U.S.-based Best Buy has had a difficult time promoting its electronics retail brand in China, and now the company is trying a new business strategy.
The strategy was just unveiled in Nanjing, Jiangsu province: the company stated that it will return to the Chinese market via its Best Buy Mobile brand.
Best Buy said that taking Five Star Appliance as its main platform, Best Buy will introduce its Best Buy Mobile brand into China. In 2012, the company will open the first batch of 14 stores-in-store in the retail outlets of Five Star Appliance in Nanjing, selling personal mobile products like mobile phones and tablet computers. By cooperating with Five Star Appliance, Best Buy Mobile will combine its successful model in the international market with Five Star's local operating experience. It aims to become the leading provider of mobile phones and related accessories and services in China, improving the mobile product experience of Chinese consumers.
According to the company, Best Buy Mobile will be promoted to Five Star Appliance's stores in Jiangsu and across China. When the model is mature, the brand will have independent mobile phone retail stores as well as an Internet store.
Shari Ballard, Best Buy's global executive vice president, told local media that global growth is an important part for Best Buy's overall strategy. In China, Canada, Mexico, Europe, and any other market Best Buy may enter, the company aims at providing the best experience to customers while developing its business.
In February 2011, Best Buy closed all nine stores in China, including six in Shanghai. The company then said it would allocate its remaining assets and businesses to Five Star Appliance. Founded in December 1998, Five Star Appliance was acquired by Best Buy in 2006 and became a wholly-owned subsidiary of the U.S. retailer.