Su Ning's transformation into Sham Shui PO

Suningyun, chairman of Jindong, recently dropped a bombshell at an internal meeting: "The transformation of Suning has already entered the deep waters." I will give you 6 more months to see the results. "

at the end of 2013, the information needed to deliver this urgent timetable is not to be underestimated.

If you describe Su Ning's 2013 in one word, only the word "change" is the most appropriate. This year, Su Ning's transformation pace did not pause and hesitate--February group renamed "Suningyun Business", published "store business, retail service providers," the "cloud" mode, the June promotion line with the same price strategy, September launched a dual-line open platform "Suningyun Taiwan", October Strategic investment PPLive, And in November held the first O2O Shopping festival, in Silicon Valley set up a research institute, to enter overseas.

in Jindong's view, Suning did 3 things in 2013: "The first is to break down the organizational barriers, one-quarter restructuring of the organizational structure, the realization of the two-line channel comprehensive integration, the full sharing of resources, the unified cost of accounting; the second is to break the price barrier, June the implementation of the" double-line "; third, to break the experience barrier Will formerly pure sales function of the store, upgraded to set display, experience, logistics, after-sales service, leisure and social networking, market promotion as one of the new Internet stores. For example, the whole shop opened free WiFi, the implementation of the entire product of the electronic price tag, the placement of multi-media electronic shelves, the use of Internet technology to collect and analyze various consumer behavior, to promote physical retailing into the era of large data. "

At this point, suning transformation of the Internet's thinking has been very clear, that is the so-called" one of the wings "of the" Internet Road Map "," one "is to the Internet retail as the main body," wings "is to create a O2O of the entire channel business model and line under the open platform

This ranking of China's top 500 private-sector companies as the first retail giant to transform the internet has been one of the most attractive focus of Chinese business. Jindong's recent speeches on several occasions have been widely circulated and interpreted in micro-blogs and micro-letters. Outside of Su ning transformation judgment, is from the doubt, wait-and-see, began gradually into a positive attitude, 2013 Suningyun stock prices from the low point of less than 5 yuan, climbed to nearly 14 yuan.

Although Su ning pays a lot for the transition, the 3rd quarter of 2013 reported a year-on-year decline in sales of 2.5% per cent and a loss of 108 million yuan. But from another point of view, Su Ning for the transformation of the expensive tuition, in exchange for their own still able to maintain the core position in the retail industry and the Internet ticket, which is also the future of all hope is--in 2013 still hot "double 11" during the Electric business War, Suning also received a lot of attention, Its old rival, Gome, is rarely mentioned. This is the brutal reality.

Only after the strategic intent is fully illuminated, the remaining challenge is how to put the strategy to the ground and execute it. These changes will no longer be concentrated in the minds of executives, but in realOccurs in every area, every store, every employee. In the internet age, there is not much time left to Su ning. So the term given by Jindong is: 6 months.

In the store, you can see suning transformation of all the landing action? Jindong said: "All the transition will eventually be solidified into a team culture." We have introduced a series of measures including organizational change, goal plan management, employee internal entrepreneurship mechanism. "

Xin Jie Kou, Nanjing's most prosperous core business circle." Su Ning, headquartered in Nanjing, Suning is undoubtedly the "son of the foot" of "Superstar".





2012 also in Nanjing area responsible for sales of Fehaijun, 2013 was transferred to the Xin Jie Kou shop as deputy store long, just experienced the cloud business strategy of the proposed and landed. The understanding of "the O2O mode" of the retail service provider of the store merchant, I am afraid he is one of the first and deepest employees in the "Store Merchant".





Fehaijun walked to a TV, naturally took out his phone to sweep the price of the two-dimensional code, "you see, the same prices, 4999." "As the scan enters the easy to buy product page, the price that Fehaijun actively displays is exactly the same as the tag in front of you." As the experience line of the same price store manager, he has long been adapted to the shop staff and consumer changes, "now, most customers come to the shop, have to compare prices first." ”





9:30, 14:00, 18:00 three hours a day, Fehaijun and his colleagues will be based on the purchase of the same prices on the site, 3 price adjustments, "We have a refund system to ensure the same price, commodity prices need to print, sometimes there will be time difference, after the store will be updated with the price tag will be good." "he said.





