Jindong How to win price war with the strategy of high dimension

Facing Alibaba, Tencent, Suning has a new idea for the next 10 years: Wal-Mart + Amazon. See how Jindong won the Dark forest battle with the high dimensional strike strategy.

Today is the first day of the East Suning price war. Is it necessary for them to fight a mortal war? This newspaper recently exclusive interview with Jindong, in the interview, Zhang did not disclose any details of the strategy, but the reporter has obviously felt that Su Ning is about to start a full-scale war. Because no matter from which part of the supply chain, Suning has completed the preliminary layout: Product line expansion, experience optimization, open platform for efficient operation, the supplier of the shortening cycle, the improvement of the background service capabilities, and at present Suning has 60 Logistics Base, 12 automated selection Center, 5,000 service outlets and 10 cloud data centers.

For Su Ning, the only lack is: the experience of the electrical business. But Jindong has already been heroic dry cloud. Price war is its inevitable move. Zhang's strategic goal is not Jingdong, he has to face up to Alibaba and Tencent, he is against himself, is the traditional retail, to see how suning anti-traditional.

July 12 Evening 22 o'clock, Suning appliances (002024, shares bar) Nanjing Xu Headquarters, the lights are still brightly lit. The office building, which can hold 10,000 people, looks out from the outside, with every blue glass window flashing brightly to the night. For the new ten-year strategy, suning employees often work late into the night. But outside the Xu, Su Ning's such busy and hard work has not been known to the outside world.

Affected by the latest issue of 8 billion yuan, Suning appliance stock price yesterday (August 13) fell to 5.88 yuan, the share price (after the right) hit a three-year low. The price of its founder, Jindong, has evaporated by nearly half. And in the stock price continued to fall, Jindong had to add to the Trust company 442 million shares of Suning appliance. What happened to Su Ning?

Over the past 8 years, Suning electric appliances business income growth of nearly 40% year, net profit compound growth nearly 60%, 2004 to 2011 market value growth nearly 20 times times. This year is the first year when Suning's new decade strategy began to drive the overall layout. In the planning of Jindong, in 2020, Suning Electric line under the entity stores will be built 3,500 stores, on the line suning easy to buy (micro Bo) will achieve 350 billion yuan sales revenue. He built an unprecedented new retail model: Online virtual reality interactive Wal-Mart + Amazon.

The Grand Blueprint has just begun to show itself, and the capital markets have opted for a way of pulling down share prices. In Beijing Gao Hua Securities Limited Liability Company's Asia Pacific buying list, has not seen suning appliance. Also has the agency to be quite suning appliances, a fund manager told "Global entrepreneur" reporter, "every time we discuss suning appliances, immediately stand into two camps, one side bullish, side bearish, attitude is very resolute, anxious to fight up." ”

Why did Suning suddenly turn from a retail giant into a controversial institutional investor? Is the capital market voting with its feet? In an exclusive interview with global entrepreneur, jindong a light smile, "they don't understand me." Then it was silent, and after a few seconds said, "It's good, I don't need so many people to understand." ”

The day before the interview, Jindong has just had a long talk with Hong Yi Investment President Hony. The latter had participated in Suning appliance directional issue on July 6, to more than two market 42.9% of the agreed price (12.15 yuan/unit) subscription 98.7654 million shares, 1.2 billion yuan, officially into the capital Suning appliances, accounted for 1%. In this issue, Jindong himself to run east investment in the name of the purchase of 3.5 billion yuan of new shares, and last year agreed to participate in the issue of Xinhua life because of the state-related regulations failed to obtain PE qualifications in a timely manner, it is unable to subscribe (800 million yuan).

Jindong This description hony, "He is too clever, he sees Su ning see." "Hony has also made public his attitude:" After due diligence, we think that Suning is a company with investment value, now may drop 40%, in the future we earn several times even more than 10 times times the return. "" Suning in the warehousing, logistics and information system has accumulated a lot, suning easy to buy last year to do 6 billion yuan scale and profitability, this and other burning money to do the scale of the model is not the same. ”

Here, Jindong finally started a little excited, "you can not say that you built a 10-storey building, said that they are the tallest building, you have to look at the next to a person although not started building, but has played enough to cover the 100-storey building foundation." He meant that Suning was the latter.

