Media Markt, responding to exit China hearsay: shareholders are analyzed to assess

    
In China only two years ' vehicle dvr time, Europe's largest consumer electronics retailer Media Markt (hereinafter referred to as Media Markt City) will be exposed its intention to withdraw from the Chinese market.

In response to the above message, Media Markt, said in a statement released yesterday, "shareholders are obtained from the market testing phase analysis of the facts and data, and evaluate strategies for next. These assessments and decisions is underway, Media Markt, China not to comment. ”

"The market test phase"

Media Markt, does not vehicle dvr explain what is meant by "market testing". Foxconn under lobbying, Media Markt, entered China in November 2010, currently has seven stores in China, all set in Shanghai. In other words, two years after the entry into the Chinese market, Media Markt, the Chinese company is not out of Shanghai.

It is worth mentioning that, in China, only 8 months – July 2011, Media Markt, China Chief Executive announced a change. At that time, the outside world once commented, the electrical chain "to go best buy's old road." Closing February 2011 in China of the United States largest electronics retailers like best buy, Media Markt, after entering China have also taken cash buyouts commodity, its own employees to car dvr provide customers with the unbiased shopping guide, operation mode, many consumers use Media Markt stores as "experience Center".

It was reported that the 2012 during the first three quarters, Media Markt, China sales of 100 million euros (about 130 million dollars), expected a loss of 40 million euros for the year. Germany local time on January 7, Reuters quoted several sources as saying that Germany retail giant Metro Group tended to give up its Media Markt, plans to expand in China.

One person even said, China's market competition more fierce than anticipated, Metro Board preference for Media Markt will withdraw from China, but has not yet made a formal decision.

Pressure from electricity supplier

Fierce price competition in the retail market in China, especially competition from commercial pressures, foreign retail giants such as Tesco, Home Depot's business in China is also struggling.

On October 18, 2012, Media Markt, has announced the launch of online shopping in China, started its so-called multi-channel strategy. Media Markt, Chief Executive of China Pu Shaobo (Frank Bussalb) said, "in view of the current situation of decline in the overall retail market, Media Markt, provisional focus on the development of online shopping this year in China, but will not give up the store to expand. ”

Media Markt, car dvrsaid in a statement yesterday, Media Markt, China online store "current work focuses on strengthening business operations in the Shanghai market".

Struggling Metro

Through 2012, was a difficult year for Metro. Last October, Metro issued a profit warning, and led Moody's and standard and poor's cut the company's rating.

Reuters, Germany billionaire founder, Media Markt city ailixi·kelehaer (Erich Kellerhals) announced that it was empty, after Chinese shares, Metro a further blow.

Media Markt, according to previously disclosed information, Metro, kelehaer and the Stiefel family owned Media Markt, 75% shares in Chinese companies, Terry GOU, Foxconn, owned by then holding the remaining 25% stakes.

ZTE Corporation, the overseas development "grounded" business strategy has been Waist Deep

    
October 2012 United States mobile dvr release investigation report to the China communications company ZTE, the enterprise whether it is reputation also entering United States communications equipment market has been severely affected. ZTE Corporation, the overseas development, should itself find the cause. For investors, the ultimate concern, remains the company's future development, to be truly out of the Woods, ZTE or still has a long way to go.

On October 8, 2012 United States House Intelligence Committee in Washington, high profile reports that "Huawei ZTE in United States criticalcar dvr infrastructure on the device provisions would undermine the United States core national security interests" and suggested that "United States communications equipment companies in China should be in the United States continued penetration of telecom industry status quo remain skeptical eye." It is understood that the investigation began in November 2011, to report officially released, zhongxinghua provided extensive information to facilitate the investigation by the Commission.

However, this ban on acts provoked a chain reaction, India indicated that it would take investigative actions, the EU also accused the two companies suspected of dumping, or investigated, the development of China's overseas Fortune uncertain. However, ZTE was increased to expand overseas, in the United States markets to inject US $ 30 million.

In fact, ZTE faces "present". 2012 ZTE's first three quarters, under the influence of adverse factors such as low-margin, a loss of 1.7 billion yuan. According to notice, products area, group operators network income up declined 5.21%, main is due to cable Exchange and the access products, and CDMA system equipment sales declined due to; Terminal products income up growth 15.36%, main is due to 3G phone vehicle dvr sales quickly growth and the GSM phone, and data card sales declined integrated effect due to; telecommunications software system, and service and the other class products income up growth 23.29%, main is due to depending on news and the network Terminal products sales growth due to.

ZTE reported a first half of 2012, financial cost 831 million Yuan, an increase of 88.9%. Accounts receivable amounted to 26.587 billion yuan, while throughout the past two years, ZTE's receivables, overseas accounts receivable is higher than the national percentage, the proportion is more than overseas operating income as a percentage of total revenues. At the same time, ZTE 2011 years of three overseas operators 100% provision for bad debts, 2011 overseas provision for badmobile dvr debts for the year prepared to about 590 million Yuan.

Performance report the changing face, fr, initiating challenges to ZTE overseas market layout, even accusing it of excessive aggressive overseas marketing strategy, worried about its capital chain rupture caused excessive expansion. Can be seen, hidden in the pursuit and interception under the status quo, are seeing the cost advantage of Chinese enterprises after the traditional threat of international industrial giants to have high growth market for Chinese enterprises to carry out a new round of speculative attacks. Last year, after huge losses in the third quarter before ZTE, its management to make decisions until turn around half of the pay cut, enhance internal communication and implementation of the directive. Effect of further data support is also required.

Facing the dilemma, ZTE Corporation, the issues highlighted in the internal strategy and implementation, result in loss of serious, tactics of how to effectively implement focus; in addition, externalcar dvr extension, obstacles, many issues remain to be resolved. At present, the corporate strategy is Waist Deep, or only after these problems are solved, ZTE can give investors a satisfactory answer.