Suning First Commentary On The War Between The United States And The United States: Value Determination Strategy

0493.HK contention is still the hottest topic in the retail industry.

In November 4th, at the "2010 China retail Leadership Summit" sponsored by China Chain Store Association.

For the role of Bain Capital in the control of the Gome, Wang Ping, chairman of dragon capital, who invested in dozens of enterprises such as Wanda Group and orient home, said, "the characteristics of Bain as an investment capital in pursuit of interests are understandable, but at this stage of development, no one can tell how the second half is."

In November 3rd, our reporter was informed that negotiations for the Wong Kwong Yu family's resolution to resolve Gome's control rights, including the future development direction of Gome and board structure, continue to ferment.

The specific contents include: the direction of Gome's future development is mainly to adhere to the idea of expansion led by Wong Kwong Yu, or to the development of efficiency led by Chen Xiao. There are two schemes for the board of directors: one is to add two representatives of the Huang family to the existing 11 board members, and the other is to replace two representatives of the Huang family in the existing 11 board members.

A spokesman for the Wong Kwong Yu family said, "too much interest is involved and there is no way to predict when a breakthrough will be made."

Sun Weimin's first talk about Gome

As the biggest competitor of Gome, Suning Appliance has been keeping tabs on the dispute over the control rights of Gome for more than two months.

After the arrest of Wong Kwong Yu, the board of directors, represented by Chen Xiao, advocated the strategy of improving efficiency and closing bad stores, which slowed down the pace of expansion compared with the previous ones.

This has also become one of the important reasons for the Wong Kwong Yu family's concern that Gome will lose competitiveness and distrust Chen Xiao's retention.

The two giants of home appliance retail industry, Suning and Gome each have their own emphasis. Suning is more efficient and quality. In the Wong Kwong Yu era, Gome expanded the logic of expansion.

For Gome and Suning mode, Sun Weimin believes that "the strategy of the enterprise is subject to the decision of the leader, and no matter how the competitor is, Suning will adhere to the" backstage "priority development strategy.

Backstage priority, that is, relative to rapid expansion of stores, focus on supply chain, organizational structure and other overall supporting capacity building.

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In fact, the "background priority" Suning has achieved the pcendence of Gome from the expected speed of expansion.

Zhang Jindong, chairman of Suning, announced at the end of September in Nanjing that there were 400 new stores planned for Suning in 2010.

In August 23rd, Gome semi annual press conference, Chen Xiao announced the 5 year plan of Gome's opening up in the next 5 years, which said that the United States will open 700 new stores in the next 5 years, less than half of Suning's 5 year plan.

As a listed company, in dealing with the relationship between investors and the public interest, Sun Wei Min revealed that "Suning has always insisted on holding a respectful attitude but not catering to it."

Enterprises must have their own development logic. This is something that enterprises must insist on.

Besides discussing the development mode of the dispute over Gome control, Sun Weimin believes that the retail industry has entered the era of diversification.

The economic development difference between the East and the west, the two market structure of urban and rural areas, and the disparity of per capita income are the reasons for the diversification of retail sales.

In order to cater to the trend of diversification, Sun Weimin said Suning has been insisting on innovation in multi-channel areas.

According to its introduction, Suning's main operation channels include group buying channels, retail outlets and Internet channels.

According to the established plan, Suning's online sales channel suning.com, this year's sales is expected to be 1 billion 500 million yuan.

Role of capital

Bain Capital plays a special role in the dispute over the control of Gome, which makes many local retailers face love and hate in the face of capital market.

For the role played by Bain Capital in the dispute over the control of Gome, Wang Ping, the first chairman of the Dragon capital, who had the capital contact with the Five Star appliance and had 20 billion yuan in retail investment, said, "as Bain's domestic counterparts, he can not comment too much, but the capital characteristic is the pursuit of high returns, which is understandable."

Wang Jianguo, chairman of the former five star appliance and chairman of the five star holding company, said: "the retail industry is characterized by speed and scale, which determines that the retail industry must embrace the capital market and realize the rapid development of the enterprise through specialization."

According to its introduction, around 2003, the five star electric appliances did not realize the docking with the capital market, mainly through their own funds, bank loans and suppliers' accounts. At that time, Five Star appliances owed hundreds of millions of dollars to banks.

Wang Jianguo, who has two direct investment firm and 3 years' indirect investment companies, said: "many retailers should take the attitude of" early love and cautious marriage "in the capital market.

According to its introduction, due to the fact that the domestic retail enterprises' due diligence is more complicated, it usually takes at least one or two years to reach a real communication with investors.

At the same time, the capital side must have common development goals with enterprises.

Wang Ping believes that retail industry, which is closely related to consumption, remains the focus of investment in capital market.

However, he said, "before, the PE market dominates the retail investment market in China, and the next 5-10 years will be the dominant era of domestic investment."