Cloud business model since landing, the new shop is naturally experienced a lot of dimensions of the new transformation to support the realization of O2O function. In particular, flagship stores such as the store, such as WiFi signal coverage is strong, but also has a shopping experience area-however, this is not all stores are now achieved "treatment", is expected in 2014 Suning will complete 100 stores of internet transformation.





more core transformation from the system: Store POS system and easy to purchase the original is two systems, after two months of organizational structure adjustment, now data from the same data source: "Dual-line price, the whole network parity." For the same commodity, the system can guarantee a large benchmark price in the same country, when the line and offline prices are not the same, unless a specific area of promotion, usually is low on the high.





"Now the people in the store, are directly on the purchase of easy to monitor our prices." The fee Navy joked. Understand the home appliance industry war allusion people can hear the meaning, before to each other store exploration prices still have to cost some costs and setbacks.





and Fehaijun, for every customer who enters the store, the shop's promoters will take the initiative to make these new shows, which was completely unthinkable before. As long as a customer mentioned "online how" or "easy to buy how", front-line staff are very inconsistent and helpless, "online and our goods are not the same, to buy it, bad do not know who to find." "is one of the most common lines they have ever used.





But now the staff are very good use of their mobile phones, when there is nothing to study the price of goods. They are even willing to help customers pick up the goods from the online and the store. Because now the purchase of easy to buy sales of the line. From the system background you can see that store sales are marked with "10 channels", easy to buy sales marked "50 channels", whether it is easy to purchase a single to the shop, or in the shop has staff help from easy to purchase a single, all are counted as entry-level shop sales.





Such a policy adjustment, also let Fehaijun have a clear experience: from a certain point of view, the first line of shop staff like online price This change, because the complementary is this will affect their income changes.





before the main push products or high Maori goods will have a commission, and after the same price, upgraded into a "full channel full commission system." "That is, regardless of the line of all products, as long as the number of the input clerk, the next order to the promotion of a commission."





from a manager's thinking, Fehaijun realized that, O2O since, the greater knowledge from the line under the inventory allocation. This is a set of background system through the combination of: Large goods shared inventory, unified distribution, and small pieces of goods usually have goods, stores also have goods, the system is the principle of processing online order priority to find the source store inventory, found that there is a priority distribution of goods supply stores.





"This may be the result of ensuring online sales. "Fehaijun said, after the O2O Su Ning, line on-line logistics, purchase, price, personnel are unified." He understands the future of Suning's Internet stores, will set sales, display, social experience in one, can be online payment, but also store delivery. And in the future, 3 C, electrical appliances are still the core of O2O store entities, but also can open photography, beauty makeup, red children and other interactive classes. Shanghai Changning Store has been experimenting for 2 years, and it is understood that the effect is more than expected.





And before many people's pessimistic expectations, O2O and line on the same price strategy, but brought a lot of single shop performance on the promotion, to the door of the shop for example, easy to purchase sales volume of 38% stores, the number is only 10% a year ago. And in Beijing Maliandao Suning Community Shop, the clerk also said: After the same price, the business is better, because many customers in the online parity, more willing to come to the physical store to see the kind, and then directly to the order.





November 11, 2013 O2O Shopping day, suning nationwide more than 1600 offline entities store average hourly influx of 1 million people, compared to the same period last year, the volume of traffic increased nearly 4 times times, and produced a huge order, only one region of the distribution reached 20,000/day, The biggest increase in 2013 years. and Suning easy to buy at the same time the number of online breakthrough 12 million, total PV flow 560 million times, mobile client sales increased 10 times times year-on-year.





face O2O, line on the same price and other strategies, front-line staff performance is clearly "cheers." But for the middle managers of Suning, the new changes in these stores, in addition to the momentum, there are enormous challenges.





