car entertainment
GPS
Portable audio

The following white goods sectors are included:

Sewing machines
Cookers
Microwave ovens
Washing machines
Dryers
Air conditioners
Cooling fans
Fridge-freezers
Freezers
Refrigerators
Dishwashers
Water heaters
Electric showers
Water dispensers

February 2009: available as MS Word and PDF documents.
183 pages: Price: £1,100.00 / US$ 1,650.00



KEY REPORT FEATURES


This recently updated report includes:
• An overview of China’s total non-food market with sales statistics up to 2008;
• The total value of the white goods market, including subsector breakdowns, up to 2008;
• Value white goods provincial and urban/rural breakdown, up to 2008;
• Volume & value forecast the white goods market in China up to 2013;
• The total value of the consumer electronics market, including subsector breakdowns, up to 2008;
• Value consumer electronics provincial and urban/rural breakdown, up to 2008;
• Volume & value forecast the consumer electronics market in China up to 2013;
• Appliance & electronics retail market background;
• Marketing & distribution;
• The key retailers compared
• SWOT analysis
• Key retailer profiles
• Key contacts & trade events;
• Overview of China’s demographics and macroeconomics.


Executive Summary


China remains the world’s fastest growing large economy, and foreign investors and marketers continue to scope the country for new ways into the growing wallets of Chinese consumers. The truth, of course, is that China is a tough market anyway, and none perhaps is tougher than electronics and appliances retailing. Tough, because the competition is so fierce, margins so tight and, until recently, the available market was shrinking.

The rural rebate scheme for reduced price goods to rural consumers has made the available market a lot bigger though, over the past few years. Recent estimates of the 2009 Chinese New Year retail figures show that the scheme is beginning to have a significant effect. Official estimates for the CNY period show sales of household electric appliances grew by 17.8% over the same period in 2008.

Margins may be tight, but when volume sales are surging ahead like this, the retailers and manufacturers continue to have scope to make a profit, and this is keeping the overall market very much alive. New entrants are still appearing within the market, and the specialist retailers continue to be forced to share the market with non-specialists, such as department stores, online retailers and others.

This sector of the retail market is important beyond its own borders. It has produced the largest retail companies in China, by turnover, and their significance within the wider retail market, and the overall consumer economy of China, cannot be ignored.

Table of Contents


INTRODUCTION 1
Report Coverage 1
Executive Summary 2
China’s Retail Statistics: A Cautionary Note 2
The Problems With Chinese Retail Data? 2
What Does All This Mean Practically? 3
Figure A CHINA TOTAL & PER CAPITA RETAIL SALES COMPARED TO OTHER ASIAN COUNTRIES, 2005 4
Other Access Asia Reports of Possible Interest 7
Free Online Newsletter & Editorials 7
1 CHINA’S OVERALL RETAIL MARKET 8
1.2 China’s Total Non-food Market 8
1.2.1 Total Non-food Market: Food & Non-food Sales 8
Table 1.1 TOTAL CURRENT VALUE RETAIL SALES BY FOOD AND NON-FOOD, 2002-2008 8
1.2.2 Total Non-food Market: Food/Non-food Split 8
Table 1.2 % BREAKDOWN OF SALES BY FOOD AND NON-FOOD, 2002-2008 8
1.2.3 Total Non-food Market: Urban-Rural Split 8
Table 1.3 TOTAL CURRENT VALUE RETAIL SALES BY FOOD & NON-FOOD, 2002-2008 9
1.2.4 Total Non-food Market: Total Value Trends 9
Table 1.4 CURRENT VALUE OF TOTAL RETAIL NON-FOOD SALES BY MAJOR PRODUCT CATEGORY, 2002-2008 10
1.2.5 Total Non-food Market: Urban Value Trends 10
