Suning Tesco wants to acquire share e-commerce platform

After Suning Appliance changed its name to Suning Cloud Commerce, Sun Mingyun, President of the company, Jin Ming, accepted the media interview for the first time on the 19th. Faced with the impact of e-commerce, Jin Ming believes that China's current retail industry does face challenges, but he stressed that there is no way to completely cover the offline potential with big potential online. Suning still needs to develop physical stores and achieve 3,500 stores in 2020. The target will not change, and indicates that Suning Tesco will consider mergers and acquisitions or participate in other e-commerce platforms in the future.

In February of this year, Suning Appliance officially changed its name to Suning Cloud Business. Suning’s move was a cloud merchant model that announced the establishment of a “shop merchant + e-commerce + retail service provider”, but Jin Ming did not believe that the physical store had entered a period of gentle development since then. . He pointed out that China's physical chain retail market still has a vast space, so Suning’s plan to achieve 3,500 stores in 2020 will not change, and it will still maintain a growth rate of 200 stores opened every year.

However, in the specific development strategy, Suning has made adjustments. Jin Ming stated that Suning will open and upgrade a total of 400 superstores in the next three years. At the same time as opening a store, “we must also close some community stores and township stores” and open more than 4,000 square meters of large stores in county and county-level cities.

Guangdong's newly established Dongguan and Foshan Jinming said that the growth rate of Suning's last year reached 210%, which is in line with expectations. “E-commerce will continue to develop at a high speed this year,” but “it’s not just making money every day”, it is necessary to create a real profit model. Previously, the major e-commerce platform shopping price competition in the Jin Ming seems to be "phased and unsustainable", Suning e-commerce this year, "we must strengthen the construction of user experience, the basics do a good job."

After the acquisition of maternal and child-related e-commerce children, Suning has also recently been reported to acquire China New Egg Network, although Suning denied this, but Jin Ming said that in the future, Suning Tesco may consider mergers and acquisitions or participate in other e-commerce platforms. In the potential acquisition target, Jin Ming said that Suning would consider cost-effective, form a certain scale and a fixed consumer group, professional and unique, management and big data mining ability, can compensate for Suning's lack of new products in the object.

Jin Ming also responded to the outside world's response to Suning's birth of traditional retailers and whether or not there was an e-commerce gene. He believes that a simple price war is a waste of money, and real Internet sales must also be based on improving efficiency. It is not "simple sending Weibo and doing promotion and promotion." Online sales and offline sales are all commodity operations. Procurement, pricing, supply, inventory, and service are some of the major aspects, and Suning has advantages in these areas.

Sun Wei, general manager of the Guangzhou Regional Management Center, Ren Wei, said that in 2013, the Suning Guangzhou region will sprint three times the amount of e-commerce transactions in the Guangzhou region, and its sales ratio will increase to more than 15%. The sales scale increased by 30%, and the single-store output was higher than the industry average of 25%. In the Guangdong region, Suning will set up two new districts, Dongguan and Foshan, and it will open 20 new stores, and Suning's sales will increase by 3 times.