Dazhong, China's leading home appliance chain, cancelled a
high-profile press conference yesterday at the last minute, leaving
the more than 100 journalists on hand slightly dumbfounded.
"One minute ago, headquarters informed me the briefing is
cancelled," Luo Lian, director of Dazhong's marketing and
communication department, told reporters. "I'm sorry."
She declined to comment on why the event was cancelled.
The news briefing had been scheduled to expose one of Dazhong's
own staff members, who allegedly revealed confidential documents to
Dazhong's major competitor, which the company declined to name.
An anonymous company official said a Dazhong employee had
revealed the company's marketing proposals, pricing information,
outlet-opening agreements and other important contracts to its
largest competitor in the Beijing market, according to the Oriental
Morning Post.
Song Hong, Dazhong's general manager, said the male staff member
has held a variety of jobs within the company, adding that he "has
been missing for some time".
Media outlets have reported the company plans to sue the
employee.
Last October Dazhong broke a strategic partnership with China
Paradise Electronics Retail Ltd, after Gome Electrical Appliances
Holdings Ltd, the industry's largest player, bought China Paradise
for US$675 million.
Dazhong is Beijing's largest home appliance maker, with more
than 60 outlets. It accounts for almost half the city's home
appliance network.
Gome has been the dominant player in the nationwide market for
years, and admits that Beijing is the company's central area of
concern at the moment, according to media reports.
Earlier market rumors indicate Nanjing-based Suning Appliance Co
Ltd will spend 3 billion yuan to acquire Dazhong. Both sides have
denied the rumors.
China's home appliance retail market has been consolidating in
recent years. Best Buy, the biggest US consumer electronics
retailer, bought a controlling stake in China's fourth-largest
electronics retailer, Jiangsu Five Star Appliance, last year.
Competition has been raging in China's retail sector, a market
expected to triple to 20 trillion yuan over the next decade.
(China Daily June 1, 2007)