Suning Appliance Releases Strategic Plan for the Next Decade and Builds a World-Class Enterprise

Recently, Suning Appliance, the largest home appliance chain retailer in China, released a new ten-year development strategy for 2011-2020 in Nanjing. Zhang Jindong, chairman of Suning Appliance, led the company’s senior management team to make a debut, and developed from a chain, marketing innovation, technology transformation, and e-commerce. The company elaborated on the overall development strategy of the company and determined to build Suning into a world-class enterprise with global competitiveness in terms of chain regions, business scale, technological innovation, and service capabilities.

Zhang Jindong said that in the new decade, Suning began to stand at the top of the Chinese commercial chain, second in China’s private enterprises, and top 50 Chinese enterprises. Suning's goal for the next ten years is to compete with world-class companies and become an international, world-class company. This is a new goal and it is a new challenge. Unlike the two entrepreneurial activities of Suning in the past two decades, the new decade is not a new venture. Suning must plan ahead for a successful development path in the process of achieving world-class enterprises. To this end, Suning must take a long-term plan, make decisions, and then move forward. The strategic plan for the next ten years is also determined after a long period of preparation and multi-argumentation.

Over the next ten years, 200 shops will be opened in 2014 to enter Southeast Asia in 2014.

Chain development is an important driving force for the rapid growth of Suning in the past ten years. Whether it is the speed of opening a store or the size of a store, Suning has an extraordinary performance. At the press conference, Jiang Yong, executive president of the Suning Appliance Chain Development Headquarters, announced plans for domestic and international chain development of Suning in the next ten years. By the year 2020, we will maintain the speed of opening more than 200 stores per year, realize the layout of all blank areas in the country's primary and secondary markets, and cover 1,785 "counties with a population of more than 100,000 and retail sales of over 100 million yuan" in the county market. It will be stationed in central cities and towns that can radiate at least three surrounding township markets, and 500 developed township markets in Jiangsu, Zhejiang, Guangdong, Shandong, and Fujian.

In the next ten years, Suning will create coverage in the form of sun expo, sun flagship, suning elite, and sun neighbourhood based on population and consumer characteristics. The store network of different cities and different business districts will reach 55%, 42% and 3% of the flagship stores, neighborhood stores and boutiques by 2020.

In addition to opening the store scale and network layout, green stores and overseas expansion are particularly eye-catching. In the next ten years, Suning will strengthen green store standards, promote unified back-office production, recover building materials, strengthen the development and promotion of intelligent temperature control and brightness control systems in stores, and create a true sense of green, environmental protection, technology, and intelligence. Chain stores.

Suning also plans to enter the Southeast Asian market in Vietnam, Thailand, Indonesia, Malaysia, and the Philippines in 2014-2015 through the Hong Kong market. Starting from 2016, it will enter the European and American markets through major industries such as mergers and acquisitions, industry cooperation, and industrial strategic alliances. In 2020, Suning will eventually achieve a 15% share of the total operating revenue in overseas markets.

Multi-channel, multi-format all-round growth of world-class enterprise-scale achievement

According to Suning Appliance President Jin Ming’s marketing strategy plan announced in 2010, the total retail sales of consumer goods in China was 14.8 trillion in 2010, of which household appliances and 3C products were 1 trillion. According to Zhongyikang's trend forecast, the average annual growth rate of domestic retail sales of consumer goods will exceed 15% in the next ten years, and the compound growth in household appliances will be about 12%. In 2015, the domestic home appliance market capacity will reach 1.76 trillion yuan, and in 2020 it is expected to reach 340 billion yuan. .

In response to the huge market space, changes in customer demands, and changes in the industry, Suning will further promote marketing transformation, adhere to the principle of self-directed training and external introduction, and face the needs of both talents for technological transformation and overseas development, and create more internationalized knowledge-based operations. The team will also focus on optimizing the supplier cooperation model, simplifying the current complicated pricing, pricing and terminal sales promotion methods, achieving clear-to-market, full-buy operations, full-category display, full-selling sales, and full-member marketing. Continuously strengthen the role and function of retailers and improve operational efficiency. To this end, Suning has reorganized its original marketing headquarters into a purchasing headquarters and an operating headquarters, connecting upstream suppliers and downstream consumers, respectively. The mission of the operation headquarters will be to use stores as a platform and focus on strengthening research on consumers and markets. Achieve self-sales of stores.