As Cixin's science fiction "Three Bodies" depicts, in the face of the internet's relentless shuffle of traditional home appliances retailing, Jindong also has a hidden wall-pointing plan for the future: "We end up providing cloud services to consumers by setting up Internet and IoT platforms," I told our executives. If you can not resolutely carry out strategic transformation, marketing changes, then I can only replace you. ”

Speaking of which, it's hard to see the traditional retail giant in front of his current business, and it's hard to imagine that a professional electrical chain retailer with more than 1700 physical stores on the line is aiming at an integrated department store business that is fully operational. At this time its online turnover in the first half only 5.9 billion yuan (counted on the virtual goods revenue), Taobao is a single quarter turnover has broken 200 billion yuan.

Is the span of the transformation of suning appliance too large? If 4.7 billion or more of the money goes down, will this 100-storey foundation make it a high-rise? As all those who can't understand it, Jindong is standing in the opposite way: to reshape and even oppose the traditional retail chain by the spirit of the Internet. This "objection" has its real dilemma to be affected by the consumer shopping experience changes, offline business is facing a shrinking trend, and online purchasing power is vibrant, more importantly it technology to the traditional industry transformation ability sooner or later make it unrecognizable. Su Ning's future rivals? is no longer a traditional home appliance retailer, but Alibaba, Tencent.

If you don't object, you fall.

On the morning of July 31, Suning Appliances released the first half of the Performance Express, Suning electrical appliances in the first half to achieve business income of 47.191 billion yuan, year-on-year growth of only 6.69%; net profit of 1.745 billion yuan, down 29.49% year-on-year. Suning's chain layout began to shrink, the same store growth continued to decline. In the reporting period, suning in the mainland new Level 8, new chain stores 79, far lower than the same period last year in 10 cities opened shop 140 levels, and replacement and closure of 74 stores, in real time, the net increase in the number of stores only 5.

Many institutional analysts have come to the conclusion that Suning is currently at the bottom of the economic cycle and its own development cycle.

For his environment, jindong in fact than anyone knows, even as early as the 2006 has foreseen the arrival of the day, the 2008 financial crisis has made him make a decision to change. "The financial crisis has come, manufacturing enterprises have reduced production, we want to sell more goods, more money, they do not give goods, we have no way." "At that time, Jindong said, he was acutely aware of the traditional chain retail business model of looking upstream supplier's face," low price into low price sell ", sooner or later it would be problematic.

Reality is proving Jindong 4 years ago. Firstly, the traditional 3C chain retailing is affected by the upstream and the market fluctuation more and more. 2009 the second half of the year began in the "Old for new" policy stimulus, China's home appliances sales in 2010-2011 years to maintain a monthly average of 28%, 21% of the high growth, household appliances enterprises to expand production, retail enterprises quickly open shop, the market was excessively enlarged, overdrawn. But this year's market environment slightly cold, home appliance enterprises began to cut production, offline channels have to face a sharp contraction of the crisis, Suning closed the line of 35 stores, although the United States did not disclose the number of specific closing, but suffered a 8 years of the first loss, the amount of up to HK $788 million.

Second, on the contrary, online shopping is a straight line up. Day Cat (formerly Taobao Mall), Jingdong Mall for the representative of E-commerce Enterprises, 2009-2011 Home Appliances Online retail sales accounted for 0.58%, 2.73%, 4.93%, 2010 and 2011 respectively grew 489%, 108% In the same period, retail sales accounted for 1.32%, 5.82%, 10.63%, respectively, in 2010 and 2011, 406% and 99% respectively.

Su Ning needs to build up its own ability, especially the commodity and customer-centric ability. Suning Electrical appliances in charge of the promotion of high Tabyan, still remember 2008 Jindong in Beijing gave them a night of meeting, only to discuss a problem: marketing change! However, at that time who did not see how suning appliances to change, perhaps even suning internal staff can not imagine that there will be today's strategic thinking.

