Suning hopes to transform the mood of Internet companies

Economic Observer reporter Sun Chunyan looked from the Suning headquarters building westward, the Purple Mountain in the distance can be seen in the distance. The building stands in a standing position in the heart of Nanjing Xu Zhuang. On the edge of it, a new-looking building has reached the end of its construction. Its overall outline resembles "@". The transparent glass curtain wall and unique shape are full of modernity. Many Nanjing people think that this may be Nanjing's most sci-fi architecture - its owner is also Suning. This one billion-dollar building, in the future can accommodate 20,000 people at the same time office. Upon completion, it will serve as Suning headquarters two.

Suning's eagerness to transform itself into an Internet company was so eager that it designed the building into a metaphorical shape of "@" and seemed to represent some sort of identification. In fact, this building, designed years ago, may become China's largest "laboratory." Suning is conducting an unprecedented experiment, it is trying to prove that a traditional large home appliance chain can be transformed into an Internet company.

The outside world is often controversial about the results of this experiment, which attempts by some to reshape corporate genes are considered unrealistic. Suning is too big and too heavy. Its advantages accumulated in the past era are now mostly regarded as reasons that may lead to its failure in the Internet age. "I have not seen a flying elephant," a netizen remarked harshly.

Suning's earnings seem to support such arguments. In the first quarter of 2014, Suning Net Profit posted a first-quarter net loss and its share price dropped sharply.

"Suning Internet Stagnation," this argument will undoubtedly let Suning CEO Zhang Jindong feel unhappy. In his opinion, it is not appropriate to judge his success too early in the experiment when it reaches the crucial stage. "People who focus on the court can win the game, the winner will not be those who keep a close eye on the scoreboard," Zhang Jindong said at this year's shareholders' meeting.

"We need to use 10 years and 20 years to find a way out, the outside world can only see when we hit the ground, certainly not optimistic." Zhang Jindong told Economic Observer. He used the Suning Tesco building under construction as an analogy. "Just like the interior decoration stage of a building, although no changes can be seen outside, once the construction is completed, it will bring a pleasing experience."

In Zhang Jindong's opinion, "Internet retail is essentially using Internet technology to enhance the core competitiveness of retail business and is ultimately reflected in the supply chain, logistics and user experience." Suning's so-called "playing foundation" is in these three aspects Seek the best solution, which is Zhang Jindong think Suning can reverse the future of capital.

Game upgrade

"If you take the outside of the company as a reference frame for Suning, you say Suning and which company? No, but the real opponent is always their own." Suning senior vice president, human resources and organizational planning Meng Xiangsheng on the Economic Observer Say. Although Suning made several references to this transition in 2009 brewing, but "to electrical" and then "layout of the whole channel, to expand the whole category, serving all customers" is not easy, organizational structure, personnel training, cultural heritage, etc. All face challenges.

In order for Suning's 180,000 employees to unify their thinking on the issue of transition, the tough Zhang Jindong released a relentless remark: "The Group has decided that we must unswervingly push forward and nobody can raise any objection. "In 2014, Suning positioning strategy implementation year, Zhang Jindong think Suning transition has already begun without a turningaround, since the strategic direction has been clear, we should let everyone to one heart, the so-called" Moving to make Tesco. " "Have to say that Suning's strategic layout is very beautiful, but at the same time online and offline promotion, Suning's support point is enough? And from the executive level, the pace of strategic propogation and strategic positioning is equally important." The original Lynx mall founder general manager, Huang Ruo, chief operating officer of Dangdang, told Economic Observer.

In response, manager of Nanjing Xinjiekou EXP0 super store deeply understands that as the manager of Suning Nanjing flagship store, in his early thirties he is walking on the Suning O2O (Online To Offline) The forefront of convergence.

Suning into this self-built physical store, the most eye-catching entrance is Suning Tesco direct shelf area, in addition to displaying a variety of small commodities outside also placed a variety of product code. In full of electronic price tag (according to the latest offer down the price of the system) in the exhibition area, walk a few steps there is a computer for customers at any time the whole network parity. When many traditional enterprises are still hesitating to touch the net, Suning, which first presented the banner of "online and offline price" in June 2013, has no such test of any of its 1,600 stores.

This is not an easy step for a company whose business is longer than traditional retail operations. "In fact, Wal-Mart in the United States does not even dare to do so. It seems simple that the online-offline pricing is actually a complete merger of the two supply chains, The difficulty can be imagined. "Sun Xiang Meng Xiang, vice president of the Economic Observer reported.

Of course, Suning O2O story certainly not only "online and offline the same price" so simple, Suning has a so-called combination of the actual situation of the logic, that is, the advantages of the line to the store, so that entities become virtual; so that the store online Provide strong protection, so that the virtual reality.

