Gome Logistics claims to distribution speed of electricity dealers

Absrtact: If the March 2014 Gome put forward o2m full channel retailer strategy, thoroughly stirred the retail industry, the existing competitive structure, that Gome now released the listed companies 2013 earnings, as well as the 2014 quarterly report, the timely proof of this strategy is

If the March 2014 Gome put forward "o2m full channel retailer strategy", thoroughly stirred the retail industry, "the existing competitive structure", that Gome now released the listed companies 2013 earnings, as well as the 2014 quarterly report, the timely proof of the correctness of this strategy, and began to reshape Gome's tau position in the industry.

May 19, Gome issued the first quarterly report of 2014, Gome listed companies to achieve the total channel sales revenue of 13.351 billion yuan, up 8.2% year-on-year. Among them, the ownership of the parent company's net profit increased by 252.6% to 268 million yuan, net profit margin reached 2%, up 1.4% year-on-year.

At the same time, the results show that gome in the core indicators of the retail industry are leading the same industry, while maintaining profitability continued to improve, same-store sales revenue growth reached 8.1%, sales growth reached 8.2%. In the same period, the total cost rate fell by about 0.7% to 16.4%.

Gome's president Wang Junzhou said: "The steady rise in profitability and the continued decline in the cost rate, fully illustrates the Gome's low-cost, efficient supply chain of absolute competitiveness." "It is in this context, May 22, the United States in Shanghai Qingpu Logistics Base proposed" to establish the highest industry service benchmarking, to the consumer commitment to "three-day, precision distribution, delivery synchronization."

"This will be the highest level of logistics service that the retail industry can reach so far, and we believe this will lead to continued growth in the same-store and sales growth and confidence in the rebuilding of Gome within three years," he added. "Wang Junzhou said.

Earnings highlights Gome's supply chain's absolute competitiveness

Following the March submission of the "low price benchmark" by Gome, Gome this time to push home appliances retail "service Benchmarking", to a large extent implied that the service of the retail industry in the importance of competition, in large data, mobile interconnection, consumer demand constantly changing competition background, the service has been turned into a front of the back office of the operating department.

In fact, the changes in the competitive environment in the United States in the first quarter of the data has been demonstrated, and Gome in the retail industry, the core indicators of the leading peers behind, the supply chain advantage is its absolute competitiveness.

The core figures in the first quarter reported a 8.2% increase in gome sales and 8.1% per cent growth in the same store. "The main motivation for sales growth is in the same-store growth," Wang Junzhou said. Gome in the past period of time in the network adjustment period, especially in 2013, the number of our stores is negative, this time the same store growth than sales growth is inevitable. Entering the first quarter of 2014, sales growth is higher than the same store growth, indicating that the network began to play a positive role in order to open the shop to pull growth factors began to appear. ”

"This is a turning point," said Wang Junzhou, indicating that Gome ended the past round of adjustment and began to rise to the same pace as the growth and opening of its stores. Sales growth in the next two quarters and three quarters is likely to be higher than the same-store growth. ”

Wang Junzhou compared Gome with its rivals, pointed out that "the current negative growth in sales of the same shop is larger than the negative growth, indicating that the loss of its closing shop than the contribution of the store, while Gome's sales growth has been five consecutive quarters far higher than the competitors, especially with the growth of the same store to show a rapid pace of competition distance. ”

In the case of Gome, the gap could continue to be widened if earnings were reported in the two quarter of August. The strategic core behind this gap is customer choice, which highlights the gap between the business and operational capabilities of the enterprise.

"The general logic of customer choice is cheap, cheap enterprise's gross profit margin will be low, but Gome first quarter gross margin has a slight increase from 14% to 15%." This shows that gome in the past 5 quarters fully achieved to meet the customer's low price and shareholder high return of the double demand. The root cause of this requirement is two: first, Gome's procurement costs are low, the second is the ability to group goods, that is, high gross margin of goods accounted for a large proportion of sales. "Wang Junzhou said.

