Suningyun started to fuse with online dealers

Weimin, deputy chairman of Suning, said: This year, the focus is on the full internet of the company. This means the 23-year-old offline retail giant, the formal and development of the 4-year online dealers began to fuse.

Has entered the E-commerce 4 years of Suningyun business decided to complete the Internet.

June 8, Suning official start nationwide implementation line below the same price, with a new mode of retail image show in front of the industry. After the announcement, Su Ning Vice Chairman Weimin was asked the most question is: "Whether it is to borrow the June electric business war as a hype stunt?" Weimin repeatedly stressed that "on line on the same price problem" is actually Su Ning early three years ago began to think about things, and in the past six months before the change to do preparation work.

Suning Chairman Jindong is also declared, "Same price" is not only the basis of Su Ning O2O model, but also marks the Suningyun business model into a substantive stage of practice. In his view, the ultimate goal of the dual-line price is to realize the transformation of suning Internet retailing is the trend of traditional retailing being assimilated by Internet. O2O Fusion Retail will be the only way to transform the entity retail, the double line price is only the key to open the door of O2O retail, at the same time, realize the fundamental outlet of the cloud business lies in the Internet of the store business.

Weimin, deputy chairman of Suning, said: "This year's focus is on the full internet of the company." "It also means that the 23-year-old offline retail giant is starting to blend in with the development of a 4-year online retailer," he said.

"Forced" transformation

The development of the Internet far more than the original imagination, is undoubtedly the main reason for the pain of Su ning. Suning business sales last year amounted to 18.336 billion yuan, an increase of 210.8%. Counter-View store business, Suning can than store (refers to the January 1, 2011 and previously opened stores) sales revenue fell 12.38% year-on-year.

This should be the fourth time Suning felt the speed of the Internet, but also from the interior. If the impact of the development of the easy to buy is only the problem of hand to hand, then the outside world of other manufacturers have changed dramatically.

Jingdong Mall 2012 sales have exceeded 60 billion yuan, Cat mall "Double 11" one-day turnover is reached 13.2 billion yuan. Xun in Shanghai under the care of Tencent, the establishment of Tencent Electric Company (ECC), focusing on the operation of E-commerce business. Gome is also trying to diversify its business and expand its size. These direct competitors let Su Ning feel the "threat", some people said that Su Ning at this time had to make a last-ditch.

Jindong also expressed the determination of the science and Technology armed Su Ning on many occasions. "No traditional retail giant's boss can accept and react so quickly to new things like Jindong." Lei, director of China's E-commerce Center, believes that the determination of the management team in a sense determines the future direction of the Business Ark.

As early as this February, Jindong once in a speech to Su Ning's transformation has hinted that "not peers will become peers, not competitors will become competitors." "Weimin to this interpretation is:" O2O mode is the Internet, Suning is the internet company, which means that Su Ning's future competition is with the Internet company's competition, that must follow the Internet company's play to do things. ”

Later, Su Ning announced organizational structure adjustment, and listed company name "Suning Appliance" to "Suningyun business". This innovative cloud business model refers to the "Shop + Dealer + retail service Provider", the goal is to integrate suning front desk, integration line under the online, service-wide, service-wide customers. Around the cloud business model, Suning implemented a series of internal changes, such as organizational change and system development, to solve the three issues of channel integration, resource sharing and cost accounting.

The adjustment of organizational structure is the projection of enterprise strategy. The next is the line of Su Ning has been brewing for a long time the same price strategy, ditch the points. In this respect, Su ning interior has carried on the plan, the plan and the system construction for nearly six months.

"The past line was two channels and operated for nearly 3 years, while two channels were two companies, two organizations, two brands and two operating systems, from the beginning of this year, the company has been the pattern of a new comb, that is, to become a company, two windows, two platforms, sharing back-office inventory, logistics, information and services. "But in the course of operation, Weimin gradually felt that the final bottleneck of two channels convergence or" same price "problem.

But "the same price" behind is actually a new business model problem. On the one hand, the physical store to provide consumers with display, experience, the services of these functions, and online shopping when the convenience of anytime and anywhere, these two organically combined, and these two platforms began to share the same inventory, goods, logistics, services, to this end, this model, from the integrated experience and sales, Should be a more cost effective mode of operation problem.

New Play

Back in the last "8.18" period, Suning in Beijing to 3 C category as a breakthrough, the pilot line under the same price, the results obtained by the company's recognition: After the same price for consumers not only brought a lot of benefits, but also make suning in sales and other aspects of the overall growth of 4-5 times. and Suning will line up the same price strategy to the whole country, is undoubtedly a complex system engineering. Suningyun Business President Kim Ming also said that the same price behind the integration of suppliers, system switching, logistics system and other issues.

