"Yun Shang" suning: to the electrical counter-tapping Dealers

This reporter Wang gang from Beijing

Suning February at the end of the formal change of business name, will "Suning appliance (002024, Stock) Co., Ltd.", renamed as "Suningyun Group Co., Ltd.".

Suning chairman Jindong to "cloud quotient" has carried on the explanation-"the shop + electricity merchant + retail service provider", its core is takes the cloud technology as the foundation, the integration Suning front desk backstage, the fusion Suning line on-line, the service entire industry, the service entire guest group.

This makes the bystanders a little foggy. What is Jindong's intention? Some people think that Suning is only for marketing, build concept, but some people think that this is Jindong "armed" on behalf of traditional retailers to Ali, Jingdong war.

Admittedly, China's retail industry has undergone tremendous changes, the advent of the Internet shopping era indeed to Su Ning, gome to represent the traditional retailer has brought great "trouble": not to develop electricity, you can not follow the trend of the times;

The retail business must not wait for spring to be born in misery and euthanasia. Jindong, a reporter for The Times, said that if the electricity quotient in the next ten years accounted for half of the retail share, now all the retail enterprises will lose profits and viability.

"The future of the retail enterprises, not only online, not only online, it must be the line under the perfect fusion, no line on the line, there is a line to have better online." "he added.

"A fuss" to upgrade the electrical business

Upgrading the electric business strategy is the most bright spot in the adjustment of the suning structure.

According to Mengxiangxie, vice president of Suningyun, before the independent company nature of Suning easy to buy back to the headquarters system, into E-commerce business headquarters, with the chain platform operating headquarters, commodity management headquarters to form three major business groups, covering the entity products, content products, service products three major categories of 28 division.

This means that suning online E-commerce status has been and offline stores converge even beyond.

Mengxiang to The Times Weekly said, Suning easy to purchase the original procurement function was withdrawn to the group commodity Management Headquarters, this department is responsible for all types of commodity management, no longer differentiate line offline procurement. and Suning easy to buy (ie E-commerce Business headquarters) will focus on the business management platform, set up a local life division, Business Travel Division, digital Applications Division, Cloud Products Division, Financial products division and other new departments.

What causes Su ning and jindong so "big fuss"?

In a forum of industry electric business, Independent electric business analyst Li Chengdong to The Times weekly reporter analysis, Su Ning's household appliances 3C category, online accounted for the ratio has rapidly climbed from 7% to more than 17%, but also in addition to speed development, within the foreseeable 35 years will inevitably exceed the line. Therefore, suning must at all costs "bet" electric dealers, otherwise, not only the offline market is eaten up, online can not beat Alibaba and Jingdong Mall and other finished competitors.

Earnings data show that Suning appliance 2012 years ago three quarter to achieve business income of 72.431 billion yuan, an increase of 7.1%, attributable to the parent company's net profit of 2.352 billion yuan, down 31.28%. Among them, offline entity shop "Same shop growth" is 10.11%. It is reported that last year, suning entity shop has closed the door to lay off staff, real store growth from more than 300 per year to negative growth.

Behind this is the offline store costs of the constant high. 2008Q1-2012Q1, Suning's single shop sales revenue from 19 million yuan to 12 million yuan, and the sales of every square meters from 45 million to 30 million yuan; At the same time, with a large number of store leases expired, Su Ning faced the pressure of a substantial increase in rental costs.

"The line continues to decline, closing accounts accounted for 15%-20%. Suning easy to buy, 2012 total income of 18.336 billion yuan, compared to 2011 achieved 210.8% growth. It's getting harder and better on the line. It can be said that the electricity business can do a good relationship between these traditional channel business life and death. "Li Chengdong Analysis said.

The big environment is also forcing suning transformation.

It is understood that China's net purchase ratio from 1.2% to 4.2% in the 4-year period, 2012 up to 6.2%. Over the past 5 years, Chinese online retail sales have grown at an average annual rate of 99%, and consumer changing shopping habits are driving the advent of online retailing, and the transformation and integration of traditional commerce into e-commerce has become a common consensus.

Interestingly, at the 2012 CCTV annual character awards ceremony, Wanda Group chairman Wang and Alibaba board Chairman Ma Yun set up a "blockbuster" Gamble: by 2020, if online e-commerce accounted for China's entire large retail market 50% share, Wang to Ma yun a billion, On the contrary, MA gave Wang a billion.

Of course, Jindong is also "discerning", he believes that China's retail industry is in the history of the crisis: The industry cost growth offset consumption growth, network shopping channel shunt line, logistics and distribution of low quality and high speed development, substantial retail enterprises large area of benefit decline, the general loss of electric business enterprises. Line on the number of tens of millions of small businesses fight Hu Honghai, blood loss in a disorderly competition environment.

The difficulty of merging under line

2009, Suning started marketing changes, on-line suning easy to buy. Last year during the two sessions, Jindong is to express Su Ning to take the "Wal-Mart + Amazon" model, and put forward Su Ning to promote the "go to electrical" brand development strategy, began its "department store" process. such as the acquisition of Red children, the opening of "Expo" super shop.

June 2012, Suning is a high-profile release of the "2011-2020 New decade development strategy", it is expected that suning in 2020 will become a total of 3,500 stores, sales scale of 650 billion yuan (up to 300 billion on the line) of the Super service provider.

And in this renaming and internal adjustment, according to Mengxiangxie introduced, Su Ning will make full efforts to create chain-level and e-commerce two open platforms, online under the combination of reality, in the category will be a whole category expansion. It is understood that in addition to the acquisition of red children brought by the mother and child category, cosmetics, department stores, daily necessities, books, video, music, digital applications, information, games, business travel services are included in Su Ning's territory.

