Excuse me-the source of funds for Gome Suning

Gome opens a shop every 30 hours. By 2008, the number of Gome stores will reach 1200. At the same time, it also launched the brand of "Pengrun Electric Appliances" in the northeast, hoping to set up another portal and recreate a new Gome. Suning is unwilling to lag behind and catch up. In the first half of 2005 alone, according to the data released by the Ministry of Commerce, the number of Gome stores increased from 162 in the same period last year to 309, an increase of 90.7%. What makes Gome, Suning and so on. Anxious for land?

The powerful backing behind Gome and Suning's rapid large-scale expansion is their unique profit model of "eating suppliers"-"quasi-financial model": while conducting cash transactions with consumers, they delay payment to upstream suppliers for 3-4 months, resulting in a large amount of cash on the books for a long time, forming a "scale expansion-sales scale promotion brings cash on the books-taking up supplier funds for scale expansion or other purposes-further.

Gome and Suning, like banks, absorb a lot of funds from suppliers and provide them with long-term use through rolling. Different from foreign retailers' profit model of "eating the difference", China's home appliance chain giants demand a realistic version of "eating suppliers": by expanding the network size, maintaining the market strategy of low-price preferential treatment for consumers, and constantly improving the market influence of channel terminals, and on this basis, by increasing the sales scale, increasing the absolute sales volume and purchasing volume of products, coercing suppliers to increase rebates and pay more channels.

By analyzing the profit composition of home appliance stores, we find that the profit growth of other businesses of these home appliance chain stores far exceeds the profit growth of their main businesses, and the rapidly growing profits of these other businesses are "donated" by a large number of suppliers. Including sales income, entrance fee, management fee income, shelf fee, air conditioning installation management fee, booth fee, agency fee income, advertising fee, etc. , all from supplier rebates and paid channel fees.

According to reports, the amount of entrance fees charged by Gome and Suning to suppliers is generally from 500 yuan to 6,543,800 yuan per single product. The amount of entrance fee will vary greatly due to the difference of outlets, sales volume and products, and the collection method is also very flexible. Generally speaking, supplier rebates are calculated according to product sales, ranging from 0.3% to 0.5%. In this mode, various miscellaneous fees paid by suppliers support their price competition means of "big price reduction" and "crazy promotion".

Further analysis, we find that the "Wulin Secret" that really keeps Gome Suning strong in the game of zero supply is the channel value. After several years of crazy enclosure, Gome Suning has built its own home appliance kingdom, and its sales network has slowly extended from the primary market to the third and fourth markets. Gome Suning can be seen in major cities (even some towns) in China. Household appliance manufacturers have few chips in this game by virtue of their unique advantages in logistics and channels embodied in "centralized procurement", "unified distribution" and "standardized replication".

Gome, Suning and other home appliance chains continue to expand in the face of possible market blind spots and profit margins, and it is natural to charge suppliers "sky-high donations and miscellaneous fees". No wonder, in the face of the profits brought by the crazy expansion of chain stores, suppliers have to shout "exorbitant taxes are as fierce as tigers"

Through economies of scale, the greater the effectiveness of reducing operating costs and expenses, the stronger the brand influence, the easier it is to obtain higher market share and better benefits. At the same time, due to the enhanced control over end consumers and negotiation ability with suppliers, it is easy to get bigger discounts and more favorable payment and settlement methods. The sales scale of Gome and Suning has grown rapidly, forming a cycle of "low price sales-increasing sales scale-obtaining more rebates and channel fees-reducing purchase price-reducing selling price". On the one hand, it attracts consumers at low prices. At the same time, suppliers can be required to give incremental rebates and channel fees according to their sales scale, or even monopolize the special products of manufacturers to control production and earn more profits.

In fact, there are deep-seated reasons for China's model. The expansion of China, Suning and other chain giants needs a lot of money, but it is impossible to support the rapid expansion of chain stores simply by accumulating profits in a single store. Where the funds come from has become a difficult problem. There are generally two sources of funds: "banks and securities markets". Obviously, in the early stage of development, the securities market is impossible to exist. Bank loans need certain mortgage and credit evaluation. The management mechanism of domestic banks determines the outstanding value of fixed assets in mortgage, but Gome and Suning do not have "hard currency" in this respect: the products are made by manufacturers, the storefronts are rented, and the value of several shelves is not much. It seems that both channels are difficult to be unblocked.

