Gome's performance declines electricity dealers "burn money" is the main reason

Gome Electric (micro-blog) recently announced that the company's first quarter net profit of 67.39 million yuan, fell 88%, the first quarter operating income of 9.762 billion yuan, compared with the same period last year 29%.

Gome related to the director of the network that the company's marketing and management costs have been invested a lot, especially in e-commerce investment. "Electric Dealer" is a matter of burning money, the profit must have slipped.

Company marketing costs with the company's store network expansion and rapid development of e-commerce, marketing costs remain high. The announcement showed that the first quarter of this year, the company's marketing costs of 1.534 billion yuan. Equivalent to the same period last year. 2011, the company's overall marketing costs rose to 6.904 billion yuan, the cost rate of 11.54%, compared with the same period in 2010 10.05% up 1.49%.

Home appliance Industry expert Luo Qingxi (micro Bo) said, now the electricity business does not invest, do not burn money, later want to burn have no chance. At present, the global consumer electronic retailing pattern has entered a sharp transition period from offline to online, which is bringing about a restructuring of global retail distribution. The strategic dilemma faced by home appliance retailing is not high cost, but how to form the new strategic structure as soon as possible from the old logic leap to the retail form with the core of the online system.

Luo Qingxi said that the current decline in profits is not necessarily bad, the loss is not scary, the key to see if the loss can be formed to adapt to the trend of the strategic structure. Now we are all in a hurry to invest, as far as possible to seize the market opportunities.

Gome is in the relevant strategic adjustment to the same store growth as the main sales growth mode, to promote the first-tier city store optimization and two or three-tier city store coverage, at the same time to E-commerce as the future development of the engine, to supply chain comprehensive integration as the core of the business model transformation.

Gome Board Chairman Zhang Dazhang said, under the strategic model, Gome (micro-blog) further improve the network layout, the construction of "online + offline" The overall lead advantage. Under the line, Gome further optimizes the first-line City network layout, consummates and expands the two or three lines urban coverage density, realizes the chain network the urban and rural integration. Online, the formation of the Gome Online mall and Bowser Shopping Network multi-brand layout, both share the group in the procurement, logistics, information, services and other resources to achieve the line online interactive sales.

Gome 2011 As the year of electronic commerce Development, the company set up an e-commerce system, trying to the existing traditional industry advantages and e-commerce industry characteristics combined. and has launched an E-commerce platform including the acquisition of the early Bowser Shopping Network, the original Gome online mall reorganization and packaging.

Gome said that 2012 will increase the development of e-commerce, and constantly increase investment in the field of electronic commerce, will be more high margin products, such as OEM and ODM products into E-commerce network sales platform, give full play to the "b2c++ entity shop" Integration of E-commerce operating mode advantages.

At the same time, the head of Gome said the network, Gome stores expansion is also very fast. Qingdao, for example, in the first half of 2011, gome Qingdao Branch stores 27, up to 38. Increased by 11 a year. Add so many stores, the expansion process will have a lot of input.

Gome's 2011 Store volume grew from 826 at the end of 2010 to 1079, including 282 new stores and close to 29 inefficient stores. The number of stores operating with unlisted Gome group totaled 1737, covering 416 large and medium cities nationwide.

(Economic observation Network)