Great Adjustment Of Gome'S Organizational Structure To Build A New Ecosystem With Jingdong

Recently, Gome retail announced the renewal of organizational structure and personnel appointment, and announced that it was about to start the second stage of extension and upgrading of "home and life" strategy.

Not long ago, Gome held a performance conference. At the investor conference, CFO Fang Wei said that the core of the second stage strategy is to build a Gome ecosystem driven by two axes of online platform, online / offline dual platform + self support / third-party external supply chain, and four rounds of interactive "social + business + sharing".

The core goal of this strategy is to break the current boundary of Gome retail, and expand the basic home furnishings, home appliances and home furnishings to a wider range. In order to cooperate with this strategy, Gome has rebuilt its organizational structure. Previously, different businesses were reorganized into Gome online company, Gome Home Company, Gome electric appliance company, Guomei Youshi company, Gome investment company, Gome customized company and logistics platform company.

Xiang Hailong, who left baidu not long ago, served as executive vice president of Gome retail and CEO of Gome online in the new organizational structure. According to the public information, Gome online will become the axis of Gome's expansion in the next step, an online and local life transaction sharing platform supported by product technology.

Jingdong and Duoduo

Since the beginning of this year, Gome seems to have swept away the impression of "Silence" from the outside world and began to walk into the upward channel.

On April 19, Gome and new e-commerce platform pinduoduo (NASDAQ: PDD) officially reached a deep strategic cooperation. According to the agreement, Gome will connect the "home life" supply chain, medium and large cargo logistics network, service solutions and other "retail infrastructure" to pinduoduo to provide it with more abundant goods and services; in terms of pinduoduo, it will pour into Gome such advantageous resources as consumption big data, "ten billion subsidies" and technological flow, and strengthen cooperation in profit sharing promotion and market promotion.

More than a month later, Gome announced once again that it had reached a strategic cooperation with Jingdong. The complementary supply chain advantages are an important reason for Gome to introduce Jingdong strategic investment. At the same time, the two sides have reached cooperation in joint procurement. Gome and Jingdong will become the largest home appliance purchasing alliance in China at present.

So far, a tripartite home appliance retail alliance including Gome, Jingdong and pinduoduo has taken shape. This alliance not only brings multiple benefits such as flow, commodity category and supply chain management, but also obtains about 2.1 billion RMB in cash through convertible bonds. In addition, with the funds obtained from the sale of real estate projects, Gome has restructured ammunition to invest in various aspects.

Therefore, a person close to Gome told the reporter that from 2017 to now, the first stage strategy has been basically completed after the joint efforts of Jingdong pinduoduo, and Gome has achieved the coverage of Online + offline Omni channel and all categories. "It can be simply understood that the task of Gome in the second stage is to expand." He said.

Offline, according to the recent Gome semiannual report, Gome entered 520 cities in the first half of this year, with 571 new stores. The total number of stores reached 2823, covering 1296 cities. Among them, nearly 70% of the third to sixth tier cities have been basically covered by Chinese cities.

On the online side, during the epidemic period, Gome created a community of online and offline integration around the entrance of "stores", which enabled Gome to have a private domain traffic precipitation opportunity; then, it transferred its offline stores to online, and the stores became front warehouses, and a logistics system covering three to five kilometers around was built.

In the previous interview, Gome retail president Wang Junzhou told the 21st century economic reporter that after the cooperation was reached, Gome realized the coverage from online to offline, from the first-line market to the sinking market, and at the same time formed the ability to supply different commodities to different communities. "Our cooperation with Jingdong and pinduoduo is to keep Gome's system oriented toward future home appliances The advantages of retail in Omni channel competition. "

Building Gome ecosystem

In fact, it is a very developed era of consumer Internet and various retail mode innovation. In the currently known hot areas of various retail industries, Gome has few opportunities to get involved in development. It means high risk and great uncertainty for Gome to invest heavily in any of these fields without authorization.

What's more, Gome's current basic sales of household appliances are not so carefree that they need to worry about the impact from competitors. In this case, Gome must protect its basic market and explore the new boundary of retail industry through some new ways.

In the first half of this year, due to the impact of the epidemic, Gome's performance was not ideal. According to the latest financial report, Gome's sales revenue in the first half of the year was about 19.075 billion yuan, a year-on-year decrease of 44.44%; the gross profit was about 1.713 billion yuan, which was 4.997 billion yuan in the same period last year. The loss attributable to the owners of the parent company accounted for about 2.623 billion yuan, compared with 380 million yuan in the same period last year.

However, as one of the core strategies of Gome in the next stage, community retail developed rapidly in the first half of this year. The total transaction volume (Gmv) of community + Gome app increased by more than 70%, and Gmv once exceeded 1 billion yuan per day. In the second quarter, Gome's retail sales revenue increased by 103% month on month.

It can be said that, driven by the community, Gome's performance recovered rapidly in the second quarter of this year. In the second quarter, Gome's large household appliance business has recovered, and the sales revenue in June was flat year-on-year. In the transformation of the second strategy for the future, Gome will further expand outward in combination with the advantages it has gained.

In the future, Gome will restructure the supply chain of Gome and Gome, explore a more efficient and lower cost operation mode, continue to build a home appliance system with greater product richness and more price advantage, and stabilize the basic market constructed in the first stage of its strategy with price advantage.

In terms of non household appliances business, Gome has completed the self operated vertical business experiments such as fresh supermarket, hot pot barbecue ingredients, and transparent home decoration design of the whole industrial chain in recent years. The future task is to continue to try to promote these self operated vertical businesses and enrich Gome's ecosystem.

It is worth mentioning that in the process of digital customization of the supply chain, the digital capabilities accumulated by Gome before will play a greater role. It is reported that Gome's proportion of customized differentiated products has increased from 37% to 45%. In the future, Gome will further expand the category and scale of customized products, and expand the scope of digital selection from home appliances to non home appliances.

For the third-party external supply chain business, Gome will attract investment of all categories in the mode of strict selection + through online and offline dual platforms, so as to form a collection of "platform's own flow + high-quality business flow + strictly selected commodity flow", so as to accelerate the spontaneous rotation of the ecological chain.