According to Li Jun introduction, the original consumers into the store, do not want to buy the goods store, SKU store (stock) is limited, and Suning Tesco provides goods can be relatively unlimited. Now online and offline get through, the clerk can sell the store products can also be sold Tesco products, store sales of Tesco products also included in the performance, and even scan the corresponding store merchandise QR code sales in the mobile terminal is also included in the corresponding Store performance.

And is located in the prime area "China's first shopping district," the store, surrounded by office buildings everywhere, but also become a white-collar Suning Tesco online products from mentioning. They finished inspection of goods, do not like can also be replaced, if the appliance can also understand the essentials, and then take home. Now every day store orders from about 700. In the easy-to-buy by the staff under the guidance of the proportion of single-store sales accounted for 30%. "As the entire management system becomes more flat and vertical, this amount and weight will be greater," said Li Jun.

Li Jun said the vertical management, is set up in March 2014 by the "operational headquarters" is responsible for this is from 2013 Suning clearly put forward the "one body and two wings" Internet retail strategy, the original entity in charge of the offline store chain management platform The headquarters of the company and the e-commerce business headquarters in charge of online Suning Tesco were integrated and the multi-portal layouts of the stores, PC terminals, mobile terminals and TV terminals were unified and integrated. Li Bin, executive vice president of the original e-commerce operation headquarters, .

Li Bin, who was longer in charge of product research and has been in charge of Suning Tesco, understood the Group's own re-use as Suning's "eclectic talent reduction." "From my previous experience, I think it is very hard to have such a promotion in other companies. "

Bin Li said on the Economic Observer, "unlimited goods and unlimited time, must rely on the Internet to solve, Suning Tesco carry the full responsibility for the procurement of Suning, whether it is red child baby products, or the latest online sports outdoor category , There are other related categories, must be done thoroughly, so that consumers can really recognize, agree with the loyalty. And this requires a process. "

In his opinion, some time ago remarks, the future of an online shopping dominance, the future of the physical store to perish, is that some people do not understand the retail told a lot of retail stories, Suning 20 years of understanding of the nature of the retail, the responsibility to pass Its own efforts will be the future of the retail model clearly demonstrated.

It is understood that online shopping in the United States less than 10% of the entire retail merchandise, Suning seems, for Chinese e-commerce operators, the 50% of the offline business moved online is entirely possible, but offline 50% How to do business, which is Suning O2O ideas source. Therefore, as early as 2011, Suning made the third 10-year development plan clearly stated that by 2020, the sales volume of Suning physical stores will grow from 75.5 billion to 350 billion, and the sales volume of electronic commerce will increase from 2 billion to 300 billion yuan.

Into 2014, Tencent, Ali, Jingdong intensive release their O2O strategy, the layout of the line, and launched a fierce enclosure movement. March 11, Tencent also formally established a strategic partnership with Jingdong, June, Ali shares Yintai business, the common layout O2O. For a time, the concept of O2O is bustling in the city. "Suning can control the line can also control the line, so that we can really achieve integration." Li Bin believe in this. "In the future, with the development of e-commerce, the weight of business will increase, and the traditional retail enterprises will have more power to go after the e-commerce business because their control over the supply chain far exceeds the Internet companies." Huang Ruo told Economic Observer .

Execution first

Enforcement power is practiced by almost all Suning employees, giving it the last laugh in the brutal battle with Gome, Dazhong. Now, Zhang Jindong hopes that the essence of Suning's management culture can play a role in the new transformation. For example, before the countdown to "double line, same price" in June 2013, the relevant person in charge of Suning continued to negotiate with the manufacturers, and the technical background staff did not close their eyes for several nights. The same is true of the acquisition of PPTV in October 2013, "Suning downhill, Suning decided nothing nothing to stop." Suning executives understand the company's strategy in this way.

Suning, a long-term contact with the head of Ogilvy so described: Suning is a constantly changing movement in the company. In front of the movement called "O2O", in mid-June, Suning moved to Xu Zhuang headquarters building in 2010, 90 o'clock at night, still brightly lit, the vast majority of Suning employees are still working. "Last year, Suning completed such a large strategic restructuring of the Internet, with only one or two years to go through the course of three or five years of experience of others. Without staff dedication and career self-pursuit, Suning, on what basis?" Meng Xiangsheng Analysis Road.

It is understood that Chairman Zhang Jindong still maintains a workload of more than 12 hours a day, seven days a week, and Zhang Jindong and senior management meeting until two or three in the morning is commonplace. There is such a work fanatical boss in the front, each employee naturally can not slack off.

Suning's executives are called "career managers." The more difficult it is to get Suning closer to the top, and they must implement and follow Zhang's line. They must go hand-in-hand with "top executives being asked to lead the business Module in the same industry leading in all aspects. "Meng Xiang said.

