The development trend of Suning.com

Said that in the domestic e-commerce market, which is developing rapidly but is still in its infancy, the forms of operating companies are also very different: some are integrated with the Taobao ecosystem, and there is no shortage of business, with annual operations With an income of hundreds of millions, they live a comfortable life; some GSIs, who are always talking about American role models, have a dream of going public independently; some only rely on a few brothers to form a team and get the right to operate Taobao stores of one or two companies without burning any money. The money quickly generates cash flow and is enough to support a family. "Do you think the profit of outsourcing is low? I can't tell you the specifics, but it's definitely not low. Otherwise, why would so many people want to do it?" Behind the brand, these various players are trying to prove that agency operation is a good business - is it really so?< /p>

If there is competition, there will be those who are able to collect food. If there are those who are good at cultivating food, there will be kings. In the future, all-round e-commerce operation will be a blue ocean. It has different postures and is closely connected with the brand owners. , will burst out a new spring in the e-commerce industry. This proposition is very popular, but the question that arises immediately is whether brand owners will always outsource their operational processes and let go of control of this new channel to agent operators. Xing Kongyu, founder of Paidai.com, believes that this is actually "helping brand owners pay tuition" - compared with traditional retail industry, e-commerce is by no means difficult. When brand owners who are not short of money or people figure out the way, they can set up a separate department or subsidiary to operate it. Why must there be an agency operator? With the same meaning, Liu Shuang, strategic assistant to the president of JD.com, expressed it more straightforwardly, "Agency operation is a business that can make money for several years, and that's it. It will eventually strengthen certain aspects of services." capabilities, and gradually transform into subcontractors, and the latter will bloom everywhere."

Even foreign operators such as GSI cannot avoid being left behind by some of the brands they serve - their countermeasures are to go solo. Acquire service providers in all aspects, integrate the entire industry chain, serve well-known brands in various fields, and consolidate its position in the industry. For domestic entrepreneurs, this path seems unrealistic. Each agency operator is still in the stage of developing its own professional capabilities. Even all-inclusive contractors have their own focus. Sihai Merchant Boat only provides foreign trade services: compared with domestic trade, foreign trade e-commerce has many aspects such as language, user habits, payment platform, risk control, exchange rate settlement, legal finance, logistics, etc. The problems encountered are more complex, and the average brand owner needs to find help.

The mainstream domestic agency operators have indeed achieved "better performance than traditional enterprises themselves". Taking the operation of Taobao stores as an example, with the involvement of outsourcers, sales can generally increase by more than 10 times. . In fact, these agent operators also face another challenge: helping brand owners understand and adapt to e-commerce.

“The informatization of domestic brands is still very poor. Not to mention using our IT system to connect with them, it is not certain whether they have an informatization system or not,” said Liu Lei, chairman of Xingchang Xinda Company. . What's more troublesome, as Bao Wenqing has experienced, is that compared with technical problems, brand owners' distrust is the biggest difficulty.

Even for brands such as Li Ning and Belle, which currently have the best e-commerce business, online sales are only a drop in the ocean compared with offline sales. Offline sales are in the billions per year while online sales do not exceed 100. Wan's brands are even more ubiquitous, and such a gap is not enough for them to invest more in this market. Gong Wenxiang, CEO of Shenzhen Thirty to Fifty E-Commerce Co., Ltd., believes that many traditional brands have not yet learned about the Internet, and the contradiction between online and offline channels makes them not pay attention to and are unwilling to vigorously develop e-commerce. When cooperating with some strong traditional brands, it is difficult for agent operators to have autonomy even in terms of pricing and promotion, making it difficult to carry out operations.

In March 2013, Suning.com held a national deployment meeting at its headquarters in Nanjing, announcing that the adjustment of Suning.com’s organizational structure had been completed. In addition, Suning.com has also clarified its product strategy of strengthening the advantages of major appliances and 3C products, focusing on daily necessities and department stores, and announced that it will make key breakthroughs in the research and development of local life, mobile life and cloud products.

On April 2, 2013, Suning.com announced that starting from the beginning of April, Redbaby Maternity and Baby Network and Bingou.com will be fully integrated into the Suning.com platform. By then, Redbaby will be fully integrated into the Suning.com platform. Enjoy Suning.com’s warehousing and logistics system, supply chain management system and membership management system. a) Suning physical store advantages:

The products are positioned as mid-to-high-end, and the product display follows the principles of rich categories, appropriate brands, and optimized appearance to meet consumer needs.

The comfortable shopping environment and open customer experience of the 3C+ flagship store.

