Gome heavy bombing electric business breakthrough: CCTV 2013 AD tender will cast 400 million

On November 18, the 2013 CCTV gold Resources bidding meeting, 2012 years ago, three quarters have been at a loss of Gome for the first time to attend and extravagantly. It is clear that Gome expects CCTV platform publicity for its online business to bring popularity, however, in the face of the current electric business accounted for less than 5% of the reality, the intention of the electric business as the core channel of Gome, in the long term I am afraid still can only adhere to the line under the dual core path.

However, in the home appliance industry has been fighting for 26 years of Gome, such a big publicity or aroused controversy in the industry.

"Number No. 766" is a frequent attack.

In the past, the tepid electric trader, Gome, in 2013, the CCTV gold resources advertising bidding will explode, whether the amount of the marked, or at the top, the first meeting of the Gome are far away from other electric dealers behind. In order to their own in the 2013 Spring Festival period of intensive debut, from New Year's Day to the Spring Festival, Gome for this period of news broadcast 15 seconds before the time ads cast 215 million of the high standard.

215 million is not the full amount that Gome has cast for its debut in CCTV in 2013. Masahide statistics show that the United States in the CCTV 2013-year advertising bid for a total of 450 million yuan, ranked all the company's fourth total investment.

Gome Vice president, spokesman Yang revealed that the United States prior to the annual CCTV has 80 million to 100 million yuan of input, 2013 to increase to 400 million yuan. According to the reporter understand, gome and Suning, Jing Dong all voted in CCTV's "2013 Spring Festival Lunar New Year suit."

And in the bidding site repeatedly raised No. 766 card for Gome is Huang Guangyu's sister Huang, her control of the Gome holding group is gome and Zhongguancun two listed companies of the parent company, but also control the unlisted part of Gome and Peng run assets.

Huang's debut clearly demonstrated the support of major shareholders in Gome's business. There are familiar with the United States in the industry to reporters that the cuckoo can not directly to the situation, Huang's appearance is Gome's best choice. Her official status and the intimate relationship with Huang Guangyu, so that it can represent the will of the Yellow family, but also on behalf of Gome electrical appliances.

The person said that Huang to bid may mean that the electrical business is not satisfied with the major shareholders began to meddle in the business.

As early as May 25 this year, Gome announced the disclosure of the family has passed its Beijing Gome Rui-e Electronic Commerce Co., Ltd. invested HK $90.09 million to obtain Gome Electric online mall and Bowser network two sites each 40% of the equity, forming a major shareholder and the listed company 46 open equity structure.

In addition, although the Huang family is not directly responsible for Gome's electric business, but in fact they are not far away from the Gome electric dealers. According to the reporter understand, gome group on the line this year's high-end luxury goods Electronics Co., Ltd. is established by Huang in March this year, its CEO of the British pool has been the former chairman of the Gome electric director Huang Guangyu's special assistant.

400 million dollars behind the plan

Huang is clearly not unfamiliar to the electrical business. On November 10, at the annual China Enterprise Competitiveness meeting, she had evaluated gome in the World War: "For Gome, in the face of challenges, and constantly optimize their supply chain, strengthen competitiveness, the enterprise has an important promotional significance." ”

However, the heavy losses of Gome did not put the 400 million of the big money to Huang said "optimize the supply chain", but chose to put in the advertising. This for 26 years in the industry, has long been known to the Gome, is a timely or icing on the cake?

The people told reporters that although Gome does not seem to need the advertising, Gome electric business is very much in need of publicity. The vast majority of this investment will be used to promote the upcoming name of Gome online Gome on-line mall.

In the third quarter of 2012, Gome's Bowser network ranked fourth in 5% of the market, while Gome's online mall ranked 10, the data showed.

Gome's public data show that Gome's electricity business 1-9 months of sales of 3.1 billion yuan. Suning's online business is 3 times times more. Ruzenwang, the electric business Observer, said the increase in marketing costs is an important cause of Gome's performance losses. Nearly half of Gome's losses this year came from electricity dealers, according to its estimates.

In the lack of online user viscosity at the same time, Gome accumulated huge offline customers also failed to gather popularity for gome electricity. The above people told reporters that Gome had hoped that the large online membership data and online docking will be offline Customer flow guide line, but from the current look at Gome's passenger traffic has not been a big improvement.

It is clear that Gome hopes to attract more customers to its online business through the CCTV platform. And in front of it, there are already replicable success stories.

The United States in the absence of the 2012 CCTV advertising bidding, Suning appliances and Jingdong Mall are high-profile bid for the 2012 prime time advertising bidding. Among them, Jingdong Mall Hao throw 200 million yuan to buy the title of two Olympic programs, and Suning took 10 months of news broadcast "tips to watch" ads dark Mark.

To locate the core channel of electric business

"E-commerce will be the core channel of Gome in the future, increase TV advertising investment mainly for multi-channel development advertising." "Yang said.

This is the first time Gome has proposed to the electric business into a core channel. But it is worth noting that Gome's huge offline business has decided that the electricity business cannot become Gome's single core channel.

Public data show that January-September Gome listed companies some sales revenue of about 36.057 billion yuan, the electricity business sales of 3.1 billion yuan. Gome's electric business is apparently less than 1/10 of the listed companies, plus the huge unlisted sales of unlisted companies, the above analysis said that Gome's business accounted for less than the total business of 5%.

He said electricity business does not sway Gome's life and death. The United States to reverse the burden of defeat, eventually to fall to the offline business. "Gome will have to be a double core in the future," he said. ”

Gome is clearly aware of this. Yang in the press conference said: "China's retail industry has developed to the present, multi-channel business model is very important." Gome in the future will take the ' line under the ' Common development model. ”

While vigorously developing the online business, Gome is also carrying out large-scale offline closure operations. According to reporters, the United States in Beijing in the past few months to close the number of stores to 9, equivalent to the number of Beijing's existing stores nearly 15%.

The report shows that Gome listed companies in the first three quarters of new stores 93, close 102, stores up to 1070. At the same time, suning appliance is also speeding up the closing footsteps, the first three quarters closed 133, net reduction of 17 stores.

In addition to closing the shop, Gome is still looking for new ways to stop its losses. Huang has previously disclosed to the media that Gome is building a huge logistics base to integrate the logistics of suppliers in the process should not be generated in the cost of cost savings.

It is clear that Gome has come to realize that it is on the cusp of a retail business. Without abandoning the traditional offline business and not giving up on the online business that still requires a lot of input, the road might make Gome go a little better.