Japan's Yamada Denki to open 5 stores in China
Shanghai. May 7. INTERFAX-CHINA - Yamada Denki Co. Ltd., a major Japanese home appliances retailer, plans to expand its retail network with the launch of five retail outlets in China over the next three years, domestic media reported on May 7.
The strategy marks the first time Yamada Denki has attempted to enter a foreign market. The new stores will most likely be located in Tianjin Municipality, Shenyang, Liaoning Province, and three other unnamed Chinese cities, according to industry portal Cheaa.com.
The report quoted an unnamed source with the China E-commerce Consumer Alliance (CECA) as saying that Yamada Denki already has an office in Shenyang and began recruitment efforts at the end of 2009.
Yamada Denki reported a total turnover of JPY 2 trillion ($21.78 million) for 2009, up 7.7 percent year-on-year, with net profit reaching JPY 55.9 billion ($ 608.7 million), up 68.5 percent on an annual basis.
Established in 1973, Yamada Denki accounted for 30 percent of the Japanese home appliance market and has a network of 1,874 stores in Japan.
The Chinese consumer electronics market was boosted by government subsidies since 2009 which especially benefit rural areas.
Suning Appliance Co. Ltd., Gome Electrical Appliances Holdings Ltd. and US-based Best Buy Co. Inc. are currently the top three home appliance retailers in China.