Events: Suning "big appetite" cut e-commerce
Type of Event: Economics

Daily News: February 24, 2011 AD

Date: February 24, 2011 AD

Time Channel Today in History

Source: 北京商报

Event Details:

  For this year's sales target of 80 billion seven years to achieve the scale of Jingdong
  On-line are only separated from the last year, Suning rapid turn around in e-commerce industry. Yesterday, Suning announced high-profile "righting" Tesco online store Suning, which has become an independent listed company owned operating company, and Suning retail chain business entities in parallel and _set_ the scale of this year sales of 80 billion target. This figure force
  Suning related stock movements
  Jingdong Mall near 100 billion in sales last year, which started in electronic products, Jingdong Mall within seven large-scale "burn" to complete the transaction amount. It is not difficult to see, Suning appetite in the area of electronic commerce.
  Rapid turn around
  Development plan this year, Suning addition to the country region by cultivating three market segments and the store expansion program, called "the most important adjustment" that is easy to buy for Suning. At present, Suning has _set_ up a listed company controlled by the independent e-commerce operating system to the company's way of operation, Tesco aims to build Suning a real Internet business. Suning Tesco have independent procurement authority, pricing and management system, Suning, Executive President of the former East Second Ling Guosheng to operate as an independent after the general manager of Suning Tesco.
  "Suning will occupy in the next decade the mainstream e-commerce market in China, to create a par of 'air Suning'." Said Sun Weimin, vice chairman of Suning Appliance Suning Tesco will play a "one shop worth a thousand stores," the market influence .
  Suning's share of this rapidly kill the network a year ago, with different attitudes on e-commerce industry. Only a year ago, Zhang Jindong, chairman of Suning also directed the flow of e-commerce as a business simply can not. Zhang Jindong, that some online mall "赔本赚吆喝", the majority of cost of goods sold by product, merchandise sold through this channel can not provide value-added after, do not meet the commercial law of development.
  New front storm
  In the past year, the scale of China's online retail has reached 5,000 billion, the Commerce Department and other government departments are also policies to support forest and Dangdang McCaw and other e-commerce businesses have realized the market. Also in the past year, this national chain Suning leading companies to quickly change, adapt to new changes in industrial structure.
  Suning to adjust not only in an emergency, its competitors are also exploring e-commerce development Gome the best model. Last November, the United States invested 48 million yuan acquisition of Kuba network. United States President Wang Junzhou said the acquisition of U.S. e-commerce strategy Kuba is the first step in the country. In accordance with the development plan, by 2014, the United States will reach 200 billion e-commerce retail sales -250 billion, accounting for B2C e-commerce market in China to 15%.
  Whether Suning Tesco sales reached 80 billion yuan this year, goals, or country the United States retail sales in 2014 exceeded 200 billion e-commerce plans, relative to their physical stores total sales less than one percent. However, the online store for the two chain giant is no longer a "decoration."
  In this regard, China Electronic Commerce Research Center analyst Fang Ying Chi believe that through a year of trying, Suning has been brought to see a trace of the retail network of sweet Italian, last of its rival has bought Kuba network, and plans to introduce online platform, means that if not increase investment, strategic layout adjustment, at any time will be catching up.
  Left and right each stroke?
  How to balance the future of online and offline channels, the price system, to prevent the situation of stroke each right-hand man, Sun Weimin stressed, online and offline channels, not each stroke, but to channel toward the flat, unified market, online and offline synchronous development. The future of online and offline sales price of a unified platform customization needs to underwrite a new marketing model to promote.
  "I hope the outside world not to different regions and compare the prices of time, not to online commodity prices 'demonize', online commodity prices are not all lower than physical channels." Explained Sun Weimin, the price advantage of the current concept of the Internet factors have some speculation, because the costs of network operators Although there is no store, but there will be distribution costs, which to some extent determine the price the bottom line.
  In addition to price competition, Fang Ying Chi reminded how to grasp the entire line-based supply chain management, to complete the integration of existing resources and systems development, docking, etc., is the traditional retailers "net" facing the problem. Chinese Commercial News reporter Wu Wenzhi
  (Editor: Wang Xiao)
Translated by Google

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