In the implementation of Su Ning, although suning is often exposed to the user experience is poor, lack of team experience, technical system bottlenecks, the rhythm of runaway problems, but it still achieved a few consecutive years of high-speed growth. "2010 2 billion, 2011 5.9 billion, 2012 18 billion, the third quarter of 2012, suning sales accounted for 16.94% of Suning's overall revenue, put the Sihai is people's eye-popping performance." "Li Chengdong said.

But Lee also worries that the growth of unsustainable, low-cost promotions (0 yuan) will be very unsustainable in 2013, despite the user experience.

"It is expected that suning will be able to have a greater breakthrough, must borrow the various resources of Suning, and the original organization and business framework system is unable to meet these requirements." Therefore, in this strategic adjustment, E-commerce online business importance to be promoted to the position of equal with the offline electric quotient. "Li Chengdong analysis thinks.

The reporter also noted that suning easy to buy executive Vice President Li Bin in this adjustment to get a promotion, he became Suning Core Management Executive Office member, as the Group President Assistant, responsible for online e-commerce platform operation.

In addition, according to the deputy chairman of Suning Weimin on the Times, in Suning internal Jindong conveyed a request, in the place of Suning, all have suning easy to buy, all the large area should be based on local e-commerce. Before the big district only check the retail store, the group only from the major areas of the transfer of a part of the staff services in the easy to buy, but now all the people in the region must serve the store and the electricity quotient two platforms, there is no pure physical store.

And in the transformation of the electrical business "supporting facilities" aspect, Suning is also early layout. It is understood that suning in June 2012 to obtain Third-party payment license, and the establishment of Suning Microfinance Company and Suning Yi Bao, Huaxia Tong two third-party payment company, to build its overall financial services system; Suning's logistics system is in accordance with the third party logistics mode of operation, Facilitate the future of logistics capabilities to suppliers and other partners to fully open; and in the IT system construction, Suning will be in Nanjing headquarters, the United States Silicon Valley, Beijing, Shenzhen and other areas to set up research and development centers, plans to build 10-12 cloud computing data Center in the country, the future to the partners open Cloud services and system solutions.

From this perspective, the electrical business in Suning's internal strategic position is indeed in a comprehensive upgrade. The future, online and offline how the perfect fusion will become Suning's "compulsory course."

Suning president of The Times weekly reporter said, the integration of the commodity level is line two platform for sharing, common mining, a purchase, two platform sales. And in the data, will be accumulated after so many years of Suning 100 million member data and 20 million suning easy to buy online registration member data to share, and then through CRM (Customer relationship Management) and other means of data mining. In addition, Suning's logistics and after-sale advantages can also be shared by two platforms.

"Specifically, after the mainstream online sales products will be through Suning's super Power, flagship store, Living Plaza and other online stores to show again, such as department stores products, daily necessities, drinks, imported food category. Consumers can select below the line of a single surface delivery or line up and down a single logistics distribution or store under a single electric dealer delivery and other shopping methods. "Kim Jin-ming added.

Home Appliance price integration or availability

Su Ning's high-profile obviously will arouse the question.

Electric business analyst Ruzenwang that Su Ning's strategy is not too clear. "How does an open platform merge with store services?" What is the concept of the whole industry, the category of the entire industry Taobao can not do Ah, line online fusion of the O2O mode of real implementation, such as home appliances prices will be integrated? It is easy for the cloud to say, but the real solution to the business model needs further exploration. ”

and Li Chengdong that Su Ning advocated online and offline commodity prices are not possible. "Below the line and the same price, below the line gross profit margin 19% down to 7% below the line?" Online money business becomes a loss of business, and online and the same price, can not and adhere to the 10% gross margin of the Jingdong, Xun Network competition. He believes that Suning should continue to pay attention to cost efficiency and user experience, at this stage to transform the warehousing logistics system, improve the IT system is more critical.

The electric business Road to Su Ning is really "the road long its repair far XI". According to the China e-Commerce Research Center released the "2012 China Network retail market data Monitoring Report", as of December 2012, China's consumer market (including platform-style and independent sales) on the day Cat Mall accounted for 52.1%, Jingdong accounted for 22.3%, and the third-year Su Ning Yi accounted for only 3.6 %。

Weimin to Times weekly reporter said, 2013 suning electric business growth rate will be faster than 2012, now is not good to say, but the total growth in the country, the industry will still be the fastest one.

How to balance speed and quality will greatly test the Jindong and its team, which cost control is the most important. Kim said that the two-platform unified procurement will have a scale effect, thereby reducing costs. Li bin told The Times weekly reporter, Su ning to 2015 to complete 12 pieces of sorting warehouse and the country's 60 distribution center of the self-built logistics, which will reduce the cost of some of the trunk transport. In the last kilometer above, will rely on Suning line 1700 stores, closer to consumers, our services will be more rapid, relative cost will also be reduced.

"The average traditional business is expected to give up long ago. "A person in the electrical industry has evaluated Su Ning and Jindong in the development of the electric business is very strong, have the courage, willing to invest in resources, dare to lose money, its team executive force is also very cow."

For Suning's electric quotient strategy, Jindong to the outside world, E-commerce is the main force should be the shop, and not the electricity business, regardless of the store or electricity, the essence of retail profit depends on the localization of the operation and service; the development of E-commerce should be led by the retail enterprises themselves, not by the power provider, E-commerce is the real economy is not a virtual economy, the virtual economy leading real economy will inevitably lead to bubble economy.

But to achieve the line, the perfect fusion of Su Ning has a long way to go, and see "big guy" jindong how to maneuver.