Access Asia’s Company Profile series of reports are meant to provide independent analysis on Chinese companies either in the news, or on the M&A radar. All company profiles contain contact details, company background and history, key activities in China, a SWOT analysis and key financial figures. We also include any key company events that have made the news, new product releases and branding activity.
Best Buy
Best Buy came into the China market very late, considering how the market had already matured and the two leading competitors (Suning and Gome) had already come to dominate the market. The company also entered China poorly, with internal management problems and other issues which stalled store openings.
Best Buy has already begun to ditch many of the imported practices that it transferred into China, which clearly were not suited to the China market, and that they are beginning to learn about the market they have entered gives to greater optimism in their ability to survive in China. However, store openings remain slow and the company is really relying heavily on its more successful Five Star acquisition.
Best Buy China is looking less like a disaster waiting to happen, and more like a viable business. However, it has a long way to go to become more significant a competitor to Suning and Gome, who will both be watching very closely what Best Buy attempts to do in terms of innovation, and will be quick to copy what they consider to be viable, so that best Buy will have to be constantly innovating in order to stay ahead.
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