Table 1.5 URBAN RETAIL NON-FOOD SALES CURRENT VALUE BY MAJOR PRODUCT CATEGORY, 2002-2008 11
1.2.6 Total Non-food Market: Rural Value Trends 11
Table 1.6 VALUE OF RURAL RETAIL NON-FOOD SALES CURRENT VALUE BY MAJOR PRODUCT CATEGORY, 2002-2008 12
2 CHINA’S WHITE GOODS MARKET 13
2.1 Overview 13
2.2 Total White Goods Market 13
2.2.1 Total White Goods Market: Total Market Size 13
Table 2.1 TOTAL VOLUME & CURRENT VALUE RETAIL MARKET FOR WHITE GOODS, 2002-2008 13
2.2.2 Total White Goods Market: Non-food Market Significance 14
Table 2.2 WHITE GOODS RETAIL SALES AS A % OF TOTAL RETAIL NON-FOOD SALES, 2002-2008 14
2.3 Sector Breakdown 14
2.3.1 Sector Breakdown: Sector Values 14
Table 2.3 CURRENT VALUE RETAIL SALES OF WHITE GOODS BY SECTOR, 2002-2008 15
2.3.2 Sector Breakdown: Value Sector Shares 16
Table 2.4 % BREAKDOWN OF CURRENT VALUE RETAIL SALES OF WHITE GOODS BY SECTOR, 2002-2008 16
2.3.3 Sector Breakdown: Value Growth Rates 16
Table 2.5 % ANNUAL GROWTH FOR CURRENT VALUE RETAIL SALES OF WHITE GOODS BY SECTOR, 2002-2008 16
2.3.4 Sector Breakdown: Sector Volumes 16
Table 2.6 RETAIL MARKET VOLUME SALES OF WHITE GOODS BY SECTOR, 2002-2008 17
2.3.5 Sector Breakdown: Volume Sector Shares 17
Table 2.7 % BREAKDOWN OF RETAIL SALES OF WHITE GOODS VOLUME SALES BY SECTOR, 2002-2008 17
2.3.6 Sector Breakdown: Volume Growth Rates 18
Table 2.8 % ANNUAL GROWTH FOR VOLUME RETAIL SALES OF WHITE GOODS BY SECTOR, 2002-2008 18
2.4 Urban & Rural Sales of White Goods in China 18
2.4.1 Urban & Rural Market: Total Sales 18
Table 2.9 THE RETAIL MARKET FOR WHITE GOODS BY URBAN & RURAL SALES IN CHINA, 2002-2008 18
2.4.2 Urban & Rural Market: Growth Rates 18
Table 2.10 % GROWTH OF THE RETAIL MARKET FOR WHITE GOODS BY URBAN & RURAL MARKETS IN CHINA, 2002-2008 19
2.5 Regional Markets 19
2.5.1 Regional Markets: Regional Value 19
Table 2.11 RETAIL WHITE GOODS CURRENT VALUE SALES BY PROVINCE, 2002-2008 19
2.5.2 Regional Markets: Per Capita Values 20
Table 2.12 PER CAPITA RETAIL WHITE GOODS SALES VALUES BY PROVINCE, 2002-2008 20
2.5.3 Regional Markets: Regional Volume 21
Table 2.13 RETAIL WHITE GOODS CURRENT VOLUME SALES BY PROVINCE, 2002-2008 21
2.5.4 Regional Markets: Per Capita Volumes 22
Table 2.14 PER CAPITA RETAIL WHITE GOODS SALES CURRENT VOLUMES BY PROVINCE, 2002-2008 22
2.6 White Goods Market Outlook 23
Table 2.15 FORECAST VOLUME & VALUE SALES OF WHITE GOODS BY SECTOR, 2009-2013 23
3 CHINA’S CONSUMER ELECTRONICS MARKET 24
3.1 Overview 24
3.2 Total Consumer Electronics Market 24
3.2.1 Total Consumer Electronics Market: Total Market Size 24
Table 3.1 TOTAL VOLUME & CURRENT VALUE RETAIL MARKET FOR CONSUMER ELECTRONICS, 2002-2008 25
3.2.2 Total Consumer Electronics Market: Non-food Market Significance 25
Table 3.2 CONSUMER ELECTRONICS RETAIL SALES AS A % OF TOTAL RETAIL NON-FOOD SALES, 2002-2008 26
3.3 Sector Breakdown 26
3.3.1 Sector Breakdown: Sector Values 26
Table 3.3 CURRENT VALUE RETAIL SALES OF CONSUMER ELECTRONICS BY SECTOR, 2002-2008 27
3.3.2 Sector Breakdown: Value Sector Shares 28
Table 3.4 % BREAKDOWN OF CURRENT VALUE RETAIL SALES OF CONSUMER ELECTRONICS BY SECTOR, 2002-2008 28
3.3.3 Sector Breakdown: Value Growth Rates 29
Table 3.5 % ANNUAL GROWTH FOR CURRENT VALUE RETAIL SALES OF CONSUMER ELECTRONICS BY SECTOR, 2002-2008 29
3.3.4 Sector Breakdown: Sector Volumes 29
Table 3.6 RETAIL MARKET VOLUME SALES OF CONSUMER ELECTRONICS BY SECTOR, 2002-2008 30
3.3.5 Sector Breakdown: Volume Sector Shares 30
Table 3.7 % BREAKDOWN OF RETAIL SALES OF CONSUMER ELECTRONICS BY SECTOR, 2002-2008 30
3.3.6 Sector Breakdown: Volume Growth Rates 31
Table 3.8 % ANNUAL GROWTH FOR VOLUME RETAIL SALES OF CONSUMER ELECTRONICS BY SECTOR, 2002-2008 31
3.4 Urban & Rural Sales 31
3.4.1 Urban & Rural Sales: Total Sales 31
