As the Internet giant accelerated its penetration into the offline environment, Suning aggressively expanded its online store layout this year, especially focusing on the Suning store as an 'emergency pioneer' for expanding its retail, service, and distribution triple play model. Market, offline retail industry will stage a 'close-fitting' battle.
Suning’s executive vice president of South China, Guangdong South China, Gu Wei, general manager of Guangzhou, revealed on April 2 that Suning will open 134 new stores in Guangzhou in 2018, including 100 Xinkai Suning stores and 1 Suning Life Plaza. There are 4 Suning Electrical Appliance Stores, 4 Red Kid Stores, 4 Suning Studios, 2 Suning Sports Stores, 1 Suning Nation Store, 15 Suning Stores, and 3 Unmanned Stores.
'We want to be close to the user's whole business format'. Gu Wei said that Suning will change from home appliance retailers to lifestyle providers.
According to the 2017 annual report of Suning Tesco (002024.SZ) issued on March 31st, its operating revenue in 2017 reached 187.93 billion yuan, a year-on-year increase of 26.5%; net profit reached 4.21 billion yuan, a year-on-year increase of 498%, an increase of nearly 5 Times.
Behind the bright performance, Suning Tesco also has pressure. From the perspective of channel revenues, online revenue growth is significantly faster than offline. Last year, Suning’s comparable home appliance 3C store revenue in mainland China increased by 4.17% year-on-year. Suning achieved an online platform entity trading volume of 126.696 billion yuan, up 57.37% year-on-year.
From the perspective of merchandise revenue, new and more categories are growing faster. Last year, Suning’s sales of digital and IT products saw the lowest growth rate, only 4%; sales of communication products, small household appliances and air conditioners increased the highest, reaching 43.59% respectively. , 31.84%, 28.24%; sales of black-box, refrigerators and washing machines increased steadily, reaching 12.87% and 15.55%, respectively.
In terms of business income, newly-established businesses such as direct-operated stores in county township markets, and maternal and child specialty stores have grown faster than traditional stores. Compared to the 4.17% increase in the revenue of home appliance 3C stores, the 2017 Suning Red Kids Maternity Store Revenue grew 42.15% year-on-year; revenue at Suning's direct-trade stores increased 34.9% year-on-year.
Looking at revenues from the business segment, revenue growth in logistics and financial service businesses far exceeds growth in real commodity retail sales. In 2017, Suning Logistics' socialized operating income (excluding daily express delivery) increased 136.24% year-on-year; Suning Financial Services (Payment business, supply chain finance, etc.) The overall transaction size increased by 129.71% year-on-year. Of course, retail is still the main force of Suning's revenue, accounting for 94.9% of Suning's 2017 revenue.
In terms of profit structure, Suning sold some of its Alibaba shares in 2017. After deducting the initial share purchase principal and related expenses, it realized a net profit of approximately RMB 3.285 billion, which accounted for Suning’s net profit of RMB 4.213 billion in 2017. Achieve 77.9%.
Therefore, new products, new formats, and new services have become the focus of Suning's growth in 2018. Sun Xiangjian, deputy general manager of Suning's Guangzhou region, said that like dishwashers, hand-held vacuum cleaners, sweeping robots, balance cars, smart toilet seats Other new products are the basis for this year's increase.
In terms of new business status, the Suning store is the focus of development. It will be a combination of sales, service, and distribution. It will go deep into the community and be linked with Suning's E-commerce APP. Suning Aji, somewhat similar to Muji products. Suning Sports Shop , I hope to attract more young people. Sun Xiangjian said that Suning hopes to go through Suning Store, Suning Life Plaza, Suning Appliance Store, Red Kid Store, Suning Studios, Suning Sports Shop, Suning Ami, Suning Direct Store, Stores and other forms of business, approaching the user's side.
In terms of new services, Suning will strengthen its logistics and financial services capabilities this year. Sun Xiangjian said that in addition to three years of non-price increases in basic freight, Suning also develops VIP members, and enjoys shopping return of 2%, 1,000 product member prices, etc. service.
According to Suning's annual report on 2017, this year, Suning plans to open 1,500 Suning stores across the country, 150 stores for newly opened baby mothers and babies, and 150 new Suning Yigou shops, adding 20 new stores to Suning Tesco Plaza. , Exploring the establishment of Suk Sang Sang Supermarket; At the same time, it will strengthen Suning Tesco's direct sales stores and Suning Tesco retail cloud franchise stores in the tertiary and tertiary markets, and strive to achieve the goal of setting up 3,000 stores.
In terms of commodities, Suning Tesco disclosed in its annual report that this year it will set up smart 3C, big home appliances, Da Kuai Xiao, and four household marketing business group modules. The smart 3C products will be launched with new products, customized underwriting, and differentiated single products as the core. Great Home Appliances, strengthening the customization of whole house, integrating home appliances with the marketing capabilities of the scene, enhancing the sales ability of high-end home appliances, Da Kuai Xiao, integrating online supermarkets, Su Xian Sheng Supermarket, Red Kid Baby Shop, Suning Shop, fully opening smart retail Layout; open platform, focus on building 3C, home improvement, supermarket fresh, sports and other merchants investment.
Recently, JD.com and Suning are competing for the first place in home appliance retail sales. Since the online channel has a flow dividend and the price bonus is gradually disappearing, Jingdong continues to accelerate its penetration into the offline market this year. This year, it plans to increase the number of home appliances stores in townships to 15,000 this year. It will also pilot 'Jingdong Home Appliances Super Experience Shop' in first-tier cities. Suning continues to develop online business on the one hand, and accelerates the Internetization of stores, and expands its store network to consolidate its offline advantages. Last year, Suning had 3799 stores. , This year will add about 5,000. Obviously, offline retail's 'close-fitting' battle has begun.