When Zhang's "Selling Stocks for Survival" came out, the market was in an uproar. Although Suning.cn has been troubled by huge debts in recent years, the direct transfer of equity is still unexpected; As a large-scale enterprise in Jiangsu, Suning was also the leading enterprise in the national household appliance retail in 2003. However, due to a series of "willful expansion", Suning's debt is getting bigger and bigger, and because of many wrong decisions, Suning has gradually fallen like a sunset. Dramatically, shortly after Huang Guangyu was released from prison, Gome announced that it would take 18 months to restore the company's original market position. A new retail war may be triggered, and Zhang began to look for buyers under the pressure of debt.
Although Zhang is heavily in debt now, he has 3,600 stores and more than 20,000 employees. Now Zhang seeks to sell all his shares and some of them. At one time, Suning's performance even surpassed that of Ali and JD.COM. At that time, its revenue at 1 1 was 93.8 billion, and its net profit was 4.8 billion, much better than that of Ali and JD.COM. However, its market value is less than 65 billion now. Selling shares may be a good way to survive, but it must be said that it is also a helpless move. How did Zhang play a good game of chess, from being a leading retailer of home appliances to being heavily in debt and losing money year after year? What will happen to the future of Suning.cn after the equity transfer?
The reason why Suning directly led to Suning's debt crisis is that it did too many additions and did not consider the risks. In order to realize the diversified expansion of Suning, Zhang successively increased the number. In 18, Suning finally formed eight industrial sectors: Suning.cn, Suning Logistics, Suning Finance, Suning Technology, Suning Real Estate, Suning Wenchuang, Suning Sports and Suning Investment. From the perspective of the whole Suning system, these heavy assets deposited offline can bring many invisible benefits to the affiliated companies of Suning Department. But Zhang neglected one of the biggest problems, that is, risk. So many investment projects have greatly increased Suning's short-term financial pressure.
As a traditional offline enterprise, Suning obviously lacks Internet genes. It's not too late to enter the game, but its response is too slow to miss the opportunity. Suning pays too much attention to diversification. She wants to do everything in sports, home ownership and finance, but nothing is clean. On the contrary, the more money she spends. Starting from the core retail business, Suning Company diversified its expansion with abundant cash flow, and extended to real estate, finance, logistics, culture and sports and other fields. Moreover, they increased leverage, rapidly expanded the scale of in vitro companies, and formed the embryonic form of business empire.
Where does Suning go to maintain the "cash flow" of the entire business empire? Or Suning.cn transfused blood to these external companies through industrial spillover effects and related transactions. These heavy assets projects have seriously consumed a lot of funds and resources of Suning Department, resulting in a surge in debt, and the debt scale of the entire Suning Department has reached 100 billion. Then, can the introduction of state-owned assets make Suning turn over? Although the introduction of state-owned assets this time can solve Suning's short-term debt dilemma, Suning's stall is too big. If Suning wants to embark on the "right path", it will definitely not be solved by simply introducing state-owned assets. This still requires Suning to find its own direction. After all, it is better than Taobao, and it has not made Suning's main business profitable. State-owned enterprises in different industries are even more difficult.
At Suning's 20021annual work deployment meeting, Zhang also mentioned that focusing on retail means focusing on goods and users. "You must learn to do subtraction. As long as it is not on the retail track and divorced from goods and users, it must be boldly adjusted. You have to turn it over. " This may be a new change in Suning.