Multi interpretation Suning electricity supplier game


According to

, Suning Appliance released 2012 first quarter performance report shows that a quarter of the total operating income of 22 billion 641 million yuan, an increase of only 10%, net profit fell 15.3% to 951 million yuan, much lower than expected. This is the first time since 2004 Suning earnings results fell sharply year on year situation.

I think Suning earnings fell sharply compared to the phenomenon is normal, because it involved in the electricity supplier market. And at this moment by the Jingdong, Tmall, Gome and other electricity providers giant price and market squeeze attack. Although Suning economies with strong line support, but as everyone knows, the electricity supplier industry is to continue to burn, especially in the last few days of the major electricity supplier companies are in competition of price war, making the already weak profit companies is difficult in the market operation. None billion yuan sales, I think that is a boo head, see no prize.

Electricity market environment

so bad and crowded, but Suning was exposed and the line under the Bo scandal. Due to the online drag led to its overall net profit fell 15.3% in the first quarter, the overall sales growth of only 10% (Online + line), well below expectations. In 2011, an increase of 23%, and the future will continue to be dragged down by its online.

seems Suning entered the commercial market is indeed a mistake, industry experts sigh, WAL-MART is the way electricity supplier failure history will be repeated in the Suning body? Because according to the history of business: online and offline and irreconcilable contradictions exist forever, which eventually give up online, Suning will go WAL-MART


I think Suning electricity supplier will continue in the future is not important, it is important that Suning is currently facing what kind of dilemma is the most important and the most worthy of our attention. Because the electricity supplier industry will with the passage of time and the scoreboard, as the war was the same as group purchase, so I think Suning whether to continue the topic the electricity supplier has not worth discussing, now please follow the author’s dilemma faced by the current Suning look!

(1) complex accounts are not clear, not independent statistical

lineAfter the development of Suning

fan, and not received reports of independent electricity supplier management division, but to participate in the next line of earnings inside, using financial merger practices cover the specific data of the loss. Miscellaneous accounts are not clear, do not know whether the investigation of the board of directors of


(2) blind expansion of product lines, business model error was eventually closed down

June 13th, there are four people in the industry came out micro-blog Suning boutique has been shut down the news. The subject mainly to high-end, pure and profitable manner by products to maintain profit boutiques, a complete copy of the 2005 Gome Eagle appliances, the spring of 2011 China best buy business model. The two have gone bankrupt, why not Suning

Leave a Reply

Your email address will not be published. Required fields are marked *