Behind The Tragedy Of Suning Pformation Is The Collective Predicament Of The Retail Industry.

< p > Su Ning Yun issued a 2014 first half performance bulletin.

Data show that in 2014 1-6, Suning achieved a total revenue of 51 billion 160 million yuan, 55 billion 532 million yuan in the same period last year, down 7.9% compared with the same period last year. The net profit loss attributable to shareholders of listed companies was 749 million yuan, a net loss of 734 million yuan in the same period last year, an increase of the same period last year.

Online income was 8 billion 280 million yuan, down 22% compared to the same period last year, 10 billion 610 million yuan in the same period last year.

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< p > < strong > Su Ning really returned to < a href= "http:// www.91se91.com/news/index_c.asp" > pformation /a > fast lane? < /strong > /p >

< p > after the earnings data came out, some media interpreted that Suning has entered the fast lane of pformation (return to growth channel). The basis for this judgement is a 23.71% increase in the chain, with an increase of 50.97% in line sales revenue.

This inference is obviously untenable, and it does not consider seasonal factors.

If compared with the two quarter of last year, operating income was 0.14% less than the same period last year.

In terms of net profit, the loss in the second quarter was 31 million 533 thousand yuan.

Whether income or net profit, the reaction data is negative growth, and how can we go back to the fast track of pformation? < /p >

< p > for the industry downturn, Suning attributed the following reasons: on the one hand, the industry boom is relatively low, and the external impetus for enterprise growth is insufficient; on the other hand, in order to fully highlight the strategic layout of cloud business, the company implemented a series of organizational adjustment and Optimization in line with the Internet retail mode at the beginning of the year.

Among them, the PPTV operating losses invested by the company affect the investment income by -8115 million yuan.

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The two reasons for P are obviously unreliable.

First of all, the industry boom declined, and Suning's old friend Gome recorded positive growth figures.

Gome's first half performance forecast shows that sales revenue of Gome listed companies has increased compared to the same period last year, of which sales growth of comparable stores is expected to exceed 7%, while Gome sales in the first half of the year increased by 50% compared with the same period last year, and gross profit margin is expected to exceed 7%.

Another second reason is Suning's organizational adjustment in line with the Internet retail mode.

If this reason is established, is it possible to say that Suning has acknowledged the failure of its pformation? Besides, this logic of Suning is not true. The pformation itself should not bring about a decline in operating income, and it should only be its profit, and the actual situation is that the income of the whole industry is declining.

Finally, we can compare suning.com and Jingdong data. Suning.com's sales revenue in the first quarter of 2014 was 3 billion 300 million yuan, down 26.65% compared to the same period last year.

Jingdong's net revenue in the first quarter of this year was 22 billion 657 million yuan, up 65.1% over the same period last year.

And this is sunning's 4 quarter year-on-year growth rate down for the first time in a row. Obviously, suning.com has already hit the ceiling of growth, and the business gap with Jingdong is getting bigger and bigger.

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< p > < strong > half a year < a href= "http:// www.91se91.com/news/index_c.asp" > Suning /a > what has been done? < /strong > /p >

P's sunning's loss in the middle report is expected, but the decline in revenue is also a bit disappointing.

During the six months, Suning's pformation was frequent.

A few simple examples.

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At the beginning of P, Suning Zhang Jindong said that 2014 was the year of strategic implementation, and the O2O layout of all channels was accelerated.

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In January, Suning won the P license.

In March 17th, Suning named its virtual operator brand "Suning interconnection" to enter the mobile resale business.

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< p > May 16th, Li Bin, vice president of Suning cloud business, announced on micro-blog that Suning District stores will push free mobile phone service.

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In the afternoon of June 11th (P), Suning held the sports outdoor channel online and the Barca strategic cooperation media briefing in Nanjing.

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< p > July 1st, Jingdong public funding platform was formally launched on Jingdong financial column, and launched more than 10 "quality projects", involved in intelligent hardware, film and television drama, books, public welfare and other fields.

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"P" July 8th, Suning officially entered the field of crowdsourcing.

And shouted 2015 crowdsourcing business sales revenue of 25 billion yuan, 45 billion yuan in 2017 loud slogans.

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The word "P" for half a year is related to the pformation of the key word. It seems that many efforts have been made but it seems that it is not related to its main business.

What we see is that the biggest change of Suning's pformation is not from the improvement of performance, but from the rise of share prices in the two tier market.

Previously, Li Bin, vice president of Suning, has announced that Suning wants to promote free film placement nationwide, and sunning's share price has risen 3.85% the next day.

In June 10th, Li Bin, vice president of Suning Yun business and executive director of operation headquarters, micro-blog, released a message that "a good day for Chinese fans is coming. Football should not be a game for the rich and the minority. A small step out of Suning will be a big step in the future of Chinese football. See you on Wednesday."

Then the stock price surged more than 9%, creating the biggest single day increase since the end of February.

The second day proved that it was the online promotion of the world cup and the hype of the outdoor channel.

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< p > no matter how risky it is to take the "letter cover violation", keeping up with the current hot spot and constantly manufacturing concept has become the only way for Su Ning to sell in half a year.

Without good fundamentals, there are many more concepts.