As this year's Suning organizational restructuring important pole, the group set up an independent logistics company, specifically Beijing General Manager Hou Enlong back to the headquarters responsible for the overall logistics strategy landing.

"The logistics industry is the backbone of the retail industry in the future. It is no exaggeration to say that anyone who has mastered the logistics capabilities can win the initiative in the market." The executive, who headed the two major regions of Chongqing and Beijing, sincere. He spent three years from 2012 to 2014 and completed the "Counter Strike" in the Beijing market. In addition to impressive performance, Suning's national territory has led Beijing's logistics construction and is one of the reasons why Zhang Jindong eventually "picked" Hou "Longines" across borders.

Outside the seemingly "cross-border" appointment, but considered within the group is the best candidate. This person superb ability to learn, and familiar with the business, business model well known. Because logistics is no use for logistics, it is closely linked with the supply chain, warehousing and business models.

"In fact, an important function of logistics is to force the supply chain and supply chain construction to keep up with the speed of logistics capacity-building, so as to implement a two-way cycle," Hou said on the Economic Observer. As a 14-year-old Suning, he quickly dismantled executive steps toward top-level strategy after he was appointed.

He defined the logistics for 2014 Strategy Year as three phases: March-May for the Customer Experience Improvement season, where executives include the Suning CEO collectively experiencing "the last mile" to experience and gather customer feedback. And from the shareholders, customers in the screening of some people, the formation of "logistics service supervisor", specifically to the logistics Tucao; 6-8 months to enhance the season, the full implementation of a series of service experience changes; September to December for the social operation phase As an independent company, logistics is open to upstream suppliers and platform merchants. Suning Cloud Business is only one of its clients. Suppliers of goods into the Suning warehouse, Suning completed the last kilometer operation, called the storage plus the operation.

Hou En-long believes that the reason to believe that they completed in 10 months other e-commerce can do things in 35 years because Suning logistics to do more than 20 years of accumulation, Suning listed most of the financing are put into the logistics above, as of the end of June, 24 A logistics cloud project has been put into use. Not only that, in 2011 Suning Tesco force after years of rapid development, a large number of E-commerce logistics reserves of specialized personnel.

Accumulation is one of Suning's executive power how to reflect? Hou Enlong to personally promote the implementation. From February this year, was appointed to early June, he has gone Suning 57 districts in 21 large area, all touch the end of the year. He did not go down to inspect the work, but himself a car down the train, the last line of a check in the end, courier point of capacity-building, staff status, delivery efficiency and other thorough investigation clear, be aware of. Then, in response to the existing problems, we worked together with the chief of the district and the head of the headquarters to establish a logistics problem sharing platform so that we could throw up the size issues and personally push them to solve the problems.

Effective now. From February to April, in just two months, the logistics of the 12 major cities in the country took up as much as 98.6% of the total, up from the industry average. "When we started to do electricity supplier to see others how to do, forget our biggest advantage is the physical store.In June, Suning stores in 1600 to find the source of goods all open, according to the radius of the radiation to find the goods, such as Beijing, covering stores High rate of city goods from delivery to delivery can be achieved 1 hour delivery, which is all e-commerce can not be aligned. "Hou En-Long said.

Suning logistics, and other sections of the same business, emphasizing absolute control. Such as Haier Nisshin, to join the model to guide the parties to take the initiative to enter the resources, each car into the franchisee is an independent small and micro companies. Tmall is currently using "social links" and other social logistics solution to distribution problems. "If the vehicles, warehouses, personnel are not self-employed, this loose confederation of logistics is very fragile, once there is a sign of trouble, it is easy to go wrong, the commitment and service to consumers is difficult to cash in place "Hou Enlong said.

So, if you catch up with the busy e-commerce promotion season, delivery staff shortage how to do? Suning has a tradition, the annual promotion season, Suning executives are personally battle. They think that this problem should be solved by optimizing the allocation of human resources. Suning has 180,000 employees, busy time we can help come in courier. Suning called the "powerful military engage in e-commerce", 180,000 employees are part-time couriers.

Zhang Jindong called this transition to Suning "the third venture." "In the face of the challenge of new and old rivals, I ask everyone to return to the wolf culture, all cadres to awaken their bloody bloody dare to rival sword, fight!" He said. After a few months of deliberation and preparation, Hou Lunlong, who mainly focuses on logistics, believes that it has reached the time of the war with its competitors: From July onwards, Suning Tesco, the 12 key cities in the country, has achieved "2 hours delivery" Peer 3 hours earlier launched the "speed up" business. Prior to this peer has repeatedly stressed that "the logistics advantages raised to a level unmatched by competitors."

Zhang Jindong has been talking about overtaking cars, Hou En-long said Suning Logistics has seen the dawn from the corner, in 2014 after the bend, to achieve lead.

