Foxconn attempts to complete the channel system after ten years of hard work still unspeakable success

For Foxconn, many people only stare at the concept of the king of the Foundry, with a solidified thinking to examine the enterprise, but it has already cloth five channels, alone against the warlords. But after ten years of hard work, it seems to be unspeakable unobstructed!　　Once the whole channel system in the plan is successful, it will be the "steam" situation, but now ... In late September, Saber's Apple Authorized store "I have a few" in Chongqing, Jinan, Wuhu successively opened. With the help of the Golden Week atmosphere, the "digital talent" of the interactive experience activities in full swing, robbed a good luck.　　On the other side, in the two days before the national day, the German-lineage city of Vantaa opened its fourth store in Shanghai, and the slogan "Incredibly low prices" was generously shouted out to break into the low-cost, sensitive area that best buys never touched. These cities "marketing stage" space to be different, but there is a common behind the "producer"-Gou, interpretation of the same scene-channel. Moreover, the script began to write as early as ten years ago. Since 2001, invest in the digital plaza, and now, Foxconn is trying to create a "full channel system": Wan City in the first-line city layout, the competition Bo Digital main professional It stores, steam to cover three or even "six lines" town, dare to create digital shopping malls in large supermarket expansion,　　Flying Tiger Tesco is focused on E-commerce.　　This is a big blueprint for a channel system. Once the whole channel system is mature, from Metropolis to Township, its tentacles will be thoughtfulness. But this is not so much about building five channels as it is about him resisting the five-way army alone. Is "Superman's duty to declare war on the masses"?　　Nietzsche's language is always encouraging the people, but also quite suitable for Guo's heart. This is a manufacturing industry-by-product chain of "wild fantasy" practice. On behalf of the soul of the brand to provide the body, under the product performance to provide the carrier, the world's king of manufacturing than anyone understand the industrial chain of interest distribution ratio. An iphone Foxconn earns 6.54 dollars and Apple earns 360 dollars.　　Upstream of the industry chain of brands and technology, downstream of the terminal channel is a high profit, manufacturing and foundry is at the bottom of the profit. After the financial crisis comes, the voice of the transformation and the independent brand is more and more big. But for small and medium-sized enterprises, the cost of brand-building is huge, not easy to come by, but for large enterprises, but also suffer from their own brand and OEM customer's brand, it is difficult to find a balance of interests. And Guo seems to have plans for it. He does not want to "transition", but want to "expand"--around the generation of enterprises to create brand-sensitive areas, in the industrial chain to intercept downstream terminal channels. In the design and OEM, and then to help customers sell products, the logic is very simple. But for manufacturing giants like Foxconn, everything is different. To control the midstream manufacturing foundry, downstream channel retail, coupled with the existing design advantages, then Gou only need to "outsource" the brand to Apple, "outsourced" to Sony ...　　The position of the object and object is inverted, and the value system of the industrial chain seems to be overturned. What is Gou doing? He is trying to keep the industrial chain captive inHome. It's not that Mr Gou is a competitor to every channel, but a challenge to all the problems in the channel industry; Industry is born with bottlenecks and blind areas, the industry chain needs balance and constraints.　　This decade, the rich and strong and has the advantages of OEM customer resources Foxconn, channel business to create unspeakable success, its progress is not satisfactory.　　Saber: The loss of ten years of growth, your name is called pain. Noise is always the favorite atmosphere in the store. "Digital talent Show" under the theme, music, games, photos and other people have been in the front of the game Bo Shop, Shanghai, Shenzhen, Chongqing, and other cities of the Bo shops have become the show field.　　Suppress the strength of the saber with experiential interactive marketing fishing a pen, the 10 years ago, the seller's market, why so hard to do? At the end of last century, the internet was the first wave of waves, mobile communication popularization of a spark quietly burning, is trying to prairie. Related digital electronics products in short supply, 3C store fire was a mess.　　The expansion of production, the natural indication of market demand in the expansion, and the market directly linked to the terminal channel will have a stronger right of speech. Foxconn, who is engaged in the foundry business, may not be the first industry prophet to foresee the future, but can detect when the river is warming and the hydrological flow of the river is detected. Two years after the establishment of the Cyber Plaza, in 2001, Mr Gou lost no chance in entering the Cyber Plaza, which led to the big expansion of Saber in 2003, with a number of stores reaching 53. Gou has adjusted his opening target to 500 in two years. But 2004 China's 3C product sales pattern has changed dramatically.　　