Suppliers support the same price strategy, suning or will break the internet low price myth

Traditional retail, electric and Internet transition topics, these two years is always the industry's hot spot. Recently, Suningyun business official announced that, from June 8 onwards, all Suning stores nationwide, Tesco store sales of all the goods, will be with suning easy to purchase with the same goods with the city price. From this, Suning will be a new retail model of the image to show in front of the industry.

A stone stirs up thousand layers of waves. Market people believe that Su Ning has been emphasizing the line under the collaborative linkage, its store and easy to buy product integration, service fusion and price integration into the general trend, line under the price is consistent with suning multi-channel integration of the most important step, marks the comprehensive operation of Suning O2O model.

Yesterday (June 5), Suningyun Vice Chairman Weimin, Suningyun Business Group Co., Ltd., president of the company, such as senior executives in the "Daily economic news" reporter interviewed, suning line is based on the same price is built on the basis of O2O integration, O2O the existing offline experience and service authenticity, and the network to promote the combination of inventory, logistics and services on the sharing of resources, the entire channel, full cost accounting, coupled with the existing scale advantages, the formation of suning O2O cost advantages.

Channel Integration

Vendor Support Pricing Strategy

Looking at the innovation practice of suning in recent years, we can clearly see a O2O fusion development path. It is understood that early in the beginning, suning innovative cloud business model, and will be summed up as "Shop + Dealer + retail service Provider", the purpose is to integrate suning front desk, integration line under the online, service-wide, full-service customers. Around the cloud business model, Suning implemented a series of internal changes, such as organizational change and system development, to solve the problem of channel integration, resource sharing and cost accounting in line with the same price. I hope that through the Internet retail, IoT services, large data management, open line under the new mode of integration, the consumer, industry and social development to create new value.

Some people in the industry said that Suning to do "Wal-Mart + Amazon", has been feeling very distant, or can only be a good idea, now suning open line under the same price is more and more like internet companies.

"Line on the same price for our business development is a big thing, for this we have been planning, planning and system construction, can say, from the end of last year, the company has been in the brewing." Weimin, vice chairman of Suningyun, said that the past line was two channels, and run for nearly 3 years, and two channels are two companies, two organizations, two brands and two operating systems, from the beginning of this year, the company has been the pattern has been a new comb, that is to become a company, two windows, two platforms, Share background inventory, logistics, information and services.

Weimin said, in the running process gradually felt, line two channel integration of the final bottleneck, in fact, is the "same price" problem. So around this problem, the company did a systematic integration. In the same price integration, the company and various categories of suppliers to carry out in-depth communication and exchange, and most of the supplier's recognition and understanding, of course, the move has also been recognized by investors. On this premise, the company will carry out the work in early June.

It is understood that in the last one or two months, suning and Samsung, LG, Haier, Lenovo, Hisense, TCL, Skyworth, Changhong, whirlpool and other suppliers high-level meeting, will line the same price as the main issue, to achieve the "same price" consensus, and clear the choice of goods, system docking, price strategy, such as implementation details.

Why does the supplier support Su Ning's line of the same price strategy, Weimin explained that, first, regardless of line online, Suning has a considerable scale, I believe that any one supplier will have recourse and dependence; Secondly, Su Ning's offline channel, itself is to cultivate the carrier of supplier brand. Suning's profitability is not necessarily the distribution of this model, distribution spreads are reasonable, but will not be Suning's only profit channel. At least on this basis there will be 3 new profit points: for example, to the Supplier brand platform display, Suning's logistics value and the whole supply chain financial services issues.

Weimin pointed out that with the company's open platform construction, the number of suppliers will be more and more, for suppliers of financial services will become a problem of Su ning. Su Ning has such qualifications, but now the scale is not big enough.

In Weimin's view, the company's current suppliers in the international and domestic dominance, and their cooperation is all advance, can not talk about supply chain financing. However, once suning is facing a large number of small and medium-sized suppliers, supply chain financing will become a source of profit for the company. Therefore, for the transformation of Suning, the future development of space and new profit space will be more, there is no need to adhere to the traditional way, there is no need to circumvent the Internet, dislocation of the Internet, only comprehensive integration, full embrace, and finally create a new platform, open up new models, generate new profit points, is the new Internet play.

Purpose of transformation

Breaking the internet low price myth

Line on the same price is not an overnight, as early as last year "8.18" period, Suning in Beijing to 3 C category as a breakthrough, the pilot line on the same price.

"From the pilot and promotion, the overall effect is good." The same price for consumers to bring great benefits, of course, suning in sales and other aspects also have a good performance, the overall growth 4~5 times. "Kim said, to line up the same price to the whole country, the plan is very large, related to the integration of suppliers, system switching and other aspects of integration, so the company spent nearly half a year to do this preparation work."

