The largest 3C retail chain store in Taiwan Province Province.
By the end of 2004, Kun Can had 1 14 chain stores in Taiwan Province province, with sales exceeding NT$1500 million and 3C members reaching150,000. These impressive achievements prompted Chen Kun to walk out of Taiwan Province Province.
Chen Kun copied the model of Taiwan Province Province in Chinese mainland and opened a branch to achieve scale effect.
Open operation mode, no shopping guide, display goods by type and size, narrow the discount range, and pay attention to cultivating long-term members.
Kun Can's loss, industry analysis, the main reason is that the expansion speed is too fast.
Excessive expansion has led to the further expansion of the shortcomings of household appliance chain enterprises in management ability, talent reserve and capital chain. As soon as there is a "trouble", it will soon be defeated.
Previously, Kmart, the third chain company in the world, went bankrupt due to poor management caused by excessive expansion.
Kun Can has always been an outstanding leader in the small household appliances industry. The R&D and manufacturing departments of household appliances have always been important profit sources of the company, but the 3C wholesale and sales departments are in a state of loss. Take Kun Can Electrical Appliances Retail Store as an example, its pre-tax losses in 2003 and 2004 were 654.38+36 million yuan and 384 million yuan respectively.
Chen Kun explained that "since 2004, the prices of raw materials have been rising continuously, and the prices of products have fluctuated greatly. The retail sector is still in the investment period, and the distribution of goods has increased, which has not formed an economic scale and eroded the profits of the home appliance sector. "
The withdrawal of Zen Kun is an early warning to the household appliance chain enterprises that are blindly expanding and are strong outside and dry inside. Take Suning, Gome and Yongle as examples. At the beginning of 2005, Suning announced the opening of 150~ 170 chain store, followed by Gome and Yongle.
This makes people worry about the future of China's household appliance chain industry.
Chen Kun said that in the future, China's business department will focus on R&D and manufacturing industry, so as to distance itself from its competitors and maintain its position as a leading home appliance manufacturer in the world. After withdrawing from the mainland circulation field, it is expected to be of positive help to improve profits and financial structure.