It Retail Channel Competitive Analysis And Stores Transition Financing Strategy

As a subsidiary wholly owned by Foxconn Group,the most biggest IT product OEM factory group in today's world,CyberMart,since the establishment of its first 3C mall in 1999,has opened 32 malls in 20 cities around the country during only few years by virtue of its continuous cultivation and rational investment in Chinese market.CyberMart has now become the Chinese biggest chain mall for digital businesses and is still expanding itself rapidly.It will scatter its malls in all cities all around the country and bring the latest, fastest and most complete digital experience for all of its customers.A brand-new era of Cyber Digital is coming.Currently,CyberMart is serving as the Chinese largest chain platform for IT retail businesses,whose main business mode is to re-lease shops and advertisement places to IT product retailers or IT product vendors and to integrate resources around the country, taking its 32 malls as the platform.As the market competition becomes even fiercer,plus the challenges posed by traditional house-apparatus chain malls and digital product chain supermarkets that have united purchase and sale management,consumers has become unsatisfied with products at low prices only,and has given more and more attention to elements such as sales environment,after-sale services and product quality.As for traditional IT malls mainly focusing on shop rent,the key for their future development and survival is to go with the tide and to make some changes.Based on this background situation,the author takes Cyber Market which develops under support of its parent company Foxconn Group as a study case and has analyzed and explained various directions and modes of transformations,including 1) investment in up-stream real estate Industry to obtain self-owned property so as to avoid risks such as a suspension of property rent due to property price increase,etc.;2) investment in down-stream wholesalers,mainly in group buying activities so as to avoid direction contact with lease retailers;3) adoption of win-win corporation with foreign competitors so as to promote our strengths and avoid our weaknesses;and 4) combination of virtual stores and face stores since on-line sale has been accepted by more and more consumers.Because some of our transformation modes need large capital investment,how to raise money has become a question that must be addressed.We have analyzed our strengths and have decided to introduce funds from overseas,including venture capital, real estate funds,etc.In addition,we will continue our analyses and research on the overall situation of the Industry and let shareholders get financing through increasing capital funds.To sum up,we hope that,during our future development,our company will maintain its leading position out of the fierce competition through our transformation.