BestBuy Senior Purchasing Manager, Asia CharlieXu
CharlieXu: Conference title to me to talk about the OEM requirements of international retailers.
First of all, let everyone know about BestBuy, because I do not know everyone here knows what the company BestBuy, BestBuy is doing what, BestBuy is a home appliance stores, now in North America, the United States, Canada, a total of 931 retail shop, the number of our employees, coupled with store sales personnel, the number is the combined total of 15,000 people, we call 2005 280 billion dollars of revenue, all of these figures makes the current status of the so-called North America, BestBuy, indeed, the world from home appliances retail first. In particular, I would strengthen the point, the appliances, BestBuy is focused on black is not white. BestBuy China headquarters in Shanghai, currently three offices in China, Shanghai is a headquarters, a Beijing, Shenzhen has a total of more than 100 employees at present, partly on the BestBuy.
Now I want to tell you the answer, if we ask our international retailers to the OEM manufacturers requirements? Very, very simple. This is not too OEM. Why say, we say is pure Chinese foundries will be very painful, if both sides are very pure, and we are very pure OEM manufacturers and only OEM, retail, retail business is very pure, so kind of combination will be very painful, we do together will be very tired, why? Inside there are some gap or differences exist.
Following this page looks very complicated, but very helpful to everyone, perhaps we can see that page said forget it, I do not cooperate with the retailer, if you want to become a qualified OEM retailers, you must to do it.
The first is the so-called two modes is why I have added is a pure, two stages. One is the standard of the retailers pure procurement model is compared with his pure classical OEM procurement. If you are a BestBuy's OEM companies, you do not like the APPLE company or a motorcycle company to your request, we will give you an idea of our, or the appearance of our products to tell you, but you do not expect what I gave You do a good job. We expect these to work by the supplier, they have technical engineering work to tell us, for the suppliers must have this capability. More complex electronic products, he has mechanical engineering, electronic engineering, there are those based on the inside, BestBuy for a company, he advantage of two things, one is the customer's data, so customers just like you said so, each As consumers, their buying behavior, their preferences, it is our wealth, we know what are our strengths. Another strength is the shelf, the retailer is the greatest wealth is the shelf. In particular, we strengthen this point, if the OEM manufacturers want retailers to teach you how to do this product, maybe a little naive you are. So for retailers, he qualified on the mind, or the fact that perfect supplier's ability should be particularly strong in particular, in order to successfully make up the difference between the two sides, this does not mean that retailers do not do Some efforts, retailers have to do some hard work, we will stride forward, we narrowed the gap to make up for the middle and finally win-win.
The following look at the so-called purchase method, this is actually very interesting distinction, we have contact with OEM factory, they want a product under a lot of volume, the cost has been very low, and very like that idea. For retailers, difficult to do so, because we have many products, the quantity of each product may be great, there may be small, and some also see BestBuy orders can be significant, but we have a small order, the same Zhang order inside a lot of products, some products to buy large quantity of some product to buy is very small, the characteristics of these retailers, which is characterized by a single retailer decision of his Department's market environment, we have a market because volatility, we have a single channel, we can not sell our products to other places to go, so causing such a feature. This is the second part of the features of our purchasing, not to say that a product we will buy a lot, we will buy many products, but there will be changes in a single product, there will be more than a few, the need for everyone to understand.