Suning And Jingdong'S Franchise Profits Become Key

Jingdong's channel has been sinking for more than a day.

Since November 2014, Jingdong has begun to set up a Jingdong service shop in the county level market to sell household appliances to the countryside. In a year alone, the number of Jingdong service stores in the country has reached 1293, and the rural market has accounted for 27% of the sales of Jingdong household appliances.

Behind the rapid expansion, whether or not franchised stores can continue to operate steadily is faced with great challenges.

"The key lies in the pattern, not only the authorization, but also to provide competitive products and profit."

Yan Xiaobing told reporters that at present, some rural stores have to return to 40%~50% to survive; and the goal of Jingdong Township stores is to sell products from factories and complete sales within 20% of the cost.

Making money.

At present, Jingdong is groping for this new business mode.

Yan Xiaobing said: "we have consulted the opinions of the" help main "(Jingdong help shop owners). The key to making the decision to do the township stores is the business model, whether it can be mutually beneficial, and bring down the low priced goods.

How to guarantee service quality in franchised stores is a big test.

Jingdong will improve the supervision mechanism from the terms of service, the opening of consumer complaints channels and so on.

"Once there is a violation, the franchised store has an exit mechanism."

At the same time, Yan Xiaobing still has a long way to go, and the management system will keep pace with it.

Jingdong's decision on channel sinking is inseparable from supplier support.

Jingdong has publicly promised that the strategic partners will not go up in the next three years, and will share and share big data with manufacturers.

It is reported that LG will take the lead in making use of Jingdong's big data to develop research and development for consumers' pain points. For this reason, a team of 30 people has been set up in South Korea.

With the expansion of Jingdong, the balance between factory and business is inevitable.

For example, there are many stores in towns and townships, such as Haier and Mei, which will compete with Jingdong's township stores in the future.

In this regard, Yan Xiaobing believes that the rural market is large, but also needs a variety of brands, such as joint ventures, Internet brand TV also needs, Jingdong stores hope to become a competitive Township stores.

A senior observer in the appliance industry believes that "with the sinking of retail giants, the division of labor between factories and businesses will become clearer."

If Yi Kai and Jingdong's township stores are more efficient, the factory's rural monopoly system will face pformation.

However, the head of a well-known household appliance enterprise said, "everyone is snatching the last mile of the rural market". Whether Jingdong or Yi can make the logistics cost lower is still need to be observed.

The development of online and offline integration among giants, the contest for championship of comprehensive strength is being staged vigorously.

Before that, Suning and Gome are known to have about 100 billion sales of household appliances every year.

Jingdong must go beyond this scale.

"The next two years are the key window period". The senior observers of the home appliance industry believe that Suning is still the champion of home appliance retail on line and offline. Gome pays more attention to the profit of offline stores, and online business has also accelerated its efforts since the second half of last year, but the Jingdong's explosive force can not be ignored.

"In two years, Suning will not lose.

If there is a chance to win, Gome will also have the chance. If Gome founder Wong Kwong Yu is re entering the office, there will be much room for imagination.

Gome's overall listing is about to end. Suning was originally listed as a whole, and Jingdong was also listed in the US.

In the future, who will win in the competition for home appliance retail in China, we need to speak in numbers.