Suning line on the same price, not only the unconditional and suning easy to buy online prices are the same, but also refer to other domestic electric business enterprise prices, with its background information system, the store and the same line of goods sold at the same price lock, stores every 1-2 hours through the POS (sales terminal) to inquire about price changes, such as change, Stores will be the first time to change the price of the corresponding goods.

It is said that the benefits to consumers after the same price, in addition to the price, there is the convenience of distribution services. Suning for this special development of commodity sourcing system, such as consumers in the store fancy a product, store temporarily no goods, the system will automatically search the nearest store logistics warehouse, fast matching to shop time, consumers can choose to mention or distribution.

In addition, in the process of organizational change, Suning has been doing a variety of new assessment. "Offline storefront has begun to make full use of the Internet localization marketing, social communication mode, and use the Internet mobile terminals began desperately to push suning easy to buy goods. "Weimin said. This mainly stems from the company has begun to sell the network as a store staff's personal performance assessment, and the current physical store sales are no longer a single calculation store generated sales, the radiation area of all online sales, belong to the store sales, and all entered into the examination.

Today's fusion is more like a company, an organization, in a real sense. At present, Suning Line store employees have begun to use micro-letters, micro-Bo and other social communication methods to develop customers. The spread of these social networks has made it possible for Su Ning to start using new methods of assessment and to set new incentives.

Suning believes that this whole channel, the full cost of accounting methods more reflects the advantages of cost. "The cost of drainage on the internet is more and more high, three years ago a person's development cost is 60, 70 dollars, now is 300 yuan, integration is not cost savings?" Weimin said.

It is understood that Suning will be the end of June to implement a free open platform for major changes. And the strategy of the open platform, in fact, is to further enlarge the model of Suning, so that suning easy to buy a platform for more retailers in various regions to provide an Internet retail services.

In the integration of the same price problem, Suning has in-depth communication and communication with various categories of suppliers, and finally received the recognition of most suppliers. To this, Weimin explained: "Regardless of line on-line, any one supplier will use and rely on Suning platform, at the same time, Su Ning's offline channel, itself is to cultivate supplier brand carrier." "Of course, Suning's profit model is not the distribution spreads this one kind of the only profit channel." Weimin that on this basis at least 3 new profit points, such as the platform for the supplier brand, Suning logistics value and the whole supply chain financial services. ”

With the construction of Suning open platform, the number of suppliers will be more and more, the financial services for suppliers will naturally become one of Suning's profit model. Especially once suning is facing a large number of small and medium-sized suppliers, supply chain financing will become Suning's biggest profit source. In Weimin's view, after the transformation of Su Ning, the future can open up profit space will be more and more, do not rigidly adhere to the traditional way, and do not have to circumvent the Internet, "only comprehensive integration, embrace, and finally create a new platform, open up new models, create a new profit point, is the "Weimin said.

Challenges

Although the "line with the same price" is only the beginning of the Suningyun business strategy, but this is more like suning at this stage must do the choice, difficulties and resistance naturally inevitable. Weimin does not deny that in the short term will certainly sacrifice a portion of the offline store's interests, Suning has done some internal calculation, in the implementation line after the same price, the overall gross margin of the store in the interim transition will indeed fall, but there will not be a substantial decline. "The gross profit in the market competition itself is dynamic." "Weimin that this is by the merchants, manufacturers of competition, the whole industry brand maintenance and other factors are decided, and the implementation of the same price strategy, fundamentally or to create a new model, in addition, is to completely break the Internet low price myth."

The current low price of the Internet, to a large extent, is the industry as a springboard to operate, that is, the use of investment subsidies to consumption, the formation of some single at some time low price problems. Weimin said, Su Ning will make the entire industry to line up two channels as a normal channel to treat.

It is obviously not easy to finally implement the problem of integration under the line of execution. Suningyun in the traditional store business era, from top to bottom, is the organizational discipline, service culture throughout, and easy to buy is the Internet products, the pursuit of freedom, sharing and even slightly rebellious culture. A person in Suning's interior said that, as in the Suning store and the staff, "store people will think that the easy to buy people too lax, lack of organization and discipline, and easy to buy people ridicule each other too bony plate and dogma." ”

"We are now doing cultural research and change. said the person. The change that can be seen now is that in the easy to buy inside, the staff finally can not wear a suit, tie.