In the future, Suning will aggressively promote marketing strategies in two domestic and foreign markets, online and offline, and innovation, customized services, multi-channel development, and become the core vocabulary. Suning will implement four major types of sales channels: physical store sales, B2C sales, Service to Order (STO), and distribution sales, super flagship stores, flagship stores, boutique stores, and neighborhood stores. In 2020, it will account for nearly 20% of the home appliance market in China's retail market, and the scale of operations will reach world-class companies, further fostering global competitiveness.

It is worth mentioning that Suning's future sales channels will further strengthen custom sales (STO) and online distribution. Among them, STO will further strengthen its customized services and conduct one-on-one custom development for the differentiated needs of government-industry group customers, small and medium-sized enterprises, and home users, achieving design, installation, supervision, and after-sales service. Therefore Suning will further expand and optimize the customized service sales system and set up service sites in major flagship stores to meet customers' individualized consumer demands. Network distribution is aimed at developing brands, creative and non-channel small and medium-sized enterprises, providing technical product support and large-scale support through funds, channels, and service networks, becoming incubators for their products; targeting mature brands and technologies Enterprises with products and underdeveloped channels, while providing their own chain network, establish social distribution channels, provide funds, logistics and after-sales service support, and jointly develop the market. This full integration of channel resources will help further nurture China's manufacturing and support China's creation. Jin Ming also said that in the future, Suning will provide more systems for consumers based on existing traditions and 3C products. The integrated services and overall solutions will specifically cover individual consumer electronics solutions for individual users, and the overall audio and video entertainment solutions for home users, the overall smart kitchen, smart life solutions, and smart home total solutions for SMEs. Intelligent office system integration; computer information system integration for government-enterprise groups, integration of large-screen splicing systems, and integration of security property systems; and at the same time, expand virtual products such as telecom recharge, insurance services, ticket booking, online books, and entertainment consulting; And the B2C channel will continue to enrich various types of daily merchandise products and form a “product cloud” that meets the diverse and personalized needs of consumers.

Product innovation is not only reflected in the expansion of categories, but also reflected in the optimization of product channels and the deepening of differentiated product marketing. Suning will focus on consumer demand, increase the proportion of self-owned products and customized underwriting products, and further strengthen the bridge between consumers and manufacturers by tapping consumer demand. Suning plans to increase the proportion of black-box products in the traditional category to 20%, air-conditioning and ice-washing to 15% in 10 years; the proportion of self-owned products in communications in 3C category will increase to 35%, and that in digital and computers will increase by 20%. % and 30%. In general, by 2020, sales of autonomous products will account for more than 30% of the company's overall sales.

In terms of supply chain innovation, Suning will focus on establishing efficient consumer response (ECR) and promoting predictive replenishment (CPFR). Adopt customer-oriented retail model (consumer value model), promote efficient product category management, and establish a common target forecast and plan with suppliers through CPFR so that both parties can implement supply source, inventory turnover, retail assessment, and cost settlement. Obstacles operate. Establishing an efficient docking mechanism for information and on-line automatic ordering system to realize ECR supply chain management mode and improve supply chain efficiency.

Strengthen background service system construction and build the country's largest service platform

According to Jin Ming, Suning will further strengthen the construction of its service system in the next decade. First, it will focus on the construction of logistics bases and enhancement of service capabilities, continuously optimize warehouse management systems and distribution management systems, deepen the use of WMS/TMS systems, and improve warehousing. Ability and distribution efficiency, high speed access, fast delivery. By 2015, the country's 60 logistics bases will be completed and delivered for use. By 2020, Suning will build a nationwide logistics network centered on 60 modern logistics bases. At the same time, 10 automated warehouses will be built to support automated logistics of small goods. By then, Suning's logistics warehousing capacity will reach 60 million units. Sets, delivery capacity will reach 4.5 million units per day.

In the future, the entire after-sales service system will continue to focus on the changes in the consumer and business markets, and accelerate the establishment of three-level vertical after-sales service networks in provincial cities, prefecture-level cities, and county-level cities (including counties), and fully realize the place where there are electrical sales. There is a goal of Suning Service Network. It is estimated that by 2020 the number of national service outlets will reach 6,000, and 350 3C service centers and 60 large-scale maintenance platforms will be built. The number of installation and maintenance personnel exceeded 40,000, including 5,000 senior service engineers, 15,000 engineers, and 20,000 technicians. At the same time, we will use the SCS platform, PDA handheld terminals and STK cards and other modern information methods to achieve automatic dispatch of the system, automatic sales orders, automatic settlement and other work.

