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Suning in the turning point of the times and the 30-year change of China's retail industry |

via:???     time:2019/5/31 10:03:15     readed:1302


  1. Although it is low-key, but Zhang Jindong is willing to take risks, Suning has not stopped his own transformation and upgrading.
  2. In the 20 years of rapid development of China's retail industry, Suning has been changing the rhythm: cutting off the wholesale business to electrical chain retail, from focusing on offline business to online and offline integration, holding Ali into the group army era, layout smart retail.
  3. Every time the retail industry upgrades and progresses, the essence behind it is the improvement of sales efficiency and the leap of technology. The ability to seize opportunities in an era of technological leap will be the ultimate challenge for Suning.


Author: Hong Sun Ultra

Editor: Kang Xiao

On the day of April 2004, in the early morning of the second ring of Beijing, Zhang Jindong, who was not confused at the time, seemed to be unaware of the cold in the early spring, "I just walked here for an hour or two and kept me talking." Questions that may be asked during the meeting. ”

Ten years have passed, and the night that can't sleep still happens like yesterday. In Zhang Jindong's memory, it is a night that is more nervous than the college entrance examination: “If you can't get through, the company will face the disaster.” . The college entrance examination is a matter of one person, but if I am not doing well, it is a matter of the whole enterprise. ”

Listing is the first major challenge facing Zhang Jindong and Suning, and such challenges will run through them for the next ten years or even longer.

Compared with his most important competitors Huang Guangyu, Ma Yun and Liu Qiangdong, Zhang Jindong has always been low-key, but in the 20 years of rapid development of China's retail industry, he and his young Suning are always looking for a new rhythm: cut off Wholesale business turned to electrical chain retail, from focusing on offline business to online and offline integration, holding Alibaba into the group army era, layout smart retail … … & ldquo; we just dare to challenge, Wal-Mart is too heavy, Amazon is too light, we do not Not big or small, but facing the most open and innovative market, Wal-Mart simply does not dare to face these things. ” Zhang Jindong once said to "Deep Net".

Despite this, the outside world is still questioning the super retail giant with 250,000 employees and annual sales of more than 330 billion. Since the first deduction of net profit losses since Suning's listing in 2014, Suning's main business profitability has been struggling. The financial report shows that its profit mainly comes from store asset transfer, sale of subsidiaries and even sale of Alibaba stock. In the field of e-commerce, although Suning is still in a period of rapid growth, and has already left a few old rivals Gome, Dangdang, Amazon China, etc., but compared with China's e-commerce poles Alibaba, Jingdong, Suning is still obvious gap.

More than enough, Zhang Jindong naturally hopes to find the engine that will push Suning into the next era, but an important factor is still related to the funds: the Suning store, which is heavily invested, is still in a loss, and can't even see it in the short term. The shadow of the return; the copyright of the purchase of the real gold and silver + the team to let Suning have a place in the sports circle, the realization of difficulties makes Suning Sports continue to suffer huge losses.

More importantly, compared with Liu Qiang, who already owns Zhang Yong, and Liu Qiangdong, who has Xu Lei, Zhang Jindong still lacks a powerful "two-handed". Li Bin, Hou Enlong, Jin Ming and others have been considered by the outside world to have the "high-level voice", the latest name of this position is Suning's old Sun Weimin. According to "Deep Net", for a long period of time, the former Nanjing University of Science and Technology teacher, who is the same age as Zhang Jindong, is at the top of Suning's power.

However, age limits the further development of Sun Weimin. In a private exchange, Zhang Jindong once said bluntly, "Sun Zong (Sun Weimin) is older than me. Many people say that you have no one in Suning, and that it is Zhang Jindong and Sun Weimin. Now, it is the president of the 70s, and later the president of the 80s. "The news from Suning also shows that at the recent internal meetings of Suning, Sun Weimin no longer plays the role of "second-hand".

Shaoshuai may be a good choice. In this year's Suning's holding group's year-end award, Zhang Jindong personally awarded Suning's highest award, "Special Chairman's Award" to his son Zhang Kangyang. Zhang Kangyang has a good academic record since he was a child. He won many science and engineering awards in the United States in high school. He eventually chose the Wharton School of Business at the University of Pennsylvania and obtained a degree in economics. After graduating, Zhang Kangyang chose to enter the investment industry. He once worked in Morgan Stanley Capital Market, and was mainly responsible for the listing, investment, merger and financing of Hong Kong and US market companies.