was responsible for store sales before and store upgrade, store equivalent to be unlimited expansion, on the one hand, the sale of goods to expand to the whole category, on the other hand, including pre-sale sales after the service demand for a lot of increase, a lot of easy to purchase orders, to find store processing after-sales service. Since the opening of the platform, the task of investment has also been distributed in the head of the store, "the group encourages you to introduce resources." "You can feel that, like Fehaijun, the first line of management, the workload and pressure is increasing."





today's Internet store is 1.0 version, Su Ning will accelerate the replication and promotion in the country. Easy to buy mobile phone mobile end of the entrance also increased "around suning" function, convenient for consumers to choose in the store from the goods. It is understood that 2014 Suning will be the store KPI adjustment, do not rule out the store to develop online and offline independent sales and margin indicators. Opportunities and challenges of

O2O in the February 2013, Suning carried out a large-scale organizational restructuring, from the original matrix-type organization into a career group organization.

2013, the transformation of suning is a violent combination of action, mixed with joy and sorrow.





In the process of transformation, Su Ning's first concern is the industry and social response: can get outside recognition, what the community will have feedback. Because for suning such enterprises, if no industry echoes and linkage, transformation is clap. "For this thing, offline businesses and industries give positive feedback. Weimin, vice chairman of Suningyun, said.





in fact, the 2013 O2O concept of the fiery, for the transformation of Suning made a strong endorsement, we are rethinking in the electronic business environment of the real store value. and Suning Corner overtaking opportunity, it is from the store. It is no exaggeration to say, this is the other electric business enterprise completely does not have the killer. A store that occupies the geographical core of the location, the commercial capacity of the surrounding 1?3 kilometers, which is "electrical dealers" difficult to replicate the resources and capabilities. Therefore, it is important to make full use of the "front desk" resources of the store and play to the extreme.





along the "one-wing internet route map" in the direction of running execution, is a matter of no doubt. A reference to the O2O model is the United States Macy's. Through the integration of physical stores, the Internet, mobile devices, social media, family traditional media, concerts, promotional activities and other channels, since 2010, despite the total number of stores and operating area has declined, but online business income, overall revenue, store growth and other overall performance are clearly recovering.





and Suning determined by the cloud business model, is based on the Internet retail as the main body, store business and retail service provider O2O model. The essence of O2O is the Internet of storefront. December 2013, Suning in Beijing, Shanghai, Nanjing and other cities launched more than 10 1.0 version of the Internet store.




What should the Internet of
store be? Su Ning to O2O strategy clear several directions:





first is the function of the store to have new changes. The previous storefront only undertakes the sales function, but the Internet goal, will change the function which combs the store and the localization, the appraisal standard and the weight also must change. For example, whether to bear the product display, brand promotion functions, whether to promote the interactive experience of goods and customers, as well as logistics and customer service services and other values.





second, the display of goods, display, sample to have more virtualization technology, using the Internet backstage support a large number of virtualization, the formation of new shelves. such as multiple screens, models, directories, two-dimensional code and so on. Weimin said: "The technical level does not rule out the emergence of 3rd party companies, like Internet traffic vending machines, from the ark, such as new internet props." ”





Not only that, the shopping process and consumer interaction, must be open to the environment and hardware support. Now Suning's store renovation is underway, and the store covers WiFi and electronic price tag replacement. "If each store adds these hardware, the investment will be very large, but this is also a prerequisite for suning deep O2O." "Weimin said.





