Channel face: Suning gome Online will change what

The editor's note is the same way. In the series of the report of E-commerce and its birth of the business ecological changes in the process, we studied the Li Ning, Daphne, and other brands online sales experiment; Then we start digging up what forces are driving or following the development of E-business,　　This makes us aware of the transformation of marketing service providers and the exploration of new logistics services; Ultimately, when we look to the traditional channels of commodity circulation, our question is: Will the C2C E-commerce Web site eventually replace the traditional channels?　　After we finished the 100,000-word interview, I couldn't help but be embarrassed by the initial superficial questions. The so-called circulation, is not a store, a large store, or even hundreds of thousands of stores so simple. The essence of circulation is movement-the movement of commodity flow, capital flow and information flow, and the essence of circulation industry can be regarded as a huge net of circulating goods and capital flows. Then, the front-end of the form of stores, chain stores, supermarkets, or carved a fire online mall, in fact, is not important.　　No back-end design of a reasonable logistics network of the C2C, but only a Web page.　　This is why a mail order for the Macaulay to open 2000 stores, do the Bono of the line tailor shop, and online operating 3C products, Jingdong Mall began to invest in the construction of logistics warehousing reasons. On the other hand, we should see that the network has the natural "speed" appeal, which is consistent with the pursuit of "efficiency" in the circulation industry. Formally, the traditional retailer, which already owns hundreds of thousands of line chains, has never overlooked the new terminal of online shopping malls.　　You can now enter the virtual Carrefour, Wal-Mart, Gome, Suning ... As the most developed domestic retail industry, home appliance chain retailer Suning and Gome's network tour, attracted much attention. This is intertwined with people on the Chinese network consumption habits and household appliances industry manufacturers game concern.　　From the management point of view, it involves "organizational self-change", "Product precision marketing" and "borderless management of a new model of collaboration" and other topics. Line, the end will be the same. The key is how the flow of the industry to continue to deep in efficiency, the new channel terminal will accelerate or delay industry integration, and who will through natural competition, become an industry oligarch? (Huang Xia) 2005, Huang had a conversation with Huang Guangyu. At that time, Gome in Hong Kong backdoor way to market soon, the Thunder is strong, but Mr Huang worries about is another problem: Gome's line must and online integration. At that time Huang's identity was a provider of E-commerce solutions.　　That year, Gome Online mall launched, began to build a platform for the Business-to-consumer. In mid-May 2009, Gome's E-commerce has completed technical preparations, followed by plans to improve the operation of the preparation, and then large-scale promotion.　　Huang, who was "an outsider" four years ago, is now Gome's E-commerce minister. More than Gome action is Su Ning, and IBM's consulting team after a year of research and design, Suning planIn July 2009 launched a new version of the online mall, with Su Ning's expression is "fourth generation". Earlier, Suning online shopping has tried, but the effect is meager.　　In 2008, after a systematic study of the business model of the operator, Suning believes that the time has come to launch the mall. After the 2009 Spring Festival, the long-term main line, intended to open the store of electrical retailers, invariably began to deep plowing network shopping virtual platform. The data of the market research company in the Times of China and the Kang period show that the total value of home appliances and consumer electronics market in 2008 is 792 billion yuan, while the gross income of Gome and Suning is 100 billion yuan.　　Although it occupies nearly 1/8 of the share, but Gome and Suning still want to open up growth. China's online transactions will reach 230 billion yuan in 2009, and 2008 is only 130 billion yuan, the consultancy predicts.　　This growth rate, Jingdong Mall in the last 5 years, the composite growth rate is 340%, operating drugs and health care products of the Gold network in the last two years the compound growth is 300% ... At the same time, the data show that 2008 China's online purchase of registered users up to 120 million, the growth of 185%,B2C-type site online coverage from the beginning of nearly 30%, up to the end of the year has more than 50%. This means that one out of every two netizens has ever visited a consumer site, and more importantly, they are adapting and quickly accepting online shopping.　　Xiani, general manager of the Golden Elephant Network, said that two years ago when the operation, customer service staff need to expend a lot of energy, and constantly prompt users how to pay online, and make them believe that the security of online payment, now very few users to ask similar questions.　　Growing demand for traditional retailers to take a more serious approach to the new platform for online sales. "US-Soviet" on-line traditional retailer online two difficult problems: pricing and logistics.　　