In recent years, the retail industry witnessed a wave of mergers and acquisitions, especially for the household appliance chain industry. Since 2006, the mergers and acquisitions among household appliance chain industry has upgraded rapidly. Five Star Appliance and Yongle Appliance Co., Ltd, the two top five household appliance companies in China, were merged and acquired successively. Since then, the household appliance chain industry had entered the oligarch era, Gome, Suning and Best Buy, dominate the market.

Gome's acquisition of Yongle has rewritten the history of China household appliance chain industry, which not only decreases the costs of both parties during the competition in the East China market, but enhances the competitiveness in Beijing and Guangzhou markets, greatly promoting market advantages of Gome in the region of Yangtze River Delta.

In 2006, Suning entered three more provinces and 29 cities at prefecture level or above, opened 136 chain stores, as well as replaced 9 chain stores and, the main business revenue amounted to RMB 24.927 billion, up 56.42% year-on-year, which was nearly the same to the growth rate of the number of shops (56.70%); the net profit reached RMB 720 million, rising 105.43% over the year of 2005.

Comparison of Sales per Shop between Suning and Gome, 2000-2006

Due to lack of capital in the first half of 2006, as well as the market shrinks, the main business revenue and the net profit of Sanlian Commerce Co., Ltd in 2006 dropped 14.17% and 28.8% year-on-year respectively.

2 M&A of Gome
2.1 Brief Introduction
2.2 Influence
2.3 Meaning
2.4 Merger and Acquisition Strength
2.5 Main Problems

3 Driving Factors
3.1 Strengthen the Terminal Control
3.2 Obtain the Rare Network Nodes
3.3 Shortcut for Foreign Capital to Enter China

4 M&A of Suning
4.1 Company Performance
4.2 Industry Position and Strategic Plan
4.3 Expansion Mode
4.4 Merger and Acquisition Capability
4.5 Analysis on Merger and Acquisition

5 M&A of Sanlian