Bowser mission ends Gome weakening electric business intentions obvious

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Recently, Gome's electric business platform Gome online release announced that Gome online will be integrated with the Bowser network, a unified brand and logo as "Gome Online", Bowser Network and Bowser brand will no longer be used. This means that under the line has been adhering to the multi-brand (Gome, dazhong electrical appliances, etc.) operating gome, denying its own online dual brand strategy.

From "Bowser net" to "Gome Electric Network Mall", and then to the two major electric platform integration into the Gome group's "Gome Online", and now to "go to the bank", in the past two years, Gome has experienced a stake in the electricity business platform, merger and renaming, this behind the disclosure of the U.S. online business strategy change.

And it's not hard to see how the company's earnings from Gome's recent release, and its executives ' voice on the transition, under the big situation of electric Shangqiang force, Gome has gone through a big loss 2012 years later, it is no longer the blind electric trader follower, but "unconventional" way to return to the main business--offline store, insist not go big loss route , and thus initially won a fight both with the electric business price, but also to ensure that the overall no loss of money to break the war.

However, some people in the industry expressed pessimism, that the United States to turn the security is temporarily safe, the current electric business has not fully affected the traditional home appliance market, but in the long term, the United States weakening the electricity will be buried in the hidden dangers.

Complete the "Go to the Library"

November 28, Gome online announcement that since last year Gome online merger of Gome and Bowser network, after a year, Gome online brand, technology, supply chain, customer experience has reached both internal and external unity, and a single brand more conducive to consumer identification and business expansion. In order to give members a better shopping experience, from November 29 onwards, Gome online and Bowser network complete integration, unified brand and Logo as "Gome Online", Bowser Network and Bowser brand no longer use.

by Zhiquan, Pengliang and other people created by the Bowser network in 2010 "Chenhuang War" after the United States to acquire 80% of the shares, which is considered a sign of the United States to sail E-commerce. Mr. Chen, the chairman of Gome's board of directors, led the deal.

2012, Gome also acquired Bowser remaining 20% of the shares, Zhiquan left. At the end of 2012 Bowser and Gome online merger, Bowser the whole system into gome online, then rumors Pengliang and other shareholders to leave. But then Pengliang rose to senior vice president, rumors suspended.

December 2012, Gome announced that the integration of its Gome online mall and Bowser network of two electric dealers, to achieve a unified background management and resource sharing. Gome said it would adhere to the online "dual brand strategy."

Since the merger of the two platforms, there has been a large number of Bowser network executives and staff to leave, the industry on the Gome online "to the library of the" speculation has never been interrupted.

Until November 15 this year, Gome group related people confirmed that the original Gome online senior vice President Pengliang has determined to leave, the new candidate is already in the alternative.

So far, Gome abandoned with Bowser net conjecture come true. Zhiquan on Weibo: "People have birth and death, enterprises are no exception, respect Gome's choice." ”

"Gome has full control of the electric business, the original Bowser high level of power, and stay there is no meaning." In an interview with the Daily economic news reporter, electric business commentator Wang Liyang said, "The acquisition of Bowser is the decision of the Chen era, and then Gome high level changes, the electric business strategy will also be adjusted, Bowser in the adjustment, the status of gradually decline, Bowser the brand value of the electric business has been declining." He therefore said that at present the entire Gome's electric business strategy is adjusting, Bowser of course will be given up first.

Be forced to "pirate" by the electric dealer

In the electric business development trend armies, with the traditional procurement, channels and warehousing advantages of the traditional retailers, gome and other companies in 2011 to the Jingdong Mall and other pure electric enterprises issued a challenge signal. Under the slogan of "Encirclement and suppression of Beijing East", Gome has launched the "Gome online mall" with fanfare. For the late start in E-commerce, Gome, 2011 is its electric dealer "year."

But this year's progress is not ideal.

According to data shows that 2011, in the Electrical appliance electric Business pattern, Jingdong Mall occupies the first place, the annual sales of 30.8 billion yuan. According to the consultation data, 2011 Bowser net income accounted for 2.6% of China's online shopping market, while Jingdong accounted for 36.8%.

The 2011 Gome listed company's earnings, also exposed Gome's investment into the electricity business has become a burden, "burning money" is not a fact; on the other hand, the internet shopping and store conflicts, the loss of signs at the beginning, the capital market disputes, gome into transition pressure. E-commerce and the development of physical stores have come to the crossroads.

The results showed that the main financial indicators of Gome fell, net profit from 2010 to 1.962 billion yuan to 1.84 billion yuan. The overall gross profit margin, which continued to grow for three consecutive years, also fell for the first time, down 18.15% per cent.

