The electric dealer shocks the traditional electric dealer and the Jedi counterattack?

"How do you fight a category combination?" How do traditional retailers make electric dealers? " Will the chief of the store be out of control? " How can each subdivision generate its own creative and creative power? Will shop assistants become a barrier to future retail development? ......

July 9, Beijing, the summer heat, Peng Run International Hotel three-storey conference room Although the air conditioning, the temperature seems to be higher than the road. The "torture" of the transition was carried out for 5 consecutive hours. The challenge is the "business Mulan", the future star, and entrepreneurs from all over China, led by the Chinese entrepreneur magazine. The other party sharing experience and accepting the challenge is senior executives such as Huang Guangyu's wife Cuckoo and Gome President Wang Junzhou.

As you know, retail, especially home appliance retail, is the "subversive index" the highest industry, but 2014 years, Gome Electric Holdings Limited (493.HK) performance has been the trend of growth, the first quarter of the parent company's net profit increased significantly 252.6% to 268 million yuan; Net profit margin reached 2% , an increase of 1.4%, the total channel sales revenue of 13.351 billion yuan, up 8.2%. In the same period, Su Ning, its old rival, has yet to enjoy the dividends of the transformation. After the civil strife and aggression challenges, Gome seems to have found a rhythm, but put in a longer time distance to observe, Gome and Suning who is on the right road? remains the most subject of concern to the industry.

This is also a "public news" experiment in which all the entrepreneurs involved are authors, and we believe their problems can provide professional value.

Are you playing with fire?

Han Xiaohong: You (Wang Junzhou) mentioned the goal of "rebuilding a Gome" by 2017. Why is it fixed at that point in time?

Wang Junzhou (Gome President): This goal is Gome's demand for market competition, under which our main categories will remain in the lead and may rise in individual categories. The advantage of the ground shop we will certainly surpass Suning, this is we want to hold a bottom line. The annual compound growth is expected to be 20% just, "to rebuild a Gome" is the total size of the ground shop and online sales. Ground shop growth compound 20% will be difficult, electricity quotient growth may be more than 20%, roughly such a degree.

Yu: I heard that Gome has to be in charge of gross profit, I think this matter is out of order. Shop long a pipe margin, how do you to the line under the evaluation, and how to let the low price online under the end?

Wang Junzhou: The long pipe margin means that every store is no longer an executor, he is an operator. In the past, we gave the store a sales mission, the profit shop can not manage, cost control, but the store can manage the gross margin, he can achieve how much, now put the entire budget, half a year's budget down to each store, income is how much, your gross margin is how much, the cost is how many of your own within the framework of the accounts.

It's a matter of fact that I'm talking about the average gross margin of a shop, not the gross margin of a single product. Single commodity fluctuation, he can't manage, but he manage to let the guest try to buy some money of thing, this I think is must do so.

Xiahua: Gome transformation is mainly embodied in three aspects, respectively: procurement, logistics and it, the latter two strong can be seen, I particularly want to know where the procurement is strong? is Gome's full category capability or bargaining power? What is its core competency?

Wang Junzhou: From the scale we are similar to everyone, if our high margin, that from the theoretical push must be our procurement cost is very low, but I do not believe that our procurement costs are very low, that is to say that the United States gome Commodity combination ability than suning Gao. Procurement personnel, are in accordance with the book said, to choose the goods, talk about good prices, manage inventory, this is all right, we are all according to this to do.

How to achieve higher profit combination ability in the same purchase scale? For example, we sell 15 models of 32-inch TV a year, a total of 1 million units, in the past can not be said to complete the average purchase, but are also 7788 similar, now gome to the 500,000 units in three models, So I have three models of procurement costs more ruthless, other maintenance status, these three models can account for 70% of sales. By regroup the product, achieves the higher profit.

Yu: I now see more and more electric dealers, do not call bidding ranking or call through train, it is another way of charging, this with the offline retailer charging the entrance fee is the same effect?

Wang Junzhou: I think the logic is the same, but we are now as far as possible, not to say that the money is not good, we have to minimize this revenue, but to transfer it to the shelves of goods. To the supplier, the retailer is the same, no matter what I accept your money is wool on the sheep, I rather than your entry fee to your product pricing capacity, we as far as possible to transfer to the price inside. Because the entry fee is one-time, the pricing is continuous. and set the price I can give customers a product competitiveness, we are hoping to reduce this entry fee, expand the advantages of commodity price competition, Gome is doing so.

Are traditional retailers going to be a big rout in the face of electricity dealers?

Yu: In fact, the rise of Beijing East is playing a particularly beautiful category combination battle, its rise category is 3C digital and mobile phone, but also traditional electronics retail neglected category, and it is now in the white electricity. After losing a high growth category of 3C Digital notebooks, do you think traditional retailers will lose their white power?