July 2009, in the public are not too aware of the situation, Suning quietly began to try to run their own online mall, and in August it changed its name to Suning easy to buy. February 1, 2010, Suning easy to buy officially online. In the same year March a very contradictory thing happened, Jindong in Beijing, the current online shopping is no value-added, no healthy profit model, the way to burn money to replace the physical store is impossible. That year, Jingdong Mall founder Liu put words, "suning Gome two years earlier came out sniper me, may still have a chance, but now late." ”

This story later became the industry accused Jindong not understand e-commerce, and suning E-commerce strategy hesitant, backward important basis. Now recalled, Jindong, "I would say that Suning 2012 will be a big investment in E-commerce, Liu will do?" I can't let him know my real strategy. ”

This is exactly the case, according to the original plan, Jingdong Mall should start the product differentiation strategy this year, from the pursuit of scale to the pursuit of profit transformation, and plans for the end of the IPO. But the unexpected is, Suning easy to buy since April this year began to set off a fierce promotional campaign. In April alone, it invested 1 billion of the best-selling supply and 100 million yuan of concessions, hundreds of thousands of kinds of commodity prices more than 30%. After the monthly "E18" large-scale promotions, Suning Tesco Executive vice President Li Bin even said, "sales promotion is the normal way of retail trade, easy to buy monthly promotions, the frequency of low, to know that our physical store is a Zhou promotion." "In the face of huge price pressures, Jingdong mall had to move to a larger scale, and to stop this year's IPO plan, recently, there are media analysis, Jingdong Mall has no listing possible."

Jindong is doubtless prudent. Although the start later than Taobao and the cat, but in the momentum of the total does not lose them. Jindong, who started out as a retail entity, can now tell the capital world about a story about the electric quotient of Liu, perhaps even more beautifully.

Back to look at these thoughts and decisions, Jindong only said a word: "If I do, may make mistakes, may fall." But if I don't do it, it'll be quicker. He said "Do" refers to the transformation of Su Ning. If not 4 years ago the pain of determination, perhaps Su Ning is just as the present gome. A former Gome employee evaluates Gome, "The ship is going to sink." ”

Su Ning not only not sank, but also found a way to continue sailing, this path is clearly written in Suning's 2011 Annual report, which is the new decade strategy: with "technology transformation, intelligent service" as the core, from the chain of development, marketing innovation, E-commerce, service upgrades and other aspects of the development path elaborated, The ultimate goal is to transform from a simple product provider to an integrated consumer solution provider, from a whole range of products, content and value-added services, to the individual, family, small and medium-sized enterprises to carry out a comprehensive demand operation.

Such a passage, there are many keywords for the previous suning is unfamiliar, such as "E-commerce", such as "Integrated consumer solutions", such as "whole category", "a full range of demand operations." For us, at this time of Jindong also become unfamiliar with, throughout the interview he mentioned the most words is cloud, experience, ecosystem. These words were previously only found in the IT internet industry, such as Facebook, Apple, Amazon, Microsoft. According to past understanding, the so-called ecosystem means: to create a sticky open platform, so that the platform to reproduce more and more species, species richness and dependence is a key indicator of the competitiveness of the system.

This concept is a very irrelevant one for a traditional offline retailer. But with Ma Yun (micro Bo) Ali ideal is very close: let the world no difficult to do business, to the platform for each enterprise to provide the need to use coal and electricity supplies. It's not an anti-tradition. However, Zhang Bindongbi more than a layer of consumers (that is, the C-terminal) service upgrades, that is, suning in the traditional retail business accumulation of advantages.

"With the cloud platform to provide consumers with a full range of services," it can really let Su ning detached from the 3C, detached from the line. But this reality? Suning's E-commerce has just started, easy to buy income accounted for the proportion of its total income is only about 5%; Suning does not have a whole category, even in the category of Suning easy to buy, department stores only accounted for 5%; and, suning even a decent "cloud" did not, how to talk about cloud services? Amazon, which provides logistics technology and commodity services to consumers and businesses, took 7 years to make a profit.

