Gome's new action, integrated supply chain to achieve Gome's profit

Once let a person "disappointed" Gome electric business again has the new movement, and this one action's protagonist is Gome Group senior Vice President, Gome Online Chairman Shangui first.

Starting from April 18, Gome Online opened its own one of the biggest sales since the promotion, Shangui first also formal battle, opened up their own "Lao special", played a "endorsement for their" fashion.

Pengliang, vice president of Gome Online, said in an interview with the economic Observer Gome's activities in April is unprecedented, "we do not play virtual, what 0 yuan to buy, in fact, we also have to allow consumers to consume a certain number to be affordable, and a lot of goods are out of stock, we want to play is really cheap, not to virtual." "He even wants to be more crazy," you say some of our goods directly 1 yuan is not more direct?

Guixian after taking office, bring the integration of the supply chain and to achieve Gome's profits.

1 billion goals

"51" before the promotion is the major electric dealers must do at this stage of a lesson, gome this time appears to take the initiative many, April 8, Gome has started its own first wave of promotional activities, and even this April has become the United States to promote the month.

For the Gome one-month promotional, Shangui first finally want to reach 1 billion sales scale, and this 1 billion is far more than the digital surface so simple, "if April is 1 billion, I dare say December will be more than 2 billion, a year over 10 billion of the scale is predictable." "In Shangui first glance, through a series of promotional activities, so that online members can reach 70 million, active members can reach 20 million."

The 10 billion expectation is that Shangui first gave himself the important commitment, but "in 2013 to achieve the electricity quotient" This sentence, also let a lot of people feel his breath very much. Even he himself said, "If not, he is in the industry will not be tenable." But at present, Jingdong, Suning, etc. than Gome online much more than the electricity quotient, can not achieve profitability, not to mention the United States of the late with the force of the backward people?

Electric trader expert Ruzenwang said, at present the electric trader realizes the profit is very difficult, moreover the present gome is doing the large-scale promotion, the promotion also means the price war, also means the profit reduction, in this case realizes the profit not to be very optimistic.

For the electric business, the price war is always a weapon that can not be discarded, and this means that the profit is reduced, and even can only earn a yell, but Shangui first thought Gome electric business profit No problem, he has his own killer: supply chain integration.

Integration

December 25, 2012, Gome announced Gome online and Bowser mall integration, including Gome online mainly to do self, and Bowser network mainly to do platform. And Shangui first also from the former head of the Gome group's logistics, information and E-commerce, into the main charge of the business, and its office from Peng Run mansion moved to the tripod good building.

Shangui first full of confidence, "from two points of view: one is to make how much money?" This is the amount of money earned through the sales spreads for goods, as well as platforms, fees charged through commissions and services, how much money is earned, and how much does it cost? e-commerce burning money is mainly three to spend the biggest: Labor, market cost input and logistics. ”

Using Shangui theory to explain the simplest but, with money to reduce costs, if the money can be left to achieve profitability, and how to lower costs, improve profit margins, is Shangui first thing to do, his biggest focus is to strengthen supply chain management.

For the integrated supply chain, in fact, the old rival Suning is also doing, 2011 Suning and established technology provider IBM signed, IBM became Suning's background technology provider. Background management means that the entire electrical business can ultimately achieve rapid response and the basis for the implementation of customer management.

At present, Gome has more than 400 warehouses, there are nearly 2000 stores, according to Shangui first idea, these stores will gradually become a point, borrowing gome offline network to minimize the cost. According to him, in general, the logistics cost of the electric business is about 5%, and Gome can now reduce logistics costs to 2%, or even lower. "Other people earn 10 points of profit will be possible to achieve profitability, I have 7 points of profit is possible." ”

Now, Gome line under the integration has been in progress, Gome's 500 stores become the point will be within 1.5 months to achieve. Gome offline stores are based on 3 kilometers, 2 kilometers and 1.5 kilometers to open, and Gome's own point is in accordance with a set of 3 kilometers, since the establishment of the point of the United States will be the last kilometer cost savings.

In logistics, Gome Group has formed a class of cities to the two-tier city cargo shuttle, Gome line of goods can rely on Gome group cargo shuttle to reduce logistics costs. In everyone's electricity, gome line on the direct use of the Gome line of logistics and warehousing can be completed.

In order to achieve the integration of line online, Shangui also set up the KPI (Key performance indicators) assessment, such as the line of people to help online do things, that this thing even into the line of the KPI, so that you can avoid line offline, not to speak.

In addition to line online logistics and warehousing, online procurement is also being integrated, on the one hand, a lot of goods under the line can be shared; On the other hand, the line can talk about a part of the goods, and some of the online alone to talk about. At present, online sharing under the line accounted for 50%, online procurement accounted for 40%, joint procurement accounted for about 10%.

Why is Shangui first?

Previously, Gome's business has been "hidden but not" the status quo also let a lot of people are disappointed with Gome electric. Even Shangui first admits that Gome is a lot slower than its rivals. And in the electricity business competition so intense moment, Gome chooses Shangui first alone burden.

As he stressed Gome's advantage in the supply chain, Shangui first is Gome's most knowledge of the supply chain.

Shangui first almost to the offline business, Gome store management system, the national procurement and sales business, he managed for two years. 2006 and 2007, Shangui first in the procurement and sales, especially mobile phones and 3C procurement and development, whether the operation and sales, Shangui first Contact, and this piece of business is one of the core of the electrical products.

In 2010, Shangui first led the entire Gome ERP system (based on information technology, to the systematic management thought, for the enterprise decision-making and the staff to provide the management platform of the decision operation means, then Guixian led the entire Gome group more than 1000 people to live in a hotel in Tianjin for more than a year, The entire process of the enterprise to do a comprehensive optimization and carding, and this also for his online integration under the line to provide a foundation.

As Shangui first said, in Gome for more than seven or eight years of senior executives, he is mainly responsible for organizing and coordinating the work, online and offline needs, he is very clear.

Shangui "Ambition" is not just a department store. Later, he said, Gome will enter art, tourism, health and other sectors, and he stressed must be self-employed, otherwise he is not at ease. In addition, Gome will also be involved in the second half of the financial sector, small loans and payments will be involved. Even so, industry insiders also believe that the current Gome in the category is still in the east and Su Ning's behind, or even poor stint.

For Shangui first New deal, the industry people mixed. Ruzenwang said, in fact, the scale and profitability is always in contradiction, to expand the scale, will certainly let, to achieve profitability is difficult, and if there is no scale, it is difficult to win the competition in the electricity business. In his opinion, the electric dealer finally realizes the profit, the most important still is the platform superiority, how expands the platform scale, collects the platform the user's money is the final outlet.

Jingdong Mall investment director Liu said that the Beijing east has the platform business as its own key strategy, is expected this year Jingdong mall open platform turnover will reach 15 billion yuan. Gome's data is that the future platform revenue accounted for the overall income of one-third, in accordance with Gome 2013 10 billion sales, platform business sales are only 3 billion yuan.