Suning has accumulated nearly 20 years of experience and constantly explores new sales models and sales processes to provide customers with a convenient shopping experience.

b) Suning B2C advantages:

An online mall company was established to independently operate the Suning B2C website, with more than 200 operating personnel.

Based on many years of experience in home appliance retail and the characteristics of online consumers, we purchase new, exotic and special products suitable for online sales.

Suning B2C uses a powerful procurement platform to purchase products with price advantages, displaying a wide range of products for consumers, so that they can get what they want.

Cooperating with industry-leading companies, the page design is more user-friendly and the product classification is more rational.

Use the research results of customer behavior in physical stores to set up a reasonable B2C shopping process. a) Suning physical store advantages:

Suning’s brand value exceeded 80 billion yuan in 2012. It is one of the most trustworthy brands for consumers. It has good cooperative relationships with various media and has rich internal and external resources, and rich marketing experience.

b) Suning B2C advantages:

Suning has a high brand reputation, and brand reputation is very important in the virtual economy. In addition to cooperating with print media, Suning also has considerable resources in cooperating with online media. It has accumulated rich promotional experience and professional talent reserves over the past 20 years, and uses Suning's existing more than 20 million members to carry out precision marketing.

Supply advantages

a) Suning physical store advantages:

Powerful procurement platform - annual sales of more than 100 billion, with keen insight into the market Professional procurement team, good supplier cooperation

Super supply chain management level and powerful system support, the system can realize automatic replenishment.

Suning has more than 80 CDCs and RDCs; more than 60 transfer points, strong warehousing capabilities in more than 850 stores, more than 400 after-sales outlets to support nationwide after-sales services, and rich retail distribution experience and distribution capabilities. , covering all parts of China.

b) Suning B2C advantages:

Suning B2C*** enjoys Suning’s powerful procurement platform and integrates the advantages of electrical and non-electrical products within the group. The superior supply chain management level can meet the supply needs of Suning B2C consumers. Suning's CDC, RDC, etc. can support Suning B2C's product distribution across China. In order to facilitate consumers to pick up goods, Suning B2C has more than 300 stores across the country as self-pickup points for 3C goods. In order to give full play to Suning's physical stores With the advantages of Suning B2C, the after-sales service of the goods sold has been localized. a) Advantages of Suning's physical stores:

Suning has abundant financial strength to meet normal business operations, and has formed a relatively mature profit model and high operating efficiency.

Information construction: Suning is the most advanced information construction among circulation companies. It is an information construction platform integrating procurement, sales, finance, logistics, and after-sales.

b) Suning’s B2C advantages:

Substantial financial strength and a relatively mature profit model established by physical stores that can be utilized over a long period of time.

Informatization construction is particularly important for B2C development. Combining Suning's B2C business model, Suning has developed a new generation of shopping website "Suning.com", which was officially launched on August 18, 2009. Presented to consumers with a brand new look.

Suning has a strong technical team and continues to recruit outstanding technical talents across the country

In addition, it has formed a complete B2C platform development team with IBM, a leading partner in the industry, and this team has provided services for B2C platform development. Provide strong technical support and services

The strategic cooperation between IBM and Suning brings together the world's top resources to create the most cutting-edge network technology platform

In the exploration of future technology reserves and B2C models In terms of field, Suning will be at the forefront of the industry

In addition to front-end customer experience, B2C development must be supported by information systems. Suning's powerful SAP system, email platform, B2B system, CRM, BW and other systems will provide strong support and services for the B2C system

At the end of 2008, Suning increased its investment in the development of B2C system technology. This will be Suning's B2C "eternal maintenance" in the market competition. The important characteristics of the sales model of "Youth": in addition to sales in the same city, it can realize shopping and distribution in different places. And when the purchased goods are shipped out of the warehouse and received in the same city and are in the main urban area, Suning.com will deliver the goods for free.

Payment method: Suning.com supports online banking payment, UnionPay online payment, Suning.com payment, and cash on delivery.

Pickup method: In addition to supporting Suning delivery, some products also support customers to pick up the products at any Suning store nearby. After the products picked up by customers are delivered to the store, Suning staff will contact you via text message as soon as possible. , you need to provide the "receipt verification code" (four digits) when picking up the goods before you can pick up the goods and inspect the machine. The deadline for self-pickup of goods is one week. Goods not picked up beyond the deadline will be charged corresponding warehouse storage fees.

Delivery method: Large and small commodities can be delivered nationwide. Suning's existing more than 80 CDCs and RDCs across the country will deliver the commodities directly to customers' homes.

