Gome e-commerce new strategy accused of over-defense

In the face of the impact of e-commerce, Gome finally could not sit still. Recently, Gome announced a new three-year strategy, which will focus on consolidating the advantages of the primary market and developing second-tier cities. At the same time, it will also point the e-commerce business to a strategic height.

Insiders pointed out that compared with Suning, a competitor, this new strategy of Gome is not only slow but also over-defensive. "I think Gome's strategy is still defensive, but it is only to link online and offline. But whether or not you can defend it is still unknown." E-commerce observer Lu Zhenwang told the "Investor" reporter.

However, Gome believes that profit is the most important. “Listed companies must be accountable to shareholders, and they can't burn money forever. We all want to improve our internal strength and then we must make efforts so that we can continue to grow.” Officials from the United States and the United States responded to reporters from Investor News. .

Gome's new strategy highlights e-commerce

In the new strategy conference, Guo Jun, president of Gome, said that in 2012, he deeply understood the rapid development of e-commerce, especially in the first-line markets such as Beijing and Shanghai, which have already constituted a significant impact on physical stores.

In 2012, Taobao and Tmall's total annual transaction volume exceeded the 1 trillion yuan mark, and the daily transaction volume of the Tmall Taobao Singles Festival reached 19.1 billion yuan, an increase of 260% over the same period last year. The rapid development of e-commerce is precisely based on this understanding. GOME has had to re-adjust its development strategy and bring e-commerce business to a strategic height that is as important as physical stores. You know, in early 2012, Gome still insisted that e-commerce is just a supplement to traditional stores.

For the future planning of e-commerce, Gome has integrated and adjusted its two major e-commerce platforms. Gome's online mall will be officially renamed Gome Online and implement self-employment strategies. Kuba will focus on the development of e-commerce platform business in an independent operation mode.

“Gome has integrated O2O mode into its e-commerce line. It has great hopes for it. There is only one entrance for e-commerce in the future. Gome Online includes Kuba, and Kuba is just one of the channels.” Gome Management, anonymity, Layer told the "Investor" reporter.

In addition to the e-commerce force and the strategy of building a big store in the first-line market, Gome’s new strategy will increase its future performance. Gome also hopes to expand the physical stores in the second and third cities.

Gome believes that the second- and third-tier cities in China are significantly better than the first-tier markets. Therefore, Wang Junzhou said that Gome will accelerate its market share and distribution in the secondary market and plan to open 200 new stores in the secondary market in 2013.

This figure is still very alarming in the current market downturn. According to public information, as of September 30, 2012, the total number of Gome outlets reached 1,070, while in the first half of 2012, Gome only achieved a net increase of 17 stores.

However, it is worth noting that Gome’s removal of the word “electrical” means that the outside world will interpret it as a tendency for Gome to expand its category or department store.

In response, Gome official staff told reporters: “The physical stores have no department store trend, but Gome Online Mall will increase the department store products. The offline entity stores have not planned to expand the categories other than electrical appliances, even if there are joint ventures. the way."

Strategy is too defensive to sink

In fact, these new strategies of Gome are not new to the industry, because its competitors Suning's strategic planning as early as a year ago is the case. In essence, outsiders' interpretation of the new strategy announcement of the United States is more inclined to the country to learn from Suning in order not to be thrown away. However, this strategy of passive selection makes the outside world feel that the United States only emphasizes defense and lacks strong morale.

"In order to grab share, Suning Tesco is completely offensive, constantly expanding categories and playing a price war. However, GOME e-commerce has not yet been integrated, and the strategic path is still not clear, so the country's strategy is not an offensive. "Lu Zhenwang said that he does not take the initiative to change, and sooner or later it will be revolutionized by others."

For the outside world questioned the country's slow development in e-commerce. An internal manager of Gome told reporters that Gome is not aware of the slowness, but because of the various internal disturbances that led to the time for e-commerce as a strategic study until 2011.

“The reason why GOME e-commerce is developing slowly is because e-commerce is still dominated by price wars. If we have to sacrifice profits for exchange of traffic, we will be able to do large-scale production in a short period of time. However, we prefer to integrate the underlying supply chain and make further efforts. Why Amazon is strong is because people have a strong supply chain, and we have a good sense of profitability," said officials of Gome officials.

As for Gome, it will increase the layout of second- and third-tier cities in the future. In fact, many people have different opinions. It is not necessarily a good choice to expand entity store business in the second and third-tier markets.

As we all know, in the year of 2004, home appliance chain companies shouted down channels, but there was not much success in calling for years. Even Huazhong, Huaxi and other regions did not go deep. Because these market conditions are quite different from the first-tier cities, the model cannot be duplicated.

“Actually, e-commerce is developing very quickly in the second and third-tier markets. It should not be confined to the primary market. Now that many broadband has entered the township, these consumers also have the need for online shopping.” Liu Buchen, Principal Consultant, Counselling Agency, Kuafu Said.

Wu Xianjian, secretary general of the China Household Electrical Appliances Business Association and National Consumer Electronics Channel Alliance, also believes that physical store expansion is now in a period of stagnation. Relative to e-commerce, because physical stores have higher fixed costs, physical stores in the future will develop in third and fourth-tier cities. The opportunity is not great.

Compared to strategic gains and losses, human factors are the most influential factors in Gome, because the formulation and implementation of any strategy requires human execution. Interestingly, this time, Gome's new strategy announcement was made by Gome. It was unclear whether it was intentional or unintentional. According to industry sources, the trust of major shareholders in the management of Gome is not enough.

"Huang Guangyu should not be involved. How can he be more knowledgeable about the market than people outside the prison? And he doesn't trust the management. He is afraid that the management will not do well. He will send orders across the air." Liu Buying suggested Wang Shi, the major shareholder, to Vanke. Learn from Huang Hongsheng of Skyworth and learn to trust and decentralize.