Reinventing the Millennium

What problems does Suning have? Tesco, as half of its peers, knows best.

In fact, the acquired Dazhong Electrical Appliances has contributed a lot to the development of Tesco, whether it is supplementing logistics and supply chain, helping pass through the stage of consumer trust, or transforming the nature of services in the mid-to-late period. They are all a powerful part of Tesco's rapid development.

However, since the acquisition, although the number of offline stores has increased and decreased, it has always remained at about a hundred.

Therefore, others do not know the cost issue of offline chain stores, but Tesco knows it best.

Su Wei and other executives believe that Tesco's current solution of most online + a small part offline is the optimal solution to balance, while Suning is just the opposite, it is a small part online + most offline.

Now faced with the impact of e-commerce, the transformation faced by home appliance chain operations is destined to be painful and long.

Excluding non-core business categories such as service stations and authorized outlets, the number of Suning offline stores of 1,687 can be compared with a set of figures. In China, there are 333 prefecture-level administrative divisions and 2,852 county-level administrative divisions this year. .

Based on IDC data and Tesco's internal assessment, the scale of Suning's offline home appliance chain is close to saturation.

On this occasion, Suning started its transformation journey in April with the slogan "Work on Yike". Although it is full of momentum, Tesco will only go straight to Suning's biggest weakness and pull it to face online and offline problems.

For Suning, does it think the number of stores it now boasts is a big problem?

Regarding the degree of difficulty faced by giants in their transformation, possible flaws in the process, and the chain reactions that external pressure can bring about...

Fang Zhuo is not modest. He does have some experience from watching over the years.

The meeting between Tesco and its suppliers was temporarily suspended with the arrival of lunch, but the mental inclinations of many executives began to change, which was naturally reflected in the conversations and laughter during the meal.

Su Wei was alone after the meal and had to say slightly bitterly: "I talked to them about the situation Suning is facing this morning. Why do you still mean the same thing when you open your mouth? They take it seriously."

"Isn't this just an endorsement?" Fang Zhuo said with a smile, "If I hang a "Mid-Autumn Tie" by Wang Xianzhi at home, all the guests who come will suspect that the one in the Forbidden City is a fake."

After all, the names of people and the shadows of trees are different.

Su Wei could accept this difference, but she saw that some people's attitudes changed so quickly... What if she went back and thought about it again?

Except for Zhang Xuebin from ally Changhong, the other companies who came this time were all deputies, but they also had some room to make decisions on the fly. By the afternoon, the ice and snow in the morning had gradually melted.

However, how to distribute the profits still needs to be discussed.

Su Wei has been prepared for this and has given a step-by-step solution. It still follows the path of small profits but quick turnover. As long as the sales volume reaches a certain level, the respective subsidy ratios will also change accordingly. Moreover, Tesco is There will also be rebates on the side.

This also allows everyone to respond well to Suning.

Suning: Why does Changhong offer Tesco a lower price than us?

Changhong: Tesco sells a lot. If Suning can sell 100/200/3 million units in this category, we can also make room for this.

The reasons for negotiation are very legitimate. Suning cannot act blindly, and it is difficult for Suning to threaten to withdraw.

In addition, Suning's current online "Suning Cloud Commerce" alone is still limited in the actual orders it can absorb. If it wants to lower prices according to the model of Tesco and suppliers, it will inevitably need to promote the power of offline chain stores.

The problem is back to square one.

Should Suning offer the same prices online and offline? How to balance and digest the operating costs of offline stores?

If you don't do it, you won't be able to defeat it. If you do it, how can Suning's huge body be able to turn around easily once this is started?

"Do you think Zhang Jindong will let Suning's offline follow-up?" Su Wei asked Fang Zhuo's opinion on this point.

Fang Zhuo replied: "80% yes."

Su Wei smiled and said: "Your tone sounds like it's 100% correct."

"We have all been so successful and have reached this point. Everyone believes in themselves, the company, and maybe fortune." Fang Zhuo said flatly, "Zhang Jindong has developed all the way, defeated Gome, merged small and medium-sized brands, and became the No. 1 domestic brand." If an electronic appliance chain told me, 'Be number one, you should be number one', he would definitely not give in easily."

He thought for a while and then said: "If the price war gets too big, the higher-ups will take care of it. Maybe he also wants to take this opportunity to promote Suning's offline resources to move online. If there is no opportunity, a bunch of old brothers in the company will It’s not easy to convince either.”