After-sales service: All products purchased on Suning.com have localized after-sales service, that is, they can be identified, repaired and returned at local Suning after-sales service outlets. More than 400 after-sales outlets support nationwide after-sales service. Serve. Sales invoice: All goods purchased on Suning Online Mall will be issued with a regular machine-printed invoice, and those issued by individual users will be ordinary sales invoices. It is necessary to issue value-added tax invoices to corporate users. If you need to issue a value-added invoice, you must send relevant documents to Suning.com.

China's B2C market prospects

In early January 2010, the "2009-2010 China Online Shopping Industry Development Report" released by iResearch showed that the transaction size of China's online shopping market in 2009 Reaching 248.35 billion yuan, accounting for 1.98% of the total retail sales of consumer goods, a year-on-year increase of 93.7%. It is estimated that the scale of online shopping transactions in 2013 is expected to exceed 1 trillion yuan. Among them, China's home grid purchase achieved rapid development in 2009, with annual sales growth as high as 200%, exceeding 40 billion yuan. GFK also predicts that domestic home grid purchase in 2010 will be nearly 80 billion yuan. China's home grid purchasing market will maintain rapid development.

Although the home grid purchase market has broad prospects, China's home grid purchase is mainly based on the C2C model. From the analysis of the characteristics of electrical appliances themselves, electrical products are daily durable consumer goods, and consumers have high requirements for their logistics, distribution and after-sales services. Very high, and B2C can better meet the needs of consumers. C2C is more of a transitional business. Just as the electronics market has to give way to large-scale professional home appliance chain enterprises, B2C will eventually become the mainstream online shopping model.

Looking at the history of e-commerce development in Western countries, B2C sales account for 80% of the U.S. online shopping market, while C2C only accounts for 20%, indicating that B2C is the real mainstream of the online shopping market, and This will also become the development trend of our country. At the same time, in the United States, half of the top ten online retail companies are B2C websites operated by physical chain companies. With their brand and resource advantages, they quickly occupied the commanding heights of the industry and achieved good results, confirming that physical chain companies have incomparable advantages in entering the B2C market. Advantages.

The B2C market in mainland China still faces some difficulties. Based on the research on the development experience of foreign home appliance B2C industry and the analysis of my country's B2C current situation, Zhao Xinyu, managing director of GFK China, said that large-scale enterprises in China's home appliance B2C industry will face at least procurement management bottlenecks, logistics service bottlenecks, and after-sales service bottlenecks. , profit model bottlenecks and four major bottlenecks.

Suning Cloud Commerce relies on its huge physical network as a backend to aggressively enter the B2C market in order to develop through multiple channels. Industry insiders believe that "Suning.com will become another portal brand of Suning Cloud Commerce."

Business Philosophy

Integrate social resources and cooperate to win; satisfy customer needs, to Sincerely.

Service concept

Sincerity and sincerity, Suning serves. Service is Suning's only product, and customer satisfaction is the ultimate goal of Suning's service.

Gift card

(hereinafter referred to as gift card) is a cash consumption with a fixed face value that can be used to offset cash when shopping at Suning Cloud stores nationwide and Suning.com online mall. Card.

Gift cards are uniformly printed by our company and currently have 5 denominations: 100 yuan, 200 yuan, 500 yuan, 1,000 yuan and customer-defined amounts.

Leadership Information

On February 28, 2012, it was reported that Ren Jun, Vice President of Suning Cloud Commerce, who is in charge of the entire back-end informatization, finance and listed companies, will serve as Suning.com as the executive president, while Li Bin serves as the executive deputy general manager of Suning.com.

Ren Jun is the vice president and director of the Information System Center of Suning Cloud Commerce Co., Ltd., and is the youngest vice president of Suning Cloud Commerce.

Previously, this position was held by Ling Guosheng and Li Bin.

Suning.com’s status has been elevated to a strategic business unit at the group level, known as the “E-Commerce Headquarters”, alongside several functional management headquarters such as the Procurement Headquarters, Operations Headquarters, Service Headquarters, and Finance Headquarters. .

According to Yibang Power Network, in the first week after the new year’s resumption of work, Suning.com received a substantial talent infusion and strategic upgrade at Suning’s regular spring deployment meeting. More than 20 senior executives were transferred to Suning.com from several important business departments such as marketing, procurement, and after-sales service. Most of these senior executives were born in the 1980s from Suning's 1200 plan (recruitment plan for fresh graduates) and were trained by Suning. .