For the Beijing 3C category pilot and the line online the same price difference, Weimin stressed that, first of all, Beijing last year's 3C category pilot is the same price, that is, in local areas, local category of the pilot promotion; second, many of the same price of operation or by artificial way, not from the system to carry out, can be said or two systems.

Suning implementation line below the same price, whether will encounter competition difficulties and resistance? Weimin Frankly, if from the enterprise internal speaking, this is the internal problem of the enterprise. The company basically in about six months time, made a more adequate preparation; As far as the whole industry supply chain is concerned, the problem is not significant in terms of 95% of sales; Of course, there are still some problems, there are some categories of goods there are some regional agents, there is a certain level of local cutting, But the company also made some plans.

Weimin that the change itself is industry, when the change will have the above problems. And as the whole model changes, the entire industry's supply chain, from the factory to the region, will be changed. As for the profit, the past offline pricing, often appear peak trough of promotional pricing, weekend and holiday prices on the low, there are obvious time promotional colors. Although consumers generally think that the internet price is cheap, but in fact, Suning's physical stores are often at a certain time, appear cheaper than the Internet products, but it is not the normal. As a result, consumers on line online prices, more is a subjective impression.

According to Weimin, Suning made an internal calculation, in the implementation of line after the same price, in general, the store's gross margin in the interim transition will certainly appear some decline, but will not be as the outside world imagined a large number of decline, the impact on the company's profits is not necessarily a downward problem.

Weimin stressed that the market competition in the margin, itself is dynamic. In a sense, this is by the competition between the merchants, manufacturers of competition, the whole industry brand maintenance and other factors are jointly decided. The implementation of the same price strategy, fundamentally, is to create a new model, in addition, is to completely break the Internet's 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. Su Ning, in fact, will make the entire industry line two channels as a normal channel to treat.

Development direction

Line down price 0 time difference

It is understood that the Suning line with the same price, not only unconditionally and suning easy to buy the same online price, but also the reference to other domestic enterprises on the scale of the price of electricity, will completely break the myth of low prices online.

"We will set the price zone in the store, requiring all the salesperson's mobile phone, pad at any time to open the Web page of the electric dealer, real-time parity." "Suning chain Platform operating headquarters executive Director Tian Rui said that the store price is the entire channel, regardless of line online, to ensure that the whole network low prices."

Earlier, Suning executives have repeatedly said that suning to do internet companies, through the Internet technology to reshape the entity chain. It is reported that the line online below the realization of the price, is the use of its advanced background information system, the store and the same line of goods sold on the lock, stores every 1-2 hours through the POS (sales terminals) to inquire about price changes, such as changes in the store will be the first time the corresponding price of the goods to replace, if there is not a chance to replace labels Consumers also need not worry, because the store POS transaction price has been locked for online prices, to achieve online synchronization of the same price.

Suningyun Senior Vice President Jingun explained, "Pos and Electric quotient is a system, the POS system belongs to the synchronous transformation, it is an app, is a client, this client itself is illogical, of course it may have some simple process of transaction, but backstage logic is equal, whether be the price, purchase, Promotional logic is the same. ”

"Based on a strong background information system, we can successfully achieve line online under the zero-price adjustment." "Tian Rui to the same price after the system's ability to deal with confidence."

"The same price for consumers to bring the most intuitive feeling in addition to the price, there is the convenience of distribution services." Tian Rui said that Su ning specially developed the commodity search source system, if the consumer 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, also choose Suning distribution, of course, these are free.

Weimin said, online on the basis of the same price, in fact, has been the store and the Internet through, which means that the past is only suning easy to buy a full network parity, after the Su Ning's store also participate in the whole network parity. The basic strategy to participate in the whole network parity is, first of all, Suning provides consumers with a comprehensive service, that is, from the commodity-price-service, which is the most weight is the price. If Su Ning's price is not competitive, then this whole net parity also has no its value.

"But for some prices, Su Ning can not blindly follow up, such as some not on the scale of enterprises, these prices in the end is what the state, we have no way to judge it." And some companies on the scale of certain limited-type products, (its price) may also be as a gimmick, not necessarily follow. However, more than 90% of the conventional goods in operation, Suning's price must be competitive. Weimin added.

"Suningyun business model, that is O2O mode, certainly cannot become Suning exclusive mode, if this model is suning exclusive mode, then I believe this model in China can not be successful." Su Ning's model represents a common choice for China's traditional retailing industry to transition to the internet age. Weimin said that Suning will help more entities retail enterprises to achieve the Internet transformation.

Weimin also revealed that suning in late June will also have on the open platform for Change, to implement open platform for free. The work on 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.