After receiving the “Special Award of the Chairman of the Board” last year, Zhang Kangyang’s reaction was: “The chairman and all the colleagues who have been watching me grow up, the leaders, will be particularly pleased. "At the moment, Zhang Kangyang, whose main energy is still in Italy, cannot be relied on by Zhang Jindong in China.

For Zhang Jindong, the cold night in April 2004 finally had a good ending. On July 21st, Suning Appliance was listed on the Shenzhen Stock Exchange. It closed at 32.7 yuan on the day of listing, rising 100%, and lasted for more than 10 months. Become the first high-priced stock in the Shanghai and Shenzhen stock markets. However, this is far from the end of the whole story. With the natural changes in the demographic structure, consumers are upgrading and the consumption perspective is also iteratively upgraded. In addition, emerging technologies have changed the original sales methods and shopping methods. Naturally, It also changed the retail channel.

Although he was a low-key person, Zhang Jindong was willing to take risks. Suning did not stop his own transformation and upgrading. In 2019, he continued to follow the example. After entering the Wandian era, Suning Tesco established five major commodity groups, and then Suning Group acquired Wanda Department Store. It announced that it will use the means of big data and artificial intelligence to carry out the overall digital transformation of the department store industry.

Next year is the 30th anniversary of Suning's establishment. Faced with the constant changes in the retail industry, Zhang Jindong once emphasized to Deepnet: “The valuation was from 150 billion to 30 billion in that year, and Suning was under tremendous pressure. However, I think Suning’s strategy is correct first, and the strategic model is correct. Suning has the resources to have capital and strength, and sometimes the remaining is king. ”

Can these continuous changes allow Suning to find the ultimate answer?

High-dimensional low-dimensional: private capital rises

In 1984, Zhang Jindong graduated from the Chinese Department of Nanjing Normal University and entered a district-owned enterprise in Gulou District, Nanjing. In addition to his work, he contracted some air-conditioning installation projects and obtained 100,000 yuan of venture capital. In 1990, 27-year-old Zhang Jindong founded the earliest electrical appliance store in China at a small facade of less than 200 square meters in Ninghai Road, Nanjing: Suning Appliance Co., Ltd.

This is an era full of dreams. Zhang Wenzhong, the founder of Wumei, who is also an important figure in the retail industry, used two idioms to describe the mood at the time of starting a business: no resentment and no scruples. “The rapid development of Suning is from the 1992 Southern Tour. "In the history of Suning's development, Zhang Jindong often described it as such. The price of an air conditioner in that era was about four or five thousand. This is not the price that ordinary families can afford, let alone the sale of air-conditioning channels. Mainly state-owned shopping malls.

In 1978, the domestic transition from a planned economy to a market economy system no longer inhibited the production and sales of materials, and hoped to stimulate economic growth through investment and expansion of domestic demand. In 1984, the country began to partially liberalize prices (price double-track system). After the difficult price 1988-1992, the transition from a planned economy to a market economy system was realized. Looking back, Suning is the typical representative of the home appliance retail industry in the planned economy.

But the competitors will not automatically disappear because your choice is correct. For the then “small seesaw”, Suning’s state-owned shopping mall looks like an invincible aircraft carrier: Nanjing’s earliest old brand —— The mall was born in 1936, and another old-fashioned Nanjing department store Xinjiekou store (referred to as Xinbai) was the first listed company in Nanjing, and also ranked among the top ten department stores in China at that time.

However, Zhang Jindong found a solution.

Similar to home appliances such as refrigerators, air conditioning is a typical seasonal product. In the off-season, air-conditioning manufacturers often choose to let some workers go home on holiday, and the productivity may be less than half of that in the peak season, causing huge waste. In the peak season, even if the factory is full of horsepower, it cannot meet the needs of consumers. Under such a contrast, Zhang Jindong promoted Suning to carry out a new model of “off-season ordering and anti-seasonal payment”. In the off-season, Suning invested funds to enable manufacturers to prepare for stock-style production and increase inventory transfer to the sales season.

Today, this model seems to be commonplace, but in the 1990s, when the sales method was relatively rigid, it was no different from the "two-way foil" effect: in 1992, Suning has become the first national sales of Chunlan air conditioners. Big family.