Table 3.9 THE RETAIL MARKET FOR CONSUMER ELECTRONICS BY URBAN & RURAL SALES IN CHINA, 2002-2008 31
3.4.2 Urban & Rural Sales: Growth Rates 32
Table 3.10 % GROWTH OF THE RETAIL MARKET FOR CONSUMER ELECTRONICS BY URBAN & RURAL SALES IN CHINA, 2002-2008 32
3.5 Regional Markets 32
3.5.1 Regional Markets: Regional Value 32
Table 3.11 RETAIL CONSUMER ELECTRONICS CURRENT VALUE SALES BY PROVINCE, 2002-2008 32
3.5.2 Regional Markets: Per Capita Values 33
Table 3.12 PER CAPITA RETAIL CONSUMER ELECTRONICS SALES CURRENT VALUE SALES BY PROVINCE, 2002-2008 33
3.5.3 Regional Markets: Regional Volume 34
Table 3.13 RETAIL CONSUMER ELECTRONICS CURRENT VOLUME SALES BY PROVINCE, 2002-2008 34
3.5.4 Regional Markets: Per Capita Volumes 35
Table 3.14 PER CAPITA RETAIL CONSUMER ELECTRONICS VOLUME SALES BY PROVINCE, 2002-2008 35
3.6 Consumer Electronics Market Outlook 36
Table 3.15 FORECAST VOLUME & VALUE SALES OF CONSUMER ELECTRONICS BY SECTOR, 2009-2013 36
4 APPLIANCE & ELECTRONICS RETAIL INDUSTRY BACKGROUND 37
4.1 Market Parameters 37
4.1.1 Market Parameters: Home Ownership 37
4.1.2 Market Parameters: Per Capita Living Space 38
Table 4.1 PER CAPITA AVERAGE FLOOR SPACE & AVERAGE ROOMS PER HOUSEHOLD IN CHINA BY PROVINCE, 2006-2008 38
4.1.3 Market Parameters: Total Residential Floor Space 39
Table 4.2 TOTAL FLOOR SPACE OF RESIDENTIAL BUILDINGS BY PROVINCE, 2000 39
Table 4.3 TOTAL FLOOR SPACE OF RESIDENTIAL BUILDINGS BY PROVINCE, 2007 40
4.2 Current Issues 40
4.2.1 Current Issues: Manufacturers Plunge Into Retailing 40
Table 4.4 GOME ELECTRICAL APPLIANCES HOLDING LTD.: INCOME FROM SUPPLIERS, 2Q-4Q 2004 – 1H 2008 40
4.2.2 Current Issues: Rural Appliance Rebate Program 41
Table 4.5 PER CAPITAL NET INCOME OF RURAL HOUSEHOLDS, 2006-2007 42
Table 4.6 DURATION OF RURAL APPLIANCE REBATE SCHEME 42
Table 4.7 MAXIMUM PRICE & ITEM FOR PURCHASE IN RURAL APPLIANCE REBATE SCHEME 42
Table 4.8 NUMBER OF ITEMS IN RURAL APPLIANCE REBATE SCHEME 43
Table 4.9 RURAL APPLIANCE REBATE PROGRAM: COLOUR TV, 2007-2008 44
Table 4.10 RURAL APPLIANCE REBATE PROGRAM: REFRIGERATOR, 2007-2008 44
Table 4.11 RURAL APPLIANCE REBATE PROGRAM: FREEZER, 2007-2008 44
Table 4.12 RURAL APPLIANCE REBATE PROGRAM: MOBILE PHONE, 2007-2008 44
Table 4.13 RURAL APPLIANCE REBATE PROGRAM: COLOUR TV, 2008 45
Table 4.14 RURAL APPLIANCE REBATE PROGRAM: WASHING MACHINE, 2008 46
Table 4.15 RURAL APPLIANCE REBATE PROGRAM: REFRIGERATOR, 2008 47
Table 4.16 RURAL APPLIANCE REBATE PROGRAM: FREEZER, 2008 48
Table 4.17 RURAL APPLIANCE REBATE PROGRAM: MOBILE PHONE, 2008 48
Table 4.18 PER 100 RURAL HOUSEHOLD OWNERSHIP OF WASHING MACHINE, REFRIGERATOR, COLOUR TV, MOBILE PHONE & AIR CONDITIONER, 2007 49
Table 4.19 PER 100 RURAL HOUSEHOLD OWNERSHIP OF WASHING MACHINE, REFRIGERATOR, COLOUR TV & AIR CONDITIONER, 2006 49
Table 4.20 VOLUME SALES OF RURAL APPLIANCE REBATE SCHEME, UP TO MAY 2008* 50
Table 4.21 TOP THREE BRAND SHARE OF RURAL APPLIANCE REBATE SCHEME IN SHANDONG, UP TO 25 MAY 2008 50
4.2.3 Current Issues: Foreign Retailers Facing Dim Prospect But Not Without Hope 52
4.2.4 Current Issues: Online Scene Promising But Small 52
Table 4.22 360BUY JINGDONG MALL: FINANCIAL RESULTS, 2004-2008 53
4.2.5 Current Issues: Coping With Slowdown 54
4.2.6 Current Issues: Mounting Electronic Waste 54
4.2.7 Current Issues: Extended Producer Responsibility 55
5 MARKETING & DISTRIBUTION 58
5.1 Marketing & Advertising 58
5.1.1 Marketing & Advertising: Trends 58
Conventional Media Advertising 58
Table 5.1 ADVERTISING EXPENDITURE IN CHINA, 2004-2007 58
Online Advertising 59
Table 5.2 ONLINE ADVERTISING EXPENDITURE IN CHINA, 2004-2007 59
5.1.2 Marketing & Advertising: Leading Advertised Product Categories 60
Table 5.3 TOP 10 ADVERTISING CATEGORIES IN CHINA, 2007 60
