What is the difference between Gome and Suning?

Suning and Gome have different corporate cultures and profit models.

1, Suning and Gome have different cultures and genes.

Suning is a native private enterprise and a listed company in China.

Although Gome relies on the advantages of economies of scale to fight price wars, it is easier to bargain with suppliers, but the prices of the two are not equal.

2. Differences in profit models

Gome Electronic Mall: In the whole sales, it is both a franchisee and a distributor, and also acts as a third-party payment center (Alipay mode). The franchisee's income is commission income, the banker's income is the price difference income of commodity trading, and the third-party payment center's income is the short-term investment income of the cash pool.

Suning.cn: Small profits but quick turnover, the way to win profits by scale. The net profit margin of Suning Appliance is less than 2%. According to the current average price of 1.500 yuan/set, a commodity cannot earn 30 yuan. Through low profit margin and large-scale formation of overall high profit, Suning chain develops a light asset strategy with low input and high turnover, and finally forms a high return on net assets to maximize the interests of investors.

The profit margin of Suning Appliance is very low, which improves the entry threshold of the industry and has a great deterrent effect on competitors. So far, international home appliance chain giants? It has not been involved in China, largely because the industry standards formulated by domestic appliance chain giants such as Suning Appliance are stricter. Suning Appliance has a huge expansion space, and its development model has been repeatedly copied. Investors can see the future development prospects of the company at a glance and have a clear grasp of the future expectations.

Extended data:

Suning's strength advantage

1, perfect service network. Logistics is one of the core competitiveness of Suning Appliance. Suning Appliance has established a three-level logistics network of regional distribution centers, urban distribution centers and distribution points. Suning Appliance regards informatization as the nervous system of an enterprise, and has established an information network system integrating data, voice, video and monitoring.

2. In terms of market value, the market value of the two stocks is similar, but Suning is small;

3. The decoration scale of direct stores is large. Because Suning has invested heavily in each newly opened direct store. The relationship between Suning and suppliers is also very harmonious.

Gome's strength advantage

1. Maintain close, friendly and mutually beneficial strategic partnership with global home appliance manufacturers, and become a large distributor of many well-known home appliance manufacturers in China;

2. As a giant in China's home appliance retail chain industry, it has a good brand image, inherited the corporate culture for 25 years, and has a good commercial credit and a positive corporate culture;

3. Gome chose to list on the backdoor in Hong Kong, with diversified operations, wide funds, strong financing ability and scattered risks.

References:

Gome-Baidu encyclopedia? Suning. cn- Baidu encyclopedia