In addition to the model innovation, Zhang Jindong, who started the installation, also first realized the significance of “service” in the retail industry. Compared with other products, air conditioners can only be counted as one semi-finished product when sold. Only after distribution and installation, consumers can actually use air conditioners, and they need follow-up maintenance and repair. After the establishment of Suning, it has set up a professional self-service team of more than 100 people, providing a full range of after-sales service from installation, maintenance and maintenance.

In the past, Zhang Jindong introduced the original intention of establishing a service team to "Deep Net". "Compared with other commodities, air conditioners are semi-finished products. This means that the sales channels of air conditioners not only provide goods, but also provide services, catch up with some red and white things or have old people and children at home. If air conditioning is required, the timeliness is very high. At that time, Suning’s employees often did not sleep for several days and nights, and the teams that bought the air conditioners became long queues. ”

“Service industry” has even become a core factor in Suning's listing. “At the time of listing, I also faced a problem. What is the difference between Suning and Gome? My answer is that Gome is selling color TV. At that time, color TV is a tight product. It is sold with other products. You only need to bring the goods in, you will get it; Suning is selling air conditioners, air conditioning is a semi-finished product, I am going The user's home, go to the installation to repair, so I said Suning is a service company. ”

In just one year, Suning air-conditioner sales broke through the 100 million mark and occupied 70% of the Nanjing air-conditioning market. This triggered a collective siege of the eight major shopping malls in Nanjing. The eight major malls claimed that if they supply Suning, they will not sell at all. this product. When Zhang Jindong later recalled this incident, he still revealed the injustice: “At the Sanyo Air Conditioning Agency held in Suning, we kindly invited the leaders of the eight state-owned businesses to eat together, but my words have not finished yet, they are actually Brushing up and standing up all the way. ”

These rigid reliances & ldquo; tangible hands & rdquo; the monsters can no longer suppress the challenges of the emerging business, more dynamic, market-oriented retail channel operators finally stood in the center of the stage, the curtain of China's big retail era officially pulled open.

After Suning went public, the outside world only thought that it was only a hardware and home appliance chain store, and may not be able to continue to grow. The total market value of Suning on the day of listing was only about 3 billion yuan. However, in the past 6 years, Suning Appliance has interpreted the growth of small and medium-sized enterprises [mythology]. In 2010, the total market value reached more than 70 billion yuan, an increase of 35 times.

When recalling the mentality of listing, Zhang Jindong said to "Deep Net": "Some people said that I was small at the time, should not go to the small and medium board, should be on the main board, but we are the first private enterprises, formerly state-owned enterprises. There are no private enterprises. At different stages, enterprise development faces different problems. “

Foreign investment in war: the rise of offline chain

The state-owned shopping malls outside the strong and medium-sized enterprises were quickly left behind by a number of domestic emerging retail businesses represented by Suning, Gome and Wumei, but the challenges of renewal came one after another.

In 1992, the “Reply on the use of foreign capital in the commercial retail sector” was released. In the same year, the Shanghai First Yaohan of the Sino-Japanese joint venture opened in Pudong. In 1995, French retail giant Carrefour entered China, and the first stop was in Beijing; Metro has officially entered China in cooperation with Shanghai Jinjiang Group; Wal-Mart, Yichu Lotus (later renamed CP Lotus), Auchan, Lotte … … in the era when brand awareness is still not strong, domestic brands have not realized “The foreign brand” is in a rage, but the retail channels that have been hit by the market environment have opened the door to the new world through these advanced overseas formats.

In the 1950s, Sam Walton opened a grocery store in the United States. A year later, he reinvested nearly $50,000 in profitable grocery stores to renovate the store and purchase more varieties. Making money, reinvesting, and re-expanding, this chain model became the core logic of Wal-Mart's development in the future: in the late 1970s, Wal-Mart's stores reached 276; in the late 1980s, Wal-Mart already had its own thousand. Four hundred and two stores.

This new and mature chain of super-models has quickly become a close-knit imitation of Chinese retail companies. A large number of domestic super brands have been born, and they have begun to try chain operations: In 1991, Lianhua Supermarket was founded in Shanghai, focusing on the Yangtze River Delta; 1995 In the winter of the year, Zhang Xuansong, who had not graduated from high school, worked as a soldier, or worked as a beer agent, opened a supermarket called “Guli Micro Music” in Xiamen. This is the predecessor of Yonghui Supermarket; food salesman Wang fills in his hometown. Hunan Xiangtan opened the first backgammon supermarket. Some experienced international retail giants (Carrefour, Wal-Mart, etc.) have been criticized by domestic retail companies, and Carrefour has even been hailed as the “Whampoa Military Academy” in the Chinese retail industry.

