Suning Gome Spit Trough: the so-called electricity quotient cost advantage is the false proposition

Facing the common enemy Jingdong Mall, the old rival Suning, Gome unprecedented in unison.

Gome Electric President Wang Junzhou, Suning appliances (002024, Weimin, vice chairman of the recent chorus of "Order Right", refers to jingdong so-called electric quotient cost advantage is "false proposition", "the cost spread out will find: whether in the procurement, advertising, or labor, logistics, online costs are much more than the line." "Wang Junzhou said.

Weimin more choke channel, Su Ning did not regard Jingdong as long-term opponents, "I even worry, he (Jingdong) there is no future."

"Online costs are much more than offline."

Gome President Wang Junzhou said, based on a number of visible cost factors, such as offline façade rent, store maintenance and staff costs, there is a misunderstanding outside, that the online cost is low, but in fact not.

Wang Junzhou to the reporter calculate: in the procurement cost, to Gome, Suning as the representative of the offline entity shop every year more than hundred million yuan home appliances, and Jingdong only about 20 billion of the scale. The purchase size determines that the purchase cost of the offline entity shop is lower than that of the electricity quotient 4%.

In advertising costs, the cost of advertising and traffic is about 4%, and offline entity store advertising marketing costs about 1.5%; On the labor cost, the line cost is 4.5%, the offline cost is about 3.5%, the line below the line is lower than 1%; in the logistics cost, the Jing-dong as the representative of the Pure electricity merchant logistics cost is about 6%, Gome as a representative of the offline entity shop costs about 0.6%. "The cost spread out will be found: whether in procurement, advertising, or labor, logistics, online costs are much more than offline." ”

Weimin also stressed that the cost of the electric business enterprise is not lower than the real store, the physical store rents, personnel, water and electricity costs about 5%-6%, the distribution cost of electricity in 10%, or even more than 15%, during which the gap can not be ignored. The simultaneous development of the online retail enterprises, can give full play to their own in the procurement scale, supply chain efficiency, service, logistics and other advantages, the overall cost can be lower.

"All the others are dead, and I'm making money.

According to Suning, Gome's algorithm, in recent years, two of the average comprehensive gross margin of about 18%, operating cost rate (cost) in about 13%, net profit margin of about 4%, and the average comprehensive margin of the electricity quotient in 7%, operating cost rate of around 17%, net profit margin of about 8%. This is also the long-term "burning money", there is no profit reasons.

"To determine whether an enterprise can survive, to see if he has a good profit model, good management team, good corporate culture." Weimin pointed out that the Jingdong model is as long as the scale is big enough, there is bargaining power, you can win all. "Everyone else is dead, and I'm making money, and there's no such thing as jingdong in any field." ”

Some people say that suning Gome should have to kill the east, now only to start already too late, Jing Dong grew up. Jingdong Mall last year sales reached 21.2 billion, this year's plan is 60 billion. In the first half of this year, sales growth of about 120%,GMV (turnover) rose 161%.

"Jingdong is our opponent, but Su Ning does not regard him as a long-term opponent." I was even worried that he had no future. "Amazon is losing because of its massive up-front investment in information systems and logistics centers, but its overall gross margin has remained at a relatively stable level," Weimin said. "It is not like Jingdong, when the small scale of the low margin, big scale on the high margin." ”

Gome Vice President Yang Analysis, the domestic electric business has two kinds of development mode: one is to rely on the capital force to promote the pure electric business Jingdong model; another is the line under the common profit of the Gome model. "Online under the line are strong mode to be the most competitive, profitable enterprises can be sustainable development." In contrast, the future of the pure electric dealers in Beijing and east, we can foresee. ”