When talking about the ideal of Amazon + Wal-Mart, should also think of their opposite: "7 years of unprofitable Amazon + go to the sinking of Best Buy", the former does not need to be explained, the latter situation represents the traditional retail business state of the fundamentals, it will not be suning electrical line under the real business of the future reference? It lost as much as $1.7 billion in the quarterly report on Best Buy's fiscal year 2012 as of March 3. Perhaps this is also the root of the jindong against tradition.

To keep the line business, to keep the earnings of listed companies, the other side is like 7 years ago, Amazon began to climb the peak profit. For Suning, this is a big big bureau that does not turn. Jindong How to make a card bet? Does anti-tradition mean completely abandoning offline business?

Is Tesco not the only card?

Jingun, born in 1977, was entrusted with the task of being a vice-president in charge of Technology and vice President of financial planning. Jindong's explanation for this is that "the future is in an ecosystem where the flow of money and technology is integrated." "The technology flows here include logistics technology and information technology. Jingun also be jindong as the most understanding of suning strategy executives, as the earliest is the head of Suning IT department, Suning easy to buy is its single-handedly built. This is why Jindong has always denied the easy to buy strategic swing, frequent change in charge of the cause, "I have never replaced, has been Jingun in charge of easy to buy, until today, the general manager of the easy to buy is also Jingun." ”

Jingun and easy to buy is jindong long thought a step chess, in Suning new decade strategy status, no doubt. Easy to Buy is not only Su Ning to meet the development of E-commerce to develop a new channel, but also to achieve Su Ning to electrical, department store an important entry point, which is Jindong said, "The development of E-commerce, in fact, is to give suning a development of the whole category of opportunities." ”

In the past year, Tesco has really bolted the category. At the beginning of 2011, the total number of SKUs in Suning was only about 1.1 million; now, Suning has reached more than 700,000 SKUs. From 3C to books to the department store, Liu spent 6 years, easy to buy only 1 years. With the open platform on the line, it is expected that the end of this year, Suning purchase SKU number can reach 1.2 million pieces, the current Jingdong Mall SKU number is only 720,000 pieces.

For such speed, Jindong is not satisfied, "our strategy should be implemented more quickly." "Obviously, Zhang hope that easy to buy can quickly run, quickly to undertake the transformation of suning overall."

In addition to undertaking the task of category expansion, Tesco must also comb the entire logistics and even the entire supply chain system. To Big E-commerce, with the original entity shop + Central Warehouse mode to operate logistics, is obviously to use a sledgehammer to slaughter chickens. Since last year, Suning accelerated the construction of multi-level, multi-level logistics structure, the additional income of 4.7 billion yuan will be used for most of the logistics:

The first level is the establishment of a nationwide procurement hub, which facilitates the centralized procurement and storage of goods, and transfers services to suppliers who do not have the national logistics capability. The second level is the establishment of regional selection center, Nanjing Yuhua Small Commodity Automatic sorting warehouse is the first, the next two years to replicate to various regions. and requirements, the future of Nanjing, Beijing, Shanghai, Guangzhou Picking Center Storage commodity SKU number reached more than 2 million, daily shipments to reach 801 million pieces. The third level is the country's 60 or so regional distribution centers; Level Four is in the country more than 300 cities to establish transit center; level Five is the City Express point. Suning's logistics system will operate independently, become a Third-party service platform for the internal, suppliers, consumer services, Jindong said, logistics only to reach the Federal express, UPS level and ability to support the great development of E-commerce.

This new logistics system not only adapts to the order process of e-commerce, but also successfully docking traditional physical stores. Jingun explained now Suning's order process: users in the site or entity store orders, the system will generate a customer or entity store orders, and real-time upload to Suning ERP logistics system. Upon receipt of this order, the logistics system immediately generates the routing table and the task items on all nodes, and quickly calculates the warehouse inventory and the most recent shipping proposal. From the warehouse after shipment, through the sorting station distribution to the nearest users to the store/courier point, and then to the user hands.

