Suningyun's third-quarter results report

Suningyun's third-quarter results report, the three quarter of suning business income and net profit both fell year-on-year. Among them, operating income of 24.61 billion, down 2.5%, this quarter created in nearly 6 years of the first quarterly loss of 108 million, and the same period last year, the net profit was 598 million.

Suningyun Business this year frequently, as a traditional to the Internet transformation of large retail enterprises, one side under the line of the market, while controlling the occupation of the electricity quotient of the first three of Suning easy to buy, it is because of what the loss?

The third quarter Suningyun total revenue of 24.61 billion yuan, offline income 19.12 billion, online income of 5.56 billion, from the line below the camp to watch, down 9%. And online income growth of 30%, the chain down 9.1%, that is, Su Ning's three-quarter loss is mainly subject to lower line revenue and online growth.

Offline revenue declines are mainly constrained by lower-line stores and lower gross profit margins. From the financial results of Suning, 2013 1-September, the company opened a new chain of 54, of which 48 of the regular shop, Le bought shi Life square shop 4, red Children's professional Shop 2, adjust/close the store 150, chain stores net reduction of 96 home. The reduction of stores, the adjustment of store structure, the cost of investment, and the reduction of revenue are reasonable.

This quarter is Su Ning June 8 announced line of the same price policy since the first full fiscal quarter, online consumer electronics products, low gross profit margin, along with the continuous promotion of the line under the chain platform and online business integration, pulling down the line of gross margin. To reduce the overall gross profit margin down to 15.21%. Therefore, directly leads to the lower overall line revenue.

According to Suning, in addition to the above two factors, but also with the macro-economic operation. Home Appliance energy-saving subsidy incentives have been the exit of the policy has affected the sale of electricity. And from the first 9 months of this year's data, Suning in the digital IT products market is relatively weak, there has been a slowdown in the phenomenon.

As the retail business under the line, has already been eaten away by the electricity quotient, this already is the obvious fact. Implementation line below the same price, should be, as the offline store can give Suning easy to buy a lot of traffic, but Suning easy to buy in the performance of the electricity quotient, not only did not imagine the good, but there has been a decline in growth. Such a phenomenon, have to let people suspect line on the possibility of the same price online.

On the line of the same price, since the launch of the day, has been controversial. In China, the first Mai Lin has opened the shop online, but did not succeed, not to mention the Internet concept is actually holding a strong traditional color Suningyun business.

To put aside the controversy, if we have reason to believe that the same price is only an attempt, then from its current performance, statistics do not fully produce market value, if this is only the initial stage, so the performance, at least will give Suning sounded a wake-up call.

Weimin, vice chairman of Suning, said in a speech at Peking University last week: "In waiting to die and find death, as a business, I said I would rather die than to die, because the death is inevitable, to find death is their own life and death, so even if the right-hand man, we have to do this thing. "In the opposite view, in the general pursuit of profits in the electricity business today, the loss is indeed a dangerous signal." If the experience of painful period is inevitable, with the transformation of Suningyun's strategy to the Internet company, the adjustment of the company's physical shop will continue to accelerate. In order to speed up the O2O mode of landing practice, increase line online business linkage, the corresponding cost investment will be increased. The next challenge is even greater!

Will the positive effects of the same price show up in the four quarters? We'll wait and see!