Wang Junzhou: First, the electrical business through a highly standardized platform, is the customer experience does not need so strong category development. For example, Apple people do not need too much experience, 3 C is the most standardized, standardized products are most suitable for sale in the electric business, the price is transparent. But in our store, I think the mobile phone products for the pure electric business does not have a strong advantage, their advantage is the most obvious computer. Mobile phone involved with the three major operators of the relationship between the region is also a huge difference, the electrical business is very difficult to do, and the physical store in the sale of mobile phones is an advantage.

Traditional electric dealers want to turn to big household appliances, we have a general customer demand experience is relatively high, such as refrigerators, size, size are problems, more people or in the shop experience. Air conditioners, for example, are one of the weakest categories in Jingdong, and it is almost impossible to achieve a full customer experience and interaction on the air conditioner. Why? This is followed by an installation problem, which integrates regional service capabilities relatively weakly. BEIJING-East growth is a real reality, but we think there are still good opportunities behind Gome.

In the integration of the category, the control of the industrial chain, including the understanding of the Internet, I think the following large retailers may have more stamina, such as Wal-Mart's category mix ability, including its procurement capabilities. Even if Amazon does not have an impact on it now, Amazon will push Wal-Mart to make more progress, depending on the ability of the backstage. Its control of profit to such a degree of precision, is that the retailer needs the necessary skills, you do not produce this skill will not be able to produce good competitiveness at the front.

Lee is also not: I have a problem with the electrical business, can you tell us the growth of the past five years and Gome's growth comparison? The second question is the difference between Gome and Jingdong.

Wang Junzhou: Actually the problem is that we think every day that all retailers are rushing to fix it. Especially in the face of Internet impact and impact, this is unavoidable problem, you have to face the internet to bring high growth. Electricity business for 3-4 years in the electrical industry accounted for 8% of the Chinese market, Gome accounted for 27 years in this market share, itself on the high growth of the electricity quotient. On the one hand we adapt to this growth, we ourselves through Gome's current website, I believe that there will be a good growth trend. Gome has done a lot of hard work on the electricity business, but we're going to be a little bit later than the others. We do more backstage, with the backstage to support the front desk, rather than to make the front desk dazzling.

The second is about traditional retailers and the pace of growth in Beijing and Tokyo. Indeed, I think Internet entrepreneurs are a High-tech group, relying on their innovative ideas, from the perspective of customer development and design a platform, with customers to create a high degree of interaction and stickiness. Traditional retailers are more of a value perspective on customers, I think this is two different paths. So the previous period they have the first advantage, whether the cat or the east or Beijing have these advantages, this is what we want to learn, but also traditional retailers can not be avoided, but also the most difficult.

Yu: Do you think that in the internet age, the shop assistant is your obstacle? I say this because the shop assistant is familiar with the brand, his credibility is not as good as the online 100, 300 comments. He can't have so many points of knowledge. Retail stores are becoming more and more of the customer's showroom, customers in the physical store to see the products they want to buy, go home and read the comments online. Very simple, I think the human brain must be inferior to computer, computer more neutral.

Wang Junzhou: No. I think the shop assistant is a wealth, gome entity store profit, in addition to rely on product mix, is relying on our shop assistants. Just now, an entrepreneur, for example, said that the expected consumption of the shop is only 1000 yuan, the result will consume 3000 yuan, which explains the role of shop shoppers. I earn is this interval, otherwise I lose, this is a store can maintain a very important link.

The ground retail store does not do well, we have to look for the reason from the ground, not all pushes to the electricity merchant to our influence. In recent years we went to Japan, the store for customers to produce services and viscous very high. As an example, I went to a shoe store with no idea of buying shoes, but I bought them. I think this pair of shoes is good, I ask the clerk a little bit. What size did the clerk say you were wearing? I said 41. This salesperson will be 40, 41, 423 kinds of sizes are brought to you, there is always a pair of suitable, you wear appropriate, why not buy it?

To expose the ugliness under the table.

Lee is also not: how do you judge the sales figures for the next year or the next quarter? Is it based on past experience or based on large data?

Wang Junzhou: This must be a judgment on the future based on understanding the needs of the past. For example, in the second half of this year we judged the 40-inch TV confidential to occupy the market body quantity, 30 inches down 40 inches up, this judgment is based on your understanding of LG and Samsung LCD panel manufacturers, it reduced the second half of the year screen shipments, on the contrary, will increase the 40-inch shipments, we can only follow it away, In this case, we put the treasure on the 40-inch machine.

In fact, this supply chain is not only the understanding of customers, we always talk about your cost is not clear to always be bad a good purchase. What is the cost of our TV set? 32-inch manufacturing cost 950 yuan, on this basis, the manufacturer needs 10% profit, the purchase price of 1050 yuan to 1080 yuan is normal, high can not be higher than 1100 dollars. Our normal purchase price is 1080 yuan.

