Suningyun posted 2014 first-half performance letters

July 30 News, Suningyun released the first half of the 2014 performance letters. Data show that 2014 1-June, Suning realized total operating income of 51.16 billion yuan, the same period last year, 55.532 billion yuan, down 7.9%, which belongs to the shareholders of the listed company's net profit loss of 749 million yuan, the same period last year, net loss 734 million yuan, the year-on-year expansion. Online income of 8.28 billion yuan, down 22% year-on-year, the same period last year is 10.61 billion yuan.

Does Su Ning really return to the Transformation Express road?

After the earnings data came out, some of the media's interpretation is that Su Ning has entered the transformation of the fast lane (return to the growth channel), the basis for this judgment is the chain growth of 23.71%, of which online sales income chain increased by 50.97%. This inference is clearly untenable and does not take into account seasonal factors. If compared with the two quarter of last year's operating income, operating income is less than 0.14%. On net profit, the second quarter lost $31.533 million. Whether it is income or net profit, the response data are negative, and how can we return to the Transition Express?

For the industry decline, Su Ning will be attributed to the reasons: on the one hand, low industry prosperity, the external power of enterprise growth is insufficient; On the other hand, in order to fully highlight the strategic layout of the cloud, the company implemented a series of organizational adjustment and system optimization in accordance with the Internet retail mode. Among them, the company invests the PPLive operating loss to the investment income influence-81.15 million yuan.

These two reasons are obviously unreliable. First of all said industry downturn, Suning's old friend Gome has recorded positive growth data. Gome's first-half earnings forecasts show that sales of Gome's listed companies have increased over the same period last year, with sales growth expected to be more than 7% per cent, while Gome's total sales in the first half grew 50% and gross margins were expected to exceed 7%.

The second reason, Suning is due to the Internet retail model implementation of the organizational adjustment. If this reason is tenable, is it possible to say that Su Ning admits the failure of his transformation? In addition, Su Ning's logic is not tenable, the transformation itself should not bring the decline in operating income, the impact should be only its profits, and the actual situation is even the operating income is falling.

We can finally compare suning easy to buy with the Beijing-East data, Suning easy to buy 2014-year sales revenue for the quarter of 3.3 billion yuan, the year-on-year decline of 26.65%. The first quarter of this year Jing Dong net revenue for 22.657 billion yuan, an increase of 65.1%. And this has been suning for 4 consecutive quarters year-on-year growth rate fell, it is obvious that Suning has met the growth of the ceiling, and the business gap between Beijing and East is being pulled bigger!

What did Suning do this half year?

Suning's medium-report losses were expected, but the year-on-year decline in revenue was somewhat disappointing. In this six months, suning transformation of the movement frequently. A few simple examples.

At the beginning of the year, Suning Jindong said that 2014 is the strategic implementation year, the entire channel O2O layout speeds up the advancement.

January, Suning obtained the license of virtual operator. March 17, Suning will be its virtual operator brand name "Suning interconnection", into the mobile resale business.

May 16, Suningyun Vice President Li Bin on Weibo announced that the Suning mainland store will push free mobile phone membrane services.

On the afternoon of June 11, Su Ning held the sports Outdoor Channel online and Barcelona strategic cooperation media briefing in Nanjing, on the line to operate the Suning sports Outdoor channel.

July 1, the Beijing-East public financing platform in the Beijing-East Financial column officially online, launched more than 10 "boutique projects", involved in intelligent hardware, film and television dramas, books, public welfare and other fields.

July 8, Suning officially entered the public package field. and shout out the 2015-year package business sales revenue of 25 billion yuan, 2017 45 billion yuan loud slogan.

The latest news is that Suning will and Tencent micro-letter "In-depth cooperation", the first phase of the micro-letter platform will be issued 818 to promote red envelopes, the results of Tencent official Weibo denied.

Six months of the total transformation of key words, seems to have done a lot of efforts, but seems to have their main business and irrelevant. And we see the result is Su ning every time shout out of the transformation, the biggest change is not from the performance of the promotion, but from the two-tier market share price rise. Earlier, Su Ning Vice President Li Bin has announced that Suning will be in the nationwide store to promote the free film, the following day the Suningyun of the stock market rose 3.85%.

June 10, Suningyun Vice president, executive director of operations headquarters Li bin Weibo released a message that "the Chinese fans of the good times to come, football should not be rich and a minority of the game ..." Su Ning is coming out of a small step, or will become a big step in the future of Chinese football, see Wednesday. The shares then rose by more than 9% per cent, the biggest one-day rally since the end of February this year. The next day proved to be the World Cup online campaign Outdoor channel hype.

At the risk of "letter in violation of the" risks, closely follow the current focus on the concept of manufacturing, has become a six months to the marketing of Suning Begotten. Without good fundamentals, no amount of concept is finally a cloud. Su Ning now encounters the biggest problem is the strategic layout too fast, lack of focus, and in the tactical implementation level can not keep up. Relying on the concept of Su Ning, will eventually end up falling into the price of the stock market. After the noise, suning in the end is naked swimming, performance can tell us everything. At a briefing on investors on May 8, 2014, Jindong said he had seen the dawn of a straight turn from the corner. But at least from the performance, we have not seen the dawn.