"Business-land cooperation" model

The "golden partner" operation mode of "business+real estate" regards the real estate industry as another profit point of the home appliance chain, and improves the operation ability of the capital operation industrial chain.

Choosing the mode of "business+real estate" can enable retailers to raise real estate through business, and at the same time provide a way out for themselves through real estate development, reducing the pressure of rising rental prices. As we all know, a large part of the income of McDonald's chain system comes from real estate, not stores. Domestic chain giant Gome Suning is also constantly moving in the real estate field. With the deepening of China's market economy, the real estate industry is undergoing earth-shaking changes. The huge profits of real estate home ownership even make many foreign companies covet. Therefore, seizing the good opportunity of China real estate industry development can open up another sky for the development of Gome Suning.

Take Suning as an example. Jiangsu Suning Appliance, the second largest shareholder of Suning Appliance, and its affiliated company suning universal Group all invest in real estate, and Suning Appliance has also become one of the main tenants of the real estate developed by these two companies. According to the prospectus of Suning Appliance, before the listing of Suning Appliance, Jiangsu Suning Appliance and Suning Appliance had frequent related transactions due to overlapping business. 200 1, the accumulated amount of the two financing reached about 654.38+0.5 billion yuan. From the analysis of the average monthly capital occupation balance, Jiangsu Suning Appliance was founded in 1999 1 1, so the actual average monthly capital occupation balance of Jiangsu Suning Appliance in 2000 was 0.9 1 100 million yuan. At the same time, before the listing of Suning Appliance, Suning Appliance also had large capital exchanges with real estate companies affiliated to affiliated companies. By February 20001,15, Suning Appliance had received a total of 88 million yuan from five companies, including Jiangsu Suning Construction Group, Jiangsu Suning Decoration Engineering Co., Ltd., Nanjing Suning Real Estate Development Co., Ltd., Jiangsu Wan Tai Investment Development Co., Ltd. and Nanjing Ninghua Real Estate Development Co., Ltd.

Judging from the information disclosure of Suning Appliance, its frequent related transactions and capital exchanges with affiliated companies have been gradually terminated through asset restructuring before listing, but Suning Appliance is still the main leasing customer of affiliated companies that develop properties. The newly-built galaxy international Shopping Plaza invested by Jiangsu Suning Appliance Co., Ltd. is located in the business circle of Shanxi Road, Nanjing, with a height of 48 * *, which will become a landmark building of this business circle after completion, in which the eighth floor of the podium will be used as a department store with an area of 40,000 square meters, and the headquarters of Suning Appliance Co., Ltd. will also be moved here. On June 1 day, 2005, Suning Appliance announced that it planned to jointly unveil the nanjing xinjiekou store expansion project of Suning Appliance's fund-raising project with Jiangsu Suning. The land price is 6.5438+0.5 million yuan, plus a bid bond of 3 million yuan.

Compared with Suning Appliance, Gome's "business+real estate" transportation mode is more significant. On June 7, 2004, China Pengrun Group announced that it had acquired all the issued shares of OceanTown (the original holding company of Gome) with a total consideration of 8.8 billion yuan, and changed its name to Gome, mainly engaged in the retail of household appliances. At the same time, Gome Holdings said that it would gradually transfer Jinzun Real Estate invested by Pengrun Real Estate and gradually fade out of the real estate business. However, judging from the recent series of capital operations of Huang Guangyu's family, on the contrary, Gome has strengthened its efforts to expand its real estate business. On the basis of the original Pengrun Real Estate, Gome Real Estate, Junjue Real Estate, Tomorrow Real Estate and other real estate companies were newly established, which significantly increased the expansion of real estate business.

It can be said that there is little difference between the two in business model. The retail chain industry is nothing more than the infinite replication and expansion of scale, using real estate to improve the capital operation and industrial chain operation ability. They all implement the development strategy of diversification, scale, low cost and high efficiency, that is, they constantly adapt to the market demand and the industrial adjustment policy of manufacturing industry, and the professional chain development model with integrated appliances as the leading form is quickly copied, and through the application of various management technologies, they expand at low cost and high efficiency to build an excellent chain network service brand.