Profit Analysis And Sales Strategy Research Of Gome Dual-Channel Based On Product Category

The rise of e-commerce produces a kind of new way of retail—online retail, which changes the traditional single physical store retail mode. At this time China’s internet retail companies come out, and they make great success. These new retail companies continuously erode the traditional retail giants’ market share, even intend to subvert the traditional retail mode. So traditional retail giants pile into online retail, and strive to open up China’s "Wal-Mart and Amazon".However, the traditional retails’ online business brings no small impact to the offline stores, which presents dual-channel conflict problem. Based on this, this article studies the online and offline dual-channel conflict problem from the perspective of retailers, at the same time, based on GOME, explain two modes:①erfect competition between physical stores and online;②stores+GOME online. For the first mode, use Stackelberg game model to calculate; and for the second one, use the established profit-model to calculate. Considering the complexity and difference of the home appliance product, this article divides them into three categories:big appliances, small appliances,3C. Then, compare and analyze the profits from two modes for each category, and put forward dual-channel sales strategy for GOME.The study shows that for the big appliances, online price should relate to the offline price, so to improve whole sales profit; for the3C products,3C products are suitable for the perfect competition mode, thus the stores should transfer3C products business to online channel, meanwhile realize the same price operated by both channels; for the small appliances, the calculated profit from two modes is almost equaled, but with the E-commerce’s development, GOME should start to hand the products from physical stores to online channel gradually. At last, do further mining and analysis about the data from physical stores, GOME online, Su Ning and Jing Dong to get some other sales characteristics and strategy from product category and product price. Meanwhile based on the analysis of GOME, put forward some long-term developing suggestion and sales strategy for the whole home appliance retail industry.