Gome flourishes online
Chinese electrical goods retailer Gome is reaping the rewards of moving into eCommerce.
In announcing its seventh consecutive quarterly profit growth, Gome said its eCommerce Gross Merchandise Volume (GMV) soared 72.7 per cent year-on-year, and unique visitors to its site up by two-thirds.
The company says the figures reflect the success of its omnichannel strategy announced at the end of 2013.
Total sales revenue rose 7.2 per cent to RMB44.645 billion (US$7.296 billion). Same store sales rose six per cent and the company reported a gross profit margin of 18.6 per cent, up 0.6 percentage points year-on-year.
Net profit was RMB 1.018 billion, (US$166 million) up 74.9 per cent. Gome says it has spent the first three quarters of this year actively deploying and upgrading its platforms of procurement, logistics and IT to build “the most comprehensive home appliances retail supply chain in China”.
In its bricks and mortar network, the company reported same stores sales increases of 4.7 per cent in its 68 tier-1 and tier-2 stores, and 12 per cent growth in its 58-strong tier-3 and tier-4 city network.
It added 154 new stores in is jointly operated supermarket and department store network.
Gome CEO Wang Junzhou said Gome’s ‘Open Omni-Channel Retailer’ strategy has enabled the company to record impressive results that have outpaced the industry average and its rivals for seven consecutive quarters.
“Going forward, our four unified service platforms – procurement, logistics, information technology and financial services – will offer full support to the group’s omni-channel development. This includes offline, online, mobile applications and other social channels to further drive business expansion, while providing quality one-stop services for consumers and business partners,” he said in a statement.
“We are committed to achieving our goal to ‘Build another Gome’ by 2017 and to creating greater value for our shareholders and society as a whole.”