Best Buy to open first outlet in China
(AP)
Updated: 2006-08-30 11:24
And as foreign retailers like Best Buy and Wal-Mart Stores Inc. make inroads
into their home territory, local retailers are fighting back. China's No. 1
consumer electronics retailer, Gome Electrical Appliances Holding Ltd. made an
offer in July to buy Hong Kong-listed China Paradise Electronics Retail Ltd.,
the country's third largest seller of electric appliances.
Best Buy is concentrating on researching the market and recruiting and
training staff before making its next move in China.
"We are still learning about this marketplace," Willett said. "The Chinese
consumer is pretty unforgiving if we get it wrong."
Market research shows Chinese consumers are spoiled
for choice, facing a bewildering array of products in
almost every area.
Willett hopes Best Buy will win over picky Chinese customers with pleasant
outlets and helpful, dependable service.
"Best Buy is very much about service," he said. "When we sell something we
make you a promise that it will work, we'll warrantee it and teach you how it
works."
The company is not alone in attempting to win an edge over local competitors
with a more positive shopping experience. In July, Motorola Inc. opened a slick
new flagship store, in the same building in Xujiahui where Best Buy's outlet
will be, where shoppers can try out all features and accessories on its cell
phones and other products — not an option in the typical Chinese electronics
bazaar.
Best Buy, which has outlets in Canada, is looking beyond North American and
China to other markets, Willett said. But he denied reports the company was
discussing potential acquisitions as it mulls further overseas expansion beyond
Canada and China.
"We are looking at other countries, though I'm not going to talk about which
ones," he said. "We're not in talks with anyone today about buying anything
today."
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