Su Ning: Electronic commerce is not the mainstream

Speech man: Jindong,

Su Ning's head Discourse: E-commerce mode does not conform to the commercial law, the future can not become mainstream consumption channels.

Time: March 2010 Follow-up development: July 2012, Jindong will personal equity mortgage, the completion of Suning history of the largest one of the largest increase in capital-4.7 billion yuan, Suning comprehensive transformation to the electrical business.

Jindong said that "E-commerce does not conform to commercial law", does not mean that Suning did not dabble in E-commerce. August 09, Suning on its online shopping mall did a comprehensive upgrade, and will be renamed Suning easy to buy. But for a long time, suning easy to buy the feeling has been not the first echelon of E-commerce, fame and even after the guests.

A very important consideration is how to settle the relationship between lines. As a store with a large number of stores, online prices do not have an advantage, consumers will still go to the physical store. If there is an advantage, then the supplier will think that there is a price is not uniform. For a long time, e-commerce has become a dilemma for suning (in fact, there are quite a few commercial organizations with physical stores). Jindong that E-commerce does not conform to the business law is not so much a judgment of the trend as a reflection of this dilemma.

But in fact, Suning easy to do a good job. 2010, 300 people made up of Suning Electric Business division, a year tax-included sales have done 2 billion yuan. To 2011 years, originally just the line supplemented by suning easy to buy, fully entered the "whole category of the platform." Research company Easy view that, 2011 years, Suning Tesco has surpassed the Dangdang, ranked fourth in the country. At the end of 2011, the market share of Tesco overtook Amazon China.

It is difficult to judge Su Ning's first set foot in the field of electrical agent, is based on frustration or the real sense of the future. But one thing is to be sure, Suning easy to buy two years not bad performance, to jindong large-scale fight this field has brought confidence. and Taobao 8 million sellers, cat 60,000 of the huge number of sellers, so that some manufacturers need a new platform to quickly out of the early, which gives Su Ning provides an opportunity. Taobao's numbers look very large, and indeed too many businesses. But the whole Chinese business environment, Taobao this basin, can not catch all the water.

E-commerce E-commerce, a considerable number of people believe that business is the core, electronics is only means. So what is the nature of business? Plainly: low buy high sell. E-commerce than real business, consumers lack of direct access to goods and real shopping experience, so the price to make up. Therefore, the price war is a barrier to electronic commerce around the past. And Su Ning, in fact, playing price war has advantages.

The focus is on scale. Suning's size has reached the point where it can bargain with suppliers and depress prices. Although Su Ning is not too strong in the Internet field, but it can be packaged into the physical store and supply to discuss the purchase package. Jing Dong in 2011 reached the so-called sales of 21 billion of the scale-online there are many people think that there is a lot of water injection-but Suning's sales are 150 billion, accompanied by a 5 billion net profit. Suning scale several times in Beijing east, nature has a bigger emboldened to the supplier to lower prices.

Fix the supplier, Suning also dared to sell low price-that is, the gross margin pressure to the opponent can not afford. Because Su Ning has enough ammunition. Earnings show that it has nearly 12 billion of the renminbi cash and cash equivalents, while Beijing east, since 2007, a total of 1.5 billion U.S. dollars, the current net cash is about 1 billion U.S. dollars, but compared to Su Ning, the ammunition still has some gaps.

But Su Ning can not watch the rapid growth of the east, because when the latter's scale is more and more big, Su Ning to the supplier's control also is getting smaller. For a long time, Su Ning has been pressed by the United States, has been to the United States of internal conflict. 2010 Huang (Guang yu) Chen (Xiao), making the United States of the vitality of the big injury, Su Ning has also solved its own a big trouble, fully enough energy to free up to the east and Beijing to contend with: this is the so-called Su Ning fully to the electrical business transformation.

One factor that may be a bit far from the platform-type electric quotient is the 2010-11 group buying festival. I wrote two big Bubbles in the magazine last year, one of which was group buying. Group buying is a business that is in trouble, but its social significance is obvious: it recognises the power of a network of local providers (such as restaurants) that have no connection to the Internet, and based on that, it has turned a bunch of people who are not used to online shopping into e-commerce consumers. CNNIC's report showed that the annual growth rate of Internet services (2011 to 2010) was 20.8%, and the net payment was 21.6%, followed by a frenzy of growth (all 200) of microblogs and group buying. The relatively modest growth figures show that the growth is solid.

E-commerce is not the mainstream, the issue of value judgment is in fact not important. The important thing is: where does the seller want to appear? Where did the buyer appear? Such a factual judgment, is the thing that Suning needs to consider. Where they will be, Suning will be.