Saturday, September 28, 2013
Yamada Denki To Adopt Locally Preferred Store Layout In China
TOKYO (Nikkei)--Yamada Denki Co. (9831) will overhaul its store layout in Shenyang, China, tailoring it to conform with the locally accepted method of displaying products by brand instead of type.
The Japanese electronics retail giant opened its first Chinese store there in December 2010, a 24,000 sq. meter facility that spans seven floors, one below the ground and six above.
- In 2010, Yamada Denki opened its first Chinese store in Shenyang.
Until now, its layout has been based on product category, with televisions on the first floor, washing machines and refrigerators on the third floor, and personal computers on the fourth, and so forth, just like in Japan.
The firm will now introduce a brand-based display, enabling customers to see various products from the same manufacturer in one location -- the strategy commonly employed by local competitors.
In China, mass-merchandisers such as Suning Commerce Group Co. and GOME Electrical Appliances Holding Ltd. have a strong presence, generating more than 1 trillion yen in sales. To differentiate itself, Yamada Denki introduced the Japanese style of product display.
Observing that consumers seem to prefer the familiar, brand-based model, Yamada Denki apparently decided to change tack.
The company closed its two other Chinese locations this year, one in Nanjing and another in Tianjin, partly due to the impact of boycotts of Japanese products sparked by the Senkaku Islands dispute.
If sales at the Shenyang store grow, the firm will open more sites. It had previously tried to set up an outlet in each large city, but will now open multiple stores in Shenyang.
(The Nikkei, Sept. 28 morning edition)