Gome's revenue rose 17.6% in the quarter

Absrtact: Before the situation of suning, we should look at the earnings first. In 2013, Gome was profitable for 4 consecutive quarters, and earnings continued to rise. In the last quarter alone, Gome's income growth reached 17.6%, Suning is-2.45%, Gome's same-store growth reached 17.5%,

Su Ning's situation, we should first look at the earnings. In 2013, Gome was profitable for 4 consecutive quarters, and earnings continued to rise. In the last quarter alone, Gome's income growth reached 17.6%, Suning is-2.45%, Gome's same-store growth reached 17.5%, suning only 1%, Gome's gross margin is more than 19.35%, and Su ning down to 14.35%. This matter from the digital surface, Gome is much better than suning, but if responsible, it does not explain what the problem.

First, we look at history. 2012 is Gome's history of a major setback in the year, even if the 2013 years of Gome's annual revenue is still not more than 2011 years of peak. So Gome's 2013-year earnings are not a great achievement. Gome is merely resuming the normal state of the industry. We turn to see Suning's earnings, suning is a continuous growth every year. So we see, why Gome, Suning in the revenue produced such a difference? My view is that Su Ning and the United States have gone completely different two roads, the differences between the two roads is not the line under which more important. Whether Gome or suning in the internet to try, but also carried out a large number of online advertising, facing the line under the price of mutual bo. Gome has even had more errors, such as the common use of two websites (Gome online and Bowser). Thus, this does not mean that Gome's electricity quotient is more pragmatic than suning. The core of the difference is the span of the category. Gome is still doing everyone's core category franchise line, and suning on the whole category to expand the route. For example, Suning has its own open platform, this is not the United States. Suning in selling department stores, mother and child, Gome is not. Even suning next preparation in the physical store will also expand the category. Therefore, Gome is a major recession after the recovery period, and suning is the adjustment caused by the slow growth period.

Gome is now on a path that is similar to a grand three-cell route, with a single category retail matrix. And the way to go, axes can be clear.

The first axe, the lowest cost to obtain the passenger flow, the store matrix layout. First, Gome cut down most inefficient stores. The remaining non-self inefficient stores, Gome direct rental, cost-sharing. Second, Gome and department stores, Shoppingmall shop in consultation, make full use of other people's passenger flow for their own guidance. For retail, line online is the same, its essence is the flow. The composite channel matrix is where guests are opened. This with the United States to open the shop to become a, the cat is a meaning.

The second axe is to optimize the procurement supply chain. Today, the city and the field are separate. Before where to see where to buy, and now is the experience after the online order. At the moment, this cannot be changed. Everyone has a distribution advantage, but the mobile phone? What about digital cameras? A considerable number of profit-making categories are not used for aftermarket and distribution. The waiter's attitude is not yet decided whether to buy, so the price becomes the only magic weapon. And the total amount of procurement there, the price war is not not to make money, but the former can make money spit out, to start to make hard money.

The third axe is to improve inventory turnover and have more positive cash flow. With Gome's tens of billions of-year sales, it's easy to make money. Even if you only use the money to buy the basis of the wealth management products, the annual income is also very considerable. On this basis, it is easy to make money, and it is shameful to make it. The rest is to wring towels, reduce wastage and so on. For example, in the Internet to reduce the blind launch, cut off some of the original blind Open entity shop, smarter to reduce the flow costs.

We turn to see Suning, suning to do is to take off the hat of suning appliances, do a whole category expansion. Gome was a self-inflicted injury, Suning has been the industry overlord. As a listed company, Suning is facing a great development of pressure, the source of the pressure is a single category of the ceiling sales. Suning If successful expansion, will be from the "plug-in" company into a "platform-oriented" company. It is normal for suning to make all the capital investment in a more general quantity. With regard to the reduction of revenue, it is the price that must be paid in the process of transformation. Su Ning can transform the success, still unknown. However, my suggestion is that the future suning must be with Jingdong and other category mismatch, to increase the need for offline experience products. Secondly, it highlights the advantages of its offline brand and store resources. Must increase the advantage of the line shop, to the store is the core value means, the network is just more perfect service mode.

We compare objectively: Gome wants is now, blocked its own growth space, but Suningbo is the future, but the cost is too big. Does Gome have the same transformational opportunities? Personally, I don't think so. According to the 20:80 laws we know well, in the future gome will need to build customer awareness and get new customers to pay more and more value.

Finally summed up, now look at the Gome Su Ning's question to conclude, some early. If the route they are taking now can pass, the two will no longer be rivals in the future because the nature of the business model has changed. Gome needs only to do a good job of the franchise, and Suning needs a comprehensive change, even to move his offline entity shop. At least 3 years later, is the time to see. But the important point is that Su Ning took the first step in the attempt.