Suning's "Super-Electrification": The Titanic Enterprise's Ambition

On September 28th, Suning’s latest store format, “Super-Electrification” initiative, opened in Beijing and Nanjing in the Suning Expo Superstore. Jining, the president of Suning Appliance, had to chase two games on the same day. At the opening of the Lenovo Bridge Suning Expo Superstore in Beijing, Jin Ming elaborated his ideas on Suning's store adjustment, business transformation, online business, and 10-year plan. He said that Suning will strive to achieve sales of 680 billion yuan in online and offline sales by 2020, and move toward the goal of annual sales of trillion-dollar enterprises.

First, store adjustments Beijing Suning will greet the era of large stores Suning Appliance currently has more than 1,700 stores across the country. According to Jin Ming, Suning will maintain an annual sales rate of about 200 stores in the next 10 years, reaching about 3,500 in 10 years. The size of the store. Suning will maintain a scale of about 1,000 stores in the first and second-tier cities in China, and will enter the country's 2000-2,500 counties and county-level cities. In the county and county-level cities, in principle, only one Suning store will be opened in the popular shopping center.

At present, Suning stores mainly include Expo supermarkets, flagship stores, boutique stores and community stores. Among them, Expo supermarkets have an area of ​​between 10,000 and 20,000 square meters. Currently, Suning has opened a Suning Expo supermarket in Beijing, Shanghai, Nanjing, and Guangzhou that has a wider range of products and exceeds the retail form of home appliances. Jin Ming stated that Suning Expo Superstore will be stationed in municipalities, capital cities, and sub-provincial cities one after another. Suning's flagship store covers an area of ​​3,000-5,000 square meters and will achieve full coverage from first-tier cities to county and county-level cities.

It is understood that Suning stores in first and second-tier cities will also face a round of store upgrades. In terms of Beijing, during the year, Suning will open about 5 Suning Expo supermarkets, and some community stores will be adjusted. Beijing Suning will enter the era of big stores.

Second, the industry transition Suning Chao's electrical strategy accelerated At the beginning of this year, Suning Appliance Chairman Zhang Jindong once said, "We must remove the electrical words inside the Suning Appliance." This sentence opened the curtain of the transition of Suning's format, making Suning's "super-electricity" strategy accelerate again and again. First, Suning's retail brand Tesco has opened in Beijing, Shanghai, Nanjing and Guangzhou. The products it sells have expanded from traditional home appliances to toys, textiles, daily necessities, cosmeceuticals and musical instruments. Suning Tesco has completely transformed itself into an all-inclusive comprehensive shopping website. After the acquisition of branded red children for mother and baby online shopping last week, Suning said that in the future, mother-infant products will be stationed at Suning offline stores, forming an interactive online and offline sales situation.

The opening of the Beijing Lenovo Bridge Suning Expo Superstore has also enabled the transition of the traditional stores of Suning Appliance into the fast lane. In the Lenovo Bridge Suning Expo Superstore, Suning first updated the VI standard, and its brand LOGO was changed from "SUNING Suning Appliance" to "SUNING Suning", and the word "electric appliance" was removed, while the goods sold from the Expo Superstore were sold. From a point of view, Suning's "super-electricity" strategy is even more at a glance.

Suning Lenovo Bridge Expo Super Store has increased the department store, daily use, financial and virtual products on the basis of operating 3C and home appliances, and achieved a complete breakthrough in the traditional home appliance retail formats. Suning is based on consumer demand and product research, and focuses on consumer electronics, home entertainment, home life, and related products for product planning and product category expansion. It is not a fragmented and unrelated department store format in the traditional sense.

Third, the average daily sales of online business reached 40 million Jin Ming revealed that the current average daily sales of Suning Tesco has reached 40 million yuan, and maintained a steady growth trend. Suning Tesco will comprehensively include B2C, B2B2C, C2B2C and other sales models in the future.