Whether it is from the entity store orders or site orders, all by the system automatically identify distribution. The whole order routing process and operation link are automatically set up by the system without human intervention. Only two links need manpower, one is sorting, packaging, printing invoices, the other is delivery. "Jingun said.

After the logistics system has been opened up, the upstream supplier procurement system will automatically get through. Suppliers according to their logistics capacity, arrange the goods into the suning level warehouse, and then by the order process unified deployment, on-demand access to the entity shop or website customer home. So far, logistics + procurement of a complete supply chain system is formed. On this basis, the larger assumption is that Su Ning hopes that through the opening of the backstage, can with the internal management of suppliers completely through, seamless integration, to the entire supply chain logistics, financial support.

Jingun that technology has long been not a problem, the key is the question of thinking. Su Ning's thinking also does not exist the question, the key is the traditional supplier in the technology and the mentality can accept. Last year Suning and Samsung (Weibo) established a CPFR supply chain model that is very high-end in mode, fully implemented in conjunction (coordinate) plan (forecast) replenishment (replenishment). However, for other suppliers, openness also requires a process of ideological change.

The good news is that Su Ning has not only owned the Yi Bao and Huaxia two payment licences, but also is introducing financial products for suppliers. "China's major mainstream banks have been docking our supply chain finance products, and some of the suppliers to carry out a pilot service, in the second half will be fully promoted." Our supply chain finance is much bigger than simple microfinance to provide suppliers with services that meet his needs. Jingun told global entrepreneur. "We started the pilot project in July and is expected to be scaled up in the three quarter of September. ”

Jingun to "global entrepreneur" for example, once the supplier put the goods in Suning easy to purchase warehouse center in order to meet the conditions for the financing of goods, if put 1 million of the goods in, immediately can get 600,000 loans from the bank. If the supplier has the need for cash flow urgently, it will be able to immediately obtain funds to activate its cash flow. Suning will be in accordance with the bank, suppliers, Suning's tripartite agreement to manage the flow of goods. Return the money to the bank after the sale of the goods and collect additional service charges from them.

To get through the financial sector is every building the ecosystem of the big guys want to gain the right, such as Ma Yun (micro-bo) Alipay financial system, as of March 2012, Ali completed a small micro-loan more than 2.7 million, the cumulative amount of loans 19 billion yuan. But for Su Ning, more crucial is, Su Ning provides the financial service to make the supplier more willing to store the goods to Suning storehouse, this solves the supply chain problem, at the same time, the supplier may use suning powerful logistics distribution system, reduces the operating cost. Among them, Suning's financial service has the supply chain real goods transaction and the tax, the bank various aspects participation, more transparent, the standard, is may enlarge the scale the pattern, compared with the simple credit, has opened up the industry to swim up and down the link with the banking system. And the recent introduction of Suning easy to buy "three-free" platform policy further accelerated the establishment of suning ecosystem.

See here, you should exclaim, the path is so similar. Through easy purchase this small incision, actually formed a big suning open platform, the purchase, the logistics, the distribution, the finance and so on, all may see own position on this platform. This and Ma Yun's Big Ali ecosystem, exactly coincide with. Ma Yun's logistics system, financial system and cloud platform under construction are the infrastructure of the ecosystem.

Su Ning also began to build the cloud platform. At present, Suning Tesco is promoting the design of the Silicon Valley Institute in the United States. During the press release, Hong-yi Investment President Hony is in the United States to contact senior talent, to promote the Research institute site to ensure that the second half of the scheduled establishment. In Jingun's vision, the Silicon Valley Institute will provide the world's newest technology and business model for suning Tesco, such as voice searches like Siri. Once the mature technology is acquired, Suning can combine it with various applications of the Internet.

