The Counterattack of Regional Mobile Phone Chain Retailers (Practical Case Study of B2C E-commerce for Physical Retail Chain Enterprises)

by probiz on 2008-05-14 18:12:41

In the mobile phone retail sector, from Gome and Suning-like channel giants to individual merchants camping in residential communities, price is the most powerful tool to win customers. As the dominant position of several international mobile phone brands is further established, the pricing power of mobile phone manufacturers becomes more firmly in their own hands. Nationwide chains like Gome and Suning reduce procurement costs by relying on huge purchase volumes and buyout methods; while individual merchants who slip through the cracks of the mobile phone manufacturers' price management system capture customers by gray market trading; regional chain brands represented by Longyue Communication have become the highest benchmark for official mobile phone prices in the regional market under the strong control of mobile phone manufacturers. Apart from price, what other methods can withstand the challenges from these two channel giants and regain Longyue Communication's dominant position in regional mobile phone retail? Zhou Yang, the operations officer of Longyue, believes that Longyue Communication has always provided perfect services, offering genuine official mobile phones; serving users based on their needs. In addition to having a good strategic partnership with mobile phone manufacturers, it also maintains close strategic cooperation with mobile operators. All this is based on "Longyue sells not only mobile phones, but service is the fundamental reason why the Longyue brand gains consumer favor."