Cultural reconstruction

"All channels, all categories, all customers" expansion of Suning, this step transformation of the enterprise organizational structure, human resources and cultural tests with little more than. "Before the transition, Suning has entered a stable stage of development, the headquarters is to grasp the standard; after the transformation, the headquarters every day in accordance with market changes to open a meeting how to adjust the system flow, how to amend, there is no rapid and flexible adjustment, simply can not cope with this Great transition. "Meng Xiangsheng said. Sun Weimin, a former vice chairman of the university who came from a management consultancy firm and former professor of university, plays an important role in establishing and improving Suning's management system.

For example, in terms of organizational structure, Suning once made major adjustments to its organizational structure once a year. Suning now has its organizational structure adjusted almost every month. Since the beginning of last year, the department has been fully implemented. Currently, there are more than 30 divisions and the number is increasing. Corporations in the divisions are now running corporatization. In this year, it has demolished eight independent companies from headquarters, including logistics, red children, Suning Supermarket, PPTV, finance, self-owned products and commercial plazas. These adjustments mean that Suning is refining the past huge organization into a small business unit, with each small business unit as a small team, to enhance market responsiveness.

Take important appointments again, February 10 the first batch of executives announced the appointment of more than 100 people, involving six major regions, more than 30 business divisions, often take the lead and the whole body, let alone so many people. The overall trade-off is under repeated consideration with limited human resources. So there are such as Hou Enron, we see the appointment. "The rapid development of enterprise personnel training, bringing a great test, we have five years to send a college student boss location." Meng Xiang said.

Suning, which has enjoyed rapid development for many years, has formed its own set of employment principles, that is, it is both closed and open. Suning, which has always attached great importance to the cultivation of talents, started with the 1200 project started in 2002. That is, one university graduated from the gate to the Suning Gate and trained a large number of key personnel for Suning. At present, half of the 10,000 headquarters employees are from the 1200 project. In addition, since the brewing transformation in 2012, Suning started to introduce cadres to the outside world. In 2012 alone, the number of imported units exceeded the sum of the previous two decades.

According to this newspaper, Feng Xiaohai, CEO of Blockbuster, Wang Jingxi, chief architect of IBM GBS (now head of Suning Silicon Valley Research Institute) and several others, have entered Suning's top management. "In fact, the more executive-level talent is introduced, the cycle and difficulty of running-in corporate culture is higher, and we are willing to look for someone who is similar to Suning." Meng Xiangsheng said.

The introduction of a large number of talented people who are proud of Suning will inevitably bring about tests and dilution. Many people think that Suning's culture is very Internet-free. "All employees are dressed in uniforms and employees are strictly hierarchical. They issue documents at any time ..." one expert said.

Large companies like Suning, which employ the largest number of workers in China, will inevitably suffer from the hidden dangers of large enterprises, bloated institutions and others in the long run. The organizational restructuring like the aforementioned O2O transition and the internet thinking proposed by Zhang Jindong in February effectively prevented this. Zhang Jindong proposed Suning's Internet thinking - the "three-effect rule", that is, "user experience speaks of effectiveness, management innovation speaks of efficiency, and system optimization speaks of efficiency". It requires all Suning people to regard it as the basic law of innovation so as to ensure effective execution.

"Your speed is not in line with the" three-effect rule. "" Since February, a Suning executive has often used the phrase to urge superiors and subordinates to work at his desk to work very well. She also heard the voice of Suning's corporate culture.

In fact, since the fourth quarter of last year, Suning is reengineering corporate culture. The phrase all Suning blurted out, well-known 16-word employment policy, that "character first, moderate ability, work-oriented, team first" has evolved into a new talent standards: professional-based, passionate entrepreneurship, into the team, learning Innovation, create value.

In the largest commercial retailer in China, where standards, processes and rules are set for many years, innovation is now more sought-after than ever. '' No boundaries for innovation ', to "break every mountain to meet the water bypass" to break the rules and regulations of all systems, but eventually return to the retail nature, as long as it is for the user, can be bold and innovative. "Zhang Jindong on the Economic Observer said.

Although many people hold a wait-and-see attitude towards Suning's O2O transformation, Suning's decision as a transformation and a bold attempt at large-scale traditional enterprises is worthy of recognition. "We have carefully studied Suning's strategy and examined Suning's people and events with particular confidence in its successful transition. We are investing Suning five or eight years later." In 2012, Suning, the president of Hony Capital, Zhao Ling Huan said.

Actually, no matter how good or forbearing the country is, socialism has never been built properly. The real reform should not be a movement but a movement followed by a moan.

"The embrace of the wood was born at a mere 9-foot-high platform from tired soil," steady, do not instant success and short-term Zhang Jindong in this transition with the Suning account for most of the discourse. The 60-year-old veteran who has fought many commercial battles may have glimpsed the future success ahead of others.