“Suning Appliance has been developing for 20 years. There have been many successful experiences and some branding. I have been thinking about what Suning should be like.†Suning Appliance Chairman Zhang Jindong leaned on the sofa and used Nanjing Mandarin in the cavity and "Daily Economic News" reporter talked about Suning's development plan. Throughout the entire process, he did not want to be seen as an interview, but rather as a "collision of thoughts and hearts." The core of this collision is Suning.
Suning entered the e-commerce industry on a large scale in 2010. In the third year, it set a sales target of 30 billion yuan. Under the background that the industry is plagued by "burning too much money" and the profit model is being questioned, Suning The "rapid development" has received some criticism.
However, in the eyes of Zhang Jindong can not see the slightest hesitation. Through Suning Tesco, he saw Suning Appliance's opportunity to shift from a traditional home appliance chain store to a “full-category + online-offline†direction. The specific point is to make China’s “Wal-Mart + Amazonâ€.
Face 30 Billion Target Question
In 2012, news of the collapse of e-commerce companies and lay-offs were reported to the newspapers. The remarks that “the e-commerce industry has entered the winter†have stunned them. The feedback from venture capital agencies is that it is very difficult for B2C to get investment this year, and most of the investment has shifted to the mobile Internet.
In this context, Suning will set Suning's sales target at 30 billion yuan this year, which is far more than the sales revenue of 5.9 billion yuan in 2011, which has stirred up waves in the industry. Some people in the industry believe that the e-commerce business’s cake in 2012 is as big as it is. Suning's $30 billion target is comparable to Jingdong's sales in 2011. For e-commerce companies that have just been established for three years, it is extremely difficult.
In the face of doubt, Zhang Jindong frankly admitted that he had already become accustomed to it. In 2011, Suning’s sales target of RMB 8 billion was once questioned by the industry. Zhang Jindong said that Suning’s ideal goal for the year was to sell 8 billion yuan and the internal assessment target was 5 billion yuan, which had been successfully achieved.
With the rapid expansion of the online shopping market and the increasingly fierce competition in the e-commerce industry, the e-commerce industry will usher in a new round of reshuffling in 2012, and the trend of B2C mainstreaming will gradually become clear. In the e-commerce competition with the investment-driven operation model, with the business-driven e-commerce operation model that is accompanied by the offline entity and the procurement system, the competitive advantage is increasingly prominent.
Zhang Jindong saw this opportunity.
“It is not clear to the outside world that 30 billion yuan is our ideal goal, and the internal assessment target for Suning's e-commerce is 20 billion yuan.†Zhang Jindong said that the development of Suning’s e-commerce is not “following†as some people questioned. "We have never deliberately set goals that require forcible completion. The goal setting is based on Suning's accumulation and the establishment and improvement of all aspects of the company.
According to recent news, Suning Tesco will be promoted to be a new headquarters under the Suning Group, and the organization system will also be substantially expanded. Suning E-Link will enter Suning Tesco more than 20 executives, and the total number will expand to 3,000 during the year. .
"The real development of a company is to solve the problems of the management team." In Zhang Jindong's view, the adjustment and stability of the Suning Tesco team will enable it to ensure sufficient innovation in the competition of the Internet era while continuing Suning's corporate culture. And spirit. On this basis, he still insists that the goal of Suning's $300 billion in the next 10 years will remain unchanged.
M&A is more meaningful than alliance
During the interview, Zhang Jindong seldom commented on the format and competitors. The reporter proposed that the recent Gome.com online mall and Dangdang.com have no positive response. However, he believes that compared with the strategic alliance, the acquisition of the company's market influence is greater, and it is more meaningful for the development of the company.
In 1998, Zhang Jindong spent three days in Zhongguancun and studied e-commerce in depth. "At that time, the awareness of Internet consumption did not arise." In his opinion, the most important thing is that the core "background and service" of e-commerce development has not been shaped, so he finally decided to deepen his physical store. Now with more than 20 years of brand and offline support, the development of online business is "perfect."
“E-commerce is ultimately commerce, and it cannot be supported without back-ends, products, management systems, brands, and capital.†Zhang Jindong believes that the development of the retail industry is like a “marathon race without end points†and requires talents, technologies, etc. Accumulation. Although the development of the Internet has brought new opportunities to the traditional industries, no format or enterprise can speculate.
