Gome Online to complete beyond Suning

Absrtact: In spite of the high-profile shout out of the line under the overall beyond suning, prices overall lower than the Beijing-east slogan, but in the industry, Gome online to achieve the goal in the short term difficult. According to the data released by Eric Consulting, Gome is currently online in the market for self-employed

Despite the high-profile shout out "line under the overall beyond suning, price overall lower than Jingdong" slogan, but in the industry view, Gome online to achieve goals in the short term difficult. According to the data released by Eric, the current Gome online accounted for the market share of self-employed 5.1%, Suning easy to Buy is 9.2%, converted into a sales gap of about 4 billion yuan. But in the view of analysts, in the procurement, distribution and other business models similar to the premise of a homogeneous mode of competition is difficult to do. For the imaginary enemy of the east, the industry to Gome online advice is, because the volume gap is too big, hard to have a way out.

Hao Yan

In an e-mail released by Gome's president, Wang Junzhou, he bluntly said: "Competitors are already mired in a quagmire of uncertain strategic transition and continued loss of performance." Data shows that our number of stores and the same store growth continued to shake them off, online under the comprehensive beyond Su Ning is indisputable fact that the industry has regained the first market position. ”

In the online market to achieve overtaking, Wang Junzhou put forward the "comprehensive beyond Suning" goal. Gome Online Chairman Guixian said, "the second half, Gome group online under the overall beyond Su Ning Foundation, Gome Online also to complete beyond suning easy to buy."

The United States has always been low-key release Hao-yan, emboldened by the United States Gome nearly 1.5 since the year-on-year increase in performance. Gome July 22 issued a profit forecast, said the first half of the year, "under the support of low-cost efficient supply chain, operating capacity continues to improve, a number of performance indicators are continuing to rise, and will be fully reflected in the financial statements." These results come from the "open channel retailer" strategic guidance. Among them, the total transaction value of E-commerce (including platform transactions) is expected to increase over 50% over the same period last year, E-commerce integrated gross profit rate is expected to exceed 7%.

Divide

However, despite the "full channel" strategy battle, but Gome online and suning easy to buy in the market share there is still a big gap. At the end of the two quarter, Gome's share of the market for self-employed users rose to 5.1%, up 1.2% from 3.9% in the same period last year, from seventh to fourth, according to the latest data released by Eric Consulting. At the same time, Suning market share slightly declined. Even so, Suning is still 9.2% of the share of the market in the second seat, according to the Suningyun business recently released performance letters, Suning line business sales for the first half of 8.282 billion yuan. According to this data, Gome online and Suning is still nearly 4 billion yuan scale gap. Gome's online sales last year were less than 3 billion yuan, according to Gome, which accounted for roughly 5% of the total revenue of Gome's 2013-year income.

Nearly 4 billion yuan size gap means that gome online to the end of the "comprehensive beyond Suning easy to buy", must speed up fast. "Although the year-on-year negative growth, but suning easy to buy two quarter sales income chain growth of 50.97%, still show a relatively good growth." Even if we conservatively estimate the sales growth of Suning, Gome Online also in the next three quarters and four quarter to reach the chain of nearly three-digit growth can be filled with the gap, in the year's results on the pursuit of Suning easy to buy. The hardest thing for Gome to do online is to maintain high growth after the scale. Because it is now small plate, it is easier to achieve high growth. "A person familiar with Gome's online industry said. Yesterday, Beijing Commercial News reporter repeatedly contacted Gome online, but did not receive a positive response.

Positioning

This is not a very complicated equation. Beijing business Newspaper reporter calculation found, if according to the average of 20% set suning easy to buy three or four quarter growth, then Suning's full-year sales may reach 21.43 billion yuan, which means gome online needs to reach the growth of the chain of 92% to catch up with the year; if you follow 40% The average set of suning easy to buy three or four quarter growth, then Suning's annual sales may reach 25 billion yuan, which means that gome online growth rate of more than 117%. This is a big test for Gome online, which grew about 50% per cent year-on-year.

Allwin Consulting analyst Guo Zhangyu bluntly, "Gome and Suning sales model is very close to the purchase volume does not exist too big gap." The home appliance industry margin is not high. Gome wants to surpass Suning completely is not realistic ". This also represents the views of many people in the industry. In a household electrical appliances industry, Su Ning and Gome in the subjective and objective conditions of a lot of similarities, whether the scale, sales model or procurement methods, both are very similar. "If the market buys the accounts of Suning, it will also buy Gome's online account, and vice versa." Therefore, when the adjustment period is over and the scale reaches the uniform level, the growth rate of both will get closer, and there will not be a big plunge. ”

In the above household appliances industry, the "death of Beijing-east" shows that Gome online has not seen its positioning. There is analysis that, in the East Jingdong monopoly of nearly half of the market share, market structure has been set, in addition to Beijing and the east, other players want to get a cup of soup, the best strategy is to find a unique subdivision category, the formation of a strong field. such as clothing in the only products, books in the Amazon China and Dangdang, food in Shop No. 1th. Although the "ceiling" of market share is far lower than that of the General Electric dealers, the sales and profit margins will be quite impressive once the best is done in a strong field. An analyst who declined to be named said the lack of core competitiveness is Gome's biggest problem online, "alongside the Jingdong seems to be Gome's online strategy, whether it is marketing methods or strategic layout, we can always find someone else's shadow in the United States, it increasingly become a copycat, not the leader."