Suning's specialty in the field of home appliances, the most powerful overseas rival is Best Buy, the largest consumer electronics retailer in the United States. This once the world's top 500 retail giants have been sought after and learned by global electrical retailers. In China, Best Buy chose a two-way expansion model of self-built and M&A. In May 2006, Best Buy acquired a 75% stake in Wuxing Electric, a domestic domestic company, and established its first Best Buy store in Xujiahui, Shanghai.

However, unlike the passive competition in the supermarket and department stores, Suning has entered the “chain” mode before the Best Buy in China. At the end of the 1990s, with the increase in consumption levels and the fall in air-conditioning prices, there were more than 300 air-conditioning manufacturers in the country, and more than 100 brands of air conditioners were transformed from oversupply to oversupply. Many manufacturers have to choose to directly penetrate the retail market, such as Suning's best partner Chunlan and now Gree.

The changes in the market environment have enabled Zhang Jindong to play two hands. The first one is: reducing wholesale business and self-built retail terminals. In March 1996, Suning's first air-conditioner retail store & mdash;— Suning Yangzhou air-conditioning franchise store opened; in May 1996, the country's largest air-conditioning franchise shopping mall Dingjiaqiao shopping mall opened; in 1997, Suning successively in important markets of various provinces and cities nationwide More than 30 air-conditioning franchise stores have been established. This could not satisfy Zhang Jindong, so he played a second card: from a single air-conditioning operation to a comprehensive home appliance business. In 1998, Suning Appliance Building, the largest integrated electrical appliance store with the largest single store area in China, officially opened. The building is located in the center of Xinjiekou Business Circle, the largest commercial district in Nanjing. At the beginning of the building, some people advised Zhang Jindong to rent the building, but Zhang Jindong said: “Even if the loss is 40 million, Suning will also be a home appliance store. ”

The two hands finally played the “chain” effect, and soon the air-conditioning franchise stores in Suning were transformed into integrated appliance stores. At the same time, Suning’s national chain system was also expanding rapidly: in 2001, an average of 40 days opened a store. In 2002, an average store opened in 20 days. In 2003, an average store opened in 7 days. In 2004, a new store was opened in 5 days. In 2002, a store opened in 2.2 days. In 2006, a store opened in less than two days.

At the closed meeting of Suning at the time, Zhang Jindong described this: “Whoever masters the retail channel, whoever holds the throat of the market. Because there is a complete industry support and supply chain system from production to consumption. As the situation of oversupply becomes more obvious, the more people pay attention to the downstream, the more the whole machine manufacturers and wholesalers rely on retailers, the more retailers rely on consumers. Therefore, the focus of competition will no longer be the procurement supply chain but the sales service link. The efficiency of the terminal directly determines the efficiency of the manufacturer. At this time, the traditional forward logistics from producer to consumer will be replaced by the reverse logistics from the consumer to the producer. This is <; the terminal is king & rsquo;. For dealers, whoever has a huge terminal network can gain the advantage of economies of scale, and whoever has the ability to influence and control the market. ”

Suning said to Shenzhou that this is the first major transformation of Suning. “In the face of the market situation of oversupply, the operation of a single product is not enough to support the sustained and rapid development of the company. This requires Suning to have to breakthrough. Therefore, combined with the market background, Suning made the decision to transform the retail chain of professional retail transformation. ”

Chinese home appliance retailers who are prepared in advance have not left a living space for overseas giants. According to Best Buy's official data, after five years of entering the Chinese market, only nine new stores were opened. Even if more than 100 stores of Wuxing Electric are counted, the number of stores in Best Buy in China is comparable to that of Gome and Suning. The ratio is also insignificant. Five years after entering the Chinese market, Best Buy announced the closure of its nine stores and handed over its remaining assets and operations in China to Five Star. On December 4, 2014, Best Buy announced the sale of five-star appliances and completely withdrew from the Chinese retail market.