In addition to Broadway, such as many 3C stores, Gome (micro-bo), Suning for the representative of home appliances chain stores, Carrefour, Wal-Mart and other large supermarkets have taken the initiative to join the 3C products in the market competition. And Saber in the expansion process, due to the lack of supervision and management, the terminal lost control, eventually due to poor performance losses close to billion, this figure for the annual revenue of hundreds of millions of yuan Foxconn may not be sensitive, but it means that Gou's Bo channel route suffered setbacks. More than 20 outlets shut down, operating area shrinks, even has the computer store to sell the clothing.　　Saber jolted all the way and began to turn a profit in 2007 years. Saber's Big store model is relatively simple, low-cost food into the property, high-priced sublet, the lowest parity rental. However, there are some special aspects of the IT store, Gome, Suning's branch to expand a good supply chain and process management, the model can be copied; But at that time the game Bo seemingly chain, in essence, there is no chain of preparation conditions, the stores are more like independent monomer.　　It stores to any place to open branches, in addition to the name of the front, the management of some of the same, public relations, investment, operations, according to the local situation depends.　　The early high profit of IT industry gave the IT store this mode of full living space, but today the price of the industry is very transparent, a variety of brands, profit space in the chaos was depressed. 2010At first, Saber began to emphasize transformation. In addition, compared with the past to operate a simple store, the new goal is to create a digital plaza, the hope is to make a channel service provider, relying on Foxconn group as the world's largest computer and it accessories multinational manufacturing enterprise resources, to provide manufacturers, including production, transportation, sales, maintenance of one-stop service.　　For example, the company is responsible for the manufacturer's product advertising, promotional and roadshow activities through its own professional marketing firm, and, if so, prepares a maintenance center to provide a Third-party maintenance service for consumers outside the manufacturer. After many adjustments, the Bo Digital Plaza is currently in the mainland 20 cities have 35 stores, almost back to the original point of 2001 years, when it and Gome, Suning is almost standing on the same starting line. But 10 years on, Bo lost the best chance of growing up.　　5 years to invest 10 billion yuan, and then build 20 stores-This is Foxconn's new plan.　　Wanda City: Foxconn in a extras?　　The devil is hidden in the details. Saber to professional IT product sales, but in Gome, Suning and other 3 C stores before the offensive, the strength appears to be a lot of thin.　　As a result, the Foxconn capital of the city was pushed to the front desk. Out of the shadow of Best Buy City, its parent company Media-satur N is Europe's largest consumer electronics retailer, is Metro's companies. Foxconn and Metro each hold 25% and 75% of the city's shares.　　November 17, 2010, the first Chinese store in the city of Markt opened in Shanghai. "They quit, we give you the assurance," February 2011 Best Buy Retreat, the city of Wan so out of the advertisement, the former after-sales service according to the whole collection. Not the profit-driven nature of the enterprise has become a benevolent enthusiasm, but just opened 3 months of the city to feed themselves a reassuring. This is not only a rare PR opportunity, but also to win customer resources, to please and to contain the supplier's win.　　The question is how can the city of Vantaa be emboldened by the after-sale stall left by Best buy? The city's first store covers an area of 13,000 square meters, and up to five floors there are more than 45,000 types of electronic products, which are displayed in terms of price and function, rather than on display by the manufacturer. There are many product experience areas in the store, and massage chairs are configured in the Consumer lounge area.　　The way the business originated in Europe makes it resemble Best Buy, with consumer experience products as the main demand.　　Because the consumer experience as the center of Best Buy abandoned the supplier entrance fee, resulting in high prices of products, so highbrow, eventually sadly exits, this misfortune will be accompanied by the handover of after-sales service? The Chinese elements of the city of Vantaa have more or less affected their own operations. The parent company Metro in 1995 has entered China, the Chinese market has a clear sense of consumption characteristics, and Foxconn in the mainland for many years, its influence on the industrial chain, government relations can bring direct help to the city. "We can translate in English and Chinese from the language, but from the way of thinking and the heartIt is very difficult to solve the Chinese.　　Said Tongwant, former CEO of Wan City. Get away from Best Buy, especially the price. In Europe, in addition to goods complete, low price is the advantage of the city. In Shanghai, the idea is still. However, in the Shanzhai rampant, low-cost model rampant in the Chinese market, European low prices will people buy it? The city itself can only say: "We try to do the lowest price." "In China, the lowest price is very difficult, and our products cover not only with Gome, suning competition, as well as it mall and large stores competition." "Super choice, incredible low price", this is the new million city Shanghai Seven treasures store slogan. Opening and National day two concepts to promote the city of the Seven Treasures store let go play a low-cost strategy.　　