The biggest problem that Suning is facing now is that the strategic layout is too fast and too wide, lacking focus, and unable to keep pace with tactical implementation.

Suning, backed by the concept, will only end up falling into a sharp fall in share prices every time.

After the noise, whether Suning is swimming naked or not, the performance can tell us everything.

In May 8, 2014, Zhang Jindong told investors that he had seen the dawn of turning straight from the bend to the straight.

But at least we haven't seen the dawn of performance.

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< p > < strong > < a > href= > http:// > www.91se91.com/news/index_c.asp > Suning /a > left to right. < /strong > /p >

< p > as Zhang Jindong said, "Suning pformation should be able to become a model and benchmark for all traditional enterprises and entities in China to embrace the Internet."

180 thousand the number of employees and stores is more than more than 1600. Such strategic layout and adjustment, from thought to organization, to eventually push it, are indeed facing enormous challenges.

We should undoubtedly give more tolerance.

Therefore, the purpose of writing this article is not to black Suning, but rather to stand on the role of spectators to make suggestions to see if we can scrape scraps for this retail giant.

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< p > 1. Enhance the ability to focus.

As a giant in the retail industry, Suning does not seem to understand the nature of retailing. In this wave of Internet tide, it always blindly follows the crowd, is keen on conceptual speculation and capital operation, but does not continue to focus on its main business.

In the past six months, Suning gathered a lot of flash lights, and it was undoubtedly successful in marketing, but there was little lack of focus. No one knew what Suning wanted to do. Even Suning himself did not know what was going on. What was the concept of fire on the outside? This half year came down with a lot of concepts. What open platform, O2O, crowdsourcing, crowdsourcing, finance, intelligent hardware almost ran behind others' butts, and did not have their own business rhythm at all.

This is what Suning wants to reflect on.

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< p > two, grasp the pain point.

What is the pain spot of Suning? Only when we know the pain point, can we prescribe the right medicine.

At present, there are two main points: poor service experience and low traffic flow.

Service experience is poor, which is the biggest doubt outside.

Although Suning claims that there are not second enterprises in China that have such a large logistics construction, so the biggest and the best are two concepts. Compared with Jingdong, at least there is still a gap in the logistics experience.

The service experience of consumers is not compared to your past, but to competitors. Because Jingdong's service experience, especially the logistics experience, is doing well, consumers have more stringent requirements for services.

Suning should listen more to the real voice of consumers. It is undeniable that Suning has made great improvements in the logistics experience in the past six months, but can your improved consumers know that? Why not spend so much energy in marketing propaganda, why not advertise more on services? Besides, the downward trend of traffic volume, consumers' habit of shopping online for standardized 3C products has already been formed, and the flow of people in stores is now almost irreversible.

To do retail, whether online or offline, the essence is the flow problem.

The most reliable thing of Suning in the first half of the year is mobile phone free film, but this is just a drop in the bucket. The cost of drainage is very high. It requires special staff to be responsible for receiving twenty or thirty customers a day.

In fact, one of the best ways to increase sales in traditional retailing is to set up shop.

Open more stores, open a good store, increase the sales of single stores.

But from the first half of the data, Su Ning opened 62 new stores and closed 64.

It takes much effort to rise or fall.

At present, the ShoppingMall pedestrian flow is the largest in the offline retail system, similar to department stores and Wanda Plaza.

At this point, Suning should learn more from GOME and make use of others' passenger flow to guide himself.

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< p > three, extending to the upper and lower reaches of the industrial chain.

Suning traffic is declining.

Suning's most valuable resource is stores, and the most valuable resources are stores.

The advantage of a good store is that it will become a burden to Suning if it is used badly.

Now, although Suning has made many Internet improvements to the offline stores, new Suning Internet and other display areas have been added, but the idea of selling products has not changed.

The mental model of consumer online shopping 3C products has been established. If Suning fails to provide sufficient reasons to attract customers to the store, why should customers have to shop at the store? Providing a one-stop home experience to help consumers provide home matching solutions may be a way out.

At this point, Suning can learn from the experience Museum of Shang pin.

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< p > four, how to compete with competitor PK.

The pattern of China's future electricity supplier must be stronger and ultimately oligopolistic.

As Liu Qiangdong said, there will be only a few left, and now it has dropped from more than 30 to more than 10.

If Suning's service experience, especially the logistics experience, can catch up with Jingdong, the online continuous price war will occupy the market share and make consumers form the mental model of "Suning" on the cheap 3C products. Veterans think it is meaningful.

Conversely, Jingdong's successful B2C strategy has little chance of fighting Suning with Jingdong.

Suning can consider using C2B's play to provide consumers with personalized home matching experience, which will drain customers from online to offline stores.

The second path is the separation of suning.com and offline stores.

Now suning.com and offline stores shoulder too much burden on each other, dragging on each other.

Suning.com's independent spin off and take the capital line may be a way to rebirth.

The third way is to sink the channel, to defend the three or four line cities by mobile Internet, to lay the rural market and seize the opportunity to fight the sniping war.

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< p > conclusion: as a huge retail machine with 100 billion scale, Suning's pformation is representing the collective predicament faced by the retail industry.

If Suning can succeed in pformation, it will be a great blessing for the whole retail industry and even the real industry.

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