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B & Q China Company solemn promise: through practical action to cut costs in all aspects, and lower prices, the real benefit to consumers. Wei Zhe, president of B & Q China, said that in the "integrity and price" as the core of the price crisis, the highest decline in building materials will reach 75%. This building will begin in Shanghai cheap storm that swept the country in two to three months. B & Q this year in order to better implement pricing strategies to meet in early April to Guangzhou "price storm", B & Q home improvement company and Guangzhou, the famous Star Arts officially signed a strategic cooperation agreement to provide a new model for the Guangzhou consumers buy, will B & Q in Guangzhou, a "lower buy" price. Yi Xiaogang, director of B & Q to buy, buy so-called, is simply to provide consumers with a value of home building materials decoration materials supply experts, specifically for group purchasing, bulk ordering members to provide more and better professional solution. The benefits are threefold: First, buy members can get more affordable, and by letter to inform the latest products and special offers, so members targeted, enjoy the "value for money" affordable.

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Second, B & Q's professional services team will provide reliable customer support and help when needed. The third is a convenient "one-stop" service, send the product and discount information from the very beginning of the buying process provide all the convenience and professional until the last knot and security service delivery models, the B & Q "one-stop "service so that customers do not have to run around, everything in B & Q stores can be satisfactorily resolved. Decrypt alleged insider price, full price of insider B & Q has two, one is the size of insider purchases, to increase the number of stores to streamline the number of suppliers of goods and improve the proportion of national suppliers, take advantage of B & Q's global supply chain system. The current system of traditional building materials city stalls still occupy the building materials retail industry for more than 90% share; while in foreign countries, developed countries as a format retail warehouse stores occupy more than 80% market share. China in the next three years, this format will gradually expose strengths, to achieve a higher market share. As of 2003, B & Q already has 15 stores in the East, North and South nine cities; B & Q is 50 times last year's purchases into China at the beginning of 1999. Based on purchases is increasing, building materials prices also plummeted. For example Malay Kempas wood flooring 1999 purchase price is 138 yuan per square meter, while in 2003 it was 103 yuan. B & Q's global sourcing network already entered China this year alone, B & Q and its parent company Kingfisher purchases in China had reached $ 1 billion.

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B & Q in the UK and France, the store, nearly 30 percent of goods from China. With the support of a large amount of a purchase, the cost advantage is self-evident. Since B & Q (quotient) shop (warehouse) library one, thereby reducing the cost of goods turnover and loss. Maybe you buy 10 bulbs only in B & Q in, but you enjoy it is B & Q purchase one million bulbs in the global discount price. Inside two: cost advantage. Building materials retail price is determined by the level of labor costs, property costs and procurement costs which three main costs. B & Q in building materials supermarket, each 100 square meters only need a salesperson, and in market stalls every 40-50 square meters of sales floor will need 2-3 employees, so the labor costs can be save a lot.

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Due to the form of its own property, so that B & Q on the property more than two-thirds of the cost and save the market stalls. In addition, the use of global sourcing, private brand strategy, its procurement cost is greatly reduced. Recently, a number of large multinational consumer goods prices after another dive, fish such as 5 yuan a Big Mac hamburger, �� 9 per bottle of 200 ml Rejoice, 39 yuan a box of Maybelline makeup lipstick ...... Lingnan College Professor Chen Shuojian think, multinational companies to enter the Chinese market to take prices Xianyanghouyi strategy, is an unspoken truth; while the same approach has also been used as a weapon to launch new multinational brand or a new product when. Opportunity earlier, when multinational companies entering the Chinese market, is facing the same grade is not much competition, so its pricing flexibility larger space.

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This can either establish the image of luxury goods, but also leave room for the price in the future. Over time, multinational brands of high-end quality concept has been firmly established, and some consumer groups has been formed. At this point, again a substantial price reduction multinationals, consumers will think to pick up a great deal; whereas multinational companies attempt to scale fission, thus its market share rapidly. Such as Coca-Cola through the realization of economies of scale, from the initial tank 3.5RMB every now slipped to �� 9 million. This is actually a return value, which in itself there is a huge price cut. In fact, B & Q China is also taken into this strategy, but its price is still high. B & Q hypermarkets turn around and you will find that the prices of various commodities actually not really that cheap. Purchase cost and low operating costs, plus a sales price is not low, B & Q will be able to open a shop profitable "source of profit" clearly visible.

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