Combat dealer: online and offline

In 2004, a super retail giant with annual sales of US$7 billion officially entered China. Amazon under Bezos contacted the domestic e-commerce platform and chose to enter China. A year ago, Taobao was officially founded in the lakeside garden. It was later than many domestic e-commerce platforms such as Excellence, Dangdang, etc., but this new C2C platform finally rewrote the history of the entire Chinese e-commerce and even the retail industry.

At this time, Zhang Jindong did not realize the magic of e-commerce. He was busy leading Suning to cope with the challenge from Gome. This is the best era for China's home appliance chain retail industry. With the improvement of consumers' living standards, home appliances have become just-needed. On the Forbes China Rich List, Gome founder Huang Guangyu has topped and Zhang Jindong has also entered the top five.

An accident stopped the era of double-headed home appliance retail industry. Huang Guangyu was imprisoned, and Gome broke out in the fight. Suning seized the opportunity and left the enemies far behind. In 2009, Suning opened its old rival Gome, becoming the latest and unique hegemon of the home appliance chain retail industry.

But a brand new, powerful, and more adaptable competitor has come to Suning. After defeating the state-owned shopping mall through the downsizing, Zhang Jindong found himself into the "low-dimensional" player.

Around 2012, the once-famous traditional retail industry began to face the first dilemma. Suning's net profit in the first half of the year fell by nearly 30%. The old rival Gome's sales revenue in the first half of the year fell 22% year-on-year, and the net profit loss was 500 million yuan. What followed was the first wave of closing stores, Li Ning in China, the first department store in Shanghai, the department store in spring, and the home Debao in foreign countries.

Sliding from the peak to the abyss is often not “calling”, and the crisis of the toe is like a black Mamba snake.

This part of the market space was quickly seized by e-commerce. On May 26, 2011, Alipay received a payment license, which completely changed the history of the retail industry. Online ordering, electronic payment, and home delivery have gradually become the daily routine of the retail industry (before, Taobao users still use the transaction mode of face-to-face or postal remittance). In 2012, the transaction volume of Double Eleven had exceeded 20 billion yuan, which exceeded the number of many physical retail giants for one year.

In those days, physical stores were even known as e-commerce's “fitting room”. According to industry figures, in 2013, the gross profit margin of supermarkets and convenience stores was between 15% and 20%, the department store number was 20%, the specialty stores and specialty stores were 20% to 25%, and the gross profit margin of large supermarkets was only 15%. Around %, the gross profit margin of all physical retail formats in the third quarter has dropped significantly compared with previous years. You know, before 2009, e-commerce was also seen as a “sewage” by traditional retail channels. But now, e-commerce has long been the vane of the entire retail format. In the entire industrial chain, e-commerce not only seized the market of traditional channels, but even forced the entire production industry to undergo great changes.

The fastest-growing decade of traditional retail development has passed, and now it is the e-commerce model that is more in line with the times.

The thorns were on the back, and Zhang Jindong felt a chill. As a member of the National Committee of the Chinese People's Political Consultative Conference and a deputy to the National People's Congress, Zhang Jindong has repeatedly submitted e-commerce proposals, such as the e-commerce platform's first question and responsibility, and the system to shield the network from counterfeiting and inferiority. This is regarded as a concentrated counterattack of traditional retail channels on e-commerce, “Su Ning I often face such challenges. When I was attacked by the two sessions, Ma Yun (chairman of Alibaba Board of Directors) held ‘ machine guns & rsquo; facing the report, saying that our physical store is going to rent, there is no way Survival, all must be turned off, in the future only e-commerce and so on. ”

In 2012, the online and offline contradictions intensified, and several domestic retail giants set off a price war in the home appliance battlefield, which was called “The Battle of 815”. In the form of Weibo, Liu Qiangdong, the founder of Jingdong Group, declared that all the major electric appliances are guaranteed to be 10% cheaper than the Gome Suning chain store. After dispatching the staff to the Suning Gome store, Suning Tesco and Gome also announced that they will join the price war. Suning said The price of all products, including home appliances, is inevitably lower than that of Jingdong. Consumers who have already purchased will receive twice the price difference; Gome said that the online store price of the online store will be 5% lower than that of Jingdong Mall, and maintain the same price online and offline.

But the essence of this retail game is to find the shortcomings of the opponent and strengthen their own advantages. In 2009, Zhang Jindong decided to transform the Internet. In 2010, the Suning Tesco trial operation opened the curtain for Suning's transformation to the Internet. In 2013, Suning announced that from June 8th, all the products sold in Suning stores in the country will be the same price as Suning Tesco.

