Retailing, Franchising, and Consumerism Business Intelligence in China

Gome Makes Another Major Retail Adjustment

Following the change of its management structure from the original seven regions to 12 regions in July last year, Chinese electronics retailer Gome has made another major adjustment on its structure by reducing the 12 regions to 6 and transferring the operation and management rights to the lower level of each of the six regions.

He Yangqing, a spokesperson from Gome, said that Gome's position in the home appliance market of Beijing, Shanghai, South China and Northeast China had been further enhanced with its acquisition of electronics retailer Dazhong, so in order to realize further development goal Gome has decided to make the adjustment and change the original 12 regions to six: Northeast, Northern China, Shanghai, East China, West China and South China. He said that with the adjustment of the organizational structure, Gome also changed the duties of some of the top management, most of whom were transferred to an equal position or promoted to a higher position.

He said that through the adjustment, the function and position of Gome's headquarters, each region and branch had been effectively separated. As the regions respond to changes more rapidly than the headquarters, Gome transferred the operational rights related to the terminals to them. As a result, each region's rights and functions has been increased, and the headquarters will only take such duties such as making principles and work flow, and supervising the operation of each region.

Gome has also arranged its e-commerce department as a first level department within the headquarters. In the past, this department belonged to the business center of Gome's headquarters.

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