In the next ten years, Suning will also focus on building a knowledge management and technology consulting type of Suning customer service system. It will provide a comprehensive functional Call Center for consumers based on comprehensive information, appointment and complaint processing services. Installation and maintenance of the entire process of monitoring services, while fully open to the consumer online sales service functions. Before 2020, Suning will complete a full upgrade of the call center, from the existing 1200 seats to expand more than 4,500 seats, and improve various types of customer service and expert seat service personnel.

Technology Transformation Cloud Service Model Driving Wisdom Suning

At the press conference, Ren Jun, Vice President of Informationization Construction of Suning Appliance, headed to the front desk for the first time and informed the development strategy of “innovation of science and technology, wisdom reengineering” as the core and the next ten years of Suning information construction and operation management.

Ren Jun said that the transformation of science and technology and wisdom stems from the inherent needs of Suning's development. Suning's leap in the new decade is the same as the development of all large enterprises. They face two common problems: more and more people, more and more levels, and lower and lower efficiency; more and more geographical areas, more and more resources The benefits are getting worse. Solving this difficult problem of the development of global large enterprises is the key to Suning being a world-class company, and the way to solve problems is technological innovation.

Suning believes that the retail industry is born with information technology. The forward-looking and in-depth understanding of the development direction of the information technology in the retail industry will be the precondition for the formulation of the company's strategy. Accurate grasp can often promote the company's transformation and innovation. Transformation. In this sense, the retail industry is essentially a technology-oriented company, and the development of retail e-commerce has enhanced the annotation of this feature.

The rapid development of technology around the Internet has also brought new propositions for Suning to formulate future informationization strategies, including continuous breakthroughs in network technology capabilities, continuous leaps in hardware operating efficiency, increasing levels of application integration, and continuous development of intelligent terminal products... ... all provided good technical support for Suning’s wisdom transformation.

Ren Jun said that currently Suning has formed a powerful IT organization system and culture, formed the scale of 4,000 information technology personnel, and built a real-time intelligent network system that integrates data, voice, video, and monitoring, and independently develops. There are more than 120 application modules and subsystems that cover operations, management, and services. At the same time, Suning's IT organization team continued to improve, IT technology application capability continued to develop, and the IT culture system atmosphere gradually formed, which enabled Suning to have the basis for future development of relying on information to further promote the transformation and development of Suning.

Ren Jun introduced that Suning's information technology strategy for the next 10 years can be summarized as a "four-in-one" model: efficient high-speed logistics network, intimate and comfortable store experience network, convenient and developed multimedia transaction network, and wisdom. Shared management network.

Specifically presented in the services of various types of customers, Suning will provide consumers with consumer cloud services, gradually from the original product sellers, basic service providers, to become consumer demand operators. It is not simply to provide products, prices and after-sales services, but to provide the ultimate function and experience of the product, to provide consumers with overall home life solutions and smart home lifestyle, to simulate various family life, entertainment and leisure, office scenes, root Consumers' individual needs, using Suning's information platform and fully integrated cloud platform resources to provide related soft services, from traditional to technology-based, intelligent service type. At the same time, SME customers will also be provided with a full set of integrated services and information solutions based on OA office.

Supply cloud services to suppliers will enable Suning's relationship with suppliers, not purely sales and purchase relationships, but will be upgraded to customer demand information and product function design, industrial integration services, product production and commodity circulation supply coordination services, and commodities. Resource services integrated with sales services and capital services, procurement services and warehousing logistics services. Suning will use the information system platform such as SCM, ECR, and CPFR on the basis of the original B2B system data docking to enable the two parties to implement barrier-free operations in terms of supply of goods, stock turnover, retail assessment, and cost settlement, etc., in workflow management and response to the market. Service capacity, reduce inventory and speed up the turnover rate of goods are continuously optimized to save transaction costs and shorten product production cycle and trading time. This enables suppliers and Suning to quickly produce and sell consumer-satisfactory products, expand market size, improve the quality level of the retail market, and increase communication efficiency with suppliers.

The management cloud service for employees will also transform Suning’s headquarters’ relationship with internal employees from the original institutional standards development and implementation management supervision to the provision of professional shared services. Suning will use the efficient docking of information systems and convenient links to smart terminal platforms. Employees can use everyday tasks such as smartphones, tablets, and ordinary PCs. The work involves procurement, distribution, finance, service, personnel, office, and knowledge management. Informatization innovation makes the integration of business and resources and the advantages of economies of scale more prominent, and truly realize cloud management of smart companies.