According to Gome's financial director Fang, "Gome since 2012 launched the supply chain to support front-end sales, its ' low price high margin ' business strategy has been highlighted financially. Reflected in the data, the supply chain differentiated goods from the end of the 30% growth to 31% in the first quarter, through these products to the company's procurement competitiveness in a significant increase, which is the momentum of the increase in gross margin, but also the momentum of the growth of the store. ”

"In addition, Gome's inventory capacity is also increasing, which directly determines Gome's ability to control costs." At present, the United States through information systems to achieve early warning and prior control, continuous inventory turnaround days to optimize, inventory turnaround days stable in 60-65 days or so. ”

Then look at the retail industry's largest two cost indicators: leasing costs and labor costs. "In the second half of 2013, Gome's leasing costs and competitors have widened significantly." Our rental rates remain at 4.29%, and our competitors are at 5.79%, down nearly 1.5%. ”

"In terms of labor costs, Gome's labor cost rate is 2.93%, competitors are 4.81%, it needs to be explained that we have a significant reduction in human efficiency, not a single artificial income difference." We also monitor the income of employees in the retail industry, who earn more than their competitors. This is actually reflected in the labor cost rate of the gap, can only say that the opponents in the organization, staffing on the emergence of a great unreasonable. Wang Junzhou stressed.

Gome is still in a step-by-step, Wang Junzhou told reporters, "if the gross margin of growth, same-store growth, rental costs and labor costs of the decline, may also be suspected to be the original lower base results, So ping effect and people effect these two retail industry, especially the retail trade ground store the most basic indicators or can highlight the United States abroad in the industry's competitive strength. ”

According to the public earnings data, Gome quarterly sales output of 3511 yuan per square metre. Rivals ' output was only 3072 yuan. Similarly, in each hundred yuan labor cost input and output aspect, Gome also and the competitor has opened the disparity. Gome's annual hundred-dollar labor output is 3304 yuan, the competitor is only 2262 yuan.

"Commodity management ability produces low price and high profit margin, and management level increase determines the reduction of key operating cost." The key financial indicators of the above retail industry reflect our business management level in the industry, which is a manifestation of the correctness of Gome's o2m strategy. "Wang Junzhou thinks.

The highest "service benchmark" came out

In the highly competitive retail market, especially in the mobile interconnected era of fast changing consumer demand, whether the consumer needs can be accurately judged and satisfied in time determines the long-term competitiveness of the enterprise.

Gome seems to be familiar with the rationale, Wang Junzhou told reporters, "the rapid development of information technology, the promotion of large data analysis based on the interpretation of consumer demand for the overall development of customer service." And the recent survey of the retail industry, consumers are most dissatisfied with the distribution and installation of the inaccurate. ”

It is in this context, Gome launched the "day three Tatsu, precision distribution, delivery synchronization" of the industry's highest "service benchmark", and promised from June 1 this year officially implemented. "Our goal this year is to have this service in 200 cities, 2015 years and 2016, 100 cities a year, and by the end of 2016 virtually all cities can achieve these goals." This will be the highest version of the logistics level in the home appliance industry. Wang Junzhou told reporters.

Wang Junzhou also admitted: "In the past some time, Gome is a big drawback is not to the accumulation of their own more than 20 years of logistics advantages to consumers, so that the society has produced a misunderstanding, that the electrical business delivery fast." ”

A comparison of the data will be clear, in the Beijing-east just released prospectus, people can see that Jingdong only in 35 cities can do that day to buy the day, and Gome can now in 178 cities to achieve the day of purchase, which originates from Gome in the country 428 cities have warehouses, distribution capacity and warehousing capacity.

Even so, the day to buy the day to send with the United States and the launch of the "three days" there will be a distance. According to Gome senior vice President Yang, "Gome will be defined as the morning Tatsu, afternoon and evening Tatsu." According to customer shopping time to delimit a single time, is the morning to buy, consumers can choose the afternoon or evening up, buy in the afternoon can choose the night up or the next morning, buy at night, you can pick the next day's three hours to send. ”

and "precision delivery" is the connotation of the customer after the morning, afternoon or evening up, you can also choose the precise distribution time, which is defined by the customer itself.