The third is the Internet of personnel. Compared to ever smell the net color Change store shopping guide, today's work way to the first-line shopping guide staff changes very big. Now they are using the Internet and mobile phone to compare prices, looking for advantages to introduce products to customers. But this is not enough for Su Ning's big O2O strategy, the future idea lies in, how to turn social tool into employee's individual member management system, how to manage the enterprise's member, decompose into the individual's circle layer management, also has backstage data to support the staff and the consumer interaction.





in fact, the so-called circle marketing in many places is a very central marketing approach, Suning's store in the sinking to the four-line city, it experienced the pressure of the marketing of the circle, "all sales depend on the relationship." Su Ning hopes that by personal promotion, employees on behalf of the company, the company back to support everyone's operations, through the Internet, so that the impact of the inter-circle effect turn up-this will undoubtedly be a huge fission.





said back, clear direction of the subtext equals, Suning's Internet storefront still not "standard", still need to target march. For example, the traditional chain layout, suning now many physical stores from the distance and the size of the collocation is not reasonable, this is a historical problem, the decision is not caused by the Internet, but before this industry vicious arms competition caused. The advent of the Internet is a variable that allows players to solve their own, and the mentality is also peaceful. "Now we are in no hurry to talk to the landlord about the price." "Weimin said.





according to 2013 Q3 earnings show, Suning first 3 quarters of the company closed 150, affecting the quarterly income, is expected to close 220 of the year 2013. For Su Ning, this is exactly the next line store adhere to follow the resource optimization ideas: Unreasonable layout of the strict control, the one or two-line market to upgrade flagship stores, the closure of unreasonable community stores, unless the store is located in the Regional center, or undertake logistics functions; development focus on the three-tier market, as an important node of logistics layout, will continue to increase the three-tier market to open shop, expand the O2O network, and the four-line City Circle deep-rooted, will not spend energy to open a shop, choose the way of the electric business breakthrough.





From the external point of view, suppliers of channels are also facing the Internet and physical channels of conflict, the same price different prices have impact. The appeasement policy they used in the past is to change the same item number to different channels. But the internet makes it easy for consumers to find out. How to let the supplier also can cooperate with Suning's "cloud quotient strategy", need both sides to redesign the game rule.





in early 2013, Suning and Hisense signed a 2013?2015 year 3 years sales of 30 billion yuan strategic objectives, both sides through product strategy, channel development, supply chain optimization, organization and joint marketing and other collaborative initiatives, vigorously promote the O2O integration of cooperation. As of November 2013, Hisense Products in Suning channel sales, color TV year-on-year growth of nearly 40%, air-conditioning growth of nearly 70%, ice washing year-on-year growth of 60%, 2013 annual sales target has been completed ahead of time.





Suning President Kim Jin-Ming stressed that the 2014 cooperation with Hisense, there are two highlights of the initiative to arouse concern. First, Hisense's Hua Bao air-conditioning in the exclusive sales of suning channels, the second is Hisense mobile phone products will be fully rolled out in 2014 cooperation. At the same time, 2014 will further strengthen the product underwriting custom cooperation.

transformation of the deepwater and Jindong goals

for any change, the vision of the proposed and strategic formulation are good, and once involved in the implementation of the changes involved in the organization, as well as the ensuing cultural shock, is the most critical stage of change, but also the most difficult stage. Su Ning's transformation, just arrived at this node.





in Su ning Interior plan, 2013 group originally should have 4 big action, now only did 3: Organizational structure adjustment and change company name, implement line with price strategy, open platform on-line. The 4th thing to do is to adjust people and culture. We haven't finished this step yet. "Weimin said.





Jindong said: "All transition will eventually be solidified into a team culture." Because only the cultural transformation is the true meaning of spiritual inheritance. Enterprises in different times, will form the imprint of the culture of the Times, enterprises to use different technical tools, will form a different thinking culture stereotypes. Therefore, in the wave of the Internet, the corporate culture can not be fixed, complacent, and can not be completely rejected, to overturn. To this end, we have launched a series of initiatives including organizational change, target planning management, employee internal entrepreneurship mechanism. ”





Suning's organizational structure has been adjusted since February 2013. Suningyun Vice President Mengxiangxie introduced that the biggest change is from the original matrix-type organization into a career group organization. At the regional level, flat vertical management and localized self-management are the biggest features of Suning's new organization. In 2013, Suning reduced the large area-subsidiary-Operation department to three-level management, and expanded the number of large and city companies, enhanced the regional operation and localization service capabilities and improved operational efficiency. Suning at home and abroad from 44 to 60, the city terminal from more than 100 to more than 200, through the number of expansion and organization sinking, Suning will enhance the entire geographical coverage and refinement of operational capabilities, and further enhance competitiveness.