5.1.3 Marketing & Advertising: Leading Advertised Brands 60
Table 5.4 TOP 10 ADVERTISING BRANDS IN CHINA, 2007 60
5.1.4 Marketing & Advertising: Leading Advertisers 60
Table 5.5 CHINA’S TOP TEN ADVERTISERS, 2004-2006 61
5.1.5 Marketing & Advertising: The Prime-time Advertising Auction 61
Table 5.6 PRIME-TIME ADVERTISING AUCTION ON CHINA’S CCTV, 2000-2009 61
5.1.6 Marketing & Advertising: Brand Preferences Choice Factors in China 62
Age & Location 62
Table 5.7 BRAND PREFERENCES IN TERMS OF AGE GROUPS & LOCATIONS IN CHINA, 2007 62
Quality Versus Image 62
Table 5.8 FACTORS DETERMINING BRAND CHOICES IN CHINA, 2007 62
Local Versus Foreign 63
Table 5.9 BRAND PREFERENCES IN CHINA, 2007 63
“Chameleon” Brands 63
Table 5.10 TOP CHAMELEON BRANDS IN CHINA, 2008 64
5.1.7 Marketing and Advertising in China: Brand Equity 64
5.1.8 Marketing & Advertising: Emerging Local Brands 65
Table 5.11 CHINA’S MOST VALUABLE BRANDS, 2007/2008 65
5.1.9 Marketing & Advertising: Pricing Issues 66
Table 5.12 CONSUMERS WHO TRADE UP OR DOWN BY INCOME SEGMENTS, 2007 66
Table 5.13 CONSUMERS WHO TRADE UP OR DOWN BY CATEGORIES, 2007 67
5.1.10 Marketing & Advertising: Online Sales 67
Table 5.14 TOP ONLINE SHOPPING TRANSACTION BY REGION, 2007 68
Table 5.15 TOP REASONS FOR NOT SHOPPING ONLINE, 2007 68
5.2 Consumers 69
5.2.1 Consumer Profile: Broad Consumer Trends 69
5.2.2 The Chinese Consumer: Urban Profile 69
Table 5.16 URBAN HOUSEHOLD OWNERSHIP OF MAJOR DURABLE CONSUMER GOODS, 2001-2007 70
5.2.3 The Chinese Consumer: Rural Profile 71
Table 5.17 RURAL HOUSEHOLD OWNERSHIP OF MAJOR DURABLE CONSUMER GOODS, 2001-2007 71
5.3 Key Sales Periods 72
5.3.1 Key Sales Periods: Overview 72
Table 5.18 ANNUAL NATIONAL HOLIDAYS 72
Table 5.19 MAJOR HOLIDAY RETAIL SALES, 2005-2009 72
5.3.2 Seasonal Retail Trends: Consumer Electronics & White Goods 72
Graph 5.1 QUARTERLY REVENUE GROWTH OF GOME & SUNING, FIRST QUARTER 2006 – THIRD QUARTER 2008 73
Graph 5.2 QUARTERLY REVENUE OF GOME & SUNING, FIRST QUARTER 2006 – THIRD QUARTER 2008 73
Graph 5.3 QUARTERLY REVENUE GROWTH & OPERATING PROFIT MARGIN OF GOME & SUNING, FIRST QUARTER 2006 – THIRD QUARTER 2008 74
5.3.3 Seasonal Retail Trends: TV Sales 74
Graph 5.4 SKYWORTH DIGITAL HOLDINGS: CHINA TV MONTHLY SALES VOLUME, 2007 74
Table 5.20 SKYWORTH DIGITAL HOLDINGS: TV SALES BY MONTH, 2007 75
Graph 5.5 SKYWORTH DIGITAL HOLDINGS: CHINA TV MONTHLY SALES VOLUME, 2006 75
Table 5.21 SKYWORTH DIGITAL HOLDINGS: TV SALES BY MONTH, 2006 75
5.4 Retail Distribution of Consumer Appliances & Electronics 76
5.4.1 Retail Distribution: TVs 76
Table 5.22 SALES OF COLOUR TVS BY CHANNEL, 2005 – FIRST HALF 2007 76
Table 5.23 SALES OF TVS AT TIER-THREE & TIER-FOUR MARKETS, 2008 76
5.4.2 Retail Distribution: DVD Players 76
Table 5.24 SALES OF DVD PLAYERS BY SALES CHANNEL, JAN-JUN 2008 76
5.4.3 Retail Distribution: Mobile Phones 77
Table 5.25 SALES OF MOBILE PHONES BY CHANNEL, FIRST QUARTER 2008 & THIRD QUARTER 2008 77
5.4.4 Retail Distribution: Digital Cameras 77
Table 5.26 SALES OF DIGITAL CAMERAS BY CHANNEL, FIRST HALF 2007 & FIRST HALF 2008 77
Table 5.27 FUTURE SALES OF DIGITAL CAMERAS BY CHANNEL 78
5.4.5 Retail Distribution: Computers 78
5.4.6 Retail Distribution: Refrigerators 78
Table 5.28 SALES OF REFRIGERATORS BY CHANNEL, 2004-2007 78
5.4.7 Retail Distribution: Air Conditioners 79
Table 5.29 SALES OF AIR CONDITIONERS BY CHANNEL, 2007 79
Table 5.30 SALES OF AIR CONDITIONERS AT CONSUMER APPLIANCE CHAIN STORES, 2007 79
5.4.8 Retail Distribution: Water Heaters 79
Table 5.31 SALES OF WATER HEATERS (GAS/ELECTRIC) BY CHANNEL, 2008 79
5.4.9 Retail Distribution: Pressure Cookers & Electric Kettles 80
Table 5.32 SALES OF PRESSURE COOKERS BY CHANNEL, 2008 80
Table 5.33 SALES OF ELECTRIC KETTLES BY CHANNEL, 2007 80
6 THE KEY RETAILERS 81
