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In 1996, following the emergence of domestic brands, Gome adjusted its operational structure and shifted its focus to domestically produced, joint-venture brands. From early 1990s, Gome has expended rapidly and established its top position in China’s home appliances market. Gome pursued a retail plus low prices operation strategy from the very beginning. Dealing with manufacturers directly with guaranteed sales volume, centralized purchase and decentralized sales obtained concessions and higher level of rebates from suppliers and hence low costs, which in turn contributed lower retail prices and larger sales volume...
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