Under-line variable price is very flexible, time change price is not uniform, and online price unification, secondly, the logistics imbalance will also affect the realization of the transaction. Ten years ago, Suning invited and June entrepreneurship and investment two consulting companies to prove the feasibility of online operation, "at that time feel not reliable, China has no good credit system, no good circulation system, or honest to do the entity shop." Now it's starting to feel like some value, and it's going to get bigger. Su Ning, President of Sunweimin recalls.　　In those days, the web was a window of enquiry for these traditional retailers. At that time, Jingdong Mall founder Liu in Zhongguancun just rented a small counter, sell burner, compression card (the videotape into VCD) and CD-ROM, start the company on his one, every day to go to the road to send leaflets. And now, according to Xu Lei, vice president of Beijing East, in general working days, "visits to the Beijing-East site, and the number of visitors to Gome 1200 physical stores close."　　"They now every day for the east to contribute tens of millions of water, according to Jingdong Mall financial staff estimates, June sales season is expected to achieve a single month 360 million sales, the first half of the sales revenue is expected to exceed 1.4 billion." In Huang view, gome "NET" actually experienced the evolution of a tricycle, "at the beginning isInformation window; Second, the discovery of the Internet is interactive, supplemented by online filling, form processing, data query and other interactive links; Third, many businesses directly on top, E-commerce formed. "He, who came from the Internet, began to take over Gome in late 2007, and has a more acute perception of the internet," the people who buy online are young people, and the habit is not easy to change, just like the habit of mail is not accustomed to the fax machine, only a one-way process.　　Until 2009, Gome and Suning's online campaign, not like Jingdong Mall and other pure online retailers as active. Sunweimin points to two constraints: pricing and logistics. For Gome, suning such a huge system of suppliers, the industry's rules have formed a serious difference in pricing-because of regional, time, the price of the store under the line will be different. And the price changes in the industry is too complex, "for example, a regional supplier to 2000 promotional fees, so you posted to the price inside, how do you paste?" Variable price is very flexible, time change price is not uniform, and online price unification; second, the logistics is unbalanced, which affects the realization of the transaction. Small commodities better, social distribution of high degree, large categories of commodity risk too big. "In order to deal with regional price differences, Gome, suning approach is to set up an online regional substation, the station will automatically display the corresponding area page according to the user's IP." But how to balance offline and online price difference, has always been a challenge, the century Electrical network chairman and CEO Wang Zhiquan, this boils down to the traditional retailer's brand burden, "for example, Suning's Zhang Jindong to decide to aggressively enter E-commerce, can imagine he will Su Ning's brand discard it?" However, once the use of the brand, if the price is not close to us, can not compete, if the price is the same, what do they do offline shop? "The chief executive of Suning Appliance Marketing headquarters, Kim Jin-ming, does not think that the line business will affect the offline business, he treats this as two cakes, not two parts of the cake."　　Everbright Securities analyst Huang Zhigang agree with Kim's point of view, he believes that if the target customer segmentation can be effective in controlling price conflicts.　　However, the home appliance retail industry is still relatively extensive management mode, in the market segmentation ability to be strengthened. 2008, Huang integrated the technology platform of Gome, defines the internal management manual, structure, process, authority, Gome Mall can do "online after a single, we confirm receipt of orders, payment, UnionPay online payment, and then make a single, local substation people will do this into the ERP system, a single, delivery." Orders are standardized in format. His plan is to gradually introduce low-cost products to meet consumer demand for prices, while using a variety of promotional activities and personalized products, it becomes the direction of online business. "Now online shopping malls, in some products have pricing power, such as 3C products, underwriting, differentiated products, with the Gome line shop there is a difference." "So far last year, suning in the procurement of more" independent pricing "products, Su Ning Vice President Kim Ming said," We are now dedicated to the online industryBusiness, the introduction of online shopping as the leading commodity, can not completely put the goods under the store completely moved to the shop. Online pricing of the rich commodity, real support for online sales.　　"However, the ability to do online business, the need for traditional retailers of the major functional departments of real cooperation, such as the turn of the online promotion, personalized product underwriting, need to co-ordinate the group level; in other words, how to design the position of the E-commerce department within the organization will directly affect the final output.　　