《Best Buy China 2009-a Company Profile.pdf》由会员分享，可在线阅读，更多相关《Best Buy China 2009-a Company Profile.pdf（68页珍藏版）》请在三一文库上搜索。
1、 BEST BUY CHINABEST BUY CHINABEST BUY CHINABEST BUY CHINA 2009: 2009: 2009: 2009: A COMPANY PROFILEA COMPANY PROFILEA COMPANY PROFILEA COMPANY PROFILE Access Asia Limited, 2009 Best Buy China 2009: A Company Profile Access Asia Limited, 2009 Page i China Contact Publication date: July 2009 Published
2、 by: Access Asia Limited China address: 509 Shenxin Mansion, 200 Ninghai East Road, Shanghai 200021, China Telephone: +86-21-6374-7484 Fax: +86-21-6374-7483 Malaysia address: Suite C-08-03, Plaza Mont Kiara, 2 Jalan Kiara, Mont Kiara, 50480 Kuala Lumpur, Malaysia Telephone: +60-3-6203-5212 Fax: +60-
3、3-6203-9212 UK Registered Address: 130 Aztec, Aztec West, Bristol BS32 4UB, United Kingdom Telephone: +44-7977-425280 E-mail: infoaccessasia.co.uk Copyright: All rights reserved to Access Asia Limited Disclaimer: Access Asia Limited has undertaken stringent efforts to ensure the accuracy of all info
4、rmation contained in this report. However, since not all data can be verified, errors or omissions may occur for which Access Asia Limited accepts no responsibility. Details supplied by Access Asia Limited should only be used as an aid to assist in making business and investment decisions, not as th
5、e sole basis for such decisions. China Contact (an imprint of Access Asia Limited) All rights reserved. This document is under strict copyright and reproduction in any form whatsoever is prohibited. No part of this publication may be reproduced, copied, stored in an electronic retrieval system or tr
6、ansmitted without written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988. Best Buy China 2009: A Company Profile Access Asia Limited, 2009 Page ii Contents 1 OVERVIEW1 1.1 Report Overview . 1 1.2 Other Access Asia Reports of Possible Interest 1 1.3 Fre
7、e Weekly Online Newsletter and Editorials. 1 2 BEST BUY/JIANGSU FIVE STAR APPLIANCE.2 2.1 Best Buy 2 2.1.1 Best Buy: Company Details. 2 2.1.2 Best Buy: Company Background. 2 Table 2.1 BEST BUY CO., INC.: STORES IN CHINA, JUNE 2009 . 2 2.2 Jiangsu Five Star Appliance 4 2.2.1 Jiangsu Five Star Applian
8、ce: Company Details. 4 Table 2.2 JIANGSU FIVE STAR APPLIANCE CO, LTD.: STORE COUNT, FISCAL 2006- 2009 . 4 Table 2.3 JIANGSU FIVE STAR APPLIANCE CO, LTD.: STORE LOCATION, FISCAL 2007-2009 4 3 BEST BUYS MARKET.6 3.1 White Goods 6 3.1.1 White Goods: Values. 6 Table 3.1 CURRENT VALUE, % VALUE BREAKDOWN
9、key conferences and events in China and elsewhere; as well as new products, services and updates from Access Asia. Access Asia also provides free editorials on key developments in the China market, covering a wide range of sectors and issues, in order to help you keep abreast of the latest developme
10、nts in the market. For more information on Access Asias free newsletter and editorials, contact us at infoaccess-asia.info or visit our website at www.access-asia.info. Best Buy China 2009: A Company Profile Access Asia Limited, 2009 Page 2 2 Best Buy/Jiangsu Five Star Appliance 2.1 Best Buy 2.1.1 B
11、est Buy: Company Details Address: 7601 Penn Avenue South, Richfield, MN 55423-3645, US Tel: +1-612-291-1000 Fax: +1-612-292-4001 URL: Ticker: NYSE - BBY Key personnel: Richard M. Schulze chairman; Brian J. Dunn president Bradbury H. Anderson vice chairman Allen U. Lenzmeier vice chairman; James L.