This is a transformational attempt that is not optimistic and pressured by the outside world. Take Gome, which is almost simultaneously e-commerce, for example. In 2012, Gome listed companies suffered their first losses since listing, and revenues fell 20% year-on-year. Net profit was The loss was 597 million, and the business of e-commerce was the main cause. Its performance announcement shows that e-commerce sales revenue is about 4.4 billion less than 10% of total revenue, and the loss rate is as high as 15%-20%, resulting in a loss of 500 million for listed companies. Similarly, Suning's net profit for the first quarter of 2012 fell 15% year-on-year, the worst performance since its listing in 2005.

More retail channels have also joined the wave of e-commerce: In 2009, Zhongguancun's most typical 3C store, Hailong and Zhongsou, established the Dajiuba website, trying to build a B2C platform, but the pricing of many of its products is even better than the price of the scammers. To be higher, the website is even more shameful; in December 2010, Dajiubao had to transform into a price comparison website to guide the e-commerce platform such as Taobao and Jingdong. In the supermarket chain, Wal-Mart acquired the No. 1 store and RT-Mart launched Feiniu.com and China Resources Vanguard launched e Wanjia.

These attempts are hard to say. In 2013, Gome and Suning made the opposite choice. Gome contracted the e-commerce business and pointed out that the online service should be offline. The e-commerce business first considered profitability and returned to the offline expansion mode. At the end of the year, Gome Online merged with Kuba. Gome said that it will not increase investment in e-commerce business in the short term, and said that Gome's current development focus is to return to the main business of home appliance retailing, and vigorously promote the establishment of stores in third- and fourth-tier cities.

Zhang Jindong is very radical and continues to strengthen the e-commerce business, saying that Suning Tesco has to “sell 30 billion” sales, “recreate a Suning” online. In 2014, Suning's operating loss was 1.459 billion yuan, only 8.6 billion yuan in profits through asset operations, and Gome, which gave up its aggressive strategy, achieved profitability in listed companies.

Hand in hand Ali: China's retail group army era

In August 2015, Zhang Jindong suddenly dropped a blockbuster, and Suning announced a share swap with Alibaba.

Prior to this, no one would expect the largest online and offline retail platform in China. The two companies that once had the same momentum would choose to shake hands without warning. Alibaba announced the news on Guanwei: Alibaba and Suning Yunshang reached a comprehensive strategic cooperation, Alibaba Group will invest about 28.3 billion yuan to participate in the non-public offering of Suning Yunshang, accounting for 19.99%, becoming Suning Cloud The second largest shareholder; Suning will subscribe for no more than 27.8 million shares of Ali New Shares for RMB 14 billion, accounting for 1.09% of the total share capital.

“The two companies did have competition before, but when I talked with Ma Yun, I found that the two sides have very close views on many issues and have a basis for cooperation. ” Zhang Jindong said the details of Suning holding Alibaba, "We started talking about cooperation two months ago, is an efficient decision. Two days ago, even inside Suning, this was a highly confidential matter, with only a few people involved. ”

In the past 4 years, Suning has sold all the shares of Alibaba and has benefited a lot. But the more important significance of this cooperation is that the online and offline leaders have a deeper understanding of each other.

Before the cooperation, Alibaba has become a super giant in China's e-commerce industry and a major source of traffic. There are data showing that more than 80% of China's e-commerce industry's self-produced traffic comes from Ali, while Suning is the largest offline retail channel in China. First, especially in the field of home appliances is a well-deserved king, the store is full of the country.

But both sides have hidden concerns. For Alibaba, online traffic is almost exhausted, and offline partners are particularly important. Alibaba Group CEO Zhang Yong once said, “Intime is a platform for Alibaba to carry out online and offline integration and innovation of retail commerce. In the era of integration of the real economy and the digital economy, if Alibaba is the Air Force, then we need to find an army partner to form an integration. Power, this army partner is Yintai. ”

After the cooperation, Suning became another army of Alibaba. Compared with Intime, Suning has more stores and a wider range of consumers. This is a much larger army team. Suning is just the opposite. Despite the advantages of cable stores, the market share of its Internet platform Suning Tesco is constantly being squeezed.

