The Study On The Location Of The Chain Retailers Of Home Appliances

The deepening of China's policy of reform and opening-up and the growth of the market-oriented economy have made the retail trade more and more open, especially after China became a member of the WTO (World Trade Organization). Therefore, China's chain retailers of home appliances (hereafter referred to as the home appliances chains ) have been developing faster than ever before. With more competitive prices, category, quality and services, the home appliances chains have grown into the main sales form in the market, replacing the traditional channels, e.g. the department stores, the electrical appliances shops, the individual retail shops etc.The retail trade is highly dependent upon the location. Whether the location is good or bad decides if the retailer can succeed. In fierce competitions, a slight difference in the location may lead to a great difference in the market share and profit rate. A proper location is the staying power which can't easily be imitated by the rivals. The prevailing statement of"The location decides whether a retailer earns and the management decides how much he earns."fully explains the importance of the location to a retailer. Not only are China's home appliances chains busy claiming markets by making preemptive investments and expanding fast, but also the international home appliances retail giants represented by BESTBUY are also rushing into our domestic market one after another. This demonstrates the unprecedented intensity in the domestic electrical appliances retail market competition. One of the focuses they scramble for is the trade area resources. Thus, the study on the location of the chain retailers of home appliances is not only urgent, but also realistically significant. The main aim of this thesis is to offer reference for China's home appliances enterprises by studying the decision model of the location.This thesis consists of the characteristics of home appliances chains, the keys to and the process of the location and is divided into five parts:ⅠIntroductionThis part mainly introduces the development of the domestic home appliances chain and its current situation; the importance of the location of home appliances and some introduction to relevant concepts, such as retail forms and classification, the definition of home appliances, the chain and location etc.ⅡThe Introduction to the Theories both at Home and Abroad on the LocationThis part mainly introduces the theoretical research on location at abroad such as western Human Ecology School including Central Place Theory, Hotelling Model etc., Social Physics School including Reilly's Law of Retail Gravitation, Huff's Probability Model, Agglomeration Theory, Saturation Theory etc and Behaviorism School.ⅢThe Decision Model of the Location of home appliances Chain RetailersThis part mainly introduces the process of location decision, for example, analyzing the characteristics of location of home appliances chains ----confirming the strategy of the location selection----confirming the market area for the location---- analyzing the retail chain ---- analyzing the trade areas----analyzing the candidate location----finalizing the location. ⅣIntroduction to Suning Home Electrical Appliance Retailer's LocationThis part combines the decision model of the location of home appliances chains with examples as evidence. It includes the introduction to Suning's history, Suning's location strategy and tactics, the main to-be market areas and the introduction to the location of Suning Flagship Shop in Changning District of Shanghai etc.ⅤConclusionThis part summarizes the thesis.