The American Research and Development Center of Suning and the Silicon Valley Institute are officially listed in San Francisco

American Time November 19, "Suning American Research and Development Center and Silicon Valley Institute" in San Francisco officially listed. The Paloato of the Suning Institute is one of the most expensive areas in Silicon Valley. There are people in the industry ridicule, suning This is the rhythm of tyrants. However, in another aspect, it also reflects the firm determination of Su Ning as an offline giant to March and transform the Internet. Suning, the establishment of the Silicon Valley Research Institute, just suning to internationalization of the first step, will be in New York, Seattle and other regions to set up research centers for different purposes.

Beijing time last night, Suningyun chairman Jindong in Silicon Valley Stanford University Business School gave a speech, it is interesting that the speech was originally titled "Never Say", but in the scene has changed to "suning development to see how the enterprise transformation and innovation." The speech attracted a number of Stanford Chinese students and Silicon Valley people, as well as some foreign students interested in China's business development.

In the speech, Jindong mainly reviewed the 23 years of Su Ning's major transformation decision-making, focusing on the past entrepreneurial process, the challenges of domestic and foreign rivals, Su Ning how to change the strain, in order to adapt to the final process of laughter. He stressed that "the transformation must have advanced planning, how far the vision, the cause of how much." ”

The following is the main content of the Jindong speech record (by Tencent Science and Technology collation):

Enlightenment of the two major transformations of Su Ning in the past 20 years

1. Su Ning's first transformation occurred 10 years after the venture, the change of supply and demand resulted in the adjustment of upstream channel strategy. After serious analysis and thinking, decided to give up more than 500 million dollars a year wholesale business, a comprehensive transformation of retail.

This is not only because the wholesale no profits, more important is to adhere to the wholesale will intensify and suppliers of contradictions, the opportunity to lose suning transformation of retail. The transformation must have the courage to break the wrist.

2. From the ten years after 2000, Suning second venture, accelerate the expansion of commercial chain, established a leading position in the industry. In the specific implementation path, faced with two different choices. One view is that successful chain operation should be from near to far, from easy and difficult to progressive development, like Wal-Mart, take the road of the countryside surrounding the city.

But Su Ning chose another one to look at the risk very high, the difficulty is very big expansion path, the centralization resources takes the lead to seize the big city and the regional Center city, then seeps to the low-end market. As a result, Su Ning spent less than 5 years to complete the layout of the national capital city.

3. By the year 2005, China's retail industry entered the chain era, the number of stores and sales scale has become an important indicator of competition, while the home appliance chain mainly concentrated in Suning and another business.

For how to expand the chain scale, our two companies are going in a completely different way: it is through a large number of mergers and acquisitions, rapid amplification scale, from 2005 to 2007 three years have acquired 27 enterprises, and Su Ning insists on self-development, while putting a lot of money and energy into the backstage construction, To upgrade the information system, personnel training and logistics Base construction.

This is a bit similar to Chinese kungfu, it is to practice the moves, suning practice is the internal strength, although the former dozen good looks, but the stamina is insufficient.

As China's largest traditional retail enterprises, in the Internet, how to think about and transition.

1. Suning early in 1999 concerned about the electricity quotient, but by 2009, with the popularity of computers, smartphones, mobile terminals appear, so decisive on the line of Suning easy to buy. Last August, an unexpected incident occurred when we were gearing up for the 8.18-week anniversary promotion.

At that time, China's second-ranking consumer electric business site on Weibo on the public to us under the gauntlet, said to achieve "traditional household appliances within three years 0 gross profit", than we "cheaper than 10%", a price war is imminent. Shopping malls such as battlefield, now facing a fledgling, scale only one-tenth of our opponents challenge, we are more to think they "calf." At that time they were very small, but Suning has been deeply rooted, so the opponents are likely to want to use this to hype.

