Gome Executives Responded To Chen Xiao'S Announcement: Gome Is Facing Demonized Risk.
Chen Xiao, vice president of Gome, said that Gome would not be stopped by others because of the turmoil caused by the former chairman of the board of directors, Li Juntao.
Chen Xiao, the former chairman of the board of directors, launched the discussion on the zero supply relationship of home appliance chains. Despite reluctance, Gome was once again helplessly placed in the center of the vortex.
Recently, Li Juntao, vice president of Gome and vice president Mou Guixian, as the top two executives responsible for the specific business, broke the silence in an interview with reporters. For the first time, they responded to questions such as "entry fee" and "big leap forward". "We will not increase profits by raising the number of points."
In their view, Gome is facing the risk of being demonized.
"Take three more points."
profit
It's 7%, but it's impossible. "
Chen Xiao's Gome's "three deadly sins" can be roughly summarized as follows: first, for suppliers, Gome charges the highest entry fee in the store industry; second, Gome from headquarters to counters, every link charges suppliers; third, even Haier, SIEMENS and other family giants, each selling 100 yuan, can only get 55 yuan from GOME.
And the small household electrical appliance enterprises that are in a weak position receive less money.
Chen Xiao later told the media that this is not the expression of their true meaning, but the impact is still rapidly expanding as the butterfly effect. Some suppliers accuse Gome of rebel strongly from 16% to 19%. Some analysts say that Gome, who left Chen Xiao, will adopt the "big stick New Deal", which all point to the long-standing topic of China's retail industry - zero supply relationship.
Li Juntao denied Gome's huge entry fees and increased rebates, calling them "nonsense".
He said that Gome had completely eliminated the entry fee from 2009, and "if anyone will collect the entry fee again, he will kill him or her."
We will bring the cost of the contract into the contract with the supplier so that both sides can control the cost pparently. "
He said, at present, Gome's non operating income from suppliers mainly includes two parts: large holidays and the marketing strategy jointly formulated by suppliers. Gome will take out its own expenses, and the supplier has its own budget. The second part is the production of booth in the shop, the image and size of each manufacturer are different, the cost is very different, and the supplier should bear.
In addition, there is no question of hierarchy charges.
To improve the return of suppliers, Mou Guixian admits that there will be a game in business.
"For example, rent increases and staff wages go up, we will talk to suppliers and solve problems appropriately.
Policy is different for different suppliers. What should be considered is reasonable? "
He said Gome's net profit was about 4%.
"If we have the ability to get three more points from suppliers, our net profit will reach 7%, but this is impossible."
"45 yuan into the Gome pocket is a word game."
In fact, it is one of the "characteristics" of China to adopt the mode of selling stores instead of adopting the foreign mode of commodity operation.
In the era of oversupply, suppliers must rely on strong stores, and they will have to pay a high price if they want to take advantage of their advantages.
The home appliance store's "background profit margin" also has a return point, which together with the approach fee becomes an important source of final profit for the appliance chain stores.
The advantage of home appliance stores is that the risk of inventory is small, so that different vendors can get higher returns from bidding. The side effect is that the circulation link is accused of squeezing supplier's profits and playing an infamous role in pushing up product prices in the market.
Even if the appliance store has cancelled the entry fee in the past two years, the supplier thinks it is just "changing the soup without changing the medicine", and then has the complaint of "selling 100 yuan and selling the store to take 45 yuan".
However, for this kind of accusation, Li Juntao said it was another "concept" to steal, and it was word game.
"If that is the case, Gome has a gross profit of 45 yuan, and gross margin will be as high as 45%.
The Gome gross margin is around 18%, where is the profit margin of 27%?
He pointed out that the 45 yuan was not in the pockets of Gome, and there were too many intermediate links from manufacturing to channel terminals. The efficiency was too low, and a large part of the cost was wasted on the road.
Mou Guixian told reporters that what Gome has been doing in recent years is to promote the management of manufacturers' collaborative supply chain and enhance efficiency.
