Retailing, Franchising, and Consumerism Business Intelligence in China


Gome Earned CNY1.2 Billion In 2015

Gome Electrical Appliances Holding Limited published its performance report for 2015 and showed that Gits listed company realized sales of CNY64.6 billion, a year-on-year increase of 7%; and its net profit was CNY1.2 billion, which maintained at the same level as last year.

Meanwhile, its sales of comparable stores increased by 2.3% and its comprehensive gross margin was 17.8%. With effective cost control, the company's net operating expense rate decreased by 0.9% year-on-year to 15.4% and its net operating profit was about CNY1.415 billion, a year-on-year increase of 19.9%.

By the end of 2015, Gome's listed company part had 1,223 stores, including 208 newly opened stores in first- and second-tier cities. During the reporting period, Gome's online trading value achieved a year-on-year increase of 114.5%; its mobile-end trading value achieved a year-on-year increase of 511.8%; and its mobile-end trading value accounted for 55.5% of its total e-commerce trading value.

In addition, by the end of 2015, Gome achieved compound annual growth rate of 17.3% for three consecutive years. Over the three years, the company established a full-retail model, including digital transformation of stores in first-tier market; delivery expansion in second-tier market; overseas shopping supply chain building; and O2O platform improvement.

To maintain its continuous performance growth, Gome plans to seek breakthroughs in store scenario building and value-added businesses. During the first half of 2016, the company aims to establish 100,000 micro stores and realize the combination between physical stores and the Internet. Moreover, Gome will enter the home appliances service market to create a closed loop to cover the entire lifecycle of home appliances from purchase, cleaning, maintenance, recycle to re-purchase.




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