Su Ning begins to push its new retail rules to break down the internet's cheap consumption habits

In order to quickly reverse the trend of consumers to the online transfer, to break the "internet buy cheap" consumption habits, Suning began to promote its new retail rules: line online with the same price.

Suning announced from June 8 onwards, the country all Suning stores, Tesco store sales of all goods will be with suning easy to purchase the same price, this is the country's first large-scale retailer full implementation line of the same price.

"With the previous mainly for short-term promotions and competition, Suning proposed line of the same price policy is based on long-term considerations." "Su Ning Vice chairman Weimin accepted Sina Science and technology interview, said," the former price dual-track model has not adapted to the development of the industry, based on the new internet model, Suning needs to establish a new market rules, the same price to help break the physical retail in the transformation and development of the channel with their own electric ”

At present, in the forefront of China's electric dealers, only suning is from the traditional line of retail enterprises, for the cultivation of suning easy to buy, in the beginning, Su Ning appeared online under the line price is not synchronized, which is outside the question of suning hand to hand.

"With the popularity of mobile internet, consumers have undergone a major change, they can at any time in the store online query price, online under the existence of price difference is not sensible behavior." "Weimin said that the line under the coordinated linkage will enter the institutionalization, normality, so the store and online price integration is the general trend."

Weimin revealed that, according to the group planning, in the construction of Suning easy to buy, the company will also use the Internet to transform entity chain, so that the past single sales-oriented entity shop, to sales, display, experience, service integrated function upgrade.

"Same price" prepared for nearly half a year

Suning line on the same price, is not a whim impulse, not the line below the line of price tracking passive. Weimin said, in order to achieve the same price line online, since the end of last year, suning around the cloud business model, the implementation of organizational change, system development, such as a series of internal changes to solve the line on the same price three major issues:

First, full channel integration. Suning easy to buy early from independent e-commerce companies and online shopping channels, upgraded to Suning network shopping platform. Suning easy to purchase the original commodity procurement, pricing, supply functions, to 28 commodities division. Suning is not only facing the internal 28 business departments, but also face the social suppliers, providing drainage services and platform operation. Suning 28 Commodity division, at the same time face line two platform, unified procurement supply, unified sales pricing.

Second, full resource sharing. On the basis of the sharing of commodity resources, Suning line in the customer resources, logistics resources, service resources, data resources and other aspects of synchronization to achieve sharing, to ensure that internal resources in the two platforms fully open to suppliers and consumers.

Third, full cost accounting. After the integration of Suning store and Suning easy to purchase, not as two separate cost-benefit center independent assessment, but from the division of goods and localized customers two full integration of the coordination of the dimensions, accounting for products and regions of the sales, costs and benefits. Set up a multi-channel integration of the full cost accounting mechanism.

It is reported that nearly one or two months, suning and Samsung, LG, Haier, Lenovo, Hisense, TCL, Skyworth, Changhong, whirlpool and other suppliers high-level meeting, the line on the same price as the main issue, clear the choice of goods, system docking, price strategy, such as implementation details. At the same time, Su Ning also on commodity procurement, store sales, system development, more than 60,000 related positions of personnel to carry out the same price operation training.

Trying to reverse spending habits

In Suningyun, the president of the company, the same price is not a simple promotion, but suning long-term basic operating principles. He analyses that the same price will bring three important changes:

First, change the behavior of shopping consumption. At present, there is a widespread phenomenon of weekend and holiday promotions in physical retailing, which results in weekends, holidays, price inequality, uneven consumption and uneven sales. The same price can realize the normalization of daily promotion of retail trade, promote the change of retail operation from price-oriented promotion to customer-oriented service, guide consumers to rational consumption, and focus on comprehensive value of goods rather than price and promotion.

Second, to break the online purchase of Low-cost consumption habits. Suning line below the same price, not only unconditional and online suning easy to purchase the same price on the Internet, but also in reference to other domestic scale of the electrical business enterprise prices.

Third, promote the retail transformation. With the internet, especially the popularity of mobile interconnection applications, online shopping can be anywhere, physical retailing must be internet, reference to online shopping, comparative competition has become the trend of retail development.

Strictly enforce or affect profit

April 23 This year, Suning executives held an investor performance exchange, specifically to explain the line to investors online price policy. Suning senior at the meeting revealed that Su Ning's price is based on the reasonable price of suppliers, will form a large number of commodity transparent pricing, so will not have too high gross margin.

The above executives believe that Suning will be in the future through the line under the platform to attract traffic, the final profit reflected in the commodity self-management capacity and flow of cash, at the same time from the scale effect, cost rate and cost control.

CICC analyst Chanbing published an analysis of the report said, Su Ning clearly put forward the same price to solve the problem of hand to hand, to achieve the same price, with promotions, with the operation, the establishment of consumer identity and online synergy. If you take into account the current line under the gross profit margin 18-19%, online 5%-6%, the company's cost rate 13-14%, if the same price Su Ning may appear stage loss.

"Of course, the actual situation may be due to commodity models, OEM, exclusive underwriting buyout and other reasons can not do all the same price, while the line with the size of the expanded gross margin also has room for improvement." "Chanbing said that the specific impact also depends on the implementation of the intensity of the same price measures, if strictly comprehensive implementation, will have a very obvious impact on the company's profits."

However, in the current industry background this transition is inevitable, the effect still need time to verify that short-term profit decline is inevitable. "Chanbing said.