Suningyun the first half of the year to lose 755 million yuan

Suningyun Business (002024. SZ) August 30 disclosed the first half of the 2014 report showed that the first half of the year to achieve operating income of 51.152 billion yuan, down 7.89% per cent, attributable to the listed company shareholders net profit-755 million yuan, the same period last year for profit of 734 million yuan. Industry analysts believe that suning in the Internet technology team, advertising, pplive and online transformation-related areas of large investment in the reporting period, the main factors of profit loss, which also indicates that Suning struggled to transform the Internet.

"The retail business boom is still low, the external power of enterprise growth is insufficient." "Suning explained in the earnings report, data statistics, the first half of 2014 the country's major retail sales of key large companies fell 0.2% year-on-year, the growth rate was 10.9% lower than a year earlier." Under the circumstance that the growth of the environment is slowing down, the retail enterprises ' core competence and differentiated competitive advantage have not been established.

The earnings figures depict the travails of the transition period. During the reporting period, Su Ning's salary expenditure was about 2.8 billion yuan, increased by nearly 600 million yuan in the same period last year, the statement explained for on the one hand to promote the staff salary treatment, on the other hand spends in the introduction Internet technology as well as the easy purchase, Suning interconnection and so on new business professional operators. In other words, only the increase in wage spending and the Internet team's input is close to the profit loss of 755 million yuan.

In addition, the report period of Su Ning's advertising costs of 740 million, up 100 million, mainly on television, network media channels, for online easy to buy brand promotion.

"Profound changes will bring about a slowdown in a phase, but gain capacity for sustainable growth." "The analysis said, Su Ning already started on the right track, the two quarter of this year, the company's business income quarter-on-quarter growth 23.67%, the online sales income quarter-on-quarter growth 50.97%, compared to the store sales income year-on-year decline narrowed to 4%.

Not long ago, Suning started a three-month "Hundred Days Battle" to promote, by the entity store Force "rapid Tatsu" logistics, with flash, give red envelopes and other Internet play to pull off the competition for electricity, will continue to "double 11" on the eve of this move by the industry as a determined resolution of the performance

In an interview with the first financial daily, Ruzenwang, an observer of the electricity business, said and two years ago to participate in the electricity prices in wartime compared to the current Su Ning's operating team has been more mature, in the one or two-line city distribution speed of Ascension is obvious, in addition to the category also from the time to 3 C home appliances mainly extended to the current whole category promotion, " To the cat and the east to contend with, the whole category is to have. ”

Recently, the business giant Wanda joined hands with the internet "tyrants" Tencent and Baidu set up electric business platform company, known as the electric business, in fact, in the use of their resources to join forces O2O field, the move also for the future business shape outlined a gradually clear shape.

In O2O field, Suning believes that the store is an important part of Suning O2O model, but also one of the advantages relative to peers, is conducive to optimizing the user experience.

According to earnings reports, in Suning's store development, the first half of the Chinese market 3 new cities, new open all kinds of stores 62, focus on the promotion of two or three-level market development, the new opening of a total of 52 stores, for inefficient, ineffective and not in line with the planning of the Community shop adjustment, total close all types of stores 64.

As of June 30, 2014, Suning in China has entered more than 280 cities, a total of 1583 chain stores, of which 1505 of the regular shop, county town stores 67, Tesco Shi Shop 7, red Children's shop 4, chain stores total area of 6.6196 million square meters.

Suning Chairman Jindong recently in the internal work meeting clearly asked all the staff to resolutely go their own way, "the Internet is essentially a tool, it can not replace the retail itself." and suning needs to do is to concentrate all the resources of personal belongings, focusing on the promotion of commodity management capacity, logistics services, user management capabilities and IT technology application capacity of the four major retail core capabilities up. ”

Facing the first half of the internet on the impact of the retail industry, jindong that there is no shortcut to transition, suning from 5 years ago after the transformation of the exploration cost of tens of millions of sustained investment in commodity autonomy, logistics network throughout the country, it information research and development capabilities has become an advantage of suning. He has a strong faith in the O2O model.

In addition, suning in the mobile end of the support is also improving. By the end of June 2014, suning total number of members reached 131 million, the first half of Suning easy to buy the terminal registered members of the first 18.58 million, the first half of suning easy to achieve merchandise sales income of 8.282 billion yuan.

(Responsible editor: Lvguang)