Suning Wanda Strategy Reinvent The New Mode Of Commercial Real Estate

Wanda and Suning worked together to clarify the relationship between commercial real estate enterprises and retail enterprises for the first time. That is, in the era of commercial real estate stock operation, the core competitiveness of commercial real estate enterprises is not to sell shops, raise the price of shops, nor to develop online consumption, but to do well in investment and matching, and provide services for retailers with suitable rents. Retailers do not need to build their own commercial real estate. Rather, they should make the best use of and integrate the offline traffic to better develop the online business, and ultimately improve the welfare level of consumers, and ultimately achieve the win-win situation between the two.

For Suning, in the Internet age, it is a magic weapon for competition to master more traffic flow and expand traffic volume. According to the original plan, Suning can only rely on its real estate enterprises - Suning real estate constantly building Suning Plaza and Life Plaza, or opening chain stores. However, after the oversupply of commercial real estate, new commercial real estate projects contribute less and less to traffic, while opening stores in other commercial centers face the problem of high rent and small profits. But in Wanda Plaza, not only the rental cost is very low, but also the mass consumption of Wanda Plaza under the line, which is the shortcut of the Suning integration line and the coordinated development of offline and online.

For the "Su Wan cooperation", Wang Jianlin and Zhang Jindong, both leaders of the two sides, praised the prospect of cooperation with "complementary cooperation" and "mutual benefit and win-win". In the new four pillars of Wanda's "light assets" transformation (Commerce, finance, culture and e-commerce), commerce ranks first. As a national Commercial real estate Aircraft carrier (the end of this year will become the world's largest), holding 25 million square meters of commercial area, Wanda Plaza passenger traffic in 2015 will reach 2 billion passengers, and will reach 10 billion passengers in 2020.

According to Wang Jianlin's "Wanda philosophy", the core of Wanda's mode is to take advantage of the low price in the second tier cities and the three or four line city centers. Through the "order business", we can build the city's "new center" so as to raise the premium of the regional property sales and finally realize the "selling rent". To sum up, Wanda's core competitiveness is to improve regional matching through a short period of time, so as to make a barren land valuable, which is different from the commercial real estate business capability.

When we bid farewell to the "horse race enclosure" into commercial real estate operation, Wanda should raise the operation level of the commercial commercial property area on the one hand, that is, the more than 100 Wanda Plaza and 25 million square meters commercial area will be "prosperous"; on the other hand, we should deal with the impact of the Internet and actively turn to O2O. Looking at the former, it is obvious that under the "order business", the department stores, KTV, and businesses that focus on value added rather than business for selling property (including residential and sold shops), are inefficient businesses in the stock and commercial surplus era, and need to be completely reformed or even changed.

This year, Wanda quickly switched off department stores and KTV, in order to eliminate them. Inefficient business 。 At the same time, the biggest impact on the Internet is the commercial retail industry. How to improve the offline experience is the only way for retailers to survive and develop. Suning did the best in this respect. Suning, the first seller of offline appliances, now has 1637 stores, covering the largest retailer in China, including household appliances, 3C, mother and baby, department stores, supermarkets, clothing and so on. Suning has established 1637 consumer experience centers, including Suning Plaza, Life Plaza and chain store, in 292 cities across the country and Hong Kong, Macao and Japan. Therefore, the introduction of Suning to Wanda Plaza, in addition to improving the operating capacity of shops, learning Suning how to meet consumers' offline experience needs is also the key.

Looking at the impact of the Internet again, the offline experience has been completed, and the transition to online has come to an end. Sunning's online platform suning.com grew up like this. At present, suning.com ranks third in the domestic electricity supplier platform. In the first half of 2015, the trading volume of Suning online platform reached 18 billion 167 million yuan, an increase of 105% over the same period last year.

However, Internet Pay attention to first impressions (flow entry) and scale effect (traffic is king). The general rule is to solidify consumption habits and gradually expand consumer groups after being predominant, and to form the scale effect of traffic through the Internet propagation effect and commodity richness, and finally become the industry leader. Whether the online leader (Tmall, Jingdong, vip.com), or from the offline extension to the online retailer (Suning and GOME) all came into being a few years ago under this rule.

Wanda has missed the "first taste soup". It is too difficult to squeeze into the line and become a commercial leader. Wanda has the largest flow entry under the line, but Wanda Plaza is at best the focus of consumers' offline choice, and consumers are more convenient, richer and more cost-effective than consumers if they consume online. In addition, Wanda's integrated traffic entrance is also very difficult, because under the pressure of transformation, other commercial real estate enterprises (such as Joy City, World Trade Plaza, the Mixc, etc.) are doing likewise. What is more, the Wanda electricity supplier, which is highly expected, is also unable to integrate the APP of Wanda cinema under Wanda, because the latter belongs to the core assets of high valuation of listed companies.

Therefore, Wanda can only sacrifice its own commercial consumption flow and boost Suning's continuous expansion and consolidation of the leading position of online business. At the same time, under the premise of dislocation development, the other three pillars of Wanda can share offline and online traffic after Suning integration, such as online finance and public funding, online travel, cinema, e-commerce, etc. In the era of personalization, differentiation and experiential consumption, the relationship between leather and wool is the relationship between the line and the line. After the integration of the maximum consumption volume, the online consumption will form a virtuous circle. This is also the foundation for mining other consumers' needs, and will also boost the other three pillars of Wanda.