Su Wei's eyes lit up: "If this is the case, Mr. Zhang has really found a good opponent."

Fang Zhuo reminded: “Strategically, we despise the enemy, but tactically, we pay attention to the enemy.”

"If Suning doesn't unify online and offline, it's just an inferior e-commerce website trying to attack Tesco." Su Wei said with a smile, "If it wants to unify and start a war, then let's see who has the last laugh."

In essence, Suning Cloud Business online is really not enough. Now it only has the word "Suning" and the reputation of "Zhang Jindong", and oh yes, the reputation of its competitors is also included.

Throughout the day on April 1st, April Fool’s Day, many media and consumers refreshed the pages of the two websites.

It has to be said that Tesco has experience in price wars. Once it receives user feedback, it adjusts prices very quickly, while Suning's price changes are much slower. The website also crashed twice due to excessive clicks.

At the same time, offline Suning chain stores have also received many inquiries as to whether they have the same discounts offline as online.

Such inquiries were reported to the public, which made Suning internally feel that it was difficult to make decisions. The original plan was only to delineate the online situation, which was just a local conflict.

If we really want to put the discount offline, we need the highest decision from Mr. Zhang.

At nine o'clock in the evening, Fang Zhuo was sitting on the sofa at home, drinking tea and listening to Teacher Xiao Su's overall communication with suppliers today. However, before they had even talked a few words, he received a message from another client, Zhang Jin. Boom phone.

"It's strange, it's just the beginning of the day, why is he calling me?"

Fang Zhuo was a little puzzled, so he glanced at the screen at Teacher Xiao Su and pressed connect.

Su Wei quickly moved over, grabbed the phone, pressed the voice button, and then quickly returned it.

Then, both of them heard only the second half of Mr. Zhang's laughter.

"Mr. Fang, good evening."

"Okay." Fang Zhuo said simply and directly, "What's the matter with Mr. Zhang?"

"Mr. Fang, as soon as our competition this month started, I saw that the media started talking nonsense." Zhang Jindong didn't hesitate, "I just said, Mr. Fang, can we make an agreement?"

Fang Zhuo frowned: "Mr. Zhang, what does he mean? Please make it clear."

"Oh, Mr. Fang, look at what your Sina has written about me." Zhang Jindong said helplessly, "As for what you said a few years ago, you even used it to ridicule me?"

"Let me take a look." Fang Zhuo said concisely.

Su Wei acted as a secretary and opened the Sina portal with a laptop on her desk. Sure enough, she saw prominent relevant reports, and what Zhang Jindong said could be seen at a glance.

——The mainstream of future consumption will definitely not be online shopping, because online shopping malls cannot provide added value and violate the nature of business.

Fang Zhuo read out this sentence and said seriously: "Is Sina spreading rumors? This is not something that Mr. Zhang can say at all. I want to deal with the relevant person immediately."

"Ahem." Zhang Jindong coughed, "I did say, oh, people's cognition will always change. Who could have thought that e-commerce could develop like this at that time? Now pull me out at that time to criticize ...Mr. Fang, this is unethical, let’s not do this.”

Fang Zhuo laughed dumbly: "What do you mean? Mr. Zhang, you mean that when we are engaged in a price war, you still ask me to greet the media and cannot analyze you, right?"

He still felt that this request was too unexpected, and continued: "We did that with Penguin before, and Pony didn't even call me to ask for this."

"He is him and I am me, Mr. Fang. Ali asked us to work together on Yike. I thought about it over and over again but did not agree." Zhang Jindong said.

"Are you looking for Ali, or is Ali looking for you? I have Mr. Ma's phone number." Fang Zhuo said with a smile.

"That's what I mean." Zhang Jindong discussed cooperation with Ma Ren two days ago and reached some small cooperation, but there are also big differences.

According to Ma Ren, Tmall can form a long-term cooperation mechanism with Suning to compete with Tesco in the B2C field. In order to ensure the realization of this mechanism, Alibaba is willing to invest in Suning.

But Zhang Jindong feels that firstly, he does not consider introducing such an influential shareholder in Suning, and secondly, Suning is not suitable to be completely tied to Ali's chariot at the current stage.

If this was done at the stage when Suning had just moved online, I am afraid that the only success would be Alibaba’s Tmall.

In the final analysis, "Suning Cloud Commerce" is still very weak.

Zhang Jindong needs to look at the competition situation during the year and obtain more industry information before making a judgment. Price war is just a means, and competition with each other is a long-term matter.

