Gome'S Vigour: Rejuvenated Under The Line, The Electricity Supplier Continues To Be Conservative.

The overall gross interest rate was 18%, the net profit was 18%, the net profit was 582 million yuan, the same store increased by 12.4%. The report card, which Gome handed over in the first three quarters, was satisfactory from any point of view.

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At the same time, Gome shares rose 5 months in a row, rising from HK $0.62 in July to HK $1.48 yesterday, or more than 139%. P

Gome, an old retailer, began to emerge from last year's massive losses and revitalized itself.

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< p > recently, Gome President Wang Junzhou relaxed in front of the media and talked freely about how to rebuild the Gome in a year, refine the supply chain and refocus the main business out of the predicament.

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< p > refocus on core business < /p >

The autumn of last year is the most painful moment of Gome. P

In the first three quarters of last year, with the three main reasons of declining sales revenue, rising rental costs and loss of e-commerce business, Gome listed companies suffered a partial loss of 687 million yuan. The group had to start large-scale layoffs to save the situation.

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< p > "huge losses bring enormous psychological pressure to our employees. Last year was the biggest loss of our team."

Wang Junzhou described 2012 as "torment".

He said, "in the past, we did according to the old rules. In fact, many retailers did not form core competition, and opened shop quickly as a way of growth. With the increasing number of stores, the sales capacity of stores was getting weaker and weaker. This is the current situation faced by Gome."

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< p > Wang Junzhou revealed that the biggest change of Gome was the purchase of "one step price".

In the past, Gome has always adopted the traditional rebate mode, that is, the selling price is made by the brand dealers.

The advantage of this model is that Gome does not need to worry about losing money, so as long as it sells a commodity, it has income, and the remaining stock is returned to the manufacturer. The disadvantage is that it can not control the retail price.

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< p > the "one step price" mode is totally different from the rebate. It is fully underwritten by Gome's bid purchase, and the retail price is controlled by Gome itself, but there may be a risk of losing the goods in their own hands.

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< p > "we cut the purchase products into low, medium and high end, and adopt the one-step price mode for the low and medium end products. The retail price will be priced according to the market and how much other people sell, and I will be 100 cheaper than him. The high-end products will be differentiated. Some brands, such as big screen 3D TV, open door refrigerator, etc., can be underwritten by underwriting."

Wang Junzhou said.

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< p > in his view, Gome has achieved the double effect of pursuing low prices and achieving high gross profit through the adjustment of procurement methods.

"By adjusting the product structure, on the one hand, we should raise the price and pull the gross profit on the one hand, so that the average gross profit margin of the company will increase every year."

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< p > supply chain cost advantages show < /p >

Another important adjustment in P is in warehousing and logistics.

In the past, the warehousing and logistics of Gome belonged to various subsidiaries, and each subsidiary built its own logistics to provide services for its own stores.

But the problem is, they only serve their own region, and can not form a resultant force. Therefore, Gome stripped the storage and logistics of each subsidiary company, unified management, and built the overall supply chain management platform.

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< p > over the past few years, Gome has invested heavily in the establishment of an information platform for SAP retail management, sharing information with suppliers in order, inventory, reconciliation, settlement and other aspects, promoting product sales through quick replenishment of stores, and speeding up turnover of sales.

In the first three quarters of 2013, inventory turnover days decreased by 14 days, resulting in a positive cash flow of 1 billion 90 million yuan.

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< p > Wang Junzhou said that in the past, choosing the store is the most important task of Gome, and the size, location and decoration of the store are very small. Now the supplier is the core department.

"No matter which format it is, as long as you do retail business, you don't have a good grasp of the supply chain. You can't shop anywhere."

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< p > in Wang Junzhou's view, Gome has two advantages in warehousing and logistics: first, the low cost advantage accumulated by long-term operation.

"Gome's main warehouses have been accumulated over the past years, and other e-commerce sites have begun building warehouses in recent years, which is much higher than that of Gome."

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< p > second is the delivery link. Gome only 1/3 of the goods should be delivered to the customer's home, 2/3 is the customer taking it in the store, and the electricity supplier is 100% of the goods must be delivered to the door. Only the logistics cost in this respect is comparable to that of the Gome store.

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< p > in fact, most of the Gome's choice is to cooperate with the third parties.

"The core link of logistics is our own, the last kilometre of work is given to the third party to do it, who will give it to me in time and who will do it professionally, and give it to professional people."

Wang Junzhou said.

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< p > Gome online continues to adopt conservative strategy < /p >.

The biggest worry of Gome's business is p business. Although Gome's net loss in the first three quarters is only 240 million yuan, gross profit margin has risen from 2.7% last year to 5.6%, but on the scale, Gome online is still in the "soy sauce" position in the electricity supplier industry.

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< p > Wang Junzhou admits that the sales volume of Gome online is about 40-50 billion yuan this year, unchanged from last year.

Compared with the year-on-year growth of nearly three digit sales volume of Jingdong and Suning, Gome's conservative investment in electric business means that it is against the tide to go backward.

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< p > in fact, Gome's demand for electricity supplier business has always been a profit rather than a scale. Internally, it has repeatedly stressed that the business of e-commerce must be eliminated, "to raise the gross margin and realize the profitable and sustainable development strategy of the electricity supplier".

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< p > in the view of He Yangqing, vice president of Gome, the electricity supplier has not made a great impact on Gome.

"There may be dozens of pages for certain categories of household appliances, but the number of people on the first page is over 70%, only second on page 20%, and 10% on the back."

He Yangqing said that the products on the first page of the electricity supplier are often low-end products. Gome uses the one-step pricing method to underwrite these products and maintain the price advantage, so it is easy to pull customers over.

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At the same time, "Gome" will create a good parity environment in the whole country, achieve real-time Internet price parity in the store, and install the Jingdong and Suning clients on the cell phone. If consumers have doubts about the Internet price at any time, ensure the price advantage under the line, pull consumers from the Internet to the store. "P"

He Yangqing said.

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< p > when asked if it is worried that the electricity supplier will become the biggest worry of Gome in the future, Wang Junzhou said, "now the main competitors are losing money. If they have been losing so much, they can persist for several years. Finally, they left behind. There is no doubt that they are rich in their pockets.

In this case, why don't I leave the money first to make sure that there is money in the pocket, and so on when the electricity supplier business finds the direction of profit? "/p".