Gome's net profit soared last year

Just as Gome announced a net profit of 892 million yuan in 2013, a year-on-year increase of 222.53%, Gao Xiang, the CEO of Gome Online, suddenly announced the resignation, becoming the third Gome Online senior personnel change after Han Depeng and Peng Liang. The external interpretation of Gome Online's frequent change of cause is that there has been no major breakthrough in performance.

Even if Gome announced that it will launch the 02M (offline+online+mobile mobile) omni-channel strategy, there are various signs that GOME Online has not been placed high hopes. Judging from the current planning, Gome's return to the old line will only highlight the future. Will still focus on refinement entities retail. However, how to deal with the ever-increasing costs of operating physical stores and maintain good performance in 2013 has become a new challenge for Gome this year.

Annual sales revenue increased by 10.4%

On the same day, Gome held a 2013 performance review meeting. Gome said that in 2013, sales revenue reached 56.401 billion yuan, an increase of 10.4% over the same period of last year; in 2013, the profit of listed companies reached 892 million yuan, a substantial increase of 222.53% year-on-year.

According to the announcement, as the unlisted portion and the listed company are a management team, the overall sales revenue of Gome in 2013 was nearly 100 billion yuan. According to the report, benefiting from supply chain factors such as commodity structure and commodity cost, the Group's comprehensive gross profit margin returned to a high level of 18.4%, exceeding the industry average. In addition, through the effective optimization of various operating costs, improve commodity operating capabilities.

On the same day as the results report, Gao Xiang, the CEO of Gome Online, announced that he would leave the company. Gome said that it will be replaced by Geng Guixian, chairman of Gome Online. This is the third high-level personnel change following the departure of former CEO of Gome Online Han Depeng in May last year and Peng Liang, Senior Vice President of Gome Online Marketing in November last year.

Three high-level executives have left the company one year later. The development of GOME's online presence is quite unstable, and the reasons for the departure of three people have also been attributed to poor performance. Gome Online denied this claim and stated that Gao Xiang personally left the company. He said that during Gao Xiang’s tenure of office, he improved the user’s shopping process, improved the efficiency of technology development, and improved internal organization. He strongly promoted the progress of the company’s related work and stated that Gao Xiang’s departure will not be correct. Gome Online’s current business has an impact.

Gome Online also stated that Gome's e-commerce strategy will not change, or it will insist on the top five strategies such as mobile internet that were first introduced at the beginning of the year.

As GOME Online has not reported personnel and equity disputes within the company, the “poor performance” has been recognized by the outside world. According to an insider from the Gome Group to a reporter from Nandu, the fact that Gome Online is still improving after a large amount of money is an important reason for changing frequently. According to Fang Hao, chief financial officer of Gome Appliance, Gome e-commerce accounted for approximately 5% of total revenue in 2013. According to Gome's sales of 56.4 billion yuan in 2013, less than 3 billion yuan in online sales is obviously not up to initial expectations. According to the “2013 China E-commerce Market Data Monitoring Report” published by the China E-commerce Research Center, in the 2013 China B 2C online retail market share ranking, Gome Online ranked only ninth with 0.4%.

Gome Online has suffered huge losses for three years. Although Gome Online has not achieved brilliant results, Gome does not seem to have high hopes for the development of Gome Online. On the one hand, GOME Online’s sales have always accounted for less than the country’s largest U.S. revenue. Guo Jun’s president Wang Junzhou revealed that 90% of Gome’s sales are still completed online. Offline sales are the main reason for Gome's 2013 performance report, so even if GOME’s online renewal is not repeated, it will not hurt GOME.

In addition, on the day of the performance interpretation meeting, Gome announced that it will build an O2M omni-channel strategy in the future, that is, the offline entity retail channel, online e-commerce channel and mobile terminal channel will form omni-channel retail. Gome’s financial controller, Fang Yan, said in an interview with a Southern Metropolis reporter that by 2017, Gome’s offline channel sales accounted for 70% to 80%, online channel sales accounted for 10%, then 15%, and the rest Is a mobile channel. This set of data also shows that online channels have not been high hopes for Gome.