Omni-directional mobile Internet development is the focus of suning in the second half. Through the in-depth thinking of products, the transformation of the original single PC access channel for a variety of intelligent terminals full access, at present, Suning Tesco has launched the iOS, Android operating system under the "Suning easy to buy" mobile clients, after the tablet computer will be fully rolled out. The second half of the plan is to launch a TV shopping terminal for Smart TV's Android operating system.

Suning hopes to use its powerful suppliers of resource advantages and marketing channels to create a Chinese-style "Amazon &kindle" model will be easy to buy suning software into the Suning platform to sell hardware. "We have a year of 3000多万部 intelligent terminal sales, including mobile phones, tablets and computers, Internet TV, is a huge mobile internet access channel." At present, there is no Internet application service or payment experience manufacturers have such a huge front-end resources suning. "From this point of view, we are not only selling our own terminal hardware, but also the content of software applications, as long as the hardware sold on the Suning platform is likely to be implanted in my application," Jingun said. ”

These terminal applications of management and data analysis, coupled with huge transaction data, logistics data and supply chain data, if there is no cloud, certainly not. Suning has begun to build a nationwide cloud computing data center, that is, the system backend server. From the internal requirements of the 2 private cloud data centers, a reserve is sufficient. But Suning plans to replicate 6-8 data centers nationwide, further expanding the cloud service model, developing cloud service management processes, and creating E-commerce cloud models. To the cloud concept of direct communication system, to achieve the upstream and downstream maximum information security, integration of vendor resources, speed up information, merchandise, capital exchange cloud sharing. At the same time, based on cloud computing for the end consumers and partners to provide cloud storage, cloud search, Cloud community, cloud applications and other quality services. At present, Suning and China Telecom (micro-BO) and other basic operators and IBM, Microsoft and other global IT giants to explore the depth of the strategic cooperation model of cloud computing.

The cloud, the financial system, the logistics, the supply chain and even the ecosystem are all changes caused by the easy purchase of Suning. Does this mean that the future of Suning is only one easy to buy? Jindong's anti-tradition, and don't want to be so resolute, he wants is "Amazon + Wal-Mart".

The traditional offline business, in fact, is another jindong of the real store. Although this card now seems to encounter some difficulties, but it is jindong. More than 1700 entities stores, nearly 100 billion yuan sales revenue, the real composition of Suning's purchasing weights, the price of discourse right.

In charge of the entity store business is Suning Electric Company President Jinming, 1971 born in July 2010, he replaced Weimin (Micro Bo) as president, also known as young. Jinming to Jindong of the physical store, has a profound understanding. "Consumer demand is changing, a lot of standardized, functional products are concentrated in the shop to buy, then the offline entity shop to buy products consumers will pay more attention to the experience of shopping, at the same time, such as computer installed online can not complete the service is more obvious advantages of the store, The formation of Suning line in the future of the Super electrical products plus experience service model. "Jin Ming," from this year onwards, Suning has been the original "Expo Super flagship store", "conventional shop", "boutique", "county town Shop" Four kinds of store format, into the "Expo Super Flagship store" + "flagship store" mode. Because Su ning inside already will reach a consensus: only big enough store, can achieve the best shopping experience.

"Online standardization, online experience" is the future development of Suning direction. Online through the network carrier to provide consumers with standardized goods and services, to promote its future development as the core power. Under the line each store provides the personalized service, provides the product design consultation and the custom application recommendation for the consumer, develops each person personalized life style, builds the commercial cluster the shopping Mall, this is Suning's dream.

There will be a large amount of goods to choose from, and offline will be based on different scenarios to build the experience of consumption areas. The quickest thing to achieve is the collocation of books. For example, in the area of selling cameras tying photography books, in the computer area to sell it books, improve related consumption. At the same time, Expo Super flagship store to join the virtual goods, it experience Center, Intelligent Reserve Center, Children's center, while consumption, while experience.

"We've done a lot of work recently in this area and soon consumers will see our type of store." "Kim Ming told Global entrepreneur," October, we will launch the first batch of 4 such Super Expo flagship stores nationwide. "In fact, there are already three stores in the country, the Tesco has provided such a model."

