The essence of the home appliance store is retail, the essence of the electric business is also retail. However, doing online retail is a completely different play. 2014 is a big change in mobile power business year, see Weimin reflection, the feeling of Su Ning and Beijing east is a few only goods will.
"In the traditional household appliances retail industry, Su Ning's development is relatively positive, in the face of the mobile Internet frenzy when the situation can be the time to turn around to change." Just as the household appliance industry in the big Wheel, and then how to adjust the direction is also a huge inertia exists. Su Ning's earnings have amply illustrated this point. In 2012, after the net profit of Suning fell 44.37% year-on-year, net profit in 2013 fell by 86.32%. The total net profit from 2012 to 2.676 billion yuan to 366 million yuan, basically only a fraction of the remaining. Why does Su ning encounter such a big drop? We look at the Suningyun group Vice Chairman Weimin do self-reflection. 】
Recently, Suningyun Group vice Chairman Weimin made a reflection: suning transformation of the electricity business is not very smooth. "Strategically, I think the transformation of these strategies is right. Although it is not good to say from the present result. Our profits are falling, but from the overall strategic point of view, it does not produce the right results. ”
In my opinion, Suning is still using with the United States and Beijing East Pk. The essence of the home appliance store is retail, the essence of the electric business is also retail. However, doing online retail is a completely different play. 2014 is a big change in mobile power business year, but see Weimin reflection, the feeling of Su Ning and Beijing east is a few only goods will.
Whether Su Ning, or Jingdong, the essence of retail is three: products, prices and services. Only, the Internet model of these three keywords mining and offline channel is completely different.
Create 100 for you to refine weimin reflection, see Suning jumped into a few pits. Here is the key refinement:
1. The first pit is free. such as the traditional enterprises such as Suning, will be from the price point of view of the free this matter, this is wrong. Internet companies behind the free strategy, are to rob users, but also to stick to users. So, free is the most expensive product, because, must establish strong stickiness through free, if the product is not good, this is wasted. So be strategically focused on the user experience.
Free is not the key, the key is there is no strong need to find users to catch their itch point and pain point. and free things in the past may be successful, in fact, more and more difficult today.
2. The second pit is the flow rate. Traditional enterprises into the Internet, will soon fall into the flow of war, do not spend money, no traffic, money, traffic is too expensive. However, to really occupy a position on the Internet, it is necessary to fight Word-of-mouth, this is Lei said the word of mouth as the king of the key. So be strategically focused on the user experience. But for several years, Suning did not establish a clear reputation.
Although traffic is very important, but more important than traffic is the brand. If you attract customers through drainage, it is not cost-effective to assemble traffic through other Internet product promotions. One, this flow needs to maintain cost, second, the commercial value of flow is always the lowest. The problem of traffic is not unique. In particular, we say that the flow of money must be low value. If we truly return to customer management and brand management, this may be our future to create the ultimate destination of flow.
3. The third pit is the service. Traditional enterprises do service, is to do the details, Internet enterprises do service, it is to do products. Even, selling services is the nature of the Internet business model, Jingdong why invest heavily in the express, is because this user most concerned about a service. According to the Beijing-East prospectus, the investment in logistics, from 2009 to 2013 is 144 million yuan, 477 million yuan, 1.515 billion yuan, 3.061 billion yuan, 4.1 billion yuan.
"Although Suning in 2013 put forward the line with the price of the move, and the internal structure adjustment, but due to changes in user buying habits, the 2013 online rise has passed the tipping point." In addition, because of the rival Jingdong price war and the potential of the electric power of the unstoppable, Suning's electric business began to face a drag under the line, not as Beijing east as the heart without distractions, light. Third, the transformation of Su Ning is indeed unprecedented, carrying more than 1600 lines under the burden of the store, facing the impact of the electric power transformation, stones difficulty and risk are very big "