Su Ning: Electric business entrepreneur and order challenger

21st Century NET Exclusive report

From 1990 to 200 square meters of air-conditioning franchise stores to July 2004 Suning appliances listed, Jindong spent 14 years.

2004, China's a-share market ushered in its own dark horse. In the future, "Suning appliance" four words, will become a a-share market benchmark. Until now, there is still a growing stock of expectations, called "Next Suning appliance."

May 15, 1996, Suning appliance predecessor Jiangsu Suning Appliance Co., Ltd. was established, July 21, 2004, Suning appliance listed, the issue price of 16.33 Yuan, the first day opening price of 29.88 yuan. In accordance with the price of reinstatement, in October 2010, Suning equipment climbed to the historical highest price of 1075.35 yuan, nearly 66 times times the issue.

In the process of growth, suning appliance has been facing fierce competition. Suning Appliance and Yongle, Gome, in the constant fight in the mall has laid the leading position of home appliance retail industry. Industry battlefield, with suning familiar with the rules of the game, Suning almost no defeat.

But this time, suning appliances to face is no longer the industry's "old enemy", but the electronic commerce of traditional electrical appliances retail industry impact and destruction, in other words, this time, suning appliances to break itself.

At the same time, Su Ning also face Alibaba, Jing Dong and so on "not peers, not rivals." Suning Electric Appliance Vice Chairman Weimin in the 21st century network interview sigh, Gome was a competitor, but objectively is also mutual stimulation and help, and now Su Ning face the challenge to more than ever before the changes in the business environment.

2012, Gome's first loss in 8 years, but also this year, Suning appliance net profit appeared for the first time since the IPO. At this time Suning market value, has been away from the peak period of hundreds of billions, shrinking more than half.

At this juncture, Suning appliance announced changed its name to Suningyun business (002024, shares bar), wave the past, the determination of the ego revolution can be seen.

Four years ago, Su Ning held up the banner to enter the field of electrical business. Into the 2013, Suning High-profile into the cloud business era, cloud business is set up 23 years of the most important transformation of the online platform and the online store platform parallel to become one of the three major operating headquarters, its weight increased greatly.

The popularization of electronic commerce has changed people's consumption habits and changed the ecological logic of retailing.

Prior to the electronic business to books, audio-visual products, clothing, but the average consumption amount is only hundreds of yuan, but 2009, Jingdong Mall, Century electrical network, new egg nets and other household electrical appliances network, breaking the large consumption bottleneck, so that 3C products such as high value commodities gradually become the mainstream of online shopping.

August 2008, once to sell it, digital, communications products, Jingdong Mall began to dabble in including flat-screen TVs, air-conditioning and other large household electrical appliances products sales. 2009, Jingdong Mall sales of nearly 4 billion, to achieve 300% year-on-year growth, became the largest corporate enterprise.

2009 Taobao Total 3C product sales reached 45 billion, which accounted for Suning appliance sales of nearly 40%. Since then, Taobao also launched the Home Appliance Mall platform, combined with 50 large brand manufacturers set up 3C electrical city.

In the electricity market, Su Ning on February 1, 2010 officially on-line "Suning easy to buy." As the fourth generation of Suning appliance electronic Commerce platform, Suning is easy to buy with Suning Electric Appliance holding independent subsidiary form of operation.

At the time as Suning Electric Appliance Marketing Headquarters CEO Kim Ming has publicly said that the company "plans within three years, the occupation of the state Grid market share of more than 20%, become China's largest 3C home appliance consumer website." ”

Suning easy to buy the market has just tasted the sweetness of the electricity quotient. Kim said, in the absence of promotional and promotional circumstances, 5 months down, the daily sales have increased 100 times times, more than Suning appliance entity store 10 years of growth speed. The latter has been expanding since 2000, with an annual growth rate of 70% per cent in 10.

Suning easy to buy the main sales of goods in addition to suning appliance Traditional home appliances, 3C products, but also extended to the department stores, daily Chemicals, books and other commodities. According to Suning Electric official data, suning Tesco in 2010 sales scale of 2 billion yuan.

At the beginning of 2011, Suning was operated independently and became a parallel operation entity with offline chain stores. Suning Appliance in order to promote its implementation of the strategy, in June 2011 issued a directional issuance of stock plans, announced the collection of 5.5 billion yuan of funds, of which more than 3 billion yuan for business.

June 19, 2011, Suning Appliance in Nanjing issued 2011-2020 new ten-year development strategy, and the sale of Suning easy to buy sales target of a huge plan of 300 billion yuan, announced that easy to buy in the next 10 years, the realization of the annual composite growth rate of more than 2 million 50%,sku, registered members of 100 million people, Covering more than 90% of the country's cities.

