Best Buy Co. Inc., one of the biggest home appliance and electronics retailers in the world, plans to expand its business on the Chinese mainland, said CEO Bradbury H. Anderson in Beijing Friday morning.
Anderson and a group of other senior executives paid a visit to Cheng Siwei, vice chairman of the Standing Committee of 10th National People's Congress, in the Great Hall of the People on Friday morning, in order to "deepen [Best Buy's] relationship in China."
Best Buy, one of the world's Top 500 companies on the Forbes and Fortune lists, purchased US$18 billion worth of home appliance products worldwide last year. Now it has set its eyes on the Chinese mainland, one of the fastest growing and most vigorous markets, following other US transnational companies like Wal-Mart.
The company set up its Asia-Pacific headquarters and global procurement center in Shanghai last September. Although he did not give specific figures, Anderson said that the company had set an objective of purchasing around US$1.2 billion worth of products from the Chinese mainland, Hong Kong, Macao and Taiwan this year.
China is the largest home appliance and electronics producing nation in the world. Every year, millions of televisions, refrigerators, air conditioners, mobile phones, microwave ovens and other home appliance products are exported to countries worldwide, with buyers attracted by the low price and high quality of Chinese products.
Meanwhile, China is also a huge market, with its 1.3 billion people and rapidly expanding middleclass.
Anderson said the company had opened its China office to learn the needs of Chinese customers. Serving the customers well, he indicated, is the core of Best Buy's competitive ability.
Currently, there are no Best Buy outlets in China, but industry insiders believe that once the first store opens Best Buy will rapidly expand. It is now strengthening ties with local suppliers like Haier and Hisense, and exploring ways to best serve customers in this market. When asked about potential Chinese competitors like retailers Gome and Dazhong, Anderson said it was too early to comment.
Best Buy's huge product purchasing plan, on the other hand, provides unprecedented opportunities for Chinese suppliers, who are eager to expand their markets overseas since production capacity far exceeds domestic demand. Best Buy's numerous outlets in the US and Canada will give Chinese manufacturers a strong boost into the North American market while avoiding possible trade barriers and anti-dumping investigations.
Moreover, said Anderson, Best Buy's purchase of large quantities of high-end electronics goods in China will create jobs on the mainland and fuel the country's economic growth.
(China.org.cn by staff reporter Tang Fuchun, February 20, 2004)