At that time I was in foreign countries, our easy to buy vice president of the public directly on Weibo, committed to the price is always lower than the opponents. A stone stirred thousands of layers of waves, and other electrical companies have joined in, was originally our anniversary suddenly evolved into the entire electric business industry war. A contest down, on the day of 15th Suning easy to purchase on the production of more than 50 million U.S. dollars sales, is the daily sales of 8 to 10 times times, the flow also soared nearly 10 times times. 14th ranking of the global Web site is also around 600 of the easy to buy, one day time will be the highest rushed to 62 places.

After returning home, I came to their office area and encouraged the young people, who were only 25 years old, to say: "You are young and passionate, and I am willing to stand with you in the speeding chariot of suning." "This service has laid the first three of the market for easy shopping in China." We call this stage the era of pure electrical business.

2. At the end of last year there was an interesting wager, a Chinese real estate entrepreneur and an internet entrepreneur, taking the future of China's retail industry as a bargaining chip, made a 100 million renminbi, roughly the equivalent of $16.4 million trillion: after 10 years, if the market share of China's retail business is 50%, The real estate entrepreneur gave the internet 16.4 million dollars, otherwise it would be the opposite.

As a practitioner of more than 20 years of retail experience, the Internet is essentially a tool that cannot completely replace the entity, but it is also the general trend, and when it permeates the entire society like air, every industry and every business has to be internet.

So the line under the wire to separate, say who better than who, I think are one-sided, unprofessional. The future of the retail enterprises, not only online, but also not only online, but must be line online under the perfect fusion of the O2O mode. This is also true from the trend in the US, where nine of the top ten electric dealers come from traditional retail companies.

Moreover, the traditional pure electric commerce platform exists the commodity performance display is not sufficient, the merchant information asymmetry, cannot satisfy the consumer three-dimensional shopping experience the demand, cannot fully serve the merchant, cultivates the brand. For example, buy a color TV, visual effect? How about buying a costume? Buy a SLR camera, what is the effect of lens imaging? Wait a minute. These are not to be solved by online experience alone.

In addition, the low cost of electronic business platform, low price of understanding, but also a more one-sided view. In China, there is still no profit of the business of Enterprise independent, relying on the platform of online merchants, more than 80% of the losses.

3. Combined with years of exploration, we officially released this year, "one-wing Internet road Map", clearly pointed out that the future development of China's retail industry is the internet retail, the focus is O2O and open platform, the future of the store into the consumer's pocket, the living room, and through the open platform "Suningyun", will its own logistics , information flow and capital flow and other resources to open up to the community, to build a winning ecological circle.

How the Internet retail blueprint is laid out will make the wings of O2O and open platforms strong.

1.O2O is quicker than we expected. China has just experienced a round of electric business war, but the theme of this year's war is different from pure online shopping, ranked the forefront of electric companies have stressed their O2O on the layout. Just a few days ago, we have just held "China's first O2O shopping festival", in China pioneered the first O2O standard, namely commodity unification, price unification, promotion unification, payment unification, service unification.

We are ranked first online, the top three on the line, the comprehensive advantage is obvious, the rest is how to get through the image known as the right hand and left the barrier of mutual bo.

From the beginning of this year, we have done three things: first, to break down the organizational barriers, the first quarter reengineering organization structure, realizes the double line channel comprehensive integration, the resources overall sharing, the cost unified accounting; the second is to break the price barrier, June to implement the "two-line-price"; The third is to break the experience barrier, the original purely sales function of the store, Upgrade to set display, experience, logistics, after-sales service, leisure and social networking, marketing as one of the new Internet stores, such as the opening of free WiFi, the implementation of the entire product of the electronic price tag, the deployment of multi-media electronic shelves, the use of the Internet, things networking technology collection analysis of various consumer behavior, promote physical retailing into a large

2. Last month, another 420 million dollars in the acquisition of China's leading network video media pplive, further strengthen the mobile Internet and home internet exploration.

