Gou strengthens the "front shop after factory" layout: Stone

Yesterday, Guo Tai motto said again, in the short term, Foxconn will actively cloth point "before shop" mode of the Foxconn trade city. The plan was seen as an upgraded version of Foxconn's "Steam" channel program.

Do you think, at this point in time, that Mr Gou is really going to strengthen this line of channels and factory integration?

My answer: This is just a stunt for Mr Gou. His real purpose is not in the line, but in the online, Gou is only secretly strengthening the Foxconn E-commerce platform. Of course, hehe, there is also the intention of expanding commercial real estate in mainland China to serve the eight-screen cloud strategy of Hon Hai.

You may not know the origin of Foxconn's "ex-shop". I heard to say a little more carefully.

In 2013, Foxconn entered Guizhou in a large scale and laid out a number of projects, one of which was the "Foxconn Trade City". It is owned by Foxconn's Fu Huada, Rich network of two subsidiaries joined together to the landing, is a production, sales, display, product experience as one of the new sales model factory, so called "before the shop." The factory mainly produces TV, tablet computers, electronic whiteboard, LED and other products.

It does, it seems, have a shadow of the 2009-year Foxconn "Steam" channel program. The steam plan was a key channel strategy for Foxconn, with the main intention of encouraging Foxconn employees to return to their hometowns, or to recruit other workers to shop in the 46-tier market, selling the various consumer electronics and accessories produced by Foxconn. But the plan ran aground, and the dream of 10,000 stores in Gou was dashed.

Why does he now have to make a comeback, packaged into a "front shop" model?

Don't worry, keep listening to me.

The steam plan, in fact, is just one of the channel plans that Mr Gou gave Foxconn, who had been badly beaten on the way to the channel. You know, over the years, Gou has been trying to get out of the foundry model, to establish a vertically integrated business model for consumers, Foxconn has been on the mainland layout line, from the early digital, digital Jaguar, Hong-li (the latter both closed in 2005), to the Metro joint venture city (shut down last year), a lot of failures.

Later, Gou tried to buy the new American eggs, to change the market for capital, to enter the line, not to talk to Beijing east, not. So the first two years, Foxconn can only independently expand the electricity business, known as the "Flying Tigers plan", but this plan is still wasted, not.

Until 2014, Foxconn set up a rich network, and grafted it on Alibaba cat platform, only some improvement, in this year's 618 promotion, it control of the United States brand rich visual mobile phones, the first day of shipments unexpectedly into the mainland five.

Again, back to the "front shop" topic, you can understand why Gou is to do the "front shop" Foxconn Trade City: This is just a less fresh experience shop mode. The reason why a processing plant, is used to render the production of Foxconn Foundry Quality, after all, others are the world's electronics generation industry boss, even Apple products are done.

You would say, what does this have to do with the Foxconn electric business? I would like to say that this line under the "former shop after factory" Trade city, Foxconn is only used to display products and production quality, similar to the experience shop advertising and branding role, the main function is not to rely on its large-scale shipments, its real energy will still focus on the online, that is, the rich connected network platform. You know, the former shop behind the factory one of the operators, that is, "rich lian Net", it is the Fuji Kang Electric business subsidiary.

I tell you, last year, Mr Gou said in the future, the company will not add a number of physical stores, the offline only to build some experience pavilion, focusing on the electricity business. Oh, the former shop after the factory, is his idea of embodiment.

To add, if it is Foxconn clinging to the "front shop after the factory" offline shipments, expect it to realize the channel dream, I think it is ridiculous.

Foxconn, the world's largest foundry, is unlikely to break its heavily-intensified industrial production base and spread it across the country because it is clearly not in line with the cost of large-scale manufacturing. Logistics, stock preparation, manpower, land negotiations and so on, will produce a lot of cost problems.

Yes, a small front shop can be customized. However, it is suitable for the regional services, such as Foshan, Guangdong, the kind of processing plant is the former shop after the factory model. The custom of Xuzhou sand market town Furniture channel Group, the offline part is also the case, of course, it is mainly by online shipments.

This decided that Foxconn could not layout too many experience shop, it is impossible to impact Su Ning, Gome and other big chain status. Moreover, because Foxconn mainly only sells its own products, its store function, if attached to this, will not fill the belly.

So you have to wonder why Foxconn is calling this "shop-behind Factory" project "The Trade city," not the digital town. Because, it cannot only for Foxconn's electronic generation of industrial shipments, but for more commercial real estate purpose.

Well, Taiwanese are always smart. As you can see, Taiwanese companies like the Moonlight and the mainland's factory layout are accompanied by commercial real estate projects, which can make local governments happier.

Enter commercial real estate, can pave the new strategy of Hon Hai Group. You know, a while ago, Gou's shareholder book shows that he is building the "eight screens and one cloud" Blueprint for Hon Hai, which will cover 8 major technologies such as work, education, entertainment, social/family, safety, health, electricity, and environmental vehicles.

From the model perspective, this is based on cloud computing and large data services. But because of the deep background of Foxconn's foundry, the public is not too clear about its front-end services, Foxconn urgently needs some landing projects to focus on the 8 of the above technical life of the service capacity, similar to Wanda, Bonhams, Suning Life Plaza Trade City, can provide it with a specific line of the channel.

So, you can see why Gou is so stressed about the electric business, in fact, he said the electric dealer, is not a purely online sell things, it is with the Hon Hai Group's business model changes tied together. Mr Gou asked investors to give him at least a 3-4-year cycle to see some results. Now, he online relying on Ali, offline layout of the so-called "former shop after the factory" of the trade city, but a coin on both sides.