6.1 Key Consumer Appliances & Electronics Retailers 81
6.1.1 Key Consumer Appliances & Electronics Retailers: Leading Revenues & Outlets 81
Table 6.1 CONSUMER APPLIANCES & ELECTRONICS RETAILERS IN TOP 100 RETAILERS LIST, 2003-2007 81
Table 6.2 TOP 20 CONSUMER ELECTRONICS RETAILERS, 2005-2007 82
6.2 Gome Vs Suning 82
6.2.1 Gome vs. Suning: Core Operating Revenue 82
Table 6.3 GOME VS SUNING: CORE OPERATING REVENUE, 2004-2007 & FIRST HALF 2008* 82
6.2.2 Gome vs. Suning: Gross Profit 83
Table 6.4 GOME VS SUNING: GROSS PROFIT, 2004-2007 & FIRST HALF 2008* 83
6.2.3 Gome vs. Suning: Operating Profit 83
Table 6.5 GOME VS SUNING: OPERATING PROFIT, 2004-2007 & FIRST HALF 2008* 83
6.2.4 Gome vs. Suning: Net Profit 84
Table 6.6 GOME VS SUNING: NET PROFIT, 2004-2007 & FIRST HALF 2008* 84
6.2.5 Gome vs. Suning: Profit Margin 84
Table 6.7 GOME VS SUNING: PROFIT MARGIN, 2004-2007 & FIRST HALF 2008* 84
6.2.6 Gome vs. Suning: Other Income 84
Table 6.8 GOME VS SUNING: OTHER INCOME, 2004-2007 & FIRST HALF 2008* 84
6.2.7 Gome vs. Suning: Store Count 85
Table 6.9 GOME VS SUNING: STORE COUNT, 2005-2007 & FIRST HALF 2008* 85
6.2.8 Gome vs. Suning: Revenue Per Store 85
Table 6.10 GOME VS SUNING: REVENUE PER STORE, 2005-2007 & FIRST HALF 2008* 85
6.2.9 Gome vs. Suning: Inventory Turnover Days 86
Table 6.11 GOME VS SUNING: INVENTORY TURNOVER DAYS, 2006-2007* 86
6.2.10 Gome vs. Suning: Gross Profit Margin by Product Category 86
Table 6.12 GOME VS SUNING: GROSS PROFIT MARGIN BY PRODUCT CATEGORY, 2004-2007 & FIRST HALF 2008* 86
6.2.11 Gome vs. Suning: Revenue Breakdown by Product Category 87
Table 6.13 GOME VS SUNING: REVENUE BREAKDOWN BY PRODUCT CATEGORY, 2004-2007 & FIRST HALF 2008* 87
7 SWOT ANALYSIS 88
7.1 Strengths 88
7.2 Weaknesses 88
7.3 Opportunities 88
7.4 Threats 88
8 COMPANY PROFILES 89
8.1 Best Buy Co., Inc./Jiangsu Five Star Appliance Co., Ltd. 89
8.1.1 Best Buy: Company Details 89
8.1.2 Best Buy: China-based Activities 89
Table 8.1 BEST BUY CO., INC.: STORES IN CHINA, DECEMBER 2008 89
8.1.3 Best Buy: Financial Results 90
Table 8.2 BEST BUY CO., INC.: FINANCIAL RESULTS, FISCAL 2005-2008* 91
8.1.4 Jiangsu Five Star Appliance: Company Details 91
Table 8.3 JIANGSU FIVE STAR APPLIANCE CO,, LTD.: STORE COUNT, FISCAL 2006-2Q FISCAL 2009 91
Table 8.4 JIANGSU FIVE STAR APPLIANCE CO,, LTD.: STORE LOCATION, FISCAL 2007-2008 92
8.1.5 Jiangsu Five Star Appliance: Financial Results 93
Table 8.5 JIANGSU FIVE STAR APPLIANCE CO,, LTD.: FINANCIAL RESULTS, 2003-2007* 93
8.2 Dashang Group Co., Ltd. 93
8.2.1 Dashang Group: Company Details 93
8.2.2 Dashang Group: Company Background 93
Table 8.6 DASHANG GROUP CO., LTD.: OWNERSHIP STRUCTURE, 2007 93
8.2.3 Dashang Electric Appliance: Financial Results 94
Table 8.7 DASHANG ELECTRIC APPLIANCE: FINANCIAL RESULTS, 2004-2007* 94
8.3 D.Phone (Dixintong) 94
8.3.1 D.Phone: Company Details 94
8.3.2 D.Phone: Company Background 94
8.3.3 D.Phone: Financial Results 95
Table 8.8 D.PHONE: FINANCIAL RESULTS, 2005-2007* 95
8.4 Gome Electrical Appliances Holding Ltd. 96
8.4.1 Gome: Company Details 96
8.4.2 Gome: Company Background 96
Table 8.9 GOME ELECTRICAL APPLIANCES HOLDING LTD.: STORE COUNT, SALES AREA, 2003 - FIRST HALF 2008 96
TABLE 8.10 GOME ELECTRICAL APPLIANCES HOLDING LTD.: PARENT GROUP OPERATED STORES, 2006 – FIRST HALF 2008 97
Table 8.11 GOME ELECTRICAL APPLIANCES HOLDING LTD.: KEY EVENTS, 1987-2009 97
Table 8.12 CHINA PARADISE ELECTRONICS RETAIL LTD.: REVENUE BY REGION, 2006 98
Table 8.13 CHINA PARADISE ELECTRONICS RETAIL LTD.: REVENUE & STORE COUNT, 2003-2006 98
Table 8.14 GOME ELECTRICAL APPLIANCES HOLDING LTD.: GOME APPLIANCE REVENUE BY REGION, 2005-2006 98
Table 8.15 GOME ELECTRICAL APPLIANCES HOLDING LTD.: SALES REVENUE BY REGION, 2007 99
Table 8.16 DAZHONG HOME APPLIANCES RETAIL CO., LTD.: REVENUE & STORE COUNT, 2005-2006 99