Su Ning left to go right?

As Jindong said, "suning transformation should be able to become China's all traditional enterprises, entity enterprises embrace the Internet model and benchmark." 180,000 of employees, more than 1600 stores, such a large strategic layout and adjustment, from the idea to the organization, and ultimately to promote it, indeed face enormous challenges. There is no doubt that we should give more tolerance. Therefore, the purpose of writing this article is not to black suning, but want to stand on the sidelines of the role of a suggestion to see if the retail industry to help the giant scraping scraping.

First, enhance the focus ability. As a giant in the retail industry, Su Ning does not seem to understand the nature of retail, this wave of Internet tide, is always blindly herd, keen on the concept of speculation, capital operation, but not continuously focused on the main business, without the professionals do not know the direction of the situation is eager to carry out diversified business. This half year, Suning gathered a lot of flash, in the marketing is undoubtedly successful, but the lack of focus, no one clear what Su ning to do, even Suning himself did not know, almost what the concept of fire outside what to do, this six months to toss a lot of concepts, what open platform, O2O, public, crowdsourcing, financial , smart hardware, almost all are running behind someone else's butt, completely without their own business rhythm. This should be the reflection of Su Ning.

Second, catch the pain point. What is the pain point of suning? Only know the pain point to the right remedy. At present it seems to be mainly two points: poor service experience and reduced traffic. The service experience is poor, this is the outside question voice biggest. Although Su Ning claims that "China does not have a second enterprise has such a large logistics construction of suning", but the biggest and best is the two concepts, compared with jingdong, at least in the logistics experience there is still distance. The consumer's service experience is not compared with your past, but with competitors, because Jingdong service experience, especially the logistics experience is too good, so consumers have more stringent requirements for services. Suning should listen to the true voice of consumers, can not be denied that suning half a year to the logistics experience to make a great improvement, but you improve the consumer whether you know it? Spend so much energy on marketing, why not in the service to do more publicity? Moreover, the flow of goods, consumers of standardized 3C products online shopping habits have been formed, the decline in the flow of stores is now almost irreversible. Do retail, whether online or offline, the essence is the flow problem. Suning first half did the most reliable one thing is the mobile phone free film, but this is only a drop in the bucket, drainage costs are high, the need to set up a dedicated staff to be responsible for the reception of twenty or thirty customers a day, really because the film is attracted to the customers in fact very few. In fact, one of the best ways to boost sales in traditional retailing is by opening a shop. Open Shop more, open a good shop, improve sales of single shop. But from the first half of the data, suning new open Storefront 62, close adjustment 64. Do not rise and fall, really need more effort. In the current offline retail system, such as department stores, Wanda Plaza Shoppingmall people are the largest. At this point, suning should be more with the United States to learn, more use of other people's passenger flow for their own guidance.

Third, extend to the upstream and downstream of the industrial chain. Suning flow decline is indisputable fact. Suning's most important resource is the store, the most valuable resource is also the store. Store good use is the advantage, with bad will become Su Ning's cumbersome. Now look, although suning to offline stores do a lot of internet improvement, the new Suning interconnection and other display areas, but did not change the idea of selling products. Consumer network to buy 3C products of the mental model has been established, if Su Ning failed to provide enough reason to attract customers to the store, what reasons customers have to go to the store consumption? Provide a one-stop home experience, to help consumers provide home supporting solutions may be a way out. At this point, suning can to Shang home with the Offline Experience Museum learning.

Iv. how to compete with the competitor PK. The future of China's electricity quotient must be the strong stronger, the final appearance of the oligarch situation. As Liu said, there are only a few left, and now it has fallen from more than 30 to more than 10. If Suning's service experience, especially the logistics experience, can catch up with the Beijing-east, the line continues to hit the price war to seize market share so that consumers form a "buy low-cost authentic 3C products on Su ning" mental model veterans think it makes sense. On the contrary, with Jingdong has been successful in the use of the way to Beijing and east to contend with Su Ning's opportunity is not big. Suning can consider using C2B play for consumers to provide personalized home experience will be the customer from the line of drainage to the offline store. The second route is the spin-off of Suning and the offline store department. Now Suning easy to buy and offline store each other burdened with too much baggage, each other as a drag. Su Ning easy to buy independent split listed take the capital line may be a rebirth of the road. The third path is the channel sinks, with the help of mobile internet to defend the three or four-line city, the layout of rural market to seize the opportunity to play a good sniper battle.

Summary: As Chi's huge retail machine, Su Ning's transformation of the war on behalf of the retail industry is facing the collective dilemma. If Su Ning can transform successfully, it is indeed the whole retail industry and even the big blessing of real estate. Blessing Suning.

Wen/electric Business veteran Matador