Gome Electric chief Fang explained to this, "the overall gross profit margin is mainly due to the 2011 investment in electronic commerce, electrical infrastructure, brand operations, such as large investment, through low-cost sales to expand market share, pull down the overall gross profit margin." ”

Many people in the industry said, "in the future competition, Gome and suning no longer likely to maintain the pace of expansion in previous years, the era of happy enclosure is long overdue." Entity store revenue was once an important source of blood transfusion to the electricity business, but in the entity store profit decline, close the hopeless loss of the store, the electricity business become gome to save the straw.

If the 2011 is the traditional enterprises have to raise electricity, the transformation of the development of a year, 2012 has become the most important business in the electric business of the watershed. The development of the electric business is barbaric growth stage, the price war enters white-hot, everybody is "burning money" buys market share. From "6 18" to "Double 11", each time the "decisive Day" keyword is "the lowest price of the whole network." According to the data released by the Big household appliance business giants, the "6 18" war, the electricity merchant invests the fund to be as high as 7 billion yuan.

With the expansion of the Gome store network and the rapid development of E-commerce, the company's marketing costs are also rising. Such a burning of money has led to financial pressure, July 24, 2012, the United States on the exchange of Hong Kong issued a mid-term performance warning loss. This is Gome's first net loss in 8 years.

In desperation, Gome began to adjust its "wolf expansion" strategy over the years, brewing close sales of poor stores and start layoffs.

Gome Electric Business Road began to turn.

Back to the main business

The 2012 "Double 11" war became one of the most watched battles in the history of the electric business. For the electric business War, Gome Group vice President Yang that Gome is "passive participation", and "Gome's real opponents, not Su Ning is not jingdong, but their own".

According to Gome earnings, the third quarter of 2012, gome losses of 186 million yuan, compared to two-quarter loss of 568 million yuan, a sharp decline in the third quarter of the overall gross profit margin of 15%, the chain increase of 1.3%. However, the first three-quarter losses remained at 687 million yuan. Compared with competitors under unfavorable market environment, Gome's "injury" is heavier.

How to break free from the market quagmire has become Gome's top priority. December 25, 2012, Gome announced the adjustment of the five-year plan, the introduction of Gome new three-year strategy. Gome, which almost ceased in 2012 to expand its physical stores, decided to return to its expansion track in 2013. In accordance with the new three-year development plan, Gome will be in the second-line market to add 200 stores, in the first-line market stores will be the same store growth in the way of assessment, to achieve a year-on-year growth of 5% target.

In this respect, Wang Junzhou began to lead the management of Gome to break the bureau. "Really only a few pictures and text on the internet can spend tens of thousands of of thousands of dollars under a single consumer, after all, still a minority." "Wang Junzhou that this is the real store opportunities, the key is how to store the experience of the customer retention," is nothing but the price problem, people feel that the internet things cheap, so to go back to the order, then we simply let the price more transparent. ”

According to the deployment of Wang Junzhou, Gome National stores to introduce free wireless network, regardless of the size of the store, there are dedicated computers for customers to browse any of the electric Dealer's website at random prices. "You look at a piece of goods in Gome, we will take the initiative to help you check the price of each home appliance merchant." If Gome is high, we will come down at once; if Gome is low, you will naturally not be able to go home and order again. "Wang Junzhou said.

Since the second half of last year, Gome has implemented an offline-led transformation of the ground shop. Gome in the third quarter of 2013 to achieve a profit of listed companies.

However, Wang Liyang that gome to turn a profit, only to prove that the electricity business has not fully affected the traditional home appliance market, Gome is only temporary security. "Gome suning are gambling, they are Wang and Ma Yun bets of the participants, the United States is the line will always occupy the market dominance, Suning bet is the future retail trend must be O2O integration." ”

He pointed out that in the long run, Gome weakening the electricity business will be a hidden danger for them, the electricity quotient is more than the total retail sales of consumer goods will become more and more of the fact that the larger share. Suning transformation of the Internet means that it values a larger retail market, not just home appliances market, the transformation of the Internet is the whole of suning from the electrical transformation of the whole category of retail key step. Gome's dominance of the traditional market is not wrong, but when the electric dealer's impact on traditional retailing is growing, Gome will lose its defensive capability in the field of electrical business.

Compared with the total revenue of 4.4 billion yuan in 2012, Gome's online target this year is 10 billion yuan and profitable. But this is only a fraction of Beijing East's sales target of 110 billion yuan. This year's "Double 11" war, less gome online figure, it is not hard to see that gome is indeed weakening the electricity business.

For the role of electric business in Gome's big plate, Wang Junzhou said that with the current situation of the development of electric business platform, the last left is "pocket money", Gome does not do will lead to large losses, can not be 5 years after the demand to layout, because the model is not deterministic loss. But Gome will not abandon its electricity dealers and still stick to the development strategy of multi-channel retailers.

In this respect, Wang Liyang said, perhaps Gome realized that now in the field of electric power can not be more than an effective breakthrough, as a reprieve, and so on the end of the round after the electricity business reshuffle again challenge the industry order. Gome is now the first to do is to stabilize the market share under the line.