This is also in line with the industry's basic judgment on the current e-commerce development. As many e-commerce companies in China are supported by venture capital, they are speculative to a large extent. Some companies “burn money†for market share, which caused a number of companies to close down due to capital chain breaks.
Zhang Jindong said that Suning will consider mergers and acquisitions when it insists on the development of e-commerce. The core lies in the support of Suning's huge logistics system. "Acquisitioning companies has a greater influence than strategic alliances, and it makes more sense for the development of the company."
The data shows that Suning's investment in 2012 is still focused on the logistics system. It will complete the site selection for the logistics bases in 60 cities throughout the country. The construction of seven new logistics bases is expected to complete the delivery of eight logistics bases. At the same time, for the e-commerce business, it will speed up the construction of 10 small-scale automatic picking centers and complete the construction of nearly 2,000 express delivery points by the end of the year.
Zhang Jindong said that the logistics base is not a simple warehouse construction, and Suning considers the logistics support to meet the online and offline targeted requirements in terms of function and scale.
Suning "to go to electrical appliances"
Before Zhang Jindong accepted the “Daily Economic News†interview, Suning Appliance just released its 2011 annual earnings report. The company's annual revenue of 93.89 billion yuan, an increase of 24.35%; net profit of 4.82 billion yuan, an increase of 20%. Suning opened 398 new stores in China and opened 12 overseas markets. The total number of stores reached 1,724, which is far more than the number of stores of the old rival Gome.
While leading the traditional home appliance chain, Zhang Jindong hopes to expand the Suning product line through the Internet. He clearly stated that he will use Suning's e-commerce as a breakthrough point to realize the expansion of Suning's entire product line.
“At present, Suning’s self-built stores have increased catering, daily necessities and other goods, and no longer only sell electrical appliances.†Zhang Jindong said that this year Suning will add five major procurement centers, including department stores, books, and daily necessities, to support online Suning’s e-commerce and offline services. The rapid development of new channels such as Suning Super Flagship Store and Tesco Shimen Store.
This further inspired Zhang Jindong’s imagination. He half-jokingly stated that he was considering to downplay the traditional concept of Suning who only used household appliances and 3C. If Suning Appliance is renamed, it will no longer have the word “electrical appliances.†“Suning is not an appliance retail company, accurately speaking. Is a technology company."
"Suning's biggest opponent of the future is himself." He told the Daily Economic News reporter that in the retail industry, Suning's goal is "Walmart + Amazon."
Suning entered the e-commerce industry on a large scale in 2010. In the third year, it set a sales target of 30 billion yuan. Under the background that the industry is plagued by "burning too much money" and the profit model is being questioned, Suning The "rapid development" has received some criticism.
However, in the eyes of Zhang Jindong can not see the slightest hesitation. Through Suning Tesco, he saw Suning Appliance's opportunity to shift from a traditional home appliance chain store to a “full-category + online-offline†direction. The specific point is to make China’s “Wal-Mart + Amazonâ€.
Face 30 Billion Target Question
In 2012, news of the collapse of e-commerce companies and lay-offs were reported to the newspapers. The remarks that “the e-commerce industry has entered the winter†have stunned them. The feedback from venture capital agencies is that it is very difficult for B2C to get investment this year, and most of the investment has shifted to the mobile Internet.
In this context, Suning will set Suning's sales target at 30 billion yuan this year, which is far more than the sales revenue of 5.9 billion yuan in 2011, which has stirred up waves in the industry. Some people in the industry believe that the e-commerce business’s cake in 2012 is as big as it is. Suning's $30 billion target is comparable to Jingdong's sales in 2011. For e-commerce companies that have just been established for three years, it is extremely difficult.
In the face of doubt, Zhang Jindong frankly admitted that he had already become accustomed to it. In 2011, Suning’s sales target of RMB 8 billion was once questioned by the industry. Zhang Jindong said that Suning’s ideal goal for the year was to sell 8 billion yuan and the internal assessment target was 5 billion yuan, which had been successfully achieved.
With the rapid expansion of the online shopping market and the increasingly fierce competition in the e-commerce industry, the e-commerce industry will usher in a new round of reshuffling in 2012, and the trend of B2C mainstreaming will gradually become clear. In the e-commerce competition with the investment-driven operation model, with the business-driven e-commerce operation model that is accompanied by the offline entity and the procurement system, the competitive advantage is increasingly prominent.
Zhang Jindong saw this opportunity.