On the day of the cooperation, Sun Weimin, vice chairman of Suning Yunshang, elaborated on the direction of cooperation between the two parties: online business Suning will open a flagship store on Tmall Open Platform; in the logistics business, Suning Logistics will serve as a rookie network logistics service on Alibaba's open platform. In terms of after-sales service, Ali's after-sales service network and logistics services will be provided to “Suning Tesco Tmall flagship store”, Tmall and Taobao; in the store business, all stores in Suning open logistics services to Alibaba users. After-sales service and payment settlement services; in the O2O business, the two sides will use advanced methods such as big data, Internet of Things, mobile applications, financial payment to create O2O mobile application products.

The reason why Alibaba Group and Suning embrace each other is that the traditional Internet dividend has disappeared, the growth of mobile Internet has also slowed down, and the fields of Internet finance and network information are facing strong regulation. The environment of China's Internet has deteriorated and the space for innovation has been compressed. Internet companies have great revenue growth pressures and must seek greater development by entering traditional enterprises. At the same time, the traditional corporate ideas have also changed a lot. From the years ago, Internet companies did not see it. Towards the e-commerce and Internet financial services, traditional enterprises encountered difficulties, and they needed to rely on the network + Way out.

This means that the Chinese retail industry (online + offline) is entering the era of group army operations. After many similar investments and acquisitions, this field has formed an Ali-centered Gaoxin, Bailian, Yintai, Suning, and Real Home. The group surrounded by Sanjiang and other groups represented by Tencent, Jingdong, Yonghui and BBK. The difference is that in Ali's system, equity investment and strong control are often the mainstay, while Tencent's system is closer to the smart retail “water and electricity coal” infrastructure construction.

Fine-tuning many times: the challenge is still there, continue to run wild

On the evening of March 29, Suning Tesco released its annual report for 2018. The company's annual operating income was 254.957 billion yuan, a year-on-year increase of 30.53%. The net profit attributable to the mother reached 13.328 billion yuan, a year-on-year increase of 216.38%.

In fact, most of the profit comes from the sale of Alibaba shares: Suning Tesco sold Alibaba shares in 2018, net of initial cost capital and share-related costs, realized a net profit of 11.012 billion yuan, accounting for the current period The net profit of the mother was 82.63%; in 2018, the non-net profit that truly reflected Suning's own hematopoietic capacity was -3.59 billion yuan, compared with the -0.88 billion yuan in 2017, the loss increased by 306.65%. The financial report shows that the loss of non-net profit mainly comes from Jiangsu Suning Tesco Co., Ltd. and Chongqing Maoning E-Commerce Co., Ltd. (hereinafter referred to as “Cat Ning E-commerce”), with losses of RMB 840 million and RMB 1.107 billion respectively. After calculating the proportion of Equity Shares, it affected the parent company's net loss of 685 million yuan and 565 million yuan respectively.

Suning did not stop expanding. In November 2017, Zhang Jindong proposed to complete the goal of opening 5,000 new Internet stores in 2018. On March 18, 2019, Suning Store announced that the 5,000th store in the country had landed in Chengdu, and only 29 Suning stores were in late 2017. Bao Junwei, president of Suning Xiaodian, once said that the cost of a Suning store is about 1 million. This means that in the past year and a half, Suning has invested 5 billion yuan into the Suning store. Another figure shows that as of the end of July last year, the self-operated Suning store had a revenue of 140 million yuan, a net loss of 296 million and a debt of 653 million.

However, Suning store is considered to be the next future of Suning. According to "Shennet", the observation in Suning store shows that in addition to the retail business, Suning has also introduced Suning Room, Suning Guest, Suning Lottery and Suning Finance. Wait for a number of other proprietary businesses. The head of Suning Fast Consumer Group, Shannon, positioned Suning Store as “O2O Community Store” to provide offline ports for other brands of Suning Tesco.

More importantly, Suning store will help Suning to grab market space in the first- and second-tier cities where retail is very popular. Suning insiders told Tencent's “Deep Net” that “Suning Store is not only a platform-level traffic entrance, but also The community scene determines the high-frequency consumption attributes and user stickiness. In addition, it can completely solve the “last mile pain point”. This legacy of the e-commerce era is also an excellent scene for the expansion of commodity categories and services in the post-e-commerce era. ”

At present, Suning has entered the era of Wandian and established “two big (Suning Square, Suning Tesco Life Square), one small (Suning Small Shop), and more specialized (Yundian, Red Kids, Studios, Sports, Auto Supermarkets) Etc.) Multi-dimensional layout. At the beginning of this year, Zhang Jindong announced that Suning Tesco has established five major commodity groups, including Home Appliances Group, Consumer Electronics Group, FMCG Group, Fashion Department Store Group and International Group.

