Gome Electric Business "Lost Street Pavilion": Bowser in "conservative" curtain

Source: Internet
Author: User
Keywords Electric quotient electric business electric quotient strategy Gome online electric business team

In the acquisition of Bowser Net 3 years later, Gome finally abandoned the online dual-brand operation strategy. Bowser's curtain call at this time seems to proclaim that "conservatism" is becoming Gome's new dogma, and it is clear that Gome does not intend to continue to burn money aggressively on the electricity business.

Bowser net eventually did not "did" Gome's direct http://www.aliyun.com/zixun/aggregation/37393.html "> Power Corps team-Gome online." With Gome announcing the abandonment of the "Bowser" Brand, the company, which has been established for nearly 8 years, has announced its exit from the stage.

According to the economic Reference report, although the end of last year was determined to integrate Bowser into the "Gome online", but it is still nearly a year after the formal implementation, see Gome for the bowser network, the heart is actually experienced a tremendous struggle.

Gome Online recently issued a bulletin called "Gome Online" and "Bowser Network" integration, unified brand and Logo as "Gome online." Since then, the Bowser network and Bowser brand will no longer be used. This means that, 3 years after the acquisition of the Bowser network, Gome has finally abandoned the online dual-brand operation strategy.

Indeed, as many analysts do, this marks the failure of Gome's electric-business strategy to some extent. As early as 10 years ago, the online shopping mall, 3 years ago through the acquisition of the company to win the market size of 15% Gome, despite the development of the electric business ancestors one step, but always did not grab the first-send advantage. And forces two ways to make Gome lost focus on power to do strong electricity business opportunities. Originally, for the lack of online business operation experience and mature team of gome, even before the Gome online shopping mall is insignificant, can also be acquired through the acquisition of Bowser network, the use of its customers in this field, team and experience accumulation, rapid implementation of the pattern grafting, to do large-scale. Online, Gome has been Beijing East and Suning easy to buy rivals such as far behind.

More noteworthy is that in home appliances sales increasingly rely on the electricity business channel, Gome also seems to be no longer ready to do the online. Gome's president, Wang Junzhou, made it clear in his third-quarter business briefing that Gome is not currently investing more in its business, and Gome's main task this year is to reduce losses. He also revealed that Gome's current development focus is to return home appliances retail business, in the three or four-line city vigorously open shop.

There is no cause for such a change. Gome lost 829 million yuan in the first three quarters of last year. In the first three quarters of this year, the company achieved a twist and a net profit of $582 million, one of which was the decrease in investment in the electricity business. Another figure is that Gome's store rents fell 10.3%, labor costs fell 3.3%, and gross margin increased 19.8%. That is to say, Gome has been more or less effective in store adjustment.

Gome has proposed to be a profitable type of electricity dealer, this is actually a rational strategy. But at the same time, Gome executives have repeatedly said that in six months to 1 years to make the business profitable, which is unrealistic. In the monopoly ring, a little inattentive will be encirclement and suppression of the current situation, short-term profit can only be a dream. Even the larger, faster-growing rivals are not yet well on their way to profitability. For example, the full power to the transformation of Suning in the third quarter appeared for the first loss, net loss of 108 million yuan. The difficulty of the online transition is visible.

Therefore, from another perspective, Gome found that the short-term profits of the electricity business is hopeless, reluctantly made a compression of the electricity business. Have to admit, Gome online has been brutally squeezed out of the mainstream team, in the absence of a breakthrough, blindly again with the opponent's blood spell is not too much sense, nor is it sensible, temporary refuge may be a better choice.

At the same time, gome to promote the opening of the three or four-line city is also a target, the current three or four-line city's consumption capacity and consumption habits are returned to the United States such as home appliances stores have a certain space, but the United States need to be more cautious. But more importantly, Gome's flagship offline market strategy can only be a stopgap, otherwise the future will certainly face more embarrassing situation.

The curtain call at this time, Bowser, seems to proclaim that "conservatism" is becoming Gome's new dogma. China Times said November 20, in the third quarter of Gome's results, Wang Junzhou for the first time on the outside world to release the United States in the electric business of the conservative signal. He said that for the United States, the main business is still the closest to the customer's offline stores, the future growth of the performance is still dependent on the expansion of stores and improve the profit of a single shop, online services in line, do not go big loss line.

The bottom line is that Gome has achieved a net profit of 582 million in the three quarterly reports this year. At the same time, the comprehensive transformation of the Internet in Su Ning in the third quarterly bulletin appeared in the first quarterly loss.

Wang Junzhou's message is that Gome is not going to continue to burn money aggressively on the electricity business. 2012 years ago, three quarters, gome losses amounted to 687 million yuan, after the fourth quarter of the loss, the whole year losses of 597 million. The company's worst-performing moments since it came on the market also gave Wang Junzhou a hard time, and the electricity business was considered one of the main reasons for Gome's losses.

Another reason for Gome to choose a conservative strategy is that the burning of money does not increase Gome's share of the electricity business. Gome's sales were 4.4 billion yuan in 2012, Wang Junzhou said the results would be flat this year, meaning Gome's revenues could be zero in 2013.

In fact, profitability has been the pressure on the entire gome, including Gome's top executives. A former Gome executive who has resigned says Gome's assessment of management is based on profitability. Gome does not want the story, as long as the profit. The

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