Su Ning's O2O idea

Source: Internet
Author: User
Keywords Electrical business


Tencent Science and Technology Liang December 2 Report

Suning is preaching its online fusion (O2O) concept on several occasions, followed by the traditional retail industry. These traditional retailers are trying to push their own development by combining the traditional advantages of the line with the online development space, in order to return to the internet background of the electric business enterprises to fight back, because the latter has begun to covet the offline market cakes.

In Su Ning's o2o idea, an important content is line on-line same price, this is regarded as the suning line under the fusion important symbol. This year, Suning fully promoted the Internet route, in the organizational structure and other aspects of the overall transformation to adapt to this integration.

November 29, Suningyun, chairman of the Jindong in a public event will be O2O given a very high significance, he said: "We are entering the O2O era of virtual reality, the original or offline, or offline single shopping experience to upgrade, integration, awakened consumers hidden deep inside, A full range of shopping needs, will lead the third change in China's retail industry. ”

Three months ago, Suning issued "Suningyun Taiwan", for various categories of businesses to provide online retail platform, Jindong as a formal transformation of Suning as an Internet retailer logo. Three months later, Jindong announced that Su Ning is turning o2o from concept to practice.

A few traditional retailers, like Suning, are trying to transform quickly. Xujiahui Mall Group company chairman Guo Zhipeng told Tencent Technology, the next line will be online under the integration including organizational structure adjustment. The offline mall tries to take Suning as its target, catching up with its peers, the main rival, Yintai.

In a recent industry event, Wang Mingyuan, vice president of the Golden Eagle Trading group, also said to Tencent that only online and offline real integration can truly O2O the most basic requirements.

Even in this year's double 11 before the cat "Die Knock" incredibly house, also claimed to take the line under the integration of the model. Incredibly the home appliance business Platform incredibly online general manager Wang Xiaokang said, the consumer's all transaction behavior can be free on-line on-line to switch.

However, to create the concept of O2O, the same price with Suning in the last 6 years of the first quarterly loss of 108 million, and in the third quarter, it is difficult not to let the industry to link it up.

Although no explanation of the reasons for the decline in profits, but Suningyun vice chairman Weimin told Tencent Technology, "Su Ning needs to master new capabilities, and this requires a process." But it is clear that short-term profits are the victims of this ability.

However, Su Ning will focus on the development of Platform operations, logistics response, online system optimization, and so on, in order to expect this kind of profit development model to be successful.

Traditional stores suffer from slowing development

The traditional retail store is facing the crisis of development, with the overall growth of the industry slowing down gradually, the pressure of individual management is also getting bigger.

Guo Goping, president of China Chain Management Association, said to the media that in the first half of 2013, 80% of corporate sales and management costs rose in listed retail companies. However, gross margins have generally declined, and corporate sales have been slower than cost increases.

Therefore, the change of traditional retailing industry is becoming more and more obvious, and it becomes an important choice to go online, transform the Internet, and then promote the integration of line.

Guo Zhipeng told Tencent Technology, this year Xujiahui Mall group's double 11 first order from the 2000 kilometers away from Heilongjiang, which allows the physical store layout mainly concentrated in Shanghai Xujiahui Mall saw new growth opportunities. Xujiahui Mall's dual 11 sales figures show that its net-day sales exceed the total amount of 4 stores in the same period.

However, Guo Zhipeng should be vigilant, this development opportunity from the overall industry trends, not the new electric business platform to users have much appeal.

Another case from the house of incredibly home proves it. Wang Xiaokang revealed that the current incredibly online user registration volume of only 8000, but the turnover has reached 13 million. This is certainly a high price of the reasons, but the overall user has been accustomed to online shopping mode.

In fact, Xujiahui Mall has found that its offline VIP customers have 10% selected to use online instead of offline.

