Suning's first quarterly loss was shocking, and the growth rate of the electricity quotient was not as fast as the investment

The latest earnings of Suningyun, the first quarterly loss in recent years, are shocking, but it does not mean that the Chinese household appliance retail giant has made a big mistake.

The latest release of Suning third-quarter results show that overall revenue and sales gross profit margins are down, net profit fell 118% Year-on-year, loss of about 100 million yuan. In the transition of Internet retailer's "Great Leap Forward" process, Su ning ushered in labor pains.

However, if you carefully comb the past every step of the strategy of suning, it is difficult to say which step made a major mistake. 2009, Suning officially launched the electric business, than rival Gome (micro-blog) early this year, Su Ning and renamed Suningyun Business opportunity to promote the integration of online operation, and then launched the line on the same price; not long ago, Suning cooperated with Hong-Yi Capital Acquisition pplive, releasing a more intense transformation of the internet signal.

Various measures have shown that suning in the radical push for subversion, for a traditional business suffered by the internet impact, heavy history of the giant, it is not difficult to imagine the difficulty. If you delve into the reasons behind the loss of Su Ning, it can only be said that this is any business leader in the face of a large-scale transfer of users to the new mode of the process must bear.

The growth rate of the electricity quotient is not as fast as the investment

Gome does not seem to follow the huge capital operations of rivals and the release of a strong shift to the Internet.

In contrast, Gome's performance began to profit, and its latest forecast showed sales rose year-on-year in the first three quarters, with store sales growing by more than 12% per cent a year.

"We do not do our own destruction." "Gome Senior Vice President Li Juntao to accept Tencent Technology interview, not optimistic about the aggressive way of competitors."

But in analysts ' view, Gome's performance has been better behind, one is that the scale of the business growth is slow, the corresponding "burn money" also less, the second is more than offline shop close, the rest of the store relatively good operating situation. "But the impact of the offline shop is a long-term trend, the electrical business restructuring has no big chance, if there is no big strategic changes, Gome will probably fall into a vicious circle of the dilemma." ”

Compared to Gome, whether it is the acquisition of Red children continue to the electricity business investment, or choose O2O line on the same price, acquisition pplive, Su Ning Jindong to the Internet to transform the greater determination.

In Jindong's chess game, Su Ning will sacrifice the retail profit to seek the data, the finance, the logistics three big service development, supports a bigger net in the retail business state.

But Suning line under the strategy but does not have a promotional effect on sales, which led to the third quarter suning overall revenue and sales gross profit margin declined.

Su Ning to the electric business and the internet rush, suning more lack of internet talent, and technical information system is suning easy to buy short board. "Although the Suning online platform enhances collaboration with vertical Business-to-consumer, searching for some products that are not home appliances is still a Monroe, and non-appliance product reviews are less commented on than home appliances," he said. "said one electrical trader.

More importantly, Su Ning has lost the time window of the curve overtaking. Related data speculated that Suning will reach 25 billion this year, Gome in 607 billion, but the overall growth of the electricity industry has slowed to 30% to 40%, it is difficult to get more than 200% of the annual growth, which also means that the transformation of suning gome more difficult to increase.

"The Internet is only the first and second, even the third four are very difficult to live in the place, left to suning transformation time is not much." "An electric trader believes that although Suning has been trying to catch up, but with the industry to a turning point, the subsequent acquisition of users will be more and more expensive."

On the other hand, Suning's user experience is a bottleneck. People familiar with Suning pointed out that suning in order to accelerate the transformation, in the electric business marketing investment is very large, but by the small logistics system is not perfect, the site purchase details such as the impact of the user purchase experience is not as good as Beijing and east rivals, which means that the user to stay, user retention and other indicators are relatively low, "the electricity quotient growth rate is not equal to the growth rate of investment ”。

Su Ning also had to face the cost of internal conflict in the process of transformation. According to Tencent Science and technology, Suning in recent years, there are "electric dealers lose money wages high, the physical store to make money and low wages" situation, the internal staff have complained. And in this year after the change of name, Su Ning carried out an internal major post, will be the entity store and the person of electricity exchange, in order to make a balance, but "the result is just familiar with the electrical business people and lost, new people continue to familiar with the business, this to suning electric business is not without People familiar with the matter said to Tencent Technology.

Suning Third quarterly show, Suning Electric business has begun to encounter ceiling dilemma, although year-on-year growth of 30%, but the chain down 9.1%.

The growth point outside the electric business

Offline business as the traditional foundation of Suning, is not enough to support the overall performance of the company?

"At present, home appliances online business as a whole only accounted for 12% of sales, home appliances online profit There is a larger space." "One supplier says that offline stores are mainly learning about the efficiency of the Internet, which is a disadvantage for traditional retailers. Prior to that, the supplier and suning Gome supply needs to experience "headquarters-branch-store-shop length" four links, most of the time spent in communication. And the negotiations with the electric companies usually step, from negotiation to platform sales only need a week or less.

After the formation of step procurement, Suning's own brand of products will be more and more appear in the sales platform, in order to increase sales profits. In recent days, Suning and pioneer customized the first Tablet PC and mobile phone. However, whether it is suning or gome, whether it is online under the excessive reliance on home appliances, home appliances as a durable consumer goods, the use of long cycle to replace the frequency is low, the need to achieve a category through the line breakthrough, and the market share of household electrical appliances in Beijing East, the sky cat swallowed.

In addition, Su Ning is brewing another trump card in hand. Suning's real estate projects surfaced in the last year, including large shopping malls, electrical flagship stores, five-star hotels, Grade A office buildings, serviced apartments, logistics warehousing base and other forms of business.

On the one hand, the real estate business can be built by the model of the store, to reduce the cost of high quality network rental price risk, another based on the current retail and offline two different business environment needs.

Whether commercial real estate can support Suning's overall performance in the future is difficult to determine, but the real estate industry overall environment is not optimistic. "One is the capital chain Gap, now financing is generally difficult, the second is the land reserve, the third is the risk of policy crackdown." "Hualong Securities Asset Management Headquarters Wang Xiaobin that.

Traditional retailing industry swept through the Internet tide, left to suning transformation time is not much.