"Okay, Mr. Zhang, Sina will not push this kind of report again." Fang Zhuo agreed.

Zhang Jindong felt that Mr. Fang still had a certain demeanor.

He smiled and said: "Thank you Mr. Fang for your understanding. Our competition is not like Yike and Penguin. Mr. Fang, I am here to make progress together with everyone. Of course, if I can make Mr. Fang sweat, it will also make me Something to be proud of.”

Different from the slogan on Suning's website and his attitude two days ago, Zhang Jindong's words tonight have changed somewhat.

Su Wei curled her lips when she heard this. Mr. Zhang was indeed confident. The problem was that Mr. Fang didn't seem to be sweating.

"Mr. Zhang, what you said is wrong. I also went there with the idea of ​​​​promoting Penguin's progress together." Fang Zhuo said seriously, "I don't care how you cooperate with Alibaba or how you don't cooperate, Tesco is the one Take it seriously.”

Zhang Jindong also said seriously: "Of course, it's official business. We'll just talk in private tonight."

Fang Zhuoran said: "Mr. Zhang, when the official business is over, we will meet again to review and summarize."

Zhang Jindong readily agreed.

Su Wei waited until she hung up the phone and couldn't help but said: "Why is this picture a bit..."

"This is a gentleman's battle for the No. 1 home appliance chain." Fang Zhuo joked, "Perhaps after analyzing the launch of Rasuning, which Tesco launched today, I feel that this intensity needs to be controlled."

Su Wei shook her head slightly: "He hit his, and I hit mine. This is Yigou's response, not Yike's."

"Let's see the effects." Fang Zhuo said with a smile.

Su Wei pondered for a while and asked a question: "If Alibaba and Suning cooperate in depth, do you think Suning can complete a reform from offline to both?"

"It's also difficult. It sounds like both sides have the resources that the other party wants, but it's complicated for a large company to carry out reforms on its own, and bringing in another large company is a test of the art of business." Fang Zhuo said thoughtfully, "Also, how After the honeymoon period of cooperation, the different demands of both parties will eventually be exposed, and what will be done then?"

The balance between online and offline is like playing balance beam. Suning needs to keep the balance beam from landing in a limited time, which is difficult.

Su Wei nodded: "I want to see Suning's stock price tomorrow."

Today is Sunday, and we will only see the secondary market’s reaction to Suning’s actions tomorrow.

Although we believe that Suning is in crisis amid all the flowers, the stock market sentiment does not necessarily see it that way. If the offline market is stable and an e-commerce story is added, it may rise sharply.

The next morning, Fang Zhuo was still chatting with Su Wei about the opening of Suning's stock price while having breakfast.

However, while chatting, Su Wei suddenly put down her chopsticks, covered her mouth, stood up and left the table.

Fang Zhuo was stunned for a moment, and the parents next to him put down their chopsticks in unison, and Zhao Shumei followed directly.

While he was stunned, Liang Mengsong's phone number appeared on the phone on the table.

"Hello, Mr. Fang, hello, hello?" Liang Mengsong didn't hear the voice from the other side.

"Ah, um, I'm here, Dr. Liang, tell me." Fang Zhuo shook his head.

Liang Mengsong's voice sounded tired, but his attitude was quite resolute: "Mr. Fang, we have conducted preliminary verification and judgment, and we still have doubts about whether we can skip the 22/20nm process, but I personally think that in this situation, time is running out. ,Worth a try."

Fang Zhuo repeated: "Is it worth a try?"

Liang Mengsong affirmed: "It's worth a try."

"Are they suspicious?" Fang Zhuo repeated another message.

"I can't make a decision, the impact is too great." Liang Mengsong took a breath, "No one can make a decision, so let me..."

Fang Zhuo was certain that no matter what, Dr. Liang was still courageous.

Liang Mengsong paused and continued: "Then let me find you, let you make up your mind, let you make the decision."

Fang Zhuo: "..."

He was silent for a while, with all kinds of thoughts running through his mind.

Liang Mengsong took the initiative and said: "Mr. Fang, I will send you another copy of our recent discussions and technical verification."

"No, I can't understand it either." Fang Zhuo watched his mother come back with a happy face, different emotions were stirring in his heart, and finally asked again, "Liang Mengsong, do you think it's worth a try this time?"

Liang Mengsong pursed his lips and answered more briefly: "It's worth it!"

Fang Zhuo said without hesitation this time: "Then give it a try!"