The next ten years of Suning are clearly divided into three stages:

The first stage: 2011-2013, high-speed growth period, become the framework of Internet enterprises are basically completed.

The second stage: 2014-2016, industry leader, the scale ranked first in the industry.

The third stage: 2017-2020, the transformation of leapfrog period, the transformation of the network life platform.

However, after two months, Lingguosheng, handed resignation, according to the media, the line in the logistics, procurement and other aspects of the conflict of interest is the cause of the Ling resigned.

However, online business development is not smooth sailing. Suning appliances in the first half of 2011 with 500 million ads to create 30 billion yuan income, and suning easy to buy 260 million to bring less than 2.6 billion of sales. At the same time, the cost of human resources has also increased significantly. That year, Suning purchase sales of 5.9 billion yuan, from the beginning of the plan has a certain gap.

Weimin to 21st Century network said that the electrical business of the drainage cost is advertising costs, than the entity is still higher. Like according to the sales division of the payment (CPS) model, the highest proportion of this pattern to 42%, compared to the department store, the highest proportion of 35%, the minimum of 6% of the largest brands, from the entire Retail sales commission, the entity cost is lower than the electricity quotient. At the same time also consider the sunk costs, spend a lot of human and material resources to build the site, but the traffic is scarce, because only the Hotspot portal can import a lot of traffic, can seize this part of the resources too difficult.

In order to reduce the cost of drainage, suning easy to purchase in the category expansion by leaps and bounds. 2011, Suning Easy to purchase has been on-line sports hall, virtual goods, book channels and clothing category, SKU (inventory unit, the page on the sale of goods icon) from the beginning of the year less than 90,000 soared to the end of more than 700,000.

September 25, Suning merger announced the purchase of 66 million U.S. dollars for mother and child supplies retail business enterprises red children, to undertake its "red children", "Plantronics purchase" two major brands and the company's assets, business, comprehensive upgrade suning easy to buy mother and child, cosmetics operation. This is the first purchase of suning in the field of electrical business, but also opened the Electronic Business industry integration screen.

Suning easy to buy side vertical mergers and acquisitions, while open platform for investment, vertical and platform hands grasping.

In the logistics construction, the beginning of 2011, Suning initially selected North Canton and Nanjing, Wuhan, Chengdu and other national 6-8 Regional Center City, began to build large with automatic picking function of the storage center, but in the first-line city of Suning logistics advantage is not quickly reflected.

Because Suning traditional logistics distribution is the procurement of warehouse stores 3.1 lines, by car selection, automatic scheduling, on-time delivery and other links more mature, and this system used in the electric business, but also a period of time to adapt.

In order to improve logistics efficiency, in June last year, Suning Tesco announced that Suning Appliance 1700 stores will provide self-lift function for suning, suning electrical appliances nearly hundred storage Center will be upgraded to suning easy to purchase the regional Transfer Center, assume 3 C, department stores daily necessities, books and other product line distribution work. Suning 4,000 after-sales service outlets, will increase the function of express points, large-scale promotional activities, 30,000 after-sales service personnel, will also assume the courier work.

In order to rob the last kilometer, at the end of last year, Tesco also obtained the approval of the State Post office on Express business license.

2015, Suning plans to complete 60 Logistics Base, 12 automatic sorting centers, 5,000 after-sales service outlets of the development and construction objectives, while regional distribution center will further to the three or four-tier market sinks.

In Suning "Go to the electrical" of the expansion of the road, Beijing East feel more and more strong sense of crisis. The first half of 2012, Suning easy to achieve 5.28 billion yuan, basically completed the 2011 annual sales. 2012 Jing Dong adopted the "0 profit" means, the initiative launched a "815" price war, the goal of direct hit Suning's core business of our electricity. Long-term crazy "burning money" Liu is the capital of the east with billions of venture capitalists to make bets.

"Suning 2004 listing so far, do not say investment return, light tax on more than 10 billion, the Internet does not have the problem of scarcity of resources." Weimin to the 21st century network. It is understood that Jingdong mall also started financing in 2004, so far Jingdong has been in a loss state.

But the face of the transformation of the line, for Suning itself is also difficult.

For the first time in ten years the negative growth of Su ning trough turned

March 29, 2013, Suningyun published 2012 annual report, 2012 annual operating income of 98.357 billion yuan, compared with 2011 year-on-year growth of 4.76%, operating profit of 3.014 billion yuan, down 53.23% The net profit of the shareholders of the listed company is 2.676 billion yuan, down 44.49%.

Over the past decade, with the high growth of suning appliances, revenue growth, the first fall below 10%, and profit growth is in recent years all the way down, down to the bottom, for the first time negative growth.

In addition, subject to external macro-control, home appliances incentive policy exit and the rapid development of new channels, the report period of Suning appliance sales revenue fell 12.38% year-on-year, the lowest since 09.