Retailing, Franchising, and Consumerism Business Intelligence in China

Electronics Retailer Opens East China Management Headquarters

Under a plan for reform recently initiated by Chinese electronics retailer Gome, Yongle's main headquarters will be eliminated and replaced by a new East China Management Headquarters under the Gome name in Shanghai.

Chen Xiao, president of Gome, began the Yongle reforms in March 2007 after purchasing Yongle in November 2006 for HK$5.268 billion. Chen first adjusted the salary system of Yongle to make it parallel with Gome's system, then changed the management structure of the company and issued the double brand operational system in which both companies would still operate under their respective trademarked names.

Yongle currently has 189 stores, and 62 of them are located in Shanghai. This new combined East China Management Headquarters is perhaps a sign that the brands will also merge soon.

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