Net profit growth in the first three quarters of 812%. What secret weapon does suning.com have?


Net profit growth in the first three quarters of 812%. What secret weapon does suning.com have?

Recently, Fortune magazine and Boston Consulting (BCG) jointly released a list of the world's top 50 companies in the future, with Suning and BAT on the list. Obviously, more and more voices have identified that Suning is already a "future enterprise".

Text: Lin Jing

"Suning on the street on the internet", such creative advertising words are more direct, powerful and grounded, which will pull people into the intelligent retail scene constructed by Suning. So, what's the three quarterly performance of suning.com as a benchmark industry for smart retailing?

A few days ago, the three-quarter report issued by Suning Easy-to-buy showed that the business income of Suning Easy-to-buy was 172.977 billion yuan from January to September, an increase of 31.15% over the same period last year, and the sales volume of commodities was 234.883 billion yuan, an increase of 41.91% over the same period last year. In the first three quarters, the net profit of suning.com returned to the parent company was 6 billion 127 million yuan, an increase of 812.11% over the same period last year.

What kind of status do these achievements belong to in the industry? From the perspective of the current retail industry, in the first half of this year, the national consumption boom declined, and the retail industry as a whole was in a weak recovery. According to the data of the National Bureau of Statistics, the total retail sales of social consumer goods in January-June 2018 reached 18 trillion yuan, an increase of 9.4% over the same period last year, a slowdown of 1% over the same period last year, and a cumulative increase of 9.3% in the first three quarters, down from 10.4% in the same period last year.

In the weak market situation, how did suning.com achieve high growth?

Secrets of high growth

According to Wind statistics, from January to September, the median revenue growth rate of A-share listed companies involved in retail business was 2.39%. Over 70% of the listed companies'revenue growth rate was lower than double digits, and the revenue of many department stores declined sharply.

This comparison highlights the significance of suning.com's high growth.

Specifically, on line, suning.com has always maintained a high growth rate far beyond its peers. 1~9 month suning.com online platform commodity trading scale of 137 billion 954 million yuan (including tax), an increase of 70.89% over the same period. In the three quarter, suning.com launched the "8? 18 large scale promotional activities such as feverish Shopping Festival and multi day shopping day to effectively enhance user activity. As of September 30th, the number of registered members of Suning's retail system was 382 million. 2018 "8? During the "18" promotion period, the number of active users of Suning Easy-to-buy APP increased by 62.29% year-on-year, and the number of mobile orders accounted for 93.5% of the total online proportion.

On-line, Suning continued to improve the layout of stores, and accelerate the network coverage of rural markets and urban communities. At the same time, we explore the iterative store model to inject endless innovation power into the smart retail mode. At present, Suning has formed a group of 3C household appliances products including Suning Ego Plaza, Suning Ego Direct Store and Retail Cloud Franchise Store, Suning Small Store, and those focusing on vertical category management, such as home life, mother and child, supermarket and so on. As of September 30, Suning has 6292 self-owned stores, 104 Dia franchise stores every day, and 1453 Suning E-commerce retail cloud franchise stores.

While expanding rapidly offline, Suning also strengthens the operation and management of stores, explores innovative models, and continues to improve the quality of stores in various formats. From January to September, the sales revenue of Suning Home Appliances 3C Home Life Specialized Store, Suning Easy-to-buy Direct Store and Suning Red Children's Store increased by 4.80%, 21.22% and 40.37% respectively.

Suning.com, which has such a high growth rate, is also widely recognized. Among them, Huatai Securities said that Suning, through years of accumulated experience in full-channel operation and a new round of offline layout, has strong resource and model competitiveness in the two main battlefields of e-commerce, namely category expansion and channel expansion, and is expected to enter a high-speed growth era and develop into a full-category, full-channel and sustainable growth. Comprehensive retail leader.

According to the statistics of Changjiang Securities, in the third quarter, the number of positions held by Suning Equity Purchasing Fund reached 212 million shares, accounting for 3.62% of the current shares, up 0.32 percentage points annually, and the number of positions increased to 115 institutions. Forward-looking strategic layout, super-efficient execution ability and strong innovation are the three fundamental reasons for the weak market and high growth of Suning E-commerce, as well as investors'optimistic investment logic of Suning E-commerce.

Notably, Fortune magazine and Boston Consulting (BCG) recently jointly released a list of the world's top 50 companies in the future. Alibaba, Baidu and Tencent, Suning and other 21 Chinese companies came on the list.

Suning "three carriages" from quantitative change to qualitative change

Suning Easy-to-buy can achieve high growth against the trend, which is closely related to the layout and landing of its core business, as well as the support of the retail chain behind it.

From the first three quarters of this year, Suning is continually strengthening the core competence building of value-added business such as logistics, finance, IT, which are the key elements for Suning to improve service quality and enhance user experience.

From the logistics point of view, by the end of September 2018, Suning Logistics and Tiantian Express had a total area of 7.99 million square meters of warehousing and related supporting facilities, 25,894 express outlets. From January to September, Suning Logistics Socialized Operating Income (excluding Tiantian Express) increased 73.17% year on year.

Suning's strong logistics capability has become the core competitiveness to ensure consumers' shopping experience. More noteworthy is that before this year's "Shuang11" logistics peak season, many express companies have increased their fees, and Suning Logistics took the lead in making the "Shuang11" promise not to increase prices. In from November 1st to 11th, Suning self operated products launched free shipping activities.

The logistics pressure of Shuang11 is self-evident. Why can Suning Easy-to-buy promise free freight for its own goods? It can be seen from this that Suning Logistics attaches importance to service, and this "bottom gas" is due to the scheduling, control and diversified warehousing layout of Suning Logistics over the years, and the improvement of scientific and technological intelligence level. This is also the "secret weapon" of Suning Easy-to-buy during the "Shuang11" period.

With technological innovation and technological capability to drive enterprise upgrading, we can win the commanding heights of future competition. In terms of technological development, Suning has been more resolute. From January to September, the R&D expenditure of Easy-to-buy in Suning reached 1.497 billion yuan, an increase of 63.15% over the same period last year. It is mainly used to increase the reserve of professionals and R&D investment. At present, there are nearly 10,000 IT teams in Suning. In the future, Suning will make every effort to launch the "Millions of Plans" to attract top IT talents worldwide and increase the number of smart retail innovative development.

Suning Finance, positioned as a "financial and technological company integrating development of O2 O", focuses on supply chain finance, micro-business finance, consumer finance, payment, product sales and financial and technological output. It has been showing a steady development trend in recent years, and has been listed as Hurun's "unicorn" enterprises. During this year's "Shuang11" period, Suning Finance devoted 10 billion yuan to 5 million willful payment users, offering 1 million 12-period interest-free shopping quotas. Mainstream banks in the United Nations jointly created "Super Payment Day", and consumed in Suning stores, Red Boys, Su Xiansheng, Suning Film City and other scenarios. The use of Suning Payment will also have a maximum reduction of 4999. Yuan discount. Suning financial business around consumer scenarios, really help consumers save worry shopping.

It is also worth mentioning that recently, the China Institute of Home Appliances and the National Electrical Appliance Industry Information Center jointly released the Third Quarter Report of China's Home Appliances Industry in 2018. The report shows that in the third quarter of 2018, the total sales of Chinese household appliances market reached 182 billion 100 million yuan. Su Ning accounted for 22.3%, the growth rate far exceeds the industry, leading the whole channel continuously.

For the growth in the first three quarters of this year, China-Thailand Securities believes that in the long run, Suning's high growth occurs at the time of industry growth deceleration, and behind the counter-trend growth is the greater possibility of Suning's future development.


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