According to general manager for Midea's sales company in Beijing Zhang Wenfeng, the Chinese home appliances maker plans to increase the number of its specialty stores in Beijing to over 100 by the end of July 2009.
Zhang said although about 55% of the company's sales in Beijing were from large electronics marts, the power of specialty stores should not be underestimated. In 2008, the total sales of Midea's air-conditioners in Beijing were over CNY800 million, of which 45% were from specialty stores.
Zhang said the first-tier markets in Beijing were relatively saturated, but the capacity of third and fourth-tier markets was still large. At present, Midea has opened more than 50 specialty stores and most of these stores are in third and fourth-tier markets. In 2009, the company plans to open four or five image stores around the Third Ring of Beijing.
Midea started to develop self-constructed specialty stores in Beijing from two years ago. So far, the company has opened more than one thousand such stores all over China extending its business to such second and third-tier markets as Shandong, Henan, and Hebei. According to its development plan, Midea will have had over 100 specialty stores in Beijing by the end of July 2009, covering suburban areas of the city.
In addition, Midea is considering about entering the Internet shopping sector and to explore the market potential of online sales, added Zhang.