Case Study

Innovating The Online Home Electronics Market

Source: Dell Inc.
Innovating The Online Home Electronics Market

Established in 1987, Gome has more than 1,700 stores nationwide, covering more than 400 large and medium-sized cities across the country. Gome is the largest appliance retail chain with the largest network, best management policies, and most balanced regional coverage.

The company wanted to transform their business model to focus on driving growth through the integration of online and offline sales processes. Gome has an established comprehensive procurement, logistics network and distribution system for physical retail outlets, providing the opportunity for the organization to share these resources across all customer delivery channels.

In 2002 Gome initiated online sales for their customers. However the web-based system could not meet the high demand for online orders and was supported by inefficient manual processes, which led to numerous challenges in ensuring timely delivery of goods. The company wanted to create a fast, customer-centric online experience for consumers, and enhance operational efficiency within the business to lower operating costs and drive profitability. Gome chose to establish a new e-commerce platform that would automate and simplify back office operations. This would provide consumers with greater choice and flexibility as to how their retail purchases were made, and enable the company to compete more effectively with existing online electronics sites.

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