In fact, in fiscal year 2013, except for the quarterly report that Gome e-commerce company had made a revenue of 700 million yuan, Gome did not disclose the details of e-commerce revenue. According to public statistics, in 2011, the total net loss of the two home appliance merchants' websites Kuba and Gome.com Online reached 390 million yuan. In 2012, Gome e-commerce lost nearly 500 million yuan. Although the margin of loss has contracted, Gome e-commerce still failed to achieve annual profit in 2013. Fang Hao said that in the fourth quarter of last year, the amount of losses of e-commerce has narrowed to 100 million yuan. Last year, the country’s e-commerce business suffered a loss of about 500 million yuan. Gome e-commerce lost nearly RMB 1.4 billion to Gome for three years. Fang Hao said that according to the current situation, Gome Online must complete 10 billion annual sales in order to be profitable. Liang Guoqing, an analyst in the home appliance industry, said that Gome Online, which is facing or will continue to lose money, does not rule out further contraction of self-operated e-commerce business.

It is worth noting that Wang Junzhou said that in addition to self-operated Gome Online e-commerce business, Gome will strengthen cooperation with other e-commerce platforms, including JD.com (scroll information). Gome has already entered Tmall and Dangdang. This is also considered by the outside world Gome will decentralize e-commerce channels, Gome online status worrying.

Reliance on retail sales of offline entities into Gome's focus In the industry's view, Gome Online is so “not to be seen” because of the strength of offline channels. Compared with the growth of e-commerce companies’ other companies’ performance, offline stores are the only ones that make Gome’s profitability in 2013. The main force. Since last year's retail development under the complete regression line, Gome has experienced four consecutive quarters of growth since 2013.

Gome's 2013 financial report showed that the total number of Gome Group stores totaled 1585, covering 428 cities across the country. The operating quality of single stores has been further improved. Same store growth has reached 13.7%, which is higher than the industry average. At the same time, operating expenses have been effectively controlled through leasing and lease-out methods, and the total cost rate has decreased from 18.2% in the same period of last year to 16.6%.

Although Gome executives have always emphasized the O2M omni-channel strategy, they have not directly expressed their development strategy of “below the heavy line”, but there are various indications that Gome’s future reliance on offline channels will only increase, and for quite a long period of time, Gome Online may only be "accessories." Wang Junzhou, president of Gome, took Japan, Hong Kong, and Singapore as examples. He said that consumers have a very high degree of adhesiveness to physical retail stores, and the e-commerce market does not dominate the mainstream. He believes there is still room for improvement in the quality of service in domestic stores. The physical store still has great room for development. Wang Junzhou revealed that Gome will continue to upgrade its physical stores in the future.

In addition to optimizing the product structure and marketing strategy, Gome's important move is to set up WiF i in all stores. Wang Junzhou introduced that wherever there is access to the Internet, it provides customer prices. If it is higher than online, Gome will immediately adjust the price. "The future growth of the business still depends on expanding stores and improving single store profits." Wang Junzhou said that this is the advantage that Gome needs to maintain and maintain.

It can be seen clearly that, unlike the old rival Suning's comprehensive transformation of Internet companies, Gome and Suning will be more polarized on the road to development after they are dissatisfied with Gome. Fang Hao disclosed that the expansion of the GOME line will continue in 2014 and is expected to open 50 to 100 stores in 2014. Some people in the industry are worried that due to operating costs and the impact of e-commerce, Gome and Suning have performed a wave of closed stores, how to cope with the rising pressure of rent and management is still the country's future challenges. In response, Gome said that in 2014, the Group will continue to dilute and reduce the cost of rental through the growth of same-store sales and the optimization of store area. In the future, the Group will continue to promote the reduction of rent and closure of the weaker stores in order to maintain overall competitiveness.