Following the merge of Gome and Paradise Electronic Retail, the domestic electrical appliance market would undergo structural changes, the China Business Times reported.   Professor Cheng Zhiming with the School of Business at the Nanijing University pointed out that China’s electrical appliance sector has stayed in a preliminary stage for years. Companies’ operational and profitability modes are backward up until Best Buy’s acquisition of Five Stars creates enormous pressure on domestic enterprises to be more sales- and services-oriented. A series of merging would bring new division of market as well as investment.   Cheng, however,said that the next couple of years would be the key to realize success or failure of the merges. Both Gome and Best Buy need to work on management and cultural assimilation. Suning Electrical Appliances, the third biggest player in the sector, would need to restructure its national market and distribution strategies.   Concerning whether the merge of Gome and Paradise would create a monopoly, Cheng said that the expansion of retail outlets do not mean the rise of profit. Instead, winning the future competition would depend more on efficiency of the management system, assimilation of corporate cultures, operation mode as well as services provided for suppliers and consumers.   The addition of new elements to China’s electrical appliances market has triggered stable competition among the industry players.