In the beginning, there is no such problem for the company that is the main sales platform for the online mall. In the game relationship among consumers, distributors and suppliers, the current online low price state should not be a normal one.　　and Gome, Suning Online mall's rise, can change this state? Wang Zhiquan has been in Tsinghua MBA students have done statistics, the class of more than 30 students, 100% have bought things online, of which 4 people bought a single piece of more than 1000 yuan of goods, unfortunately, more than 5000 yuan on his own.　　And he founded the Century electrical network, now can sell about 150 units per day electricity, the average unit price of more than 4000 pieces. A Tsinghua MBA may not be a very typical sample. But Wang Zhiquan's booming business suggests that Chinese netizens are not only gradually accepting online shopping, but are willing to try more expensive goods.　　2008, Century Electrical network completed 80 million of sales, this year's target is 200 million yuan. "Why do the traditional retailers such as Gome and suning have difficulty in online business?" Because Chinese consumers have been educated in Taobao, online shopping is the first choice is cheap. "says Wang Zhi, who claims the price is 10% cheaper than the average physical store.　　It can be corroborated, Liu also said, its 90% users have been shopping in Taobao. As a result of the lack of procurement scale, the average purchase price of the century electrical network than Gome, Suning 3%, if the comparison of three of the shop price, the former online pricing is also lower than the average below the price of 10%.　　So, how did the 13% spreads go? Partly thanks to the relatively low operating costs of the company at this stage. Gome listed as an example, the 2008-year rental accounted for the total sales revenue of 45.889 billion yuan 4.36%, water and electricity is 0.9%, the cost of more than 5%, network operation is almost no; In addition, gome goodwill impairment, bank fees and other cost rate of more than 1%, In this way century electrical net overall rate can compress about 7%-8%.　　The rest is to let, Gome 2008 pure profit margin of 4.2%, Wang Zhiquan only earn about 1% of the net profit.　　In fact, Gome's 2008 reporting period, the overall gross profit margin is 16.9%, the century electric net gross profit according to its claim is 7%. However, low prices do not necessarily bring a virtuous pace of development. Due to the limited procurement scale, century electrical network is mainly cash settlement, inventory turnover capital pressure is very large (if not enough inventory, will delay the delivery time, affect the user experience), but low net profit hinders the speed of capital accumulation,and low margin let venture capitalists, Wang Zhiquan already and a number of VC contacts, "a lot of VC because of low margin hesitation." "Wang Zhi all joked," Now we all know that Jing Dong does not make money, is entirely old Liu's ' conspiracy ', so that we catch up with those who can not find money. "According to a user survey of the century grid in the 1 quarter," 90% of consumers choose to buy online because the real store's products are overpriced, but he does not agree with the popular Low-cost line, "in the United States, the first to have a large online shopping group because of its convenience." "And that view has, to some extent, been confirmed by Jingdong users, at the end of 2008, Liu withstand the pressure of investors, insist on the line of daily necessities of goods, is because a year received tens of thousands of message request," One price is relatively cheap, and a lot of users have become a little lazy, hope to complete all shopping in Beijing east. " "and convenient, the online platform has many functions to be excavated." For example, summer language found that China's drug circulation with regional, such as Tongren Tong's medicine is not easy to buy in the South, but also very few physical pharmacies like they have more than 8,000 kinds of drugs, the network can adjust surplus. In addition, Ed drugs is one of the largest sales of the Golden Elephant Network, "Most users need to consult to buy the right medicine, but also difficult to face, telephone or text consultation is a good choice."　　"Wang Zhiquan believe that online prices will rebound," The price difference is 5% more appropriate, the difference is roughly the Gome shop rent, water and electricity costs accounted for. Not only do retailers think so, but the attitudes of most current suppliers who choose to be Grand are slowly changing. Because the current online sales accounted for the total retail sales of the proportion is not large, and many categories of their own channels complex, it is difficult to implement effective price control, suppliers are also "blind closed eye." However, if online retailers rise to become an important channel force, even if suppliers do not want to intervene, offline distributors will exert pressure.　　Wang Zhiquan, a supplier like Changhong, has begun to guide pricing on the line. In the game relationship among consumers, distributors and suppliers, the current low price status should not be a normal state. Even the Jingdong mall, known as the game changer, it is also difficult to conclude that the price strategy now is to do "Wal-Mart every day" (in fact, Wal-Mart's net profit for the 2008 fiscal year is 3.34%), or to implement a strategic approach to high scale and brand barriers in the free-for-all website. At least, now Jingdong is only pursuing scale priority, Liu also said, "the industry is still too small, a billion of sales in the retail industry is nothing, only when a retailer to achieve 10 billion sales, it can talk about what impact on the industry."　　