“It is not clear to the outside world that 30 billion yuan is our ideal goal, and the internal assessment target for Suning's e-commerce is 20 billion yuan.†Zhang Jindong said that the development of Suning’s e-commerce is not “following†as some people questioned. "We have never deliberately set goals that require forcible completion. The goal setting is based on Suning's accumulation and the establishment and improvement of all aspects of the company.
According to recent news, Suning Tesco will be promoted to be a new headquarters under the Suning Group, and the organization system will also be substantially expanded. Suning E-Link will enter Suning Tesco more than 20 executives, and the total number will expand to 3,000 during the year. .
"The real development of a company is to solve the problems of the management team." In Zhang Jindong's view, the adjustment and stability of the Suning Tesco team will enable it to ensure sufficient innovation in the competition of the Internet era while continuing Suning's corporate culture. And spirit. On this basis, he still insists that the goal of Suning's $300 billion in the next 10 years will remain unchanged.
M&A is more meaningful than alliance
During the interview, Zhang Jindong seldom commented on the format and competitors. The reporter proposed that the recent Gome.com online mall and Dangdang.com have no positive response. However, he believes that compared with the strategic alliance, the acquisition of the company's market influence is greater, and it is more meaningful for the development of the company.
In 1998, Zhang Jindong spent three days in Zhongguancun and studied e-commerce in depth. "At that time, the awareness of Internet consumption did not arise." In his opinion, the most important thing is that the core "background and service" of e-commerce development has not been shaped, so he finally decided to deepen his physical store. Now with more than 20 years of brand and offline support, the development of online business is "perfect."
“E-commerce is ultimately commerce, and it cannot be supported without back-ends, products, management systems, brands, and capital.†Zhang Jindong believes that the development of the retail industry is like a “marathon race without end points†and requires talents, technologies, etc. Accumulation. Although the development of the Internet has brought new opportunities to the traditional industries, no format or enterprise can speculate.
This is also in line with the industry's basic judgment on the current e-commerce development. As many e-commerce companies in China are supported by venture capital, they are speculative to a large extent. Some companies “burn money†for market share, which caused a number of companies to close down due to capital chain breaks.
Zhang Jindong said that Suning will consider mergers and acquisitions when it insists on the development of e-commerce. The core lies in the support of Suning's huge logistics system. "Acquisitioning companies has a greater influence than strategic alliances, and it makes more sense for the development of the company."
The data shows that Suning's investment in 2012 is still focused on the logistics system. It will complete the site selection for the logistics bases in 60 cities throughout the country. The construction of seven new logistics bases is expected to complete the delivery of eight logistics bases. At the same time, for the e-commerce business, it will speed up the construction of 10 small-scale automatic picking centers and complete the construction of nearly 2,000 express delivery points by the end of the year.
Zhang Jindong said that the logistics base is not a simple warehouse construction, and Suning considers the logistics support to meet the online and offline targeted requirements in terms of function and scale.
Suning "to go to electrical appliances"
Before Zhang Jindong accepted the “Daily Economic News†interview, Suning Appliance just released its 2011 annual earnings report. The company's annual revenue of 93.89 billion yuan, an increase of 24.35%; net profit of 4.82 billion yuan, an increase of 20%. Suning opened 398 new stores in China and opened 12 overseas markets. The total number of stores reached 1,724, which is far more than the number of stores of the old rival Gome.
While leading the traditional home appliance chain, Zhang Jindong hopes to expand the Suning product line through the Internet. He clearly stated that he will use Suning's e-commerce as a breakthrough point to realize the expansion of Suning's entire product line.
“At present, Suning’s self-built stores have increased catering, daily necessities and other goods, and no longer only sell electrical appliances.†Zhang Jindong said that this year Suning will add five major procurement centers, including department stores, books, and daily necessities, to support online Suning’s e-commerce and offline services. The rapid development of new channels such as Suning Super Flagship Store and Tesco Shimen Store.
This further inspired Zhang Jindong’s imagination. He half-jokingly stated that he was considering to downplay the traditional concept of Suning who only used household appliances and 3C. If Suning Appliance is renamed, it will no longer have the word “electrical appliances.†“Suning is not an appliance retail company, accurately speaking. Is a technology company."
"Suning's biggest opponent of the future is himself." He told the Daily Economic News reporter that in the retail industry, Suning's goal is "Walmart + Amazon."
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