I can buy this price, the country is no bigger than me, to 32 inches I will always keep the market most competitive, not to say that 15 models are competitive, but two or three of the most competitive, you create a low price feeling.

Liujingjing: Now the United States to obtain such a good performance growth, is derived from the adoption of a series of measures, such as online parity, so that your line store passenger flow increased, or that your line of water flow increased, resulting in increased performance?

Wang Junzhou: Our growth over the past year has been mainly based on the growth of shop floor stores. The ground store we pushed a lower parity, why push? Because you don't push the consumer, it's better than you to help him.

Now we have so many customer behavior, the first is at home on the Internet enough, ready to go to the physical store, a look at the price of the same as online, and then will choose to buy in the physical shop, that is, if we and the electricity price, customers will choose to buy in the entity shop; the second is to come to the physical shop experience, choose the product and then go home parity , rather than let consumers home parity, than in the store to let him, you want to compare with whom? Do you want to compare to Jingdong or the cat? When you look at it, I will buy it in the shop, which is called increasing the turnover rate. We call effectively improve the turnover rate, to customer consumption confidence, first I do not worry about you than, the second I help you than. You do not help him than, he went home than you blind, you'd better not let him out of the shop, help him finish the matter.

Xiahua: Today's terminal retailing is a pattern that drives us to innovate, and you just said a very important word, so that each subdivision generates its own creativity and innovation, how is this part of Gome?

Wang Junzhou: In fact, Subdivision business unit is the goal of competition to create vitality, rather than attachment or parasitic, parasitic is always unhealthy. We see, often is the big brand business, they are doing very well in the small household appliance. When the big household appliances and small household electrical appliances together, often catch big put small, the things should be done neglected. On the contrary, we look at the structure of the electrical appliances, beauty of small appliances and air-conditioning do very well. From the beginning of the first day the United States to divide them into two companies, two companies eat their own. Your air conditioner sells well again, has nothing to do with the small household appliance, they are two different companies, two different teams.

We look at the emergence of small household electrical appliances Many brands, often we do not know, the industry needs to focus on, each industry needs to focus. such as Gome focus on home appliances industry, is this thing we think can do well. China does have success in diversifying companies, but it is not particularly successful. Now we try to cut the business unit thin, don't mix in a pile, mixed in a pile inside must have impostors. We always worry about small business from the big business group moved out of it can not live, but in fact it is not alive in the inside, but you hide it, put the ugly things under the table, under the table does not mean it is not ugly. Put it outside so that everyone can see its ugliness, can change it, or you will forget its ugliness.

What kind of partner does Gome need?

Zhao Jia: Our company is to do IT system integration and application, the main service in large-scale military-type enterprises. I would like to ask Gome in the selection of suppliers how to do? How to let the best domestic suppliers come in for Gome service?

Rhododendron: The group's overall development strategy for the 2014 there are many need it support, we built the IT team, but we also need to rely on external forces. So many vendors, can not do the selection of each of the business module is the best? This is also a challenge for us, because the retail supply chain software modules are very many, Chinese developers are also very many. In order to ensure the overall progress and quality of the group can have a relative commanding heights, at a certain point we may not achieve excellence, may I cost more to pay. I want to have a big total package, it is relative to the total package, in fact, we are also a lot of subcontractors, a large general contractor he can give me an endorsement in quality and progress, so as to reduce the risk of my part. But there are a lot of things we can do when screening to the lowest cost, let it in this business module direct it to the advantages of enterprise applications, profits can also achieve a relatively cost optimization.

Bei: We are also gome online partners. What is our experience? Gome Online Traditional retail thinking is heavier, the commodity structure has done a very big adjustment, from the service experience to make a very big adjustment, but the line this is weak, feel gome online is in the 1.0 era of 3.0 times, and now is the mobile internet era, is the 2.0 era of the upgraded version. This is a big challenge for us, and I would like to ask how as a physical store can be more successful in the mobile internet age layout?

Yang (Senior vice president of Gome): We divided consumers into three categories, any consumer to buy goods, we think the main concern three things, the first is the brand, the second is the price, the third is the function.

The second category is price-sensitive consumer groups, is directed at low prices. Today, we are very concerned about online and offline competition, in fact, this part of the group is a price-sensitive consumer groups. In fact, we have been wrong in the past two or three years, we gave the BoE and other companies too many opportunities, this opportunity led everyone to think that online price is cheaper than offline. People often say that I want to experience the price of the line, online goods become a synonym for low prices, so we have to change this state.

In the past we spent a lot of money to ask mystery customers to do the price of the market, now do not need. Because Jingdong and other sites are open platform, we store prices at any time in the adjustment, Beijing East can not adjust. I want to let consumers know that the offline price is cheaper than online, we do not publicize the current is not enough, so we have to go to the store to experience, we must not let the line into the fitting room but become the main shopping place.