for suning Such a traditional enterprise, a lot of senior executives and employees are with Suning played an uphill battle, together to grow up. But because the company's huge transformation, it is bound to allow everyone's ability, knowledge to face a redefinition, and the individual's rapid learning ability will also appear differentiated performance. Perhaps in the past excellent ability, excellent talent, and excellent management methods, to a new stage, it produced a change. This process will touch everyone's cards.





challenges the biggest in the middle management. From the outside look, the value of the store released, front-line staff and consumers as happy, and the middle tier both to bear the profits, but also bear the sales, and to face the complexity of an exponential increase in the new management situation, how to do, how to innovate and implement, are urgent to solve the problem.





before the offline era used to "wait to", sitting in the shop there are customers come in. In the face of today's full competition, the problem quickly came out. This comes not just from the Internet, when it can be digested with its own advantages. For example, in order to cope with the high pressure transformation requirements, the current online promotion is still difficult to get rid of the rough price play, ignoring the customer experience and the characteristics of the Internet, it is easy to make the company's brand image did not. This level of staff, a large number of the key role in the connecting link, how to influence, change, upgrade them, will become the biggest test in the transformation.





any huge transformation behind can not be downwind, "encounter bottlenecks" is all companies will face problems. The resistance to change is almost everywhere, for example, when it comes to the transition to the Internet, some people begin to take culture for it: "Do internet companies wear suits and ties?" "," internet company's attendance and overtime how can use this method? "Can you imagine that for a" tough company "that once checked the wearing of a tie on the road to the restaurant, and was suddenly asked to" allow slippers to be worn ", which was confusing to policymakers-was it necessary to build the Internet gene?





Weimin to the internal current situation does not conceal: "No one is obstructing change, but some people can't keep pace with change." Strategic change needs to be implemented, implementation needs methods, no way to do it. ”





in the organizational structure adjustment in February 2013, Suning carried out a large-scale internal talent selection promotion, a total of more than 3,000 knowledge-oriented, younger cadres were promoted. But according to the reporter understands, recently suning inside already started someone to "the body is not good" reason left the post, among them the core team senior executives. According to a person who declined to be named, Suning staff revealed that there may be such changes in the near future.




The problem of
people is the fundamental problem of transformation. In fact, in the process of discovering the problem, Su Ning did not wait and couldn't wait. In addition to further promote the management of the unity of thought and transformation, Suning also continued to strengthen the introduction of external talent and training. In addition to the continuation of the previous 1200 projects (Suning started in 2002 to start the recruitment project-the annual nationwide recruitment of 1200 graduates), Suning also launched a new management Trainee program.





according to the plan, Suning will select 100 excellent undergraduates and graduate students from famous universities at home and abroad, and be guided by Jindong and CEO of senior management. Lepetson not only has an advantage in pay and benefits, more importantly, we can follow the business management, business operations, and at the headquarters and the large area round hillock on-the-job, the goal is 5 years to grow into the company's quasi senior executives, 8 years to grow into the business department, the center, the region's first head of the core executives. The high cost of investment, the full display of Su Ning's thirst for talent, as well as the determination of the big.





a 6-month deadline, Jindong what kind of goal will this transition achieve?





first is the consumer experience. As the most fundamental measure of the effectiveness of the whole transformation, whether it is the wealth of goods, price comparability, shopping and service flow, can have a certain degree of competitiveness. In Jindong's view, the company's conditions in fact extremely superior, such as open platform does not charge, but the result is that, although the product richness has improved, still can not and industry-leading enterprises to target.





was followed by a rise in the ability of its own personnel. Through their own thinking, make really belong to suning products and services. If there is no power, the battle is not won.





The third is whether to promote industrial upgrading, and play the role of industry leader. "The Internet is disruptive and innovative, and it can't always be done with advanced tools." We can't go back to the ecological environment of the non-internet. "Weimin said.