What are the objectives of chairman zhang's near east, chairman of sunning electric (002024. Sz) after going beyond u. S. Appliance at the company level? He was worried about his second business brand, the “sunning buyer” e-commerce platform。
Yesterday, suning was officially on the line, although this was more than five months late from the date disclosed by the near east last summer。
In fact, not only is sunning electrical, but the u. S. Electronics are moving forward with b2c. According to zhao xin, director-general of the china managing director of the consulting firm gfk, china's electricity grid purchase grew by 200 per cent throughout 2009, exceeding 40 billion yuan, and is expected to grow by 100 per cent to 80 billion yuan in 2010。
He's gonna be the boss in three years
“within three years of the plan, the occupation of more than 20 per cent of the national grid buying market became china's largest 3c electricity b2c site.” the executive director of suning electric marketing, kim ming, said that this was an opportunity he had “waited a long time”。
Sunin has planned an operational road map for b2c. Kim indicated that over the next three years, a 1,000-person b2c professional operating team would be formed to build a self-contained business system for the suning economy; to develop an operating mechanism characterized by autonomous procurement, independent marketing and shared logistics services; and to focus on the sale of goods and the servicing of consumers, with full synergy with the physical shop. In addition, there will be closer cooperation with upstream suppliers to upgrade the flexible production and large-scale customization capacity of the supply chain。
Kim ming revealed that, without outreach and publicity, the daily sales volume had increased by more than 100 times over the past five months, exceeding the growth rate of the sunin electric entity shop over the past 10 years. The latter has expanded since 2000, with a 10-year growth rate of 70 per cent. “internet business is geometric growth”, kim said, “it cannot be over-emphasized”
Strategic shifts or additions?
Does the near east reverse the direction of suning and rely on the internet for the future? He is not so blind. According to kim ming, the near east believes that it is important to remain sober on the internet business, because, no matter how it develops, “it is like a kite in the sky, with a line and a root, no matter how it develops, and cannot be reversed”。
Data from developed countries of global e-commerce attest to the view of the near east. For example, total net purchases in japan account for only 3 per cent to 5 per cent of GDP, compared with 7 to 10 per cent in the united states. Korea is relatively high at 30 per cent。
“the situation in korea is special. Television shopping, internet shopping, mobile shopping are very well developed.” kim ming believes that china should be between the united states and korea. At this level, it “cannot replace the sales level of the real store”. It is clear that, although formally on line, the ease of purchase will not replace the fundamental position of the sunin electronics store。
On this point, the near east is in full agreement with his rival company. Earlier, vice-president of national electronics, ho yangqing, said to the journalist of the first financial journal that, despite the fact that the united states had always attached great importance to business b2c, it was and will remain a “supplementation and support” in relation to the physical shop。
The u. S. Is also urgently moving ahead with business b2c. Ho yangqing revealed that a “surprise” would be given to the public in march。
In turn, journalists enquired that of the $50 billion in sales by the 3c chain, only $1 billion, or only one-50 per cent of the total, is available online。
The entry of giants may bring new weather and even trigger a shuffle. However, china’s first-century electricity grid, the ceo general, believes that the market is still in its infancy, and that only more people can enter it. However, he did not deny that there would be a struggle in the future。
So far, the offline sales of the “sunnings” have been small. He yingqing said he was embarrassed to say it. However, 50 per cent of the top 10 on-line retail sales in the united states are b2c sites operated by entity chains. Perhaps a similar situation will arise in the chinese market。
