Various media reports on the Suning.cn incident have different opinions, both true and false. I still have reservations. Let's sum up today. From the perspective of enterprise management, combined with the current situation of Suning.cn issue, from this incident in Suning.cn, what business problems should we find and sum up, and what risks should we try our best to avoid in our business?
First, the long-term loss of the main business highlights the weak talent system of the enterprise, which is the foundation of the enterprise.
2002165438+129 October, according to the annual performance report for 2020 released by Suning.cn, Suning.cn's revenue was 257.562 billion yuan to 259.562 billion yuan. It is estimated that the annual net profit attributable to shareholders will be-3.952 billion yuan to-3.453 billion yuan, down 140. 16% to 135.08% year-on-year. This figure is undoubtedly very bad, completely exposing the business difficulties of enterprises.
After deducting the non-net profit losses for seven consecutive years and the long-term losses of the main business, this is the real Suning.cn.
The real highlight of Suning.cn should be 20 1 1. In that year, the company's revenue and net profit were 93.889 billion yuan and 4.8265438 billion yuan respectively, and the non-net profit was also 4.624 billion yuan. In that year, Alibaba's revenue in the same period was11900 million yuan, and its net profit was only 16 1 100 million yuan. JD.COM's revenue in the same period was 2 1 1 100 million yuan, and its net profit was still at a loss. So Suning is the real retail overlord.
However, since the second year, although the scale of Suning.cn has expanded rapidly, its profits have started to decline. From 20 14, the non-net profit was directly negative, and it has continued to this day.
The reason for Suning.cn's sustained losses is that the gross profit margin is declining and the input cost is increasing.
At its peak, the company's gross profit margin was close to 20%, but now it is less than 15%. Although it is only 5 percentage points, for an enterprise of Suning's size, the profit difference equivalent to the whole year is tens of billions.
Compared with Ali, who is also an e-commerce platform, Suning's main business lacks long-term stamina, which actually has a lot to do with Zhang's employment philosophy. According to insiders, Zhang himself lacks Internet thinking, but he is a very iron-fisted but autocratic person. Because it is difficult to trust subordinates, he also lacks effective assistants.
Zhang's management style also led to the company's emphasis on execution but lack of innovative spirit. With his own empiricism, Zhang boldly entered the Internet and directed the team to proceed step by step, leaving some Internet executives introduced later with no room to play, and it is difficult for Internet talents with real ideas to stay in the company for a long time. Compared with the employee equity incentive mechanism adopted by JD.COM, Suning's talent competitiveness is obviously insufficient.
This is the most fatal problem in Suning.cn, and we should take it as a warning and make every effort to solve it.
Second, over-expansion, bubble budget, so that enterprises can not make ends meet.
Since 2009, in order to expand the company, Suning has entered the buy buy mode:
In 2009, Suning became the largest shareholder of LAOX, an old home appliance store in Japan.
20 12, Suning Appliance wholly acquired Red Kids, a maternal and child platform;
20 13, video platform PPTV；; Was acquired for $250 million;
20174.25 billion acquired Tian Tian Express; In the same year, 20 billion yuan of strategic investment was injected into Evergrande Group.
20 18 Acquisition of Dia Tian Tian Discount Supermarket under Carrefour;
In 20 19, it spent 2.7 billion yuan to acquire Wanda Department Store and 4.8 billion yuan to acquire 80% shares of Carrefour China.
In addition, there are 3 billion yuan to participate in the establishment of Jiangxin Industry, 65.438+0.5 billion yuan to subscribe for TCL shares and so on.
Enterprises have invested tens of billions abroad, but the results are not satisfactory.
After the loss of PPTV exceeded 654.38+0 billion, it was divested from the main body of Suning listed companies; Tian Tian Express lost 552 million yuan in the first half of 2020; In 20 19, the loss-making Suning Store and LAOX were also stripped from the listing system.
Although most of our enterprises do not necessarily have the strength and opportunity of rapid expansion like Suning, once they catch up with outlets, blind expansion still happens from time to time, and the psychology of expansion is still quite good. Therefore, we should also take a warning.
Third, enterprises are over-financialized and have long been in a whirlpool of high risks.
In fact, from the fact that Suning's enterprises are over-expanding, it is not difficult to see that the revenue ratio of Suning's overall enterprises has been seriously financialized, and the investment income is far greater than the operating income. Of course, Suning actually made a profit of more than 654.38+0.4 billion by buying shares in Ali. Although it has also solved the short-term emergency problem of funds, in the long run, excessive investment and expenditure will still plunge Suning.cn into a high-risk whirlpool.
Zhang may have only recently realized this problem, so he proposed at the Spring Festival group meeting in February 19 that we should firmly focus on retail development, focus on the main channels and main battlefields from top to bottom, do subtraction and shrink the front line. Those that are not on the main retail track should be closed and cut.
Unfortunately, it seems that these reflections are a little late now.
In fact, many enterprises are pushing their horses forward on the road of capital now, and they also hope that the enterprise management team can feel something after seeing the video of the strategic planning gunman and stop the loss in time.
On the one hand, the above analysis also reflects the harsh competitive environment of e-commerce companies. In order to compete for traffic and users, major platforms compete at low prices in the form of subsidies. According to the traditional market concept, this is already vicious competition. Nowadays, it is difficult for enterprises to simply consider the simple cycle of selling goods and collecting money. More and more enterprises are pinning their growth on the so-called "market value", which can bring more financing and large-scale expansion, but the market value is characterized by fast coming and fast going. It seems to be your own money, but the direction of money can't be completely controlled by yourself. This situation also makes more and more business owners feel anxious.
The present situation in Suning.cn reflects the true portrayal of the inner struggle of most enterprises at present. Therefore, strategic planners should advise entrepreneurs here whether to let enterprises return to banks. We must deepen our main business, strictly control the ratio of operating expenses to investment expenses, restrain the desire of enterprises to keep up with the competition in scale and capital, and avoid putting enterprises in the casino of financial assets and falling into the whirlpool of capital operation.