Hou Enlong Electric Business In The Future How To Play: What To Do In Pition?

"Ping Jing campaign" is not prepared for a shopping festival. There are many misunderstandings outside.

"Ping Jing campaign" is our development strategy after six years of pformation.

With the proximity of double eleven, the electricity business war continues to heat up.

In the face of external challenges, sunning cloud business COO Hou Enlong explained to Sina Technology.

In addition to continuing to improve the supply chain, logistics and service quality, what will Suning develop in the future? Is there any new profit model?

Hou Enlong said that at present, household appliances and 3C products have basically been opened up online and offline, while Suning wants to be a O2O of the whole category. At present, the online industry is developing the whole category, while the line is still home appliances and 3C.

He also revealed that the 2 version of cloud store will be launched by the end of the year.

In addition, Suning will build an enterprise through cooperation in recruiting, paying taxes, selling, and services with four tier cities or even townships, so as to infiltrate sub cities and rural areas, and further expand the coverage of Suning logistics.

It will also introduce similar rural spark.

The partners plan to encourage entrepreneurship and further penetration.

Finally, Hou Enlong also said that in the future, he would do directional logistics services, set up bases in remote poverty-stricken counties, and pport local specialties through the Suning network to all parts of the country.

Hou Enlong responded, "I have done three things. The first thing I have done is to build a self operated supply chain. The second one is the logistics that has been done in the past two years. Third is the service that has recently been done in order to replace the old with the old, and to deliver the equipment into one."

He believes that the supply chain is always close to a principle and that the market is not something that can be done.

"Before the army and horses move, the grain and grass will go ahead."

The eight words are Hou Enlong's summing up of Suning's layout in logistics.

He introduces, take Shanghai as an example, Suning automation logistics warehouse occupies 250 thousand square meters, and daily processing capacity can reach 800 thousand pieces of goods.

Support 1 million small pieces of SKU, 15 million storage requirements.

Up to June this year, Suning has built 4 million 520 thousand square meters of self built storage base throughout the country.

He disclosed that at present, home appliances and 3C products are the main products. Suning has selected more than 1600 nearly 2000 stores nationwide to pick up nearly 2000 kinds of products. It can achieve two hours of free speed in 195 cities.

At the same time, in order to reduce logistics costs, enhance

Suning is also providing delivery and integration services in the pilot area.

In addition, there are services such as old and new, on-site inspection, after-sale training and so on.

"Robin Li never talked about O2O in the past, but now he has hundreds of billions of O2O.

Looking at the Internet Co at home and abroad, O2O is a business model that we have explored together.

Hou Enlong said that Britain, Germany, the United States and France, and foreign electric business enterprises all grew up under the line.

Even Amazon does not just develop online businesses.

The ten year of the traditional Internet Co gold has ended and the future needs to be pformed urgently.

"Consumers are fond of goods that are low in price and good in quality service, and no consumers are willing to raise prices."

He believes that although the price war is the mainstream method, the threshold is not high.

Besides coordinating with supply chain, channel can also subsidize product prices by advertising revenue.

Hou Enlong said

The next stage is logistics war and service war.

At present, logistics is divided into two parts: warehousing and distribution.

Hou Enlong said that warehousing links need time to accumulate, not purely by money.

With the development of population, it is difficult for many governments to approve the application of land to establish a storage base.

And if we choose to rent, then the logistics cost reduction space is difficult to reduce.

The warehouse management mode of traditional people looking for goods is too expensive.

Take Suning storage as an example, after automation pformation, the cost of 3000 people can be seen for the compilation of 3600 people.

In distribution, integration of distribution and installation can not only save logistics costs, but also enhance user experience.

Hou Enlong also disclosed that the future or lead the establishment of logistics alliance.

The shared economy is popular, and logistics should also be "carpool" distribution.

Hou Enlong said he had set up training institutions within Suning, providing training for distribution personnel with professional skills and service attitude.

"In addition to door-to-door delivery, installation and pick-up, we also throw litter."

He believes that through the improvement of service quality, the use of household registration tablets can increase the rate of repeat purchase. This natural traffic growth is much more significant than advertising flow.