There is no doubt that the project is driven by investment, that is, the United States to change the past with distance planning to configure the delivery method, the formation of a time planning to configure the delivery method. In the past, the delivery route is from which consumers recently to which to send, now to consumer demand for the point of delivery, this will inevitably bring the retailer distribution distance of the lengthened.

However, Gome's interpretation of this is, "and gome push ' low price benchmark ' for consumers to save money, the push service benchmarking is also a way to let consumers." The project investment caused by the long distribution distance will not affect Gome's gross profit margin. On the contrary, the promotion of service standards will lead to the growth of Gome's same-store sales. ”

In fact, if the "three-day, precision distribution" is also easy to be imitated by competitors, "Send and install synchronization" will directly test the enterprise's ability to mobilize suppliers.

From the current situation of the industry, "Send and Install synchronization" is the current home appliance retail in meeting consumer demand for a major chronic disease. Many customers will have similar feelings, that is, in the purchase of air-conditioning and other needs to install large household electrical appliances, is always a person to send goods home, and another person to install, the result is that customers have to wait two times in the home, and sometimes installation waiting for a long time.

Gome This commitment to "delivery synchronization", emphasizing the choice of specific delivery time, that can be specific to what day when the door. And the United States to achieve "delivery synchronization" mainly through two programs: one is the human cargo synchronization, that is, service personnel delivered home, while completing the installation. This is mainly by Gome's own logistics companies and after-sale companies to achieve.

Second, information synchronization, that is, Gome will be free of the retail system outside the manufacturer's information into the Gome platform for Management, dispatch information by the United States, rather than manufacturers decided. Gome based on customer choice of installation time, through the background of the information system, to achieve its platform and the factory installation personnel management.

and to achieve that goal, the need for gome to fully mobilize the suppliers, Yang told reporters, "Gome through two agreements to achieve the above objectives, one is with Gome logistics companies and after-sale company agreement, and the second is with the supplier agreement, suppliers to fully cooperate with the United States in the delivery of the service standards on the synchronization." Based on a consensus to meet consumer demand, more than 90% of the suppliers have signed the agreement with Gome. ”

Yang stressed, "through the open logistics platform, we can achieve the distribution and installation of synchronization." ”

Its further explanation: "Our open platform has three core: one is the procurement platform, one is the logistics platform, one is it platform." Among them, it platform can do single goods, single shop and single model of positioning management, including positioning to each store, each brand, each specification segment, each price segment of each model, consumers buy any model in the store, Gome in the background can use large data analysis and processing. ”

"However, it may not be easy for our peers to do precise distribution, delivery synchronization, because its underlying data platform is only to the city, not to the store, so it cannot manage the single and the single model." "Yang said.

According to the design of Gome, consumers in the store after the purchase of goods, you can determine in the information system he needs to deliver the time and flow, at the same time in the Store invoicing table, you can further select the precise distribution time, such as the afternoon time to several points. After these steps are completed, there is a special window to check if the customer needs to ship and install the synchronization, if not synchronized, the customer decides the time of installation.

This directly tests Gome's IT background data processing capabilities, for example, after the customer check the delivery time, this data directly into the Gome large database, Gome dispatch to be able to quickly by large database grouping, and then form the morning, afternoon, night up to the three large distribution batches, as well as the exact time of dispatch, Carry out dispatching and dispatch work.

It is noteworthy that in order to achieve the unified scheduling goal, Gome's logistics platform has made two big movements, first, the independent operation of the online and offline logistics has changed to the unified logistics platform, and the second is the independent logistics operation of the city as the unit has changed to the logistics operation of the whole country.

It is with this national Unified Logistics Platform Foundation, after the dispatch process is completed, Gome's IT system can play its biggest advantage, it can through the mobile phone app to send the task book to the national delivery team and installation team, delivery team and installation team can quickly receive this convoy delivery site and time details, At the same time to customer delivery of the exact time to two times to confirm.

In order to accurately grasp the implementation efficiency of delivery synchronization, and optimize the system, in addition to customer receipts, Gome has designed a special inspection of this process system. "That is, through large data analysis for dispatching distribution, installation personnel and delivery personnel mobile phones have set the satellite positioning, from the United States can see all vehicles, installation personnel every day in the outside path, to the customer's home accurate time and stay time, so can do accurate positioning analysis." "Yang said.

