Essay About Best Buy Fail And Chinese Market

What Reasons Caused the Best Buy Fail in the Chinese Market
Essay Preview: What Reasons Caused the Best Buy Fail in the Chinese Market
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In North America, best buy was called highly enterprise of innovative spirit. In 2009, the financial crisis, the worlds largest electric retail tycoon rose against the market trend, and new highs in line about $4.5 billion in sales. I get news at 22 February 2011, best buy will close all of its nine Best Buy branded stores in China. This has a huge capital and advanced retail mode of consumer electronics interlinks tycoon, why in China sink into such embarrassing situation? That makes us quite confused, and then we research and find a lot of news about best buy in the Chinese market. That information include Chinese and English newspaper, we can found a very important things, that most Chinese people they dont know what is best buy, even some peoples they never heard Best buy. Why it was happened? When Powercat associates have to research best buy investment in advertisement in china, Very surprised, that even lower than 1% in its all investment capital, we know that the advertisement is a best way to create the communication between the company and customers, let the customer know your company, let companys brand image convey to the consumers. The primary function about advertisement is Build the brand connotation temperament, form difference and unique of individuality from other competition brand, so as to establish brand in consumers mind unique position through advertising expression. This reason caused Ben Cavender, a Shanghai-based analyst at China Market Research Group, said in a phone interview today. “The Five Star brand has been in the market considerably longer and is a brand people recognize. Not many people in China know what Best Buy is.” (“Best Buy Shuts China Stores to Focus on More Profitable Brand” by Bloomberg news) Powercat associates also find the other reason that because difference culture. Actually, we know American culture and Chinese culture is very difference, but best buy opened in Chinese store completely copy its model in the U.S. and have not change any things. Best buy even broke “unspoken rule” in Chinese Appliance retailing industry that suppliers through stationed promoters to control terminals promoters. Thus, Best buy mode obviously cannot get support from china supplier. Manager of human resources department who were said in interviewed, our in-house personnel changes greatly, and Best buy has replaced the three Asia-pacific CEO in past, that in order to change the Chinese market failure situation, but there are no significant effects. Even seems to have the opposite effect, the Staff have not coordinate with managers and the new managers took office. Overall, best buy fail in Chinese market primary reason is it is didnt pay very enough attention to the Chinese market, or best buy is too despise Chinese market and competitor, and management of best buy Chinese area is not quite stable, managers, employees and customer have not enough