Table 8.17 GOME ELECTRICAL APPLIANCES HOLDING LTD.: BREAKDOWN OF OUTLETS BY STORE FORMAT & MARKET, 2007 - FIRST HALF 2008* 100
Table 8.18 GOME ELECTRICAL APPLIANCES HOLDING LTD.: STORE DISTRIBUTION BY MARKET, 2006 - FIRST HALF 2008 100
Table 8.19 GOME ELECTRICAL APPLIANCES HOLDING LTD.: SAME-STORE SALES GROWTH, 2004-2007 101
Table 8.20 GOME ELECTRICAL APPLIANCES HOLDING LTD.: STORE DISTRIBUTION BY REGION, 2007 - FIRST HALF 2008 101
Table 8.21 GOME ELECTRICAL APPLIANCES HOLDING LTD.: SELF-OWNED PROPERTIES, 2005 – FIRST HALF 2008 102
Table 8.22 GOME ELECTRICAL APPLIANCES HOLDING LTD.: LOGISTICS & DISTRIBUTION CENTRES, 2006-2007 102
Table 8.23 GOME ELECTRICAL APPLIANCES HOLDING LTD.: REPAIR & MAINTENANCE OUTLETS, 2006 – FIRST HALF 2008 102
Table 8.24 GOME ELECTRICAL APPLIANCES HOLDING LTD.: MEMBERS, 2005 – FIRST HALF 2008 103
Table 8.25 GOME ELECTRICAL APPLIANCES HOLDING LTD.: REVENUE SHARE BY PRODUCT CATEGORY, 2004 - FIRST HALF 2008 103
Table 8.26 GOME ELECTRICAL APPLIANCES HOLDING LTD.: GROSS PROFIT MARGIN BY PRODUCT CATEGORY, 2004 - FIRST HALF 2008 103
Table 8.27 GOME ELECTRICAL APPLIANCES HOLDING LTD.: SHARE OF INTERNATIONAL/LOCAL BRANDS, 2005-2007 104
Table 8.28 GOME ELECTRICAL APPLIANCES HOLDING LTD.: INVENTORY TURNOVER DAYS, 2005-2007 104
Table 8.29 GOME ELECTRICAL APPLIANCES HOLDING LTD.: TOP FIVE SUPPLIERS, 2004-2007 104
8.4.3 Gome: Financial Results 105
Table 8.30 GOME ELECTRICAL APPLIANCES HOLDING LTD.: FINANCIAL RESULTS, 2004-2007* 105
Table 8.31 GOME ELECTRICAL APPLIANCES HOLDING LTD.: BREAKDOWN OF OTHER INCOME, 2004 – FIRST HALF 2008 106
Table 8.32 GOME ELECTRICAL APPLIANCES HOLDING LTD.: BREAKDOWN OF SELLING & DISTRIBUTION COST, 2004 – FIRST HALF 2008 106
Table 8.33 GOME ELECTRICAL APPLIANCES HOLDING LTD.: EMPLOYEE, 2005 – FIRST HALF 2008 106
Table 8.34 GOME ELECTRICAL APPLIANCES HOLDING LTD.: FINANCIAL RESULTS, FIRST HALF & FIRST NINE MONTHS 2007-2008* 107
Table 8.35 GOME ELECTRICAL APPLIANCES HOLDING LTD.: FINANCIAL RESULTS, FIRST QUARTER 2008 – THIRD QUARTER 2008* 107
Table 8.36 GOME ELECTRICAL APPLIANCES HOLDING LTD.: DEBT & ASSET, 2004 - FIRST HALF 2008* 108
8.4.4 Gome: Future 108
Gome without Wong Kwong Yu 108
Store number unchanged in 2009 109
8.5 Hisap Corp. 110
8.5.1 Hisap: Company Details 110
8.5.2 Hisap: Company Background 110
8.5.2 Hisap: Financial Results 111
Table 8.37 HISAP CORP.: FINANCIAL RESULTS, 2001-2007* 111
8.6 Shenzhen Sundan (Chain-Store) Stock Co., Ltd. 112
8.6.1 Shenzhen Sundan: Company Details 112
8.6.2 Shenzhen Sundan: Company Background 112
Table 8.38 SHENZHEN SUNDAN (CHAIN-STORE) STOCK CO., LTD.: STORES IN CHINA, DECEMBER 2008 112
8.6.3 Shenzhen Sundan: Financial Results 113
Table 5.39 SHENZHEN SUNDAN (CHAIN-STORE) STOCK CO., LTD.: FINANCIAL RESULTS, 2003-2007* 113
8.7 Suning Appliance Co., Ltd. 113
8.7.1 Suning: Company Details 113
8.7.2 Suning: Company Background 113
Table 8.40 SUNING APPLIANCE CO., LTD.: TOP 10 SHAREHOLDERS, FIRST HALF 2008 114
Table 8.41 SUNING APPLIANCE CO., LTD.: KEY EVENTS, 1990-2009 114
Table 8.42 SUNING APPLIANCE CO., LTD.: REVENUE, REVENUE SHARE BY REGION, 2004 – FIRST HALF 2008 115
Table 8.43 SUNING APPLIANCE CO., LTD.: GEOGRAPHICAL DEFINITION 115
Table 8.44 SUNING APPLIANCE CO., LTD.: STORE BY REGION, 2007 – FIRST HALF 2008 116
Table 8.45 SUNING APPLIANCE CO., LTD.: STORE FORMAT BY KEY CITY, 2007 – FIRST HALF 2008 116
Table 8.46 SUNING APPLIANCE CO., LTD.: STORE FORMAT, 2005 - FIRST HALF 2008 117
Table 8.47 SUNING APPLIANCE CO., LTD.: STORE DISTRIBUTION BY MARKET, 2006 - FIRST HALF 2008 117
Table 8.48 SUNING APPLIANCE CO., LTD.: SAME-STORE SALES GROWTH, 2007 - FIRST HALF 2008 117
Table 8.49 SUNING APPLIANCE CO., LTD.: REVENUE BY PRODUCT CATEGORY, 2004 – FIRST HALF 2008 118