PPLive is China's first comprehensive coverage of the Web end, PC client, mobile phone, pad end, and the first to enter the Internet television field of new video media, active users over 340 million. At the same time Suning also accelerated into the field of OTT, actively explore including interactive video shopping, plot embedded consumption, precision customer promotion, such as video and the new combination of electronic business model. At just the end of the O2O Shopping festival, we first launched a video group to attract millions of customers at the same time online snapping.

3. Establish an open platform business model. The important feature of Internet economy is opening and sharing, Suning's overall internet is essentially the market and socialization of enterprise resources to the maximum in the way of open platform. Including the transformation of enterprise internal logistics into a third party open logistics, accelerate the establishment of end-to-end financial solutions and value-added services from consumers to merchants, as well as the ability to open up large data mining capabilities to partners, so as to gather the resources and wisdom of brands, retailers and Third-party service providers, To provide consumers with rich choice of goods, competitive price comparison and personalized service experience, so as to achieve business flow, logistics and capital flow integration.

The summary of the experience in transformation and innovation.

1. The nature of the industry is always grasped in the rapid change of technology. In the era of rapid technological leap, the complete pursuit of technology, the end may be dazzled by the new technology dizzy head, and completely reject technology, will eventually be eliminated. Technology is ultimately a tool, but every industry has its unchanging core, which is how to better serve its customers.

In the process of transformation, in the past we talked about customer is the concept of group, now have Internet tools, we can grasp every consumer's behavior data, mining to each individual's personality needs; In the past, we talked about service limited to people, face-to-face services, and on the Internet, enterprises are all-round to consumers open, Consumers, even if not with the company's staff contact, through participation in the enterprise's shopping, payment, distribution and other processes, you can more deeply experience the service content and quality of the enterprise.

2. The transformation must have the advance plan, you can see how far, your career will have how big. We do not innovate for innovation, but to optimize and configure existing resources to achieve higher goals.

Our early on-line Suning is easy to purchase, is in order to the offline resources on the online amplification; we are now launching the O2O model, which is to value online resources, and to help push down the Internet store, we launched an open platform to explore the new Internet retail mode. All this is not just for the immediate benefit, but more for the future layout.

3. In the face of pressure, the need to adhere to entrepreneurial spirit. Many enterprises are not successful in the transformation, not because they do not see the trend, but can not withstand the short-term temptation and pressure, so that sway around, look back, can not use entrepreneurial determination to change. It's hard to give up the success of the past, but sometimes you can't get the success of tomorrow without giving up.

Transformation is the learning process of mastering new tools and acquiring new abilities, it is normal to have problems such as this or that, and need to change space with time, which requires us to have the spirit of persistence.

4. Pay attention to the rhythm, seek to set and move. Whether it is innovation or entrepreneurship, survival and development is the premise, innovation too early will become martyrs, too late will be abandoned by the times, only when the right time to force, can neither hurt nor itself, but also innovative success. Just like a turn, a speeding train is quite different from a car turning.

The car can easily turn over the bend, for the train, it needs to turn early, slow, urgent not, it is to overturn. Su Ning is like a train, innovation can not blindly impulse, must have a forward-looking deployment and careful mode design, well prepared, once the need for exerting force, is already the case.

5. All transitions must eventually be solidified into a team culture. Because only the cultural transformation is the true meaning of the spiritual heritage, into the staff in the blood of the gene, become spontaneous, consciously internal driving force. Enterprises in different times, will form the imprint of the era of culture, enterprises to use different technical tools, will form a set of different thinking culture. Therefore, in the wave of the Internet, corporate culture can not be fixed, stand still, and can not be completely negated, to the back.

The culture characteristic of Internet enterprise is to pay attention to user's experience, reshape value chain with the thought of open sharing, promote innovation with equal enterprise atmosphere.

To this end, we have launched a series of initiatives including organizational change, target planning management, employee internal entrepreneurship mechanism. Among them, the main line is to emphasize and advocate the staff's independent innovation ability and small team synergy ability, as well as the ability of independent management objectives, pay attention to people-oriented, strengthen the self-management of employees, self-driven awareness, play everyone's creativity, improve work efficiency.