This phenomenon in suning embodiment of more obvious. Overall, 70% of the users are streaming into the line, on the line itself is only 20% increase. However, Weimin is more calm, because he believes that online streaming is inevitable, offline entity stores have not shrunk, but growth slowed.

Therefore, the integration of line online can solve the plight of the store development, there is no clear conclusion, but the government is releasing a clear signal to the industry, that is, encourage offline retailing and online integration.

Recently, the Ministry of Commerce in the latest published "Promoting the implementation of E-commerce applications," The 2015 network retail sales to reach the total consumer goods retail sales of more than 10%, which is the first time the Ministry of Commerce to increase network retail turnover accounted for the total retail sales of social goods ratio.

The online link is still weak

But for businesses that have just come into contact with internet power companies, following is a must, because it reduces the cost of trial and error, otherwise it can only be like Gome (Weibo) online.

"Similar to Taobao micro-Amoy products we have, but now in the internal test." Weimin said, the internet after the Su Ning to launch a series of applications, "especially electronic price tag push faster." ”

As for Xujiahui Mall, open its independent official website, will discover South Korea station, Taiwan station, as well as the special Sale week's setting, this with many existing electric business platform similar. Guo Zhipeng says this setting is because users need a lot of search, but in general category settings, it can be difficult for users to find goods.

In fact, as the electric business Apprentice, Xujiahui shopping mall will also introduce multiple commodity sales model, which is not the same as the offline store. The next brand strategy is 50% from the offline department stores, 30% for the consignment, and 20% for their own purchases. But for the same commodity, it will also follow the same price principle.

In the initial stage, Xujiahui Mall and the Silver Thai network have chosen in the already formed channels to open shop stores, such channels include Shop No. 1th, Jingdong and Cat, and so on, trying to reduce the cost of establishing users.

Traditional retail industry tries to overtake in corners

Along with the traditional retail industry to enter the line, it led to changes in the electricity market structure, the latter will be more balanced development, the absolute impact of the Ali system is gradually fading.

According to Suningsun, a data from the last two years, double 11 figures show that the 2012 Ali-platform sales accounted for 60% of the total online sales, but this year, the ratio has dropped to 30%.

Weimin told Tencent Technology, "this trend shows that the total amount of online sales in the expansion of the same time, the status of individual enterprises will be relatively lower, the Ming and the next will emerge more business participation, especially in some localized enterprises have not yet moved up." ”

He also said that "the mobile internet era, the traditional E-commerce profit model has been greatly subverted, now must be mobile terminals and entities to interact." ”

Along with this year suning to the offline entity shop adjustment, it will carry Su ning more O2O strategy. Suning in Shanghai Minhang The first shop after the upgrade to become Suning O2O experience concept shop. And from Tencent Technology visited several Suning stores, its price has appeared next to the two-dimensional code for users to scan, real-time view online prices.

At the same time, in the near future will see, department stores, shopping malls and other offline entity retail channels will appear some online enterprises into the physical shop to do experience network construction. Because some of the first to try the Internet channels of traditional retail operators have found a simple electric dealer's flaws.

In the past six months since the experience from the traditional stores out of the attempt to do a pure electric dealer, Silver Thai network COO Lin Chen found that in the PC Internet, the traditional retail industry to obtain user costs compared to the internet background of the electricity quotient higher.

Therefore, the integration of line online has become a popular model of traditional operators. Among them, Wi-Fi as an important infrastructure under the line, has been widely recognized.

"In mobile internet, the behavior of the user will contact us in the way of contact, walk in our store, will contact us." Therefore, through Wi-Fi access to the user's purchase behavior, and ultimately effectively translate the behavior into shopping decisions. "Lin Chen told Tencent Technology," Mobile is to do traditional retail enterprises to enter the power of the killer. ”

Just because the end of the retail store has this natural ability to collect user behavior, the cat had previously tried to deploy POS online and encouraged users to pay through Alipay. However, this is not all the internet background of the electric Shangdou see business opportunities.

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