The Chinese retail group works towards becoming a “products + entertainment and leisure” experiential brand
After a 2016 trading year in which GOME reported recorded sales revenue of approximately RMB76.70 billion, up 18.7% y-o-y, while online direct sales revenue of GOME Online surged 58.8%, the group arrives at CE China with a story of major transformation.
Wang Junzhou, President of GOME, claims that in the future, retail will be a combination of sales from both online and physical stores, and will become more efficient as it is transformed by Internet technology: “GOME believes that the application of technology to physical stores will transform the retail experience, enhance efficiency, as well as create infinite space for imagination and growth potential in the retail industry.”
The GOME President added, “In 2017, GOME will redefine retail and complete its New Retail layout. Collectively these efforts will create a solid foundation for future growth, and generate greater value for shareholders, the society, and consumers.”
As evolving consumption structures increasingly become the norm for consumers, GOME has been actively upgrading its retail model to further integrate its online and offline channels. Such integration— which includes products, membership, services, and 24/7 shopping opportunities, combined with multi-screen, multi-platform, and multi- channel marketing—forms the basis of GOME’s New Retail ecosystem.
NEW BUSINESS DRIVEN BY NEW RETAIL THEMES
GOME has been in the process of diversifying its product mix to include more complete product sets and integrated systems, as the brand transforms into an “integrated home solutions” provider. The solutions include home furnishing and interior design services, family water and heating systems, central air conditioning systems, integrated cabinets, clothes dryers, home air purifiers, and more. As part of its New Retail strategy, GOME is creating and curating “leisure and entertainment” experiences, transforming its physical retail stores into retail and experiential stores. The upgrades—among them eSports and net café elements, baking classes, and VR cinemas—also enhance the stores’ operational
capabilities. Customers seeking gaming and entertainment experiences test GOME’s products in the process, and are then more easily directed to other areas of the store, increasing traffic and sales revenues.
THE APPLICATION OF TECHNOLOGY TO PHYSICAL STORES WILL TRANSFORM THE RETAIL EXPERIENCE
STRENGTHENING THE SUPPLY CHAIN TO ENHANCE COMPETITIVENESS
GOME’s core strength has always been its supply chain, which is now supporting a more diversified product mix of mid-to-high end products. GOME’s goal is to improve its operational capabilities and merchandise sales profitability. By strategically cooperating with core suppliers, the Group is better able to provide customers with cost-effective goods.