The real crisis of Gome's Su ning: no reduction in market share

Gome's real crisis: not to reduce market share, profit reduction, but "class finance" mode is about to go bankrupt.

Liu once said, http://www.aliyun.com/zixun/aggregation/35750.html "> Suning Gome's biggest weakness is the huge store costs, this cost is simply unable to digest, Gome Su Ning's account of the funds are not enough to also suppliers."

He also suggested that Suning and Gome on the supplier's account period is much higher than the Beijing-east.

And regardless of Jingdong's account period is how much, gome, especially gome long-term use of the means to occupy suppliers to carry out "type of financial" type of development, is indeed an open secret.

November 2006, the Ministry of Commerce introduced and implemented the "Retailers supplier Fair Trade Management measures", clearly stipulated that the retailer shall not charge the entry fee to the supplier, also not to the festival, shop, store opening, reopen, business listing, merger and so on as a charge, and after the retailer received the goods from suppliers, The maximum period of payment for a retailer's payment is no longer than 60 days. In practice, however, the principles of the management approach did not work well.

Gome 2011 Financial Statements show that in its accounts payable and notes payable, the age within 3 months of 48.3%, 3 months to 6 months of 49.96%, 6 months or more 1.73%, indicating that at least half of the payment is not within 60 days to achieve payment.

So someone analysis: Jingdong, Su Ning, the United States of the war, on the surface is the market share of the war, the profit of the war, but from a financial point of view, the more urgent reason is the Battle of cash flow!

The reliance on gome for "cash flow" was preceded by media reports as follows:

In 2010 years, for example, Gome's accounts payable accounted for 78.7% of Gome's total liabilities, accounting for 46.7% of total assets and a small proportion of long-term liabilities. Accounts payable and profits are highly correlated, and the growth of accounts payable increases the number of stores, which in turn drives up profits.

Compared with competitors in the industry, Gome's dependence on the financing model is more serious, far more than the industry level: from 2005 to 2010, Gome's average accounts payable turnover days up to 130 days, far exceeding suning appliance (002024.SZ) 85 days and Best Buy (Nyse:bby) 49 Days (Suning appliance Accounts payable turnover of days increased year in 2010, up to 120 days). Gome's accounts payable accounted for 36% of profits over the same period, higher than that of Suning's 22% and Best Buy's 11%.

The above data can be seen, Gome's business model, accounts payable occupies a very central position. Strong channels allow Gome to get cheap money through the form of funds, Low-cost financing supports the rapid expansion of gome, and the rapid expansion of Gome's sales promotion and the supplier is willing to blood for gome. This type of financial model relies on two main elements: 1. Supplier coordination; 2. High turnover rate of sales.

Supplier payment is like the Shing of Gome Su Ning, with it, the retailer can increase the shop strength, then circle more money, then in the capital market to achieve a premium and value-added. Without it, or weakened, the negative ripple effect is correspondingly.

This is the Beijing-east to Suning Gome's real impact.

According to the latest report of the 21st century Economic report, according to Gome six months, Gome's first half income from suppliers only 376 million yuan, and 2011 the same period of 1.088 billion yuan.

Source: Tiger Sniffing