Electric dealer to lift price war, suning double line test water O2O

Into the June, the electric business industry and the cliché of a "price war." This time, Su Ning will fire from the line to the line.

Suningyun, chairman of the Jindong, said that in recent years, the rapid development of electronic business, physical retail has caused a great impact. Traditional retailing is the trend of the internet assimilation, O2O fusion retailing will be the only way to transform the physical retail, the double line price is only the key to open the O2O retail door.

June 8 began, suning nationwide stores, Tesco store stores will be with suning easy to purchase the same product price. This is the country's first large-scale retailer full implementation line of the same price, this may make suning get rid of the embarrassment of hand to hand.

According to Suning's assumption, the main function of the future line is drainage, order and payment, the store will be the main bearer of services and experience functions, or even through mobile devices to achieve unattended shopping environment. Su Ning will completely transform the Internet retail, not only physical store and virtual store integration, but from the bottom of the enterprise structure and business model to the Internet company to transform.

Analysts on the "Daily economic news" Reporter said that this is easy to buy online, Suning's biggest reform action, although will affect the short-term profits, but can get rid of the shackles, officially into the "shop" era.

Double-wire same price test water O2O

As early as last year, "8 18" price war, Suning in Beijing to 3 C category as a breakthrough, the pilot line on the same price. The test water, so that suning in sales and other aspects of the overall growth reached 4~5 times.

In China's E-commerce Research Center monitoring data, 2012 Suning easy to buy 3.6% of the share ranked third, in the IT industry three tickets under the survival of the law, belong to a very sensitive position.

In order to from the electric dealer seating war stalemate situation, Su Ning finally ruthless determined to line the same price strategy to the whole country.

In this "6 18" electric business war, as a representative of the traditional retail market, Suning intends to create offline and online interactive "O2O" mode to the card position.

Yesterday (June 17), "Daily economic news" reporter in Shanghai suning yangpu shop entrance to see, prominent positions are posted announcements, Express line with the same price. Compared with the old deserted, even in the weekday, the popularity is much higher than before.

A sales staff told reporters that the line on the offline after the same price, came to buy more than at least one times more customers. "We want real-time login internal system to pay attention to the price of Suning, if the price changes on the Internet, we will adjust in time, almost every day to adjust the price of three times, always to and online consistent." ”

The reporter also found that in the store sales of products, in addition to price signs, but also printed on the two-dimensional code logo, consumers can be in situ scan after the purchase of Suning easy to compare.

Suning related personage also disclosed, Suning line the same price, not only unconditional and suning easy to buy online price same, also refer to other domestic electric business enterprise price, with its backstage information system, store and line the same merchandise price lock.

There is no doubt that the two-line decision on the same price, Su Ning is a double-edged sword, stabbed opponents at the same time will hurt their own.

However, this is the choice that Su Ning had to make.

2012, suning revenue growth of only 4.78% Year-on-year, net profit is down 44%, the company can be compared to store sales revenue year-on-year decline of 12.38%.

At the same time, suning entity shop's gross profit margin of about 17%, operating cost of about 14%, and the electric dealer's gross profit margin only in 5%~7%. Double-line price will compress the company entity store margin space, affecting the profit level. To this end, a brokerage has lowered Suning's performance expectations.

Citic Securities 2013 ~2015 Year's performance forecast adjusted to 0.18 yuan per share, 0.22 yuan, 0.29 yuan, compared to the previous 0.37 yuan, 0.44 yuan, 0.50 yuan forecast down nearly half.

The transformation of the difficult Suning company had expected, the company's vice chairman Weimin had a strong external, in order to long-term strategy, can sacrifice short-term interests.

Guotai analyst Wangrui that, although Suning performance will have a greater impact, but the same price strategy will be easy to buy on the line of the cluster, drainage capacity has a positive effect, is conducive to the development and profitability of large platform business, may be partially offset the loss of the entity stores.

Explore the new model of "store Business"

The transformation of Chi retail giants naturally aroused the concern of the industry.

Although Su Ning clearly said, in order to "line under the actual situation combination", to do "shop + Dealer + retail service provider." But the industry almost one-sided that suning is in order to catch up with the size of the Beijing East.

In fact, looking back on the past two years, Su Ning's voice was not related to the electrical business. But below the line is still its most solid position. In 2011, Suning issued a new decade strategic planning, said, 2020 total number of stores to 3,500, sales scale reached 650 billion yuan, of which online sales of 300 billion yuan.

Suning related personage discloses, this goal has not changed, change is only the store structure, but, will walk the big shop strategy later, closes the store to open the big shop, opens the Super shop. "Super Store will become experience, display, service, Logistics center, for express radiation less than three or four lines of city, can be realized by the store distribution." ”

It is reported that the Super shop will be suning future entity shop Main force direction, but also line under the fusion of key nodes, is also different from suning easy to buy and Jingdong Mall service of the biggest weapon.

Suning's other entity store brand Tesco stores will also be pushed away in the country, in addition to electrical appliances, the brand also sells many imported from Japan cosmetics, toys, kitchenware and decoration.

Suning related People also told the Daily Economic news reporter, the huge scale advantage will further reduce the whole group of procurement costs, and not electrical goods can bring the rise in gross profit. In particular, the physical store of the easy to buy display, will bring a large number of physical stores and consumption, will also be slowing sales growth again.

In the opinion of electric Business observer Ruzenwang, Su Ning's move is more to optimize the entity store. "Suning is certainly impossible because of the rise of online shopping to abandon the entity shop, the reason why the electrical business can rise rapidly, is largely because of price advantage, if the line online below the price, the advantages of the real store will be highlighted." ”

Huang, an Internet industry analyst, argues that the price gap between the two-line prices is subsidized by manufacturers, and this is not a sustainable approach. Offline itself has a fixed rent and human costs, offline and online should be a reasonable distinction rather than blunt to the same price.

He said that Suning online strength is strong enough, but in the performance of the electricity dealers let investors see the decline. Therefore, Suning needs to do is to increase the investment in independent technology research and development, improve the line under the user experience, can really online with the cat and the east to contend with.