The analysis of the contraction under the expansion line of Suning electric appliance: Huge investment

Suning Appliances (002024, shares bar) group's overweight plan only to let Suning appliances (002024) prestige for half a day, 16th opened the company that fell sharply, to close down 4.48%, reported 6.18 Yuan/shares, the main outflow of funds up to 579 million yuan.

It is reported that the reason for the sale of the general, the electric dealers to the traditional consumer electronics retail impact too much, and online under the issue of mutual Bo difficult to solve. In this respect, Suning Electric appliance Vice Chairman Weimin to China Securities newspaper reporter said, the line of Suning easy to buy and offline real store integration. Suning in accordance with the concept of electrical appliances, should be "flagship store + E-commerce" profit model, Suning will become an information service provider, but the success or not time test.

Price war Exchange clicks

14th Suning easy to buy and Jingdong mall "about the frame", from the Baidu Index to see that the August 15 user concern once reached the peak of 1378741, the daily growth of more than 10 times times. And after 15th actual combat, consumers found that this is actually an organized "about" suning easy to purchase traffic, Jingdong Mall to scale, both hit.

At present, Suning is in the stage of doing traffic, price war coincides with its expectations. "People in the industry pointed out that suning appliances actually want to do is the platform business." The current electric business industry, flat Taiwan's gross margin is the highest, the cat's relevant officials said its gross margin of about 50%, and Jingdong Mall and other gross margin of only about 10%.

Suning insiders frankly, the flow of resources is the core of the electricity quotient, the current suning easy to buy registered users only about 10 million, such as more than 100 million, can do a lot of things. In addition, Weimin also confirmed to reporters that the future platform sales to account for 30% of the sales of easy to buy, Suning is now easy to buy mainly from self-marketing accounted for 98%, the other 2% or so is the platform sales.

Li Bin, the executive vice president of Suning, said 16th, will add 500 million resources, Jingdong Mall chairman and CEO Liu said to issue thousand coupons.

Fine management under line shrinkage

Suning easy to buy so strong, the original line of Suning appliance stores will therefore gradually fade?

"New stores will be opened in the future," he said. "Weimin response to reporters, the store will gradually from the one or two level market to the three or four-level market firmly forward, county-level cities and developed township is the main battlefield of Suning appliance entity store, and the development of overseas markets in an orderly manner." At the same time, the physical store will do fine. He said that the entity store will always exist, and the line will eventually be merged.

But after all, the impact of the electricity business upset the Suning Appliance's open shop pace. Suning Appliance 2011 Annual report shows that the company originally planned to open a total of 426 new chain stores in 2012, the new into 39 cities, but the first half of the actual only completed the new 79 store tasks, the second half of the new opening of 347 stores is unlikely or small.

This year, by Jingdong Mall, Dangdang, cat, such as the encirclement and suppression of E-commerce, physical stores in the logistics of warehousing compared to the advantages of the pure electricity quotient, but the huge cost, especially the "rent" to the store to the Suning appliance is a great pressure.

This is from the first half of suning appliances open shop strategy can also be seen. In the first half of the year, Suning appliances opened 79 new stores in the mainland of China, and 1 new stores in the Japanese market. At the same time, Suning appliance in the mainland and Hong Kong respectively replacement/closure chain stores 74 and 2, that is to say, Suning actually only added 4 stores.

The short-term benefits of transition

Now line up under the mutual fight, how the future fusion? The 2011 Annual Report of Suning appliances noted that from the profit model, "flagship store + E-commerce" model is the integration of the target, this model can effectively reduce the store rental and personnel costs, such as rising social costs, compared with the existing large number of community stores formed sales scale, more scale effect and input-output.

"In fact, Suning wants to do is information service providers, not home appliances stores are not e-commerce enterprises." Suning insiders revealed that Su Ning to science and technology transformation, the future will be to form the provision of information services, platform services, custom underwriting service-oriented "cloud services" mode.

According to the introduction, the Prophase company mainly provides stores, logistics, installation, maintenance and other basic services, the latter can use the Internet, intelligent Terminal Platform, the company will be able to individuals, families, small and medium-sized enterprises and suppliers to provide more content, value-added services, solutions, technical services, logistics services, such as a comprehensive service content.

It is hard to assert whether this goal can be achieved in the short term. Analysts say Suning in the next 2-3 years will still be a loss and investment in a huge, now regardless of the early stage of the directional issue, or the recent proposed 8 billion yuan corporate debt, all show suning electric current funds progress, the stock price continues to slump also proved that most public offering investors are not optimistic about the transformation of Su Ning. (reporter Wang)