"The new pattern?" "Can only say that gome such a large procurement, must be able to get the best price, this is beyond doubt." But the retail network is very large, we will leak a lot of water in a pool. "Now Gome is starting to put its money into the leaky mouth, the internet shoppingWill the pattern change?　　Liu The three most important things to retailers as "information systems, teams and supply chains, and the main line of work will not change for 10 years." Xu Lei said that as of the end of this year, completed 20-30 City Distribution station layout, in various cities to form "financial director, distribution station Webmaster, City Manager (Marketing)" Trinity of the pattern.　　In addition, Jingdong will put a large amount of capital for storage, began to Beijing, Shanghai, Guangzhou warehouse personnel equipped with RF (Wireless handheld terminal) equipment, and the expenditure of 2009 years of budget up to 15 million yuan to solve the system information "real-time" problem. In fact, the low price will not be Jingdong Mall to maintain the user stickiness the only means. Online shopping "with the foot vote" most obvious, "We in the last year logistics this service is not in time to keep up, it lost some users; Once a user has been lost, it will cost 10 times times the energy to win him back.　　"Xu Lei said. Wang Zhiquan has built a profit model on the "light assets" information platform, to transfer online orders to retailers and earn service fees, however, he quickly discovered that blocked, instead of building his own logistics system, said in his research report, "the services made up of sales and delivery are the basis for the operation of each Web site, Unlike other products, home appliances generally can not express, but need to use more professional logistics companies or self-built logistics.　　"It's just that his logistics team is not owned by the company, but rather an exclusive form of cooperation." Looking at the balance sheets of China's business-to-consumer Web sites, they are getting heavier, with the exception of Jingdong and red children. Huang evaluation Way, "if Taobao such information platform to step forward, provide warehousing and logistics services, find logistics companies and warehouses to ' landing ', they face is gome 20 years ago encountered problems." "No doubt, traditional retailers, the most advantageous is the supply chain." Sunweimin said, "We are now doing the core, the first is the system, and then logistics, in this respect I will every day to hit the money." Build a platform for the Business-to-consumer, 3 million that is very advanced, but open a storefront, at least 6 million or 7 million. "Wang Zhiquan pointed to Zhang Jindong's article" Back Backstage ability up ", told reporters," Zhang Jindong is very right, but we can also from small to large. " "Traditional retailers are not as easy to talk about as they are in their supply chain. In addition to the technical barriers such as price differences, the key is whether traditional retailers can create a corresponding personal environment for the new business, Huang this down to "the root of enterprise operation." "Generally speaking, the traditional retail enterprises in the initial stage, do not know how new media to do new business, to create an Internet talent recognized work environment, will be a big test." "he said. Among them, there are many specific problems, such as the online shopping mall and its promotion path and remuneration, should be different from the standards of the retail industry? For example, does the E-commerce department have enough decision-making power? At the group level to obtain financial, logistics, pricing centers and other institutionsEffective resources?　　Wait a minute. A valuable example is the Golden Elephant Net, its controlling shareholder gold elephant Big Medicine once tried to carry on the on-line business in own system, the result business development is very slow. 2007 Years Golden Elephant Pharmacy introduced a group of internet-Gan, set up a gold-like network, giving the business autonomy, including allowing online prices than online discount 10%, but the two sides in quality control, procurement, warehousing and other aspects of sharing resources. According to Xiani introduced, "Gold Elephant Pharmacy wholesale business, in principle, the price flat into the flat out, independent accounting, and the provision of warehousing services by the Golden Elephant network to pay management fees." "From the point of view of resources, Gome, Suning still occupy a strategic initiative today, and may even close the time window to catch up with the new arrivals, leading the future of the business market."　　However, in view of Jingdong Mall as the representative of the online retailer rising speed, assuming that Liu in 2010 to achieve a smooth 10 billion yuan, coupled with this group of "online upstart" of the evolution of the speed, Gome and suning may not be able to and line, like a duck to fish. But it is too early to come to the answer. "The retail business is very complex," Huang said, "only to say that the United States such a large procurement, will be able to get the best price, this is beyond doubt, but the retail network is very large, we will leak a lot of water pool." "But the spilt water," not to mention, this stall is still overflowing, perhaps a sea of the future.