Gome's long-lost integration, once again to the turning point

Gome has come to a turning point again.

On the afternoon of May 26, Gome Group's senior vice President Li Juntao the second time this year to make a public appearance on the company's online communications, and said that Gome will open the line under the comprehensive resource integration, in the commodity production, logistics, it and other aspects will achieve mutual integration and assistance.

This is Gome group's second official appearance of the company's online media communication meeting, and so far, Gome Group publicly expressed its strongest support for gome online initiatives.

A long absence of integration

In the past two years, Gome online business layout has been relatively slow. According to Analysys data, Gome's share of online retail sales in the first quarter of 2014 was only 1.2%, while the day cat was 48.4% and Jingdong accounted for 20.1%. It is clear that gome, as an established retail giant offline, is very dissatisfied with this share.

Gome's online performance in the industry has been flat and has been at a loss. Although Gome official recently revealed that the company's online loss rate has been reduced, gross profit margins have grown to slows, and Gome will strategically be gome online more resources to tilt. But compared to Suning's large resources to tilt the line sharply, in the outside world, Gome online has not been so much internal resources support.

Li Juntao for the first time to publicly attend this meeting of the Gome online business, and to "unified line under the commodity mining sales", the core supply chain advantages taken out to ensure that the online commodity low price of the actual action to express the support of the Gome on-line business.

Gome is a war-born. We especially like war, played for 28 years, one day not the hatchet itch. "At the meeting, Li Juntao patted the table and said," I had a billions of order with the supplier, 200,000 joint-brand TV orders, we were all brought down one year in advance, and no one else could get it. "Can get the support of the group, the Gome's core supply chain to provide the advantages to the line, Shangui first in this communication, a change in the usual low-key and smooth performance, it is very relaxed and enjoyable."

"The user experience is the first, in the it can not carry a sudden burst of user access, stock is not up to promotions, logistics and distribution is not satisfied with the situation, the online resources on the steep tilt and expansion is a waste." "This is the United States Gome on the transformation of Suning electric business lessons summed up, on the one hand, is the face of Gome does not have a rapid transformation of the power industry to explain the problem." Li Juntao said that in the past year the low-key is in the "playing the foundation" stage, after a year of preparation, Gome online and offline stores in the logistics distribution, it technology, Web page and supply chain optimization have done the whole of the big integration, now to the stage of exerting force.

Aim for a share or profit in Jingdong

After the rise of the internet, the old home appliance chain stores have been a small impact. In the recent Gome online communication, many of the opponents, is no longer the "old enemy" Suning, but just listed in the United States of Beijing East.

Coincidentally, Gome Online 26th afternoon "Decisive battle 32 days" of the promotional media communication, Jing Dong just in the morning after the "618 Electric business Promotion" conference.

"Say one or two words can let jingdong not sell, because we have cooperated with the supplier for 28 years." "Li Juntao to Gome in the supply chain of the grasp appears very self-confident, also think this is to deal with Beijing East's killer." "We are not afraid to play a price war, because we can do tens of thousands of of the size of the price of home appliances." And they (Jingdong) after the listing, can not draw the pie, the financial will be more transparent, not necessarily better. ”

In the Internet companies, like at the beginning of the sacrifice of profits to pursue market share, the Beijing-east and other large number of electric operators in the operating profit is still in a loss. But after the listing, the results must be made public. In order to maintain the share price, Jingdong must also make some achievements in the profit.

So, in the market share has lagged behind the situation, Gome online is to share or profit? Li Juntao not a positive answer, but gently stressed that to see the overall sales and profits of Gome group, to ensure that Gome's financial results look good, the stability of the line store at the same time support the line.

It is understood that gome online in the first quarter of 2014 sales of 40% growth. Li Juntao said, "This growth is far from expectations, we will really quickly support the development of Gome online, the future growth must be 100% per quarter, 200%, 300% growth." ”

Gome reached a strategic partnership with the cat last year, and according to Gome Online, about 15% of the current sales are from the cat. From the data from all sides, Gome's strength mainly in everyone's power, and the Beijing East's strengths are in 3C and everyone on the electricity. Some analysts pointed out that the current domestic electric power business has been set, to want to appear subversive is very difficult, but Gome online is still very likely in the electrical category on the Beijing-east to form a threat.