After the adjustment, Suning Tesco Cloud Store is no longer limited to electrical appliances, but is a full-service department store such as electrical appliances, supermarkets, and mothers and children. This is in line with the philosophy that Zhang Jindong once proposed, “No matter how the industrial layout of Suning will be extended in the future, retail sales will always be 1, and all other industries are 0 behind this one. By adding 0, the overall resource strength of Suning Retail is doubled. Industry competitiveness. No, no other industry can talk about it. ”

In recent years, along with the promotion of the transformation business, Suning has also made a number of investments or acquisitions: Jiangsu Bank, China Unicom Mixed Exchange, Wanda Commercial, Hengning Commercial, Suning Finance, Tiantian Express, Hammer Mobile, Hot Mom Gang and so on. Judging from the current situation, most of Suning's investments are mainly business-related. The main goal is to serve Suning's entire ecological chain. Some investments and even losses have become the norm (every day express, hammer). The latest big deal is also an acquisition. On February 12 this year, Zhang Jindong announced that it had officially acquired 37 department store stores under Wanda Department Store. On May 15th, Suning Tesco announced that 37 stores of Wanda Department Store will be officially renamed as Suning Tesco Plaza and will be built into a smart retail plaza.

Investment, acquisition, Suning Group carries huge financial pressure. According to the data, in 2018, the company issued bonds of 10 billion yuan, more than half of the total bonds issued since the company's listing. The balance of long-term and short-term loans at the end of the year totaled 29.143 billion yuan, up 150.93% year-on-year. The company's interest-bearing debt ratio reached a maximum of nearly 10 years. Level.

However, compared with some Internet companies, Suning has very stable store resources and mature income structure, which has become the moat of Suning. In the past two years, the quality of store operations in Suning Tesco has improved. In the first half of 2018, the sales revenue of home appliances 3C home life professional store, Suning Tesco direct store and Suning red kid store increased by 5.26%, 24.74% and 49.08% respectively. The 37 Wanda department stores acquired at high prices are also in a profitable situation. In March 2018, “Entrepreneur” quoted insiders of Wanda Plaza as saying that “Wanda Department Store began to make substantial profits in 2017, with steady growth in annual sales and passenger flow, and net profit year-on-year. The growth rate is around 60%, which is the best year in the past decade. ”

on the other hand. The structure of the domestic retail industry is undergoing significant changes. In 2016, the data of China's listed retail companies showed a “750” model (the head 7 companies achieved revenues of more than 50% of total revenue), and 2017 has become “650”. (Jingdong, Alibaba, Suning Tesco, Gaoxin Retail, Vipshop, Gome Retail, etc. 6 companies accounted for 51.76%); in terms of net profit, it changed from "570” to “370” (Ali Three companies including Baba, Jingdong and Suning Tesco achieved net profit of 69.98%.

Next year, Suning will usher in its 30th anniversary. In these 30 years, Suning has grown together with China's retail industry and has become the epitome of China's economic development. During these 30 years, China's retail industry has experienced many changes from planned economy to market economy, from single-store single industry to large-scale chain business, from offline to online and offline.

The total retail sales of consumer goods in China increased from 155.8 billion yuan in 1978 to 1 trillion yuan in 1992, which took 13 years; when it reached 5 trillion yuan, it took another 11 years; but from 2012, 20 trillion yuan, It took only three years to reach 30 trillion yuan in 2015.

Previously, the development of the retail industry has experienced a wide range of changes from department stores to super stores to chain stores, retail goods are becoming more and more abundant, and retail efficiency is getting higher and higher. With the advancement of technology such as telephone, television and internet, retail has gradually changed from traditional offline retail to telephone shopping, TV shopping and e-commerce, while e-commerce has evolved from the desire to replace traditional retail to actively integrate with traditional retail. And then to the new retail model.

Obviously, every time the retail industry upgrades and progresses, the essence behind it is the improvement of sales efficiency and the leap of technology. The ability to seize opportunities in an era of technological leap will be the ultimate challenge for Suning.

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