Facing the complex demands of various types of customers and the globalization of cross-regional management, the implementation path of transition technology Suning is: using cloud concepts and technologies, highly integrated and flexible mobilization of internal and external resources, cooperation in the supply chain, consumer services, All aspects of enterprise internal management have formed a cloud service platform and thin client model. Different objects can be ordered freely and freely to more specialized, more personalized, and more convenient services.

In practice, Suning will build a “Beidou Seven Star” business group consisting of logistics platform, supply chain platform, software development, process outsourcing services, B2C shopping portal, financial service portal, and open platform portal. Customer Experience. At the same time, in the next three years, Suning will build 6-8 cloud computing data centers in Beijing, Shanghai, Guangzhou, Chengdu, Wuhan, Xi’an and other places to fully use green technologies to support high-density server deployment and high-performance large-capacity storage. The company put into full use of virtualization technology and built a basic technology platform based on cloud computing to build an environment for future cloud service implementation.

In terms of organization and team building, in the next 10 years, Suning will continue to expand the IT team, and will invest 80-1000 million yuan in three major development centers in Nanjing, Beijing, and Shenzhen in three years, reaching an initial scale of 10,000 people and eventually reaching 20,000. Human IT team. At the same time, Suning will also establish a sound professional organization, operation mechanism, and IT governance system, strengthen the product design system, technology development system, and quality management system, and build the management foundation of international IT companies. In addition, Suning invested 150 million yuan to build the Suning IT Training Institute, in-depth cooperation with major software and hardware companies, and professional development companies to build a training system that targets different skills and different targets, comprehensively upgrades the quality and skills of talents, and builds Suning's business, The IT culture system characterized by technical requirements.

Suning's Five-year Leading Industry in the Industry Transformation Network Life Platform

Suning E-Commerce, which had just launched in early 2010, achieved rapid growth. Sun Guoyi, general manager of Suning Tesco, determined that Suning Tesco will become a model for the perfect combination of Internet and retail e-commerce companies. He said that Suning Tesco is committed to establishing an operational model based on internet technology, based on data research, and based on customer experience. Relying on the ever-expanding product line, it brings consumers a wealth of choices; relying on a huge scale of warehousing, sales, and distribution to reduce costs and maintain low-cost advantages; relying on a sound logistics and distribution network to bring consumers convenient delivery services.

Suning's e-commerce plan will maintain a compound annual growth rate of 50% within 10 years and reach the industry's largest sales volume in 2020; SKU totals more than 2 million; 100 million registered members; 25,000 overall teams; The above cities; cloud computing, cloud service capabilities rank among the world's leading, transformation of the network life platform, become an important part of wisdom Suning. The product line covers home appliances, home furnishings, department stores, books, audio and video, sports and outdoor, online legal, education consulting and services.

The development strategy of Suning Tesco is divided into three phases: 2011-2013 is a period of rapid growth, with a compound annual growth rate of over 180%, the development of mobile e-commerce business and community-based marketing, the introduction of third-party merchants, and the establishment of easy-to-purchase locations around the country. Branch Office; 2014-2016 is the industry leader, sales scale, customer experience, cloud computing, community marketing, etc. lead the industry to achieve development first, e-commerce branch to become a local e-commerce leader; 2017-2020 is a transition spanning During the period, the transformation of the network life platform, around the daily life, built a large-scale and subdivided network clusters, and became an important carrier of wisdom Suning. The sales network will also expand to places such as Hong Kong, Japan, and Southeast Asia, and its technological innovation, data research, and warehousing and distribution capabilities will rank among the top in the world.

According to Ling Guosheng, by the year 2020, Tesco will have 8 data research centers, IT research and development teams will reach 10,000, and data research will infiltrate all links and departments of E-commerce operations management. At the same time, through the research and sharing of 100 million member data of the CRM system, the Suning OEM Research Institute will become the main incubator for e-commerce products.

The release of Suning's strategy in the next decade marks Suning's brand new start. Currently, Suning has started planned preparation and investment in the allocation of various resources for the company. On June 16, Suning announced the issuance of an additional issuance announcement of 5.5 billion. It will be mainly used in chain development, logistics construction, information upgrading and supply chain optimization projects.

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