BestBuy closing 50 stores

[Hyfi]

I saw a program on TV stating that Best Buy opened a bunch of stores in China 5 or 6 years ago then closed every single one within just a few years. One BB exec. said that they were ahead of the curve and China was not ready for a store like Best Buy haha.

They are now apparently. I was watching CNN while getting my car washed 2 weeks ago while they reported the story of the closings here along with all the openings there. Just think, they now can buy their own junk.

[Mash]

unless that is what the customer wants. They can, for example, make really nice leather jackets in China, but I will also admit that my US-made leather jackets are far nicer than those Chinese jackets and this is obvious even from 200 ft away. But how many in the US are willing to pay for the finer quality? Not very many, especially for things which are quickly made obsolete.

There are two problems with manufacturing in China:

1. It is almost impossible to protect your proprietary technology. Sooner or later new Chinese companies will spring up that somehow have & use your proprietary technology. You will have to discover this for yourself.

2. Some of the product manufactured in China for a foreign company will 'leak out the back door' as supplies for Chinese street vendors.

An additional problem arises when a foreign company is successful in selling to the Chinese in China: When direct Chinese competitors do finally materialize, and they will, they will take away the foreigner's business. I do not forsee a long sales career for BB in China.

[Smokey]

They are now apparently. I was watching CNN while getting my car washed 2 weeks ago while they reported the story of the closings here along with all the openings there. Just think, they now can buy their own junk.

As oppose to Walmart, BB also sell alot of electronic items from Japan and Korea which would make their price slightly higher than what Chinese market offer. BB stores in China probably more cater to middle and upper class than the working masses.

An additional problem arises when a foreign company is successful in selling to the Chinese in China: When direct Chinese competitors do finally materialize, and they will, they will take away the foreigner's business. I do not forsee a long sales career for BB in China.

Chinese market seem to be very protective of foreign competition. For example, their domestic TV manufactures dominate 75% of market share in China. That give very little room for foreign TV manufactures to compete.