Sun Weimin: absolutely not involved in the manufacturing industry, SUNY

Mergers and acquisitions on the long-term development of the SUNY not very meaningful

The new marketing ": the last two months retails changed much, Huang guangyu arrested, GOME front full contraction, but at this point it out to SUNY. In the next six months to a year, Chinese appliance retail structure which changes occur?

Sun Weimin: we have been in accordance with their own plan to market, including local market entry, the number and structure of the shop. If market conditions improve, the expected sales force will increase; the situation is not good, sales will decline, will have some impact on profitability. Profit on a very important enterprises, enterprises must profit, not for profit may be a problem, it cannot survive. But the more and less profit, not our main decision-making areas of consideration, we must consider the issue of sustainable development. This year why maintaining a certain level of expansion we not profit maximization in the current period as the main basis for decision-making. If the current maximum profits, it is charged with the cost, control, control input, but if so, that would mean the loss of some future opportunities. Retail trade is not the same as with factory, factory if the situation is not good to cut off, shutdown can directly be costs under control, but also to the preservation of assets, market better and you can re-enter, because for them, will the product backlog in the storehouse in fact or depreciation. Retail trade is not the case, retailers is not good, turned off the do not belong to you, so we cannot stop shop. Of course, in this time of great expansion on a large scale is not realistic.

The new marketing: is it because of this, you will develop its own property?

Sun Weimin: private property first based on safety considerations for enterprise development. There is a saying that "hundred", can become a hundred years of a premise is that this store is your own, if you do not have their own storefront and to talk about "hundred", is simply nonsense. An annual operating conditions can be carried out through marketing innovation, but do not have their own shops, everything is equal to the castles in the air. In addition to enterprise security, there is also a factor is the return on investment. Our 98% is the leasing of property, if our own or buy their own property, the cost is 10 years or so, but at least be able to get the value of 40 years. Therefore, from investment value, buy, buy than rent is built. In addition, establishing Storefront can be made in the image better, who do not wish to rent property renovation on pay much. However, to build and buy one-time costs, if the enterprise does not have a considerable profit accumulation and the accumulation of capital, not possible. This is a contradiction. For us, the private property is a long-term process, over time, the ratio will gradually improve, but for now, we can only be appropriately development.

The new marketing ": SUNY in mergers and acquisitions have been very careful, this is based on what to consider?

Sun Weimin: from managed perspective, we now do merger is actually very easy to put it plainly, is to merge objects to format. In other words, the merging of the item object be a coding, enter our system, and then enter the financial statements to our platform built on initialization. To do this very easily, but the mind format is very difficult. Our system has been very mature, acquisitions of the system to adapt us to a process. In fact, the merger ultimately look at two aspects, one is the return on investment, second chance. Merger from a purely financial investment perspective is not high, but it can save opportunity cost, time, cost, so there are certain mergers and acquisitions.

From the domestic market, the merger will be on when the financial statements are some good effects, but in the long term development is not a very big meaning. Why the end of 2007 in big mergers and acquisitions, we finally not price competitive, with others, as we determine a precondition in this condition, we'll do that does not meet this criteria will not do, because of the large value is here. There are no significant additional value? from a competition point of view, there is a certain degree of added value, and if we took, at this time point I first, competitor, his first position is lost. Being first, while it is important to us, but it is not only big in mergers and acquisitions have got the first place. We always get the first, but his opponent, without merging large opportunities that may never be lost in the first place. So both of the additional value is not the same, this is the United States is willing to spend more money to maintain the first position.

The largest margin in the supply chain

The new marketing ": in addition to expanding the size of a shop, you are taken to deal with the economic crisis?

Sun Weimin: there are many measures. First is the category of constantly enrich, commodities continue to enrich the equivalent at the same engaging spots of farmland cultivation, like, put resources better play, improves the output per unit area.

Secondly, through marketing innovation to increase our gross margin. Don't misunderstand improve gross profit is the profit squeeze upstream manufacturers, or improve the product selling price. By this way improve gross profit margin is not possible, is not able to maintain the entire operation. Our marketing innovation focused on underwriting, customization, scale in purchasing, order procurement, buyouts and OEM, all of these measures is to strengthen our market analysis and forecasting capabilities. Large scale purchasing ahead of time so that the order of planned and accuracy of the stronger, while also reducing the cost of upstream manufacturers because it suppliers not only regardless of the cost of sales, and many invisible costs are saved.

This is actually a supply chain transformation, this change can produce at least 30% of the gross margin space. For example, the factory produced products, through channels into the retailer's stores, the retailer's sales cycle length, it will inevitably be pressure library, products unsalable. These last are the conversion costs. Poor sales is a kind of cost, once the price, the discount would make the entire revenue drop

Down. Therefore, improving the bulk of planned and accuracy, the prices come down a lot so that our gross margin will increase. Therefore, it is important to adopt marketing innovation to expand this a profit.

Finally, by controlling costs to increase net profit. Control costs not by lowering wage cuts, and reduced wage cuts, will not solve the fundamental problems. We want to raise per capita salary, but the efficiency of the person you want to play. We now use the "specialized management, shared platform structures" to reform the management of our past. Suning chain stores open where, with the company, if each company has a procurement, supplier settlement, store sales, financial, administrative and other functions, it will be a large system. We are in early development, stressed the standardized management, now we emphasize standardized management, more emphasis on building the professional management services platform. We broke the massive segmentation system, companies only the directly subordinate to the central body, this body is not a management-by-layer recursively, but rather in one step. For example, we established a unified procurement platform, this platform to all areas of corporate services, it is in the area of sales directly transferred goods. In this way, each region for procurement departments completely unnecessary.

Enterprise Management Division to be professional, this not only makes work more efficient and allow us to manage talent requirements reduced. We do not require regional manager is a talent knows all the other stuff doesn't know and don't know, but you must understand the local market situation, and get around customer sales and service work, they do these things every day, the other thing is, in principle, not to say, there's no need to consider so much. Enterprises, and not decision-making, information and control issues. If you don't, enterprise development to one stage control.

The new marketing ": now a lot of people are promoting the concept of light company, although enterprise is large, but the body is very light.

Sun Weimin: this is called "internal sharing, internal outsourcing", from the perspective of the organization is to departments, company divisions, all professional, centralized, highly flattened. This is a common logical relationship. Thus, the region's function is very simple, but I will take a certain sector to operate in accordance with the company, such as financial costs Auditors, it can implement meter piece, because they work mainly deal with the original ticket, so you can use the error rate, single number for piece-assessment, job large wage would be high volume small, the job can be scheduled rest. Many people ask, customer service and financial management, how to become a piece-work? once Management specialization, is actually going on.

Why do we enter the international market have the sustaining power? we can directly some of the local administration of the Commission, with the domestic area companies, you just sold goods. The so-called senior management personnel in me became mechanized, assembly line jobs-work, as long as our system standard set up. This system standard may have a problem, if managerial staff accommodation standard is $ 400 per night, for some managers, one of the hotel there is a $ 400 per night room he might not be up to $ 300 per night. Like the system's error is inevitable, but wrong is wrong, because of the large enterprise management is not for the best, but for the better, not worse.

The new marketing ": ship small good turnover. Although the management of large enterprises are very specialized, flat, but will not be some flexibility in decisions have an impact?