European consumer electronics retail market leader Media-Saturn and its Chinese partner Foxconn have officially opened the first Media Markt store in China.
At exactly 7 pm local time on November 17, 2010, thousands of customers flooded into the chain’s new store on the popular shopping street Huai Hai Road in Shanghai. The flagship store, which has a sales area of more than 9,500 square feet, is now the company’s flagship store in China. qv. The new Huai Hai Road store is the second-largest in the Media Markt chain worldwide. Divided into five zones, it offers more than 45,000 items for customers to peruse. of well-known brand names. Media Markt plans to open more than 10 stores in Shanghai by 2012.
“The purchasing power of Chinese consumers is growing very rapidly, and we will certainly benefit from entering this market,” says Media-Saturn-Holding GmbH CEO Roland Weise. – The retail segment of home appliances and electronics in China is growing at an average of 8% a year and total sales in the area over the next 10 years will be close to 180-200 billion euros.
For the successful launch of Media Markt brand in Chinese market, the basic needs of local customers have been taken into account. They are offered a wide range of products at consistently low prices and qualified consultants. Media Markt expects to gain a serious competitive advantage through the close attention to its customers, which will be provided by 275 sales assistants.
Many thematic zones are the distinctive feature of the store. The flagship store in China, which has a sales area of 5,000 square feet, houses, for example, 3D, Hi-Fi and TV studios, as well as a games area and a special department dedicated to distance learning technologies and equipment. Characteristic of China is a specially equipped seating area where shoppers can test out some products, such as massage chairs. As in Europe, Media Markt offers a wide range of value-added services in China, from expert advice and software customization to shipping and installation of purchased electronics.
The Media Markt division in China was established as a joint venture between METRO GROUP and the two founding families of Media Markt – Kellerhals and Stiefel, who own 75% of the joint venture, and Foxconn Technology Group, which owns the other 25%. Ton Wortel, formerly COO of Media-Saturn Holding GmbH in the Netherlands, now heads Media Markt in China. He works with director of strategic development Alan Yong Dr. Alan S. Yeung , who was previously CFO of Foxconn Channel Business Group. Jack Sun becomes director of first Media Markt store in Shanghai.
I’m really excited to hear that Media Markt is expanding to China! Can you please tell me if they will offer the same range of products and competitive prices like in other countries? Additionally, will they have an online presence for convenient shopping? I’m curious to know how they plan to compete with existing electronics retailers in China.
How will the arrival of Media Markt in China impact the local electronics market? Will it pose a threat to existing offline and online retailers? What unique aspects will Media Markt introduce to cater to Chinese consumers?