With the establishment of low price benchmarking achievements in the United States, like a big training, "service benchmarking" will again test Gome's overall combat capability. "Information system will be a monthly delivery of the rate of synchronization of the test, the after-sales and installation team to assess, through the elimination of the past to continuously improve and adjust to enhance our overall external service commitments." "Yang said.

Three years to rebuild a new gome

428 Warehousing service Centers, 1.95 million square meters of storage area, 600 of the city's network of radiation, 15,000 of Japanese vehicles, these are the United States to emphasize the supply chain advantage of the data enumerated, which makes consumers sound unfamiliar with the data, in fact, is Gome "to meet consumer demand" to win the future important basis.

Relying on this nationwide logistics network capabilities, Gome then proposed to build the industry's highest version of the service benchmark behavior, but also its implementation of the O2M strategy important measures. "After upgrading our service standards, we are confident of greater sales growth and same-store growth and a new gome in 2017 to double sales and profitability," he said. "Wang Junzhou said.

Of course, this also means that in the next 2015-2017 years, Gome's annual sales growth to the existing basis for more than 30% of the level, so much growth, Gome's confidence in the end?

Wang Junzhou told reporters, "This March, we announced a full channel retail strategy, hope to establish a supply chain advantage as the core competitiveness of multi-channel development strategy, to create both front-end stores, Gome's own online mall, while supporting the combination of other department stores and other store marketing channels, at present, the effect is ideal. ”

"On the ground stores, we opened 34 stores in the first quarter, closed 34 stores, and the number of stores in the first quarter was exactly the same as the number of stores published in 2013 in March, but there was a big increase in sales, which implied that we were adjusting and opening new stores more efficiently," he said. Wang Junzhou said the pace of Gome's new stores would increase further after sales grew more than the same-store growth. The new shop will focus on the two or three-line city, the first-tier city stores to optimize and upgrade, will be more focused on the rich product display and a full shopping experience.

On the electric business platform, Wang Junzhou said that the current line of Gome online interactive transactions have been opened, interactive sales and distribution has been formed. For example, some small and medium-sized stores in the display area is not enough to start to point customers online, the United States to achieve the integrity of the goods sold, and has begun a deal. At the same time, the store also began to replace the distribution center as a commodity extraction and distribution starting point.

"This means that goods, services, logistics, customers have been able to easily travel to Gome's electric dealers and stores, which is what we want to achieve." Our goal is that by 2017, e-commerce sales accounted for less than 5% of the current increase to 10%~20%, but also want to see the entire E-commerce sales and gross margin of double growth. "Wang Junzhou said.

In cooperation with supermarket chains, Gome and their alliances present a variety of breakthroughs. According to Wang Junzhou, "The first quarter, Gome has achieved with the United States Beijing, Tianjin 73 stores cooperation, took over the Guangzhou modern department store 4 stores, as well as Wuhan International Trade 4 stores." Recently completed with the Guangxi Baise a local chain enterprise comprehensive cooperation, its store all operating goods by the United States all supply, store operation also by the United States to manage. At the same time, Gome and Guangdong new Good also preliminarily reached a strategic cooperation agreement, the new one in southern China's dozens of home appliance stores are responsible for the operation of the United States.

Wang Junzhou stressed, "multi-channel strategy is gome 3-5 years to adhere to the strategy, which will reflect the consistency of the Gome strategy." ”

In fact, Gome's multi-channel marketing strategy has gained recognition from the capital side. From the beginning of 2013, Gome began to resume dividends, so far, a total of two times, each time according to the regular net profit of 30% made a general dividend dividends. From 2014 onwards, Gome will further increase the dividend profit from 30% to 40% to attract long-term investors.

"In particular, Gome's dividend-paying shareholders can choose between splitting the money and choosing to share it," he said. But, including Bain and the biggest shareholder, they actually chose the stakes. This reflects the big shareholders and Bain's confidence in the long-term interests of the company. "Fang said.