Suning Electric Business Transformation Road Frustrated, the small friends are stunned

Suning Thursday Performance Express shows:

The company last year's total revenue of about 105.43 billion yuan, an increase of 7.19%;

Operating profit of 161 million yuan, down 94.65% year-on-year;

The total profit was about 146 million yuan, down 95.5% year-on-year. One of the 2013 online business, that is, electricity business is expected to be 21.89 billion yuan, compared to the company's previous disclosure of the first three-quarter results, suning online Business quarter revenue of 5.718 billion yuan, only the third quarter of 5.559 billion yuan slightly increased 2.9%.

Heard this news, the small partners are depressed, by the traditional retail industry high hopes of Su Ning, in a raging electric business era unexpectedly in the fourth quarter of last year recorded only 2.9% of the revenue growth rate, almost in a stagnant state.

The main reason for the decline in profits is that the line of the same price to Su Ning's gross margin has brought a huge impact, at the same time to expand market share, increase promotional efforts, the company's gross margin level has brought impact. The veteran believes that Su Ning's strategic transformation of last year's electricity business, although it seems not to be said to be a failure, but at least the strategy is absolutely a blunder.

First is the line under the same price strategy. Suning 2013 's most core electric business strategy is the line online same as the net price, and for a long time as its main marketing gimmick. The official claims that the same price with the net is to let consumers more comfortable with the price of suning, enjoy the concessions more direct, enhance the user experience under the line.

and veterans believe that line online same as the net price, is not a scientific decision to pat the head of the wrong decision. One of the biggest features of the Internet is the elimination of asymmetric information, Suning thought customers in his line store compared to the price of suning will be easy to buy, but forgot that the customer is in fact more than the price of Jingdong. Su Ning in the 3C field of online prices compared with the east of Beijing has no advantage, you said that you line prices are the same as the line, which is tantamount to digging their own pits so that users have no expectation of the offline space.

In addition, the 3C category is a standardized product, along with the formation of consumer online shopping habits, the demand for offline experience has become weaker, online direct purchase has been more young consumers of choice. Line on the same price means that Su Ning gave up the offline market, and there is no advantage on the line, I would like to ask how to compete with the electric business peers.

The second is the multi-category full attack strategy. Since July 2012, Suning has announced its open platform strategy to accelerate the process of suning to the electrical, now suning easy to buy the site from selling electrical appliances to sell clothes to sell daily necessities all-encompassing, as if it is another Beijing east. Suning easy to buy their positioning is a comprehensive electric business, oath and with the East Beijing station male and female mood completely understandable. But unfortunately the end is what we see today, Jingdong has been in the IPO process, and Su Ning went to fall a somersault, profits fell sharply.

As an annual sales of hundreds of billions of large enterprises, Suning's main position or in the 3C field, now the advantages of the 3C field has been slowly lost. Home Granary was put a fire, not the first fire, but select the whole attack, is committed to the military strategist taboo. Suning is involved in the whole category of energy is too much, unauthorized access to their unfamiliar areas will only accelerate their decline. And because of the acquisition of the Red Child, a little advantage of the mother and child market, the original is very good acquisition of the target is integrated into the suning easy to buy, did not have the opportunity to independent development, it is regrettable. Fortunately, Su Ning has found the problem, this year the red Child independent out.

Moreover is the backward electric dealer marketing strategy. Suning in the first 3 quarters of 2013 earnings can see sales costs more than 9.1 billion, the overall input is not small, of course, including sales staff wages, in which the cost of marketing advertising is unknown. But throughout the 2013, Suning's electric business marketing strategy is more or with the help of traditional portal banner advertising, offline distribution frame media to promote, these advertising costs are mostly estimated to be water drift, and in precision marketing advertising investment is obviously inadequate. Do not forget that the entire PC platform Baidu still occupies more than 40% of the flow of the entrance, even if the majority of the Beijing-East annual advertising is spent on Baidu, and so lack of flow support Su Ning can be so indifferent.

Finally, there is too little sensitivity to the trend of the electricity quotient. In addition to the failure of the marketing strategy of the electric business, Su Ning's trend in the future is also surprisingly slow. The whole 13 years when moving into a major trend has not seen Su Ning in the mobile electric business has any significant layout, the client downloads are not published, I believe that the data is not good-looking, and it is said that the only gratifying data is the mobile end of December sales are busy on the business ratio is 13%. In the face of the menacing wave of 2014 mobile operators, the competition for the whole group of Cats Force Mobile power, the upcoming 3.8 mobile phone Taobao festival is more investment than the 11 more resources to layout. Jingdong before the listing also on the micro-letter thigh, and Suning 2014 announced the strategic direction in addition to the big talk about O2O, but no mention of mobile interconnection strategy, it is incredible.

So, how can Su Ning's future strategy get rid of the current predicament? Here veterans make a few simple comments:

First, give up the line of the same price strategy, to take a differentiated price strategy, line on the next part of the category in different models of the price should be differentiated, reflecting more flexibility. The advantage of this is to attract customers in the regression line, for the need to focus on the promotion of the category, should be compared with the BoE price advantage, or at least the price is flat, so that customers enter the store after the rate of loss. If Suning can be more bold, should be in their own offline stores, to their own focus on promotional category products on the spot marked out Jingdong price.

Second, adhere to the 3C base camp, focus on the mother and child market. Ship disaster turn around, Su Ning to learn to give up too radical comprehensive electric business strategy, should not trifles blind leap forward to expand too many categories, Jing Dong today's success is hit 3C this piece of standardized high price market cake. And for red children, but also to give high priority to women as the main decision makers of household consumption, mother and child market is very sticky market, the high rate of repurchase, can enhance the stickiness of Suning electric platform.

Third, the correct direction of the flow of the import strategy. See Suning 2014 O2O Strategy, feel messy and disorganized, the main direction is the core store building O2O Fusion Zone, further expand the scope of the pilot network stores, enhance the user experience. Veterans believe that the flow, payment, logistics is to do the electric business platform of the troika, indispensable. Su Ning's current largest short plate is the flow. And from the whole 3C product consumption trend, from the line to the line of drainage is the general direction. Suning in the country has more than 1600 stores, such a huge flow of people in the shop, are the best access to the line of drainage, every store shoppers should become marketers, to assume the duties of flow import, such as the introduction of independent app, and then with the line of rich marketing resources and accurate online marketing channels, to solve the flow problem.

Summing up, a number of recent cases of the purchase of electricity dealers show that 2014 is destined to be a big reshuffle of the electricity business year, the final survival of the electric business platform will be less and fewer. This year may also be the most critical year of suning electric business transformation, whether successful make-or, Suning needs more courage and wisdom. Refueling, look forward to see suning become a traditional retail business transformation of the successful representative.