Loss Is Not Panic! Carrefour Is Ready To Go. Suning Will Turn "Danger" Into "Machine".

The first quarter of 2020 was spent in the epidemic. Affected by the epidemic, the revenue and net profit of some large and medium-sized enterprises have declined to varying degrees, or even went bankrupt. The wisdom retail giant suning.com is no exception. Suning.com's performance forecast released in April 14th showed a net loss of 400 million yuan -6 billion in the first quarter of this year, compared with a profit of 136 million yuan in the same period last year.

At first glance, suning.com's performance has a big decline. The loss of 400 million yuan -6 billion yuan is not a small number. Suning.com seems to be in a hurry. However, in view of the adverse effects of the epidemic on the whole industry, even if there is a loss, there is no need to be too nervous. Because the domestic epidemic is subsiding and the market is recovering, sunning's recovery to the level before the epidemic is not difficult. "Suning.com"

The epidemic has indeed slowed suning.com's pace, but it has given the Carrefour China, which has just merged into the Suning system, an opportunity to go against the trend. In addition to Carrefour China, suning.com has launched an all-around rescue.

　　 Carrefour goes against the trend.

For suning.com, the loss is only temporary. Don't pay too much attention to it. Carrefour China is a big chess game. It is suning.com's "heart meat". If its operation is good, it may really affect suning.com's sensitive nerves.

In 2019, suning.com spent 4 billion 800 million yuan on the acquisition of 80% of Carrefour China, and Carrefour officially entered the "Suning age" to complement suning.com's product line. At the same time, Carrefour's professional operation experience and strong supply chain capabilities in the field of fast moving products were collected into the bag. Carrefour China's importance to Suning is self-evident, so suning.com will spare no money.

Suning.com is naturally hoping that China can perfectly integrate into the Suning system and produce synergistic effects at an early date. As Su Ning wishes, the epidemic situation has not stopped the pace of Carrefour's progress in China, but has also become an accelerator.

During the epidemic, consumers at home were fighting epidemics and ensuring the supply of people's livelihood has become a top priority. Carrefour's "1 hours" service in early February was connected to suning.com APP early, and achieved an excellent experience of delivering 1 hours online. While protecting the needs of consumers in the whole country, the deep supply chain was exposed, and it also brought considerable flows to suning.com. Quantity and good word of mouth.

Carrefour's "epidemic" campaign continued to escalate. Carrefour's "City matching" service was launched in mid February to extend the service to 10 kilometers of Carrefour's life circle. From the perspective of coverage alone, 10 kilometers can be described as a "canon". Few people have achieved this goal. Carrefour China has given suning.com a long face.

Carrefour's "1 hours" service and "City matching" service form a complete service network. Within 3 kilometers, consumers can enjoy "1 hours", and consumers in 3-10 kilometers range enjoy half day service through "City matching". As a result, Carrefour users can experience the corresponding logistics services at different distances and cover all categories.

These intimate services are through suning.com APP experience, Carrefour China's 30 million loyal fans can achieve seamless connection with suning.com, is conducive to the realization of transformation and achieve the first order. Through mutual coordination, suning.com and Carrefour China achieve a win-win situation, but it seems that the performance of Carrefour China is more obvious.

Suning.com released the performance forecast, Carrefour China's first quarter business sales accounted for a rapid increase in the month, accounting for nearly 10% in March. This is clearly expected. During the epidemic, all the major business platforms came to a great outbreak, while Carrefour China was rich in product lines and fast distribution services.

Suning.com also said that in the first quarter, Carrefour's operating profit continued to grow and the operating cash flow improved significantly. It is not surprising that the cost of performance is increasing during the epidemic, but even if the cost increases, Carrefour's operating profit can still grow, which is even more valuable.

　　 Suning turned "danger" into "machine"

Although the epidemic has caused negative effects such as cost increase, it still boosts Carrefour China's quickening pace. The development of Carrefour China is on the right track, and it can contribute steadily to the improvement of suning.com's performance.

However, Carrefour's business in China just turned into a deficit in the fourth quarter of 2019. Although the first quarter of 2020 was in an accelerated development, it still could not have a decisive impact on suning.com's overall financial performance, and the impact of the epidemic on suning.com was obviously greater.

The epidemic has a direct impact on the offline market, and sunning's home appliances 3C and department stores all over the country bear the brunt of the outbreak. They have been suspending business or shortening their business hours according to the epidemic prevention and control situation around the country, and sales volume has been greatly affected. Of course, there are similar problems encountered by the peers in the layout shop, which is a common problem faced by new retail businesses.

Although the offline layout of suning.com and its peers has been compromised, Suning's difficulties seem to be more, and traffic restrictions and cell closures are restricted. Suning needs to install and install large household appliances, which are also heavily affected by sales and delivery services.

Since the resumption of labor resumption in March, the offline business has been gradually resumed, but the time left for suning.com in the first quarter has not been much. Suning has to achieve a quarterly performance target within this limited time.

The epidemic has pushed the offline market to press the pause button, while online business has seen rapid growth. Suning.com has also found opportunities in the dangerous situation. According to Suning's performance notice, the scale of commodity trading on the platform within the reporting period increased by 12.78% over the same period last year. After the obstruction of the online channel, suning.com online channel ushered in a wave of dividends. At the same time, it could also take this opportunity to consolidate the strength of the line. And expand the influence of the electricity supplier.

In the first quarter, suning.com responded positively to the impact of the epidemic on the Internet. It activated consumer demand by using household appliances 3C products in installments, free of interest and issuing coupons. Consumers who originally had cable consumption demand were more likely to place orders under preferential concession.

In addition, suning.com also launched the "brand win new plan", through a series of specific actions and small and medium-sized businesses to overcome the difficulties, to help small and medium-sized businesses to overcome the difficulties, strengthen ties with the vast number of small and medium-sized businesses, with the support of the vast number of small and medium-sized businesses, suning.com's wisdom retail transformation and upgrading of the road will be smoother, so this is both "save people". It is "self rescue" and Suning is "practicing inner strength" in this process.

On the whole, at the moment when sunning's earnings forecast was lost hundreds of millions of dollars, the outside world might be sweating for Suning, and Suning may be very calm. At the same time, the synergy effect of Carrefour China and Suning business appeared at the same time.