No higher than the price of peers, the return of large amount, even the strong brand of Apple and other brands are also involved in promotional activities. Yes, China may not be the birthplace of price wars, but it is the battlefield where price wars are most frequently used, and "brand loyalty without a penny to buy" is the most widely spread creed. When prices are hard to achieve, the city wants to educate Chinese consumers not to focus too much on prices, but on solutions.　　Because in more than 40,000 kinds of goods, about 20% of the surrounding products, their gross margin will be higher than the main products a lot. At the same time, the city does not want to do best Buy the "clean" store, each floor escalator opposite there are advertising walls, the store can also engage in promotional activities, there are posters area, there are TV ads, these are not allowed to pass the income increase channels. Tongwant's words illustrate everything: "We just see one thing, we get market share by maximizing sales, then we maximize profits."　　"Here everything is different from Europe, to low prices, but also to bow."　　Foxconn is just a supporting role? The day of "assurance" Hao speech just fell, million city in August, the personnel changes, took office less than a year of Tongwant, resigned from the City of China CEO, the Germans Pusaubo. Does this mean that the city has started to be a bad start in China?　　Business model not acclimatized? But for Foxconn, the answer seems to be unimportant. According to media reports, the cooperation between the two sides did not follow the expected.　　"Since Hon Hai owns only 25% per cent of the city of Vantaa and has been unable to enter into the actual opening of the shop," the city has been a financial investment for Hon Hai, and it is difficult to overlap with other channels, and the desire to learn more about Metro Channel experience was almost dashed. At the same time, with Foxconn, Metro is only trying to get a low price advantage for some 3C products, but only a small part of all products. In this way, Foxconn has yet to bring the cost of procurement to the city's advantage.　　In the beginning, Best Buy also wanted to mobilize its global sourcing resources to serve the Chinese market, but the road did not work. Perhaps the only consolation for Mr Gou is that the pace of the hypermarket has been taken, using Metro's brand strength to create its own 3C channel for product sales and promotionThe plan has entered the orbit. By the end of September this year, the city had opened four stores in Shanghai.　　For the future, the expansion of the city is still stable: In 2012, opened 10 stores in Shanghai, and then to other geographical expansion, 2015, look forward to opening 100 stores. Steam: The bottom market has not yet been a prairie fire to do the biggest, otherwise do not.　　Steam Electric Supermarket is Foxconn's completely own channel, its positioning is "facing the vast number of urban and rural consumers nationwide electrical chain supermarket." 40,000 of the mobilization of the army will Gou's business style has always been open EAPC, domineering and fierce. For example, "5 years to open 10,000 steam electric supermarket!" "Its slogan directly to the brand name: no million stores of the real, how to" million Horse "name?　　Foxconn's plan is to open the steam to three-tier cities, counties and towns, quite a "rural siege of the city," The color of the Great Leap Forward.　　Just with 10,000 stores match the manpower, capital, logistics how to solve? What is Foxconn's greatest asset?　　From the black soil of the Northeast Plains to the Yunnan-Guizhou Plateau mountain villages, from Shaanxi Gan Gully Caves to the south of the land of Plenty, Foxconn's hometown all over the provinces of the township cities, it is even more rare to use a wealth dream can often drive their desire to return to business. The key to opening 10,000 stores is on these people. February 2009, Foxconn Shenzhen Longhua Factory posted notices: The company will screen some of the seniority of more than 5 years of senior staff to open the shop, the company will provide more than 300,000 yuan interest-free loans, and employees self-financing 90,000 yuan to start "steam" home appliance chain.　　The majority of interest-free loans provided by the company as purchase money, which means that can directly use the corresponding value of goods to support the store. 40,000 people sign up! By the end of June 2010, a team of 50 people had been streamlined to attend training courses offered by Foxconn. 3 months later, they dissolved their home business from Foxconn's Shenzhen headquarters. This kind of expansion is called "Fu Gui Dian", that is, Foxconn employees belong to Township founder. In addition, steam also has two types of expansion: Direct shop, Foxconn outside to find someone to manage, the first direct shop in Foxconn headquarters in Shenzhen Longhua, franchise stores, allowing some brand stores directly to join. A deep inland retail network is about to cover the whole country, with Saber, Wan City and other one or two-line city of the retail chain to form a complementary.