12、Muehlbauer CFO, executive vice president finance; Redmond Yeung president cookers (12.43% market share) and washing machines (10.03% market share). 3.1.3 White Goods: Urban brand equity (recognised beer brands Tsingtao and Yanjing); quality (cashmere garment manufacturer Erdos); and innovation (Haie
13、rs detergent-free washing machine). Table 4.48 CHINAS MOST VALUABLE BRANDS, 2007/2008 Rank Brand/Owner Value 08 Value 07 Rank Sector 2008 (RMBbn) (RMBbn) 2007 1 China Mobile (China Mobile Communications) 120.67 110.05 1 Telecoms 2 State Grid (State Grid Corp of China) 111.64 44.90 11 Energy 3 CCTV (
14、China Central Television) 82.43 65.43 3 Media 4 Haier (Haier Group) 80.13 64.00 4 Home appliances 5 China Life (China Life Insurance (Group) Co) 66.87 58.87 5 Finance 6 Changhong (Sichuan Changhong Electric) 65.59 58.33 6 Home appliances 7 Sinochem (China Sinochem Group) 65.14 58.29 7 Chemical, petr
15、oleum 8 China Railway (China Railway Group) 64.87 52.31 10 Construction 9 ICBC (Industrial & Commercial Bank of China) 64.63 80.55 2 Finance 10 FAW (China FAW Group) 60.58 44.54 13 Automotive 11 Lenovo (Lenovo Group) 58.22 58.02 8 Telecoms, IT 12 CNPC (China National Petroleum Corp) 55.24 44.89 12 C
16、hemical, petroleum 13 Baosteel (Shanghai Baosteel Group) 48.25 54.49 9 Steel 14 Bank of China (Bank of China) 44.36 43.82 15 Finance 15 Huawei (Huawei Technologies) 43.69 43.65 16 Telecoms, IT 16 Suning (Suning Appliance) 42.34 40.23 17 Appliance retail 22 Gome (Gome Electrical Appliances) 35.53 35.
17、02 22 Appliance retail Source: World Brand Laboratory Furthermore, in addition to heavy TV adspend and high-profile supplementary campaigns through outdoor advertising, major local brands are also taking advantage of better distribution of their product and extremely effective displays and promotion
18、s at the high-street level. Every weekend, promotions of consumer- goods products are held outside new department stores and shopping malls in primary cities across the country. The brand value of Chinese brands is growing. According to the World Brand Laboratory, China Mobile was the top local bran
19、d for two consecutive years, 2007-08, with a brand value of RMB120.67bn in 2008, up from RMB110.05bn in 2007. The top 10 most valuable brands in 2008 were mostly into energy, media, home electrical appliances, finance, construction, automotive, and chemical and petroleum. Suning was the top home app
20、liance retail brand in China in 2008, followed by Gome. Globally, no brands from China have made it into the Best Global Brands 2008 list released by Interbrand, a leading international brand consultancy. The latest list gives Samsung the 21st position, Sony 25th, Canon 36th, Philips 43rd and Panaso
21、nic 78th. Chinese consumer electronics brands like Changhong, Haier and TCL have a long way to go before they are eventually listed. Best Buy China 2009: A Company Profile Access Asia Limited, 2009 Page 60 4 Best Buys Finances & Future 4.1 Financial Results 4.1.1 Financial Results: Best Buy Best Buy
22、 reported a 64.09% growth in revenue between 2004/05 and 2008/09. Comparable store sales declined 1.3% in 2008/09 as it was impacted by the global financial crisis. Net earnings rose by a mere 1.9% between 2004/05 and 2008/09 following a 28.71% drop in the 12 months ended 28 February 2009. Revenue f
23、rom the international segment grew at a higher rate of 253.04% between 2004/05 and 2008/09 with revenue surging 48.54% year-on-year in 2008/09, driven by new revenue from Europe. Table 4.1 BEST BUY CO., INC.: FINANCIAL RESULTS, FISCAL 2005-2009* US$ m 2004/05 2005/06 2006/07 2007/08 2008/09 % change
24、 Revenue 27,433 30,848 35,934 40,023 45,015 64.09 Annual growth (%) - 12.45 16.49 11.38 12.47 - Comparable store sales % gain 4.3 4.9 5 2.9 -1.3 - Gross profit as % of revenue 23.7 25.0 24.4 23.9 24.4 - SG&A as % of revenue 18.4 19.7 18.8 18.5 20.0 - Operating income as a % of revenue 5.3 5.3 5.6 5.