Table 8.50 SUNING APPLIANCE CO., LTD.: GROSS PROFIT MARGIN BY PRODUCT CATEGORY, 2004 – FIRST HALF 2008 118
Table 8.51 SUNING APPLIANCE CO., LTD.: INVENTORY TURNOVER DAYS, 2006 – FIRST HALF 2008 118
Table 8.52 SUNING APPLIANCE CO., LTD.: TOP 5 SUPPLIERS & CUSTOMERS, 2005-2007 119
8.7.3 Suning: Financial Results 119
Table 8.53 SUNING APPLIANCE CO., LTD.: FINANCIAL RESULTS, 2004-2006* 119
Table 8.54 SUNING APPLIANCE CO., LTD.: FINANCIAL RESULTS, 2006 – FIRST HALF 2008* 120
Table 8.55 SUNING APPLIANCE CO., LTD.: INCOME FROM OTHER OPERATIONS, 2004-2006* 121
Table 8.56 SUNING APPLIANCE CO., LTD.: INCOME FROM NON-CORE OPERATIONS, 2006 – FIRST HALF 2008* 121
Table 8.57 SUNING APPLIANCE CO., LTD.: SHARE OF REVENUE FROM NON-CORE OPERATIONS OUT OF CORE OPERATING REVENUE, 2004-07* 121
Table 8.58 SUNING APPLIANCE CO., LTD.: BREAKDOWN OF SELLING & DISTRIBUTION COST, MANAGEMENT COST, 2006-2007 122
Table 8.59 SUNING APPLIANCE CO., LTD.: FINANCIAL RESULTS, FIRST HALF & FIRST NINE MONTHS 2008* 122
Table 8.60 SUNING APPLIANCE CO., LTD.: FINANCIAL RESULTS, 1Q 2008 – 3Q 2008* 123
Table 8.61 SUNING APPLIANCE CO., LTD.: DEBT & ASSET, 2004-07 & FIRST HALF 2008* 123
8.7.4 Suning: Future 123
2009 Expansionary Year 123
Instalment plan to weather the slowdown 124
8.8 Yangzhou Huiyin Household Appliance Co., Ltd. 125
8.8.1 Yangzhou Huiyin Household Appliance: Company Details 125
8.8.2 Yangzhou Huiyin Household Appliance: Company Background 125
Table 8.62 YANGZHOU HUIYIN HOUSEHOLD APPLIANCE: STORE OPENING MODEL 125
8.8.3 Yangzhou Huiyin Household Appliance: Company Results 126
9 CONTACTS 127
9.1 Trade Organisations 127
9.1.1 China Audio Industries Association 127
9.1.2 China Audio & Visual Association 127
9.1.3 China Chain Stores & Franchising Association 127
9.1.4 China Electronic Chamber of Commerce 127
9.1.5 China High-Definition DVD Industry Association 127
9.1.6 China Household Electrical Appliances Association 127
9.1.7 China National Household Electric Appliances Service Association 128
9.1.8 China Video Industry Association 128
9.2 Government Departments 128
9.2.1 Ministry of Commerce (MOFCOM) 128
9.2.2 Ministry of Industry & Information Technology (MIIT) 128
9.2.3 Ministry of Science & Technology (MOST) 128
9.2.4 State Administration of Radio, Film & Television (SARFT) 128
10 RELEVANT EXHIBITIONS & TRADE FAIRS 129
10.1 China Electronics Fair (Shenzhen) 129
10.2 China International Exhibition of Pro-Audio, Light, AV, Music & Technology 129
10.3 Shanghai International Audio & Visual Exhibition 129
10.4 China International Consumer Electronics Fair (SINOCES) 129
10.5 China Electronics Fair (Chengdu) 129
10.6 China Hi-Tech Fair 129
10.7 China Shunde International Exposition for Household Electrical Appliances 130
10.8 International Computer Communication & Consumer Electronic Products 130
10.9 China Electronics Fair (Shanghai) 130
APPENDIX: MARKET BACKGROUND 131
A.1 Fast Facts 131
A.2 Regions of China 132
Map A.1 CHINA: PROVINCES AND MUNICIPALITIES 132
A.3 Demographics 133
A.3.1 Demographics: Total Population 133
Table A.1 TOTAL POPULATION, 2002–2008 133
A.3.2 Demographics: Population by Location 135
Table A.2 POPULATION BY URBAN-RURAL DIVIDE, 2002–2008 135
Table A.3 POPULATION % BREAKDOWN BY URBAN-RURAL DIVIDE, 2002–2008 135
A.3.3 Demographics: Population by Province 135
Table A.4 POPULATION BY PROVINCE, 2002–2008 136
A.3.4 Demographics: Population Density by Province 136
Table A.5 POPULATION DENSITY BY PROVINCE, 2005-2008 137
A.3.5 Demographics: Population Concentration 137
Map A.2 POPULATION CONCENTRATIONS BY PROVINCE, 2008 138
A.3.6 Demographics: Population by Gender 138
Table A.6 TOTAL POPULATION BY GENDER & % BREAKDOWN, 2002–2008 138
A.3.7 Demographics: Population by Age Group 139
Table A.7 POPULATION BY AGE GROUP, 2002–2008 139