Suning Tesco was officially launched at the beginning of 2010, and achieved sales of 1.2 billion yuan in that year. In 2011, it achieved sales of 5.9 billion yuan. In the first half of this year, it achieved sales of 5.28 billion yuan, and the annual sales target was directed to 20 billion yuan. . Jin Ming believes that the reason why Suning Tesco can achieve such a rapid development, thanks to its four natural advantages: First is the brand advantage, Suning Tesco is Suning's online shopping platform, and Suning has been through more than 20 years of development, In the minds of consumers, they have established a good faith image; followed by reliance on large-scale procurement advantages, Suning can get the lowest purchase price and give profits to consumers; the third is online and offline sharing of Suning Appliance's warehousing and logistics distribution and other advantages; It is the advantage of the interaction between Suning and Suning stores.

Jin Ming stated that in the future, Suning will focus on building search and recommendation functions, and build itself into a major platform owned by Suning, both self-operated and non-self-operated. In 2020 Suning’s sales target of 680 billion yuan, Suning’s sales will account for 300-300 billion yuan.

Fourth, ten-year plan to achieve sprint from excellent to excellent According to professional home appliance market research institutions projected that in 2015 the domestic home appliance market capacity will reach 176 billion yuan, 2020 is expected to reach 310 billion yuan. When talking about Suning's future development plan, Jin Ming stated that in the next ten years, Suning will continue to adhere to the growth model of “endogenous growth, back-office priorities, and coordinated development of front and back offices”. Physical store sales and network sales will be promoted simultaneously, with the domestic market as Lord, take advantage of open up the international market. By 2020, it will strive to reach a goal of nearly 20% of the domestic home appliance market and continue to maintain its leading position in the industry.

Jin Ming believes that Suning has formed a full range of competitive advantages based on the accumulation and precipitation over the past two decades. This is the basis and prerequisite for the company to formulate a new decade development strategy. Specifically, Suning has the following advantages:

The first is the brand advantage Suning brand value ranked first in the industry for four consecutive years, ranked first in China's top 100 commercial chain, brand reputation, reputation and credibility among the best indicators.

Followed by the chain of network advantages over 1700 stores, Suning has become the nationwide chain network with the largest number of stores, the most extensive coverage, and the best single-store network efficiency. Sales scale and chain scale have consistently ranked first in the industry. In addition, Suning Tesco has begun to take shape and has grown rapidly. Customization service channels have been initially established, which has formed the advantages of comprehensive online and offline coverage and collaborative development.

The third is capital superiority Suning's leading business model and normative corporate governance have been fully recognized and trusted by investors and all sectors of the society. Sustained high-speed growth and stable and lucrative returns have attracted long-term stable strategic investors at home and abroad. Suning Appliance listed on the A-share market ranks first in domestic business for several consecutive years and the top two in the global household appliance industry. The strong capital strength has laid a solid foundation for the long-term development of the company.

Fourth, service advantages After 20 years of self-operated service accumulation, Suning has established a logistics network that radiates 700 cities across the country, has 3,000 after-sales service outlets and 1,200 seats of customer service centers, and has independently trained 10,000 professional Anwei technicians. It provided sufficient guarantees for marketing transformation, strengthening self-operation, and improving the service capabilities of retailers.

The fifth is technological advantage Suning's information construction has always been ahead of the development of enterprises and industries, focusing on consumer demand, supplier cooperation and internal management system development, making Suning's overall level of informatization in the global retail industry leading level .

The last is the advantages of resources External resources are an important part of the competitiveness of enterprises, and they are valuable resources for enterprises to survive and develop. Based on the principle of professional division of labor and social collaboration, Suning always adheres to the principle that "service providers are the preconditions for serving consumers." It has established the most stable and harmonious supply chain system in the industry.

V. Link opening the first day Suning Lenovo Bridge Store sold 50 million on the 28th is Lenovo Bridge Suning Expo Super store opened the first day, Beijing Suning revealed that the store's sales will break through the 50 million yuan mark.

The Lenovo Bridge Suning Expo Superstore opening coincided with the arrival of the Mid-Autumn Festival and the 11th Golden Week. Beijing Suning invested a lot of resources for the opening of the store. The proportion of special products accounted for 40% of the whole store's merchandise, and the affordable price attracted many consumers. To buy, opening the store on the same day sales are hot. Sun Ming President Jin Ming said that during the Golden Week, the store's sales are expected to exceed 200 million yuan mark, and the store's full annual sales plan is about 1 billion yuan, and strive to become "the first home appliance chain store in Beijing" .