Jindong on the electric business War

Su Ning Chairman Jindong (Science and Technology map)

"The essence of the electric business platform is also business, do not make money for the electric business platform is unthinkable," August 27, to accept this newspaper interview of Suning chairman Jindong, for the recent attention of the "electric business War", seems to disagree. In his plan, Jing Dong and suning can not be regarded as a level of competition, and Liu launched the Electric Business War, is only the development process of suning easy to buy a necessary episode.

Since 2010, Suning easy to purchase officially on the line, Suning actually began to enter the new era of transformation, the direction is to pass the "line under" the integration, to achieve the optimization of the efficiency of the supply chain-this is jindong to do the retail industry for more than 20 years to appreciate the essence.

and whether online or offline, more is the backstage supply chain construction, including logistics system, IT systems and data flow. Since the 2004 IPO, Suning has invested heavily in supply chain and logistics system construction. August 13, Suning Electric Appliance Bulletin said, to the public to issue a scale of not more than 8 billion yuan (including 8 billion yuan) of corporate bonds, the main destination of funds raised is the logistics operation system innovation and optimization.

"Whether it is retail, or electric business platform, to scale development, it must have a strong background system." "This is the reason why Jindong will think Jingdong and Su ning" is not a magnitude "reason: Jingdong only a few years time, its logistics and supply chain has not fully formed.

Thus, in Jindong's view, the so-called "electric business war", in fact, there is no practical significance, "the troops have not arrived, the first fodder, no fodder, no preparation, how the war"?

Coincidentally, the media recently disclosed that Ma Yun in the internal classroom speech to the electric business war some comments, of which, for Liu in "overnight" decided to fight, Ma said, "generally such large-scale activities, two months of preparation is indispensable." ”

Half a month ago the beginning of the electric business war is not exhausted, jindong have something to say. This reporter in Jindong to participate in Hong Yi Investment Annual Meeting of the gap to him an interview.

"The electric business War is not a war."

"21st century": Su Ning this attempt line price consistent, in fact, is very challenging, offline cost should be higher than the line?

Jindong: Many people think that the price of electric platform is often cheaper than the real store, which is actually a pseudo proposition. In fact, the cost of traditional electric operators is much higher than that of traditional retailers.

The core competitiveness of the electric business platform is in its warehousing and logistics, this part of the investment is very large. Suning over the years has been increasing the construction of this area, has now completed 18 Logistics Base construction, with 80 regional distribution centers and more than 2000 outlets, more logistics Base is under construction. According to Suning's plan, the delivery of 60 logistics bases will be completed in 2015, 60 logistics bases and 12 regional logistics centers are completed by 2020.

The essence of electricity business is commerce. At present, the financial payment aspect, Suning's Yi Bao already got the license plate. Suning in these aspects of the process management has been established, set up a special financial division.

21st century: What kind of impact will the electric-commerce war have on the electricity business landscape?

Jindong: Now there is a pseudo proposition, that is, the platform is cheaper than offline, that the electricity business platform can not make money, this is actually an investment in the expectation, to draw a cake for themselves. Even when there are problems, say "this is temporary". It turns out that the cost of traditional electric dealers is much higher than the cost of traditional retailers. This reflects the nature of retail, is a supply chain efficiency problem, with efficiency can have effect. The retail element is brand, capital, technology, team, these are all indispensable.

The so-called electric business war, is "no soldiers, fodder first." This is a need for a preparation, and Suning has long been thinking about how to fight this battle. Online and offline docking does take time, and it's complex, with management issues, technical problems, cost issues, supply chain and system-wide problems, supplier benefits, and so on.

Jingun (Vice president of Suning appliances, suning Tesco Executive): In the short term, (electric business War) for us is not a war, but it has far-reaching significance. The mode of the electric business is decided by the consumer goods market, but from the business model, the electric trader has not embarked on a healthy and benign development path. The price should be combined with logistics, service and supply. For us, the war is the soldiers and fodder are in place, is the real war.

"Equity participation, the acquisition of vertical electric business platform"

"21st century": Suning's electric business and physical business in the integration, encountered the most difficult problem is?

Jindong: Electronic platform is a virtual platform in the application of new technology, and traditional shops are different. Su Ning, although we have a certain basis in the information, but as an electronic platform, consumers in the user experience, virtual goods display and traditional shops are not the same.

Traditional shops are defined, such as size, location, area, etc., and the electronic platform is broad and has no space.

How can I combine offline and online? Suning Online has many years of established logistics capabilities, service capabilities and supply chain of product planning, selection, customization, pricing capabilities, of course, in the brand and the team also has a great advantage. Electronic as a commodity, the fundamental problem is the problem of commodities, so for Su Ning, from the point of view of commodities into the electronic platform, still need some time to go, need to constantly improve.

Electronic platform as a business look, must be offline and online integration. From the perspective of future development, the combination of offline and online will be the value of the future electronic platform of the Internet.

With the emergence of suning, more traditional enterprises will be involved in the field of electrical business, will be more able to prove that Suning had put forward the online and offline integration issues. The technical problem is the enterprise development must face the question, but cannot change the development direction and the enterprise intrinsic ability and the value.

Jingun: From the front end, we are entering a new field. The shopping link needs to have a process of never being accurate to accurate, looking for the corresponding way and method to form a set of patterns. Suning has a certain flaw in the front-end user experience, this is our key breakthrough. But we should also see suning from last year to this year is in constant development, from the flow and sales, we have been a considerable part of the consumer recognition.

"21st century": in Suning easy to purchase the category expansion, rumors of Su Ning will be through acquisitions, equity participation to carry out, now this aspect of the planning process?

Jingun: Suning is to sell 3 C and home appliances First, this is also our cut-in point. On this basis, we develop other categories. At present, Suning easy to buy compared to the system of the construction of the channel is last year's books. In the midst of this process, we propose that through some cooperation, equity participation, mergers and acquisitions of the way to cut into these areas.

Mergers and acquisitions are one aspect, but we can't expect mergers and acquisitions, mainly in the form of business strategic cooperation. Many mergers and acquisitions are to tell the fate of the need to understand each other, so we are now in the process of cooperation to deepen understanding, to see if there is no complementary effect, is not in line with the basic requirements of suning acquisition.

We have the advantages and resources of the supply chain, how to translate these into capacity, need to have a professional understanding of the market. In the daily necessities, we will distinguish between specific categories, such as whether to do first shoes or clothing first, or do household products. What we are doing is building a platform for suppliers to come in, on the other hand is looking for the first step to break through the category.

For example, mother and child and footwear are the first to break. In these breakthrough channels, we will ensure that the category is the richest, and my logistics can keep up. It is estimated that by the end of this year, on the one hand, we will be able to form a professional, large-scale capacity, on the other hand, in department stores shoes and sports above will form a breakthrough.