To achieve such a store needs fine operation, desalination store manufacturers are the inevitable trend of promoters. Former general manager of Beijing Zhijun in Beijing has a successful experience in the management of proprietary stores. His way first is to personally train supervision staff, the second is to improve the sale of goods Commission. In 05-06 years, the excellent shop for the front-line sales employees can be a monthly salary.

Last June, Su Ning will be the operating headquarters and procurement of the total part of the demolition, is to be able to better carry out fine operation and category management.

It is clear that the layout of Jindong's physical stores has clearly shifted from the pursuit of scale to quality and profit. He said, "by 2020 store size reached 3,500 stores, really not much, if according to the previous annual opening of more than 300 stores, 10 years after the number of stores must be more than 5,000, but I know to control speed." ”

In Jindong mind, there is no difference between line and line, Su Ning's ultimate goal is: through the integration of supply chain, logistics warehousing and distribution optimization and financial services innovation, control the quality of eco-circle enterprises, to provide help for small enterprises, and large enterprises for strategic cooperation, to create an ecological system with suning characteristics. Implementation to the consumer level is: with Suning chain, le buy shi chain, suning easy to purchase, to unify the promotion and to meet all consumer user experience and needs, this experience must be through the line, including pre-sale, sale, after the complete user experience.

Therefore, in a sense, easy to buy is not the most important card, physical stores are not, they are on the obvious, Zhang hand buckle "line under the real interaction" is its true card, but also its true connotation of the anti-traditional. But how high is the chance of success?

Can you win?

Jindong keeps close communication with senior executives every day. At least one high-level meeting per week, Zhang to supervise the implementation of each strategic decision.

Following jindong years of Suning Electric Appliance Vice Chairman Weimin This feeling: "Wal-Mart Why do not e-commerce, because they are professional manager culture, Suning is the cause of the manager culture, so that Suning's senior can for a longer term strategy, so as to better realize the transformation." "In other words, Suning is the boss-led strategic transformation, and Wal-Mart's pursuit of short-term interests of the implementation of the strategy is completely different." Wal-Mart's online performance has been in a inconsequential position, even in Wal-Mart's 2010-year income, Walmart.com accounted for no more than 2%, store managers have always been Wal-Mart's most powerful voice. In the category, Amazon's products are 14 times times the number of Wal-Mart, and Wal-Mart's Web site Some features are still poor, such as personalization and referral.

But in Su Ning, Jindong a dead order: "There is suning place there will be suning easy to buy, ask all over the branch will suning Tesco in the local operation promotion as this year's largest flagship store to prepare, Jindong also will suning easy to buy in all parts of the sales data into the general manager of the performance evaluation range.

A more radical approach is to promote the internal implementation of Su Ning line under the same price. This can form the Jindong required line under the unified shopping experience, but the short-term problem is that offline must be to the line of low price convergence. Online under the growing threat of gross margin today, Su Ning is also willing to earn a yell?

Jingun calculate an account: The cost rate level of Jingdong is 11%, and suning overall average cost rate is about 10%. If it is a computer and other small goods, its storage area occupies less, the purchase amount will be bigger than the competitor, the cost rate will be less. At the same time stores provide more experience links, lengthened consumer stay time, can provide consumers with other services and create more purchase opportunities. So suning can be a part of the profits to let out. On the other hand, Suning line has a large number of entity stores do not operate products, through the online interaction, entity stores for online sales of products to provide more store services and product promotion opportunities, such as clothing, shoes and hats, such as the production of leather to provide store trial wear opportunities, immediate delivery services.

"Just like the Apple Store, we will start in the store in late August, the official promotion line in the same price, the first applicable category is the computer." Jingun said, "We will be in the store to design a lot of online interactive experience, consumers will realize that in the Suning store to buy things, can experience, the price is not expensive." "This is also jindong best practice offline stores will no longer follow past traditional pricing strategies."

