Su Ning's transition into "suit electric dealer" dilemma

Absrtact: The transformation of Suning has become the most concerned problem for the Suningyun chairman Jindong in the past two years. In the global traditional retail industry has not successfully transformed samples can be used for reference in the case, Suning in 2013 on the clear to the Internet retail as the main body, the line under the online mode

The transformation of Suning has become the most concerned problem for the Suningyun chairman Jindong in the past two years. In the global traditional retail industry has not successfully transformed samples can be used for reference in the case, Suning in 2013 to identify the Internet as the main retail, to line down the mode and open platform for the wings of the Internet road map. Jindong also bursts ruthless words, "suning transformation unsuccessful, I will not retire."

But from Suning's earnings we seem to be able to draw the conclusion that suning transformation is not smooth. In 2012, Suning net profit fell 44.37%, and 2013 net profit fell 86.32%. Into the 2014, Suning's share price fell. July 30 this year, Suning released the first half of the 2014 performance results show that in the first half of 2014, suning total operating income of 51.16 billion yuan, a year earlier, 55.53 billion yuan, down 7.87%. Su Ning's transformation does not seem very good.

February 10 this year, in the Su Ning Spring Deployment meeting, Suningyun chairman Jindong on the reflection, "this year, we can not make the head decision-making, eyes just stare at a moment of sensation effect and promotion effect." "High-level is rethinking, but on August 5, Suning also officially opened the" Hundred Days Campaign "promotional program, starting from August until the" double 11 "before, including 818, Mid-Autumn Festival, National Day, such as a series of festive days. Industry insiders evaluation, Su Ning will set off a large-scale "price war".

Ugly data and continuous big moves let us have regrets, Su Ning's transformation appears too greatness, Su Ning already deadlocked.

The frequent expansion of the exhausted state

2012 Jindong once said, "from the current domestic sales, Su Ning is only second only to Beijing east, but the scale of our eye," he gave Suning easy to buy the index is "10 years 300 billion", "online reconstruction of a su ning." However, this number was the electric circle joke "Jindong Pat head."

September 2012, suning cost 66 million U.S. dollars to acquire the largest domestic mother and child electricity website Red children. At the beginning of 2013, Suning Appliance announced the name of Suningyun business. The news of its bid for Suning Bank, the insurance Sales agency licence and the fund payment licence began in 2013. In October 2013, Suning invested 250 million U.S. dollars to acquire 44% of PPLive's total shares and became PPLive's largest shareholder. January 2014, Suning spent tens of millions of dollars to buy a full network. January 2014 Suning On-line financial Products "Change treasure", access to mobile communications resale business license. After many acquisitions and Cross-border, suning layout to expand to mother and child, video, group purchase, Internet finance and other fields, in addition to Su Ning also involves real estate business, Shopping Plaza, is ambitious.

In addition to the new Cross-border sector, the traditional stores in Suningyun have become O2O Internet stores since December 2013. In Shanghai, for example, January 2014, Suning Pan under the original million Cheng Shan Shop, opened for O2O Internet stores, the previous two months, is located in Minhang, Changning, Pudong, Wujiaochang, Xujiahui and other geographical location, large area, the sale of the traditional stores are the first batch of transformation shop completed.

But Suning is involved in a wide range of complex business, which has caused great trouble. Suning directly with Ali, Jingdong, Wanda, Gome to compete, too many enemies, the chessboard is too big, it is difficult to do in each field to do fine. And once by Su Ning is proud to occupy major cities in the core of the entity stores have become the biggest burden of suning. The first quarter earnings show, Suning line real store income down 14.2% year-on-year, same-store sales fell 13.4%. Some experts pointed out that suning if the expansion of the Territory has far beyond its resources to organize the process and management experience of the concept, will inevitably encounter failure. Su Ning to the internet poured a great enthusiasm, the capital market also have real expectations of Su Ning. But the internet is a "burning money" business, the Internet directions, difficult to digest, Su Ning can keep their own territory is a huge question mark.

Internet company in suits

In the electric Business Circle, Suning has a famous nickname called "Suit Electric Dealer". And the general Internet Enterprise Employees "T-shirt, jeans, splint drag" casual wear different, easy to buy employees in the office building, must be replaced by a unified fixture-a black suit. This is due to the former Su Ning's staff dress has a particularly stringent requirements, such as men must tie, can not wear sneakers to work. The company will be unified for the staff customized work clothes, but also set up a special department of irregular inspection, check whether each employee according to the provisions of the dress, found that the violation, all reported penalties.

The uniform dress is a slice of the militarization management system espoused by Suning Chairman Jindong. It symbolizes unity, clear objectives, absolute obedience to superior decision-making, and strong executive power. Suning in the past in the era of electrical chain can quickly expand, to a large extent benefited from this. More than 10 years, with stores and branches in the national expansion, scattered in the provinces of the Suning Army has been more than 180,000, only strict unified management to ensure that one side of the command quartet response.

But dress is an appearance, the essence of this nickname is the lack of "internet gene". This is also the heart of all the traditional retail companies that are in urgent need of change as consumers move from "foot" shopping to "hand" shopping. Suning, branded as a traditional retail enterprise, is thought to be missing internet thinking. On the electric Business Road, Su Ning is basically "the backward student" the role, Suning always follows the posture to follow, but did not cultivate the obvious superiority. Su Ning's anxiety and perplexity, it is precisely from suning as a traditional retail enterprise for many years adhering to the relatively conservative corporate culture, and emphasis on novelty and change, pay attention to promote personal innovation breakthrough ability of the Internet culture, is producing a strong collision.

The rapid progress of technology to promote a variety of subversive mode of innovation, for the followers of Suning, is still too fast to be overwhelmed. Regarding the enterprise culture question, Jindong admits: "Must from the enterprise fundamental, from the enterprise culture breakthrough, wants to change is the intrinsic thing." But Su Ning's transformation is difficult, difficult to be online, difficult in person. More than 1000 stores, 180,000 employees are Su Ning's shackles, with fetters and dancing, how to jump is not too beautiful. Suning has been selling O2O concept card, but the two-line price in essence does not solve the problem of mutual stroke. Suning eyebrows, consumers always do not understand how suning is a business.