Chinese consumers can rejoice over a dynamic decision taken by Best Buy Co.Inc., very recently. This U.S. Consumer electronics chain’s subsidiary for China has entered into online retailing. It is well known as Jiangsu Five Star Appliance Co.
Five Star, has already launched its own e-commerce site, 5star.cn which can be compared with Alibaba’s Tmall and Amazon.cn. Furthermore, to provide additional support in this new selling strategy, they have taken a decision to sell their products by opening various web stores on different Chinese Online Marketplaces.
Interestingly Five Star is expanding its network through Jiangsu Broadcasting Television Network Corporation Ltd., also. By tying up with this renowned cable T.V. provider, shortly they will also start offering multiple products through various TV programs including a mobile app.
Currently, Five Star, is considered as the third-largest consumer electronics retailer in China. The company was launched in 1998, which now operates in more than 200 stores in China. It is also to be noted that the company has a huge staff strength which is nothing less than 23,000. It also has a tremendous annual sales record which is more than 20 billion yuan or $3.23 billion.
A company like this is planning to gear up for more expansion by entering into a partnership with various shops in small cities to beat its two other biggest competitors Suning Commerce Group Co and Gome Electrical Appliances Holding Ltd. The basic plan consists of turning the small retailers to their affiliates who will be able to cater their customer’s orders through Fivestar’s newly launched site 5star.cn., whenever they have insufficient stock to meet the buyer’s needs.
Zhou Meng, Five Star’s CEO clearly expressed this idea. He also said the small retailers will be get a huge benefit in this system as now they will be in a better position to offer a wider selection of products and items to satisfy their customers and opt for increased turnovers. Meng is also quite hopeful that they will be able to recruit at least 500 to 1000 affiliate stores within the year end.
Although 5star.cn mainly deals with electronics products like mobile phones etc, currently they are planning to spread their area by including more categories, which may also offer consumer items like cosmetics products. The site already works with SF Express.com Co. Ltd., a reputed Chinese delivery company and offers free shipping for orders above 99 yuan or $16.