Brands reposition to meet challenges of dynamic category
Retail in general suffered from the economic slowdown and more considered spending by consumers. Consumer electronic retailers, like Suning and Gome, also felt the impact of high operating costs and the dramatic rise of e-commerce competition.
Suning shifted its strategy dramatically, with a plan to leverage its well-known brand and physical presence by broadening its scope from electronics specialist to general merchant offering multiple categories in both physical and virtual stores. Both Suning and Gome looked for growth opportunities in lower tier markets.
These new initiatives haven't yet shown significant results, and both Suning and Gome declined in brand value. Only Suning remained in the BrandZ™ Top 100 Most Valuable Chinese Brands, declining 19 percent in brand value.