For example, the poor management of pportation, warehousing and delivery will cause many defective machines, and the cost of more than half will be knocked out.
We are now improving management with suppliers, reducing the residual rate from 2% to 0.5%, which is equivalent to saving 0.75 points. We and Haier have 15 billion sales scale a year, equivalent to the cost savings of more than 100 million, the two sides are divided into half, and a family has earned tens of millions. "
"This is the core of the retail industry, not every day to study how much money the supplier has, and then grab him."
Mou Guixian said that, in addition to the supply of management, Gome is also gradually trying to pform commodity management.
"Opening 480 new stores is not a great leap forward".
In addition to the zero supply relationship, Gome's expansion plan has also been questioned.
In Chen Xiao's view, "it is impossible for Gome to open 480 new stores, it is a way to make a fortune, not a normal way of doing business."
In response, Gome executives responded.
Gome said that Gome plans to add 480 new stores this year, which is an important step in the five year development strategy of Gome. It is a result of a scientific analysis of China's macro economy and China's two or three line market consumption, and this result is also demonstrated by McKinsey, a consultancy.
"If you only look at Gome's 480 new stores this year, you will feel a lot of goals, but Gome currently has its own network and management team in more than 300 cities across the country. If each city opens 1.6 stores in one year, it will be able to complete the target of 480 new stores. From this point of view, the 480 plan is not big."
He said that Gome has experienced the process of optimizing the store network. In the process, more than 100 stores which are not profitable and have no future growth space have been shut down. Therefore, in this round of new stores, the first thing to ensure is new stores.
Management
Quality.
All new stores will have five assessment periods in one year.
And 60% of the 480 new stores will be in the two or three tier market, providing more effective access to suppliers.
Mou Guixian revealed that from the first quarter of the shop progress, Gome has added about 150 stores, according to this speed, this year, the completion of 480 new stores can be achieved.
First visit
Li Juntao, vice president of Gome, will not be stopped because of others' slander.
Who is going to charge for admission again?
Reporter: Recently, there are many discussions about suppliers criticizing Gome's "Big Bang New Deal".
Li Juntao: you can see that our conference room on the 18 floor is not enough every day. It's the suppliers who come to us to talk about how to cooperate better.
From 2009 to now,
Administration
The floor has been told at the general meeting that whoever will take in the fee will kill him or her.
Some employees are not able to speak well, and some policies are in the process of execution. There are some possibilities, but it depends on whether our general direction is correct.
It is impossible to expand the words of a region or a supplier and erase all the good results in the reform.
Everyone is rational. If we can't make money, the upstream enterprises will not cooperate with Gome.
Our business philosophy does not allow others to fabricate.
Reporter: there is a saying that after the departure of Chen Xiao, Gome will become tough and think that in the era of Wong Kwong Yu, Gome's internal business was played out rather than talked about.
Li Juntao: our business philosophy does not allow others to fabricate.
Now, it is not a strong or weak issue. To be honest, personally, I think we have been strong enough to fight for more than 20 years. Even after 2008, we will not bow to anyone. But we can only achieve sustainable development only if the upper and lower reaches win a win-win development. This is what our management must face.
It is the core of our development that we should concentrate our attention on consumer demand.
Gome has the highest price?
This is bullshit!
Reporter: there are media reports that in Chen Xiao's view, Gome has become the highest among all channels in commodity prices, and such channels will inevitably be eliminated. What do you think?
Li Juntao: This is bullshit.
Gome has done more than 20 years to ensure that the image of low price is not stopped because of being slandered by others.
We are doing everything we can to reduce operating costs, including through scale purchase, reducing logistics and distribution costs, etc.
If we find that there is a problem with the price, even if there may be friction with the supplier, we should adjust it. This is to ensure the interests of consumers and is the minimum requirement of Gome.
In order to ensure low prices, Gome has thousands of market teams in the country, checking online every day to see how much the price of each product is to competitors.
If the price is lower than that of Gome, we will adjust it then.
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