Once suning fully implement line with the same price, suning entity store advantages will be fully played out. But the question is, now the online price war has played so hard, whether the same price will let Suning line business more drag? To be aware, similar to Gome, the first quarter of this year, Suning's rental ratio has risen from 2006 2.72% to 2011 3.91%, approaching the 4% cordon. 2011, Suning's rent has been as high as 3.616 billion yuan. This will pull down the gross margin of suning appliance.

Moreover, the cloud platform that Suning wants to build is now just beginning, this also needs a large amount of money. Suning's biggest soft rib logistics (the last kilometer), has only begun to establish. Suning additional 4.7 billion yuan, both for the construction of logistics, but also for the purchase of shop items and information platform, whether enough? Moreover, it has now spent 1.3 billion yuan (mainly for last year's construction of logistics), Silicon Valley projects have not started, the cost of easy to buy marketing is doubling growth, this year's Tesco may be from a profit unit into a loss.

Although the same for Ali and Jingdong, but relative to Su Ning, they have at least no offline business costs. Is Su Ning's shop too big? Is the strategy too radical?

In this respect, Jindong not very agree, "they do not have offline business, but also want to build logistics." According to the public information, Jingdong Mall's logistics cost rate is 6%, and suning entity shop cost rate is only about 1%, easy to buy the cost rate is only 3%. Plus the entity business brought about 5% of the procurement cost advantage, suning overall still have room to let go.

For Jingdong or cat, Taobao, Su Ning never taboo to provoke competition. In order to be different from the day cat and Taobao, Suning opened the open platform "free from annual fee, free platform use fee, free margin" three free "policy, but the supplier qualification has been strictly screened, proposed" Regional exclusive system ", that is, the same brand in the same region only select a supplier stationed in Suning easy to buy open platform, The profitability of the platform is based on the price difference and consumer-oriented value-added services.

In fact, the offline business of many years of accumulation, so that suning can lead the electricity business back to the essence of retail. Platform with "full platform open, the whole category build, the three characteristics of the whole network sharing, relying on the accumulation of Su Ning's brand, marketing, flow, system, payment, logistics and after-sales service, such as seven business resources, Suning can better serve the suppliers, to provide suppliers covering goods, procurement, sales, inventory, warehousing and logistics, After the sale of all aspects of service, at the same time open the data information, provide operational analysis of the report to solve the warehousing logistics distribution. This is really different from the full open platform of Ma Yun.

The experience of America's mature markets is proving to be a strong demonstration of Zhang's strategic transformation. Of the 500 largest e-commerce groups in the United States, 205 (41%) are pure electricity dealers, 152 (30%) are traditional retailers, 83 (17%) are catalog retailers and 60 (12%) are brand manufacturers. But in the top ten U.S. electric dealers, pure electric business enterprises accounted for only one seat, the other 9 are under the cable business. This bodes well for the possibility that Suning will have more opportunities than other Internet companies.

Everything seems to be in the direction of Su Ning, the supply chain system, logistics system and financial system set up by the easy to buy platform have been advancing orderly, the price system has been combed, and the new ecosystem is coming into being. But a small problem can not help but pay attention to, "the concept of each store is different, the quality of people in each region is not the same." Former Suning staff told The Economist. That is to say, although Suning boss to do this thing, top strategy is clear and perfect, but let a hundred thousand of employees can understand, it takes a long time.

So far, there are still a few entities store promoters will sincerely persuade consumers to buy in the store, can see the kind, rest assured. Small to store promoters, large to the allocation of procurement resources, the implementation of new strategies need new resource allocation methods, which for any large companies are old problems. The problems left over by tradition will be a big obstacle to the jindong of traditional roads.

Also precisely because of the obstruction of internal running-in, Su Ning's strategy appears slow point, easy to buy this year can complete the goal of 20 billion yuan, there are certain uncertainties. "My strategy is not radical at all, I think they are a bit slow." "Jindong's statement illustrates the real problem of Su ning.

The pains of transformation are stirring up suning. Jindong want to win, be sure to sprint to the speed of the marathon, at least run in Liu, Ma Yun Front.