25、4 4.2 - Net earnings 984 1,140 1,377 1,407 1,003 1.93 Annual growth (%) - 15.85 20.79 2.18 -28.71 - International segment Revenue 2,817 3,468 4,903 6,695 9,945 253.04 Annual growth (%) - 23.11 41.38 36.55 48.54 - As a % of total revenue 10.27 11.24 13.64 16.73 22.09 - Operating income as % of int. r
26、evenue 1.7 1.6 2.0 2.4 1.0 - Source: Access Asia from company information Note*: Financial year ends in late February or early March Table 4.3 BEST BUY CO., INC.: NET SALES TO CUSTOMERS, FISCAL 2007-2009* US$ m 2006/07 2007/08 2008/09 % change US 31,031 33,328 35,070 13.02 Europe - - 3,205 - Canada
27、4,340 5,386 5,174 19.22 China 563 1,309 1,558 176.73 Other - - 8 - TOTAL 35,934 40,023 45,015 25.27 As a % of total revenue US 86.36 83.27 77.91 Europe - - 7.12 Canada 12.08 13.46 11.49 China 1.57 3.27 3.46 Other - - 0.02 TOTAL 100.00 100.00 100.00 Source: Access Asia from company information Note*:
28、 Financial year ends in late February or early March Best Buy China 2009: A Company Profile Access Asia Limited, 2009 Page 61 Table 4.3 BEST BUY CO., INC.: INTERNATIONAL SEGMENT AVERAGE REVENUE PER STORE, FISCAL 2009* Total stores at Total square Average revenue end of 2008/09 footage (in millions)
29、per store (US$ m) Europe 2,465 1.5 0.9 Canada 200 5.6 28.1 China* 169 6.2 9.8 Mexico 1 0.1 3.9 Source: Access Asia from company information Note*: Financial year ends in February Note*: China consists of 164 Five Star stores and 5 Best Buy China stores 4.1.2 Financial Results: Jiangsu Five Star Appl
30、iance Five Star reported revenue growth of 350.36% between 2003 and 2008. Growth has slowed down significantly from a high of 83.65% in 2004 to a low of 6.67% in 2008. Having Best Buy on board in 2006 did little to increase revenue growth. Table 4.4 JIANGSU FIVE STAR APPLIANCE CO, LTD.: FINANCIAL RE
31、SULTS, 2003-2008* RMB bn 2003 2004 2005 2006 2007 2008 % change Sales 5.11 9.38 14.61 17.80 21.56 23.00* 350.36 Annual growth (%) - 83.65 55.79 21.83 21.13 6.67 Source: China Chain Store & Franchise Association Note*: Calendar year Note*: Estimate 4.2 Future Development Best Buy remains vulnerable i
32、n its market in China. The incumbent leading competitors in the market, Gome and Suning, are the two largest retail groups in China, and their lead against others in the market is such that their market shares will be hard to assail. However, there are weaknesses in the two leaders, especially in te
33、rms of being able to react quickly to changes in the market, and particularly in the case of Gome. This might give Best Buy a possible opening. It will need to expand its chain quickly in order to become relevant in the market, and that will be a drain on financial resources, and will remain a finan
34、cial burden to the parent company for some years to come. But Best Buy will also need to innovate on the ground, reacting quickly to developments in the market, and shifts in consumer sentiment. Until now, Best Buy has struggled to do either very well. Store opening is now picking up in pace, but is
35、 still slow. Best Buys retailing by product sector, rather by brand manufacturer, has not really caught on with consumers although this may well change. Its Geek Squad of technical support service staff did not transfer to the China market well, and needs to be re- marketed at the Chinese shoppers.
36、If Best Buy is to succeed in China, it has to become a lot smarter about the local conditions in China than was the case when it entered the market. That is now beginning to become evident in more recent improvements in activity. The chain also needs to quickly show that it really does have the potential to generate cash turnover and gain market share percentage points, if it is to prove to shareholders that the money being pumped into China will be worth it in the long run, and therefore allay any attempts to cut the investment, and the losses.