Table A.8 % BREAKDOWN OF POPULATION BY AGE GROUP, 2002–2008 139
A.4 Consumer Attitudes 140
A.4.1 Consumer Attitudes: Overview 140
A.4.2 Consumer Attitudes: Response to Political Change 140
A.4.2 Consumer Attitudes: Response to Economic Change 141
A.4.3 Consumer Attitudes: Changes in Lifestyle 141
Livelihood 141
Individual loans 142
Housing 142
Possessions 142
Travel 143
Entertainment 144
Health and Fitness 144
Purchasing Influences 145
Taboos 145
A.5 Consumer Wealth 146
A.5.1 Consumer Wealth: GDP and Cost of Living 146
China’s New Middle Class 146
Table A.9 MIDDLE AND UPPER INCOME HOUSEHOLDS IN CHINA, 1995/2000/2005/2010/2015 147
Table A.10 TOTAL CONSUMPTION BY MIDDLE AND UPPER INCOME HOUSEHOLDS, 2005/2010/2015 147
Table A.11 CONSUMPTION BY MIDDLE AND UPPER INCOME HOUSEHOLDS & % OF TOTAL HOUSEHOLDS, 1995/2000/2005/2010/2015 148
Confident Shoppers 149
Table A.12 GDP AND COST OF LIVING INDEX, 2002–2008 150
A.5.2 Consumer Wealth: Provincial GDP 150
Table A.13 GDP BY PROVINCE, 2002–2008 151
A.5.3 Consumer Wealth: GDP Growth by Province 152
Table A.14 GDP GROWTH BY PROVINCE, 2002–2008 152
A.5.4 Consumer Wealth: GDP Per Capita by Province 152
Table A.15 PER CAPITA GDP BY PROVINCE, 2002–2008 153
A.5.5 Consumer Wealth: Concentration of Wealth by Province 153
Map A.3 VALUE OF GDP PER CAPITA BY PROVINCE, 2008 154
A.5.6 Consumer Wealth: The Major Cities 154
Table A.16 LEADING CITIES KEY ECONOMIC INDICATORS, 2007 155
A.6 Households 155
A.6.1 Households: Overview of Household Conditions 155
A.6.2 Households: Total Households by Size 156
Table A.17 NUMBER OF HOUSEHOLDS BY SIZE, 2002–2008 156
A.6.3 Households: Total households by Urban/Rural Split 157
Table A.18 NUMBER AND SIZE OF HOUSEHOLDS BY LOCATION, 2002–2008 157
A.6.4 Households: Income Earners Per Household 157
Table A.19 AVERAGE NUMBER OF INCOME EARNERS PER HOUSEHOLD, 2002–2008 157
A.7 Employment 158
A.7.1 Employment: Number of Workers by Sector 158
Table A.20 NATIONAL EMPLOYMENT BY SECTOR, 2002–2008 158
A.7.2 Employment: Growth by Sector 158
Table A.21 GROWTH IN EMPLOYMENT BY SECTOR, 2002–2008 159
A.7.3 Employment: Number of Workers by Gender 159
Table A.22 TOTAL NATIONAL WORKFORCE BY GENDER, 2002–2008 159
A.7.3 Employment: Number of Workers by Habitation 160
Table A.23 NATIONAL WORKFORCE BY HABITATION, 2002–2008 160
A.7.4 Employment: Urban Unemployment 160
Table A.24 URBAN UNEMPLOYMENT RATES, 2002–2008 160
A.8 Consumer Income 161
A.8.1 Consumer Income: Average Incomes by Sector 161
Table A.25 AVERAGE INCOMES BY SECTOR, 2001–2007 161
A.8.2 Consumer Income: Growth by Sector 161
Table A.26 GROWTH IN AVERAGE INCOMES BY SECTOR, 2001–2007 162
A.8.3 Consumer Income: Average Incomes by Region 162
Table A.27 AVERAGE INCOMES BY REGION, 2001–2007 163
A.8.4 Consumer Income: Growth by Region 163
Table A.28 GROWTH IN AVERAGE INCOMES BY REGION, 2001–2007 164
A.9 Consumer Market 165
A.9.1 Consumer Market: Spending Trends 165
Table A.29 CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES, 2002–2008* 165
A.9.2 Consumer Market: Per Capita Consumer Expenditure 165
Table A.30 PER CAPITA CONSUMER EXPENDITURE* BY BROAD SECTOR AT CURRENT PRICES, 2002–2008* 165
A.9.3 Consumer Market: Retail Sales and Consumer Spending 166
Table A.31 RETAIL SALES AS A PROPORTION OF CONSUMER EXPENDITURE*, 2002–2008 166
A.9.4 Consumer Market: Urban Income and Spending Compared 166
Table A.32 URBAN & RURAL AVERAGE ANNUAL INCOME/EXPENDITURE, 2002–2008 166
A.10 Exchange Rates 167
A.10.1 Exchange Rates: China 167
Table A.33 AVERAGE ANNUAL RENMINBI EXCHANGE RATES AGAINST A VARIETY OF CURRENCIES, 2001–2008 167
A.10.2 Exchange Rates: Hong Kong 167
Table A.34 AVERAGE ANNUAL HONG KONG DOLLAR EXCHANGE RATES AGAINST THE UNITED STATES DOLLAR AND RENMINBI, 2001–2008 167