The best thing I can say about early December Top Idea GOME Electrical Appliances (OTCPK:GMELY) (0493.HK) is that the shares did quite a lot better than rival Suning and only very slightly worse than the Hang Seng Index. Even so, the 5% decline over that stretch is quite disappointing.
I continue to believe that GOME is on the right track with its focus on becoming an "omni-channel" retailer and driving a competitive advantage through low-cost/high-service logistics and supply chain management. Online appliance and electronics retailers seem to be pulling back from aggressive price competition and the company is taking share in Tier 1 and 2 cities. The online strategy is still a work in progress, but with a...
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