Suning Tesco has no dreams

The same fierce and fierce, the same words, Zhang Jindong did not lose in character, but lost to the times.

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Author | Wang Chao

Edit | Hu Zhe

Before Suning broke out a series of crises, in fact, it had lost its sense of direction for a long time.

I have to say that Suning should not do such a directionless thing, because Suning and JD.com, to some extent, have a founder who is arbitrary, hot-tempered, and determined.

Liu Qiangdong has a big temper, and the story of his scolding is written in "Intercepting the "Cloud" Giants of Ali Tencent", and his scolding is a management style.

Zhang Jindong has a greater temper, and his characteristic is not only to scold subordinates, but also to be afraid of the outside world.

There have been rumors in the jianghu that he was angry with Dong Mingzhu for 40 minutes because he could not get gree air conditioners, in fact, he also intimidated Liu Qiangdong, there are media reports, Zhang Jindong watched the media praise Jingdong every day, dissatisfied, and immediately angered Liu Qiangdong at the shareholders' meeting: "Jingdong has us Suning to pay more taxes? Social and media praise JD.com every day, only capital support is not profitable, is it normal? ”

Internally, Liu Qiangdong is a word, but at least in front of the grass-roots employees, he is very restrained and affinity.

Also internally, all the large and medium-sized meetings present by Zhang Jindong will require all the employees in the audience to unanimously stand up and applaud, which is very un-Internet, and also makes many employees with Internet background uncomfortable.

Suning, Ali and JD.com all have the second position, but the second position of the latter two can basically perform their duties normally; and according to a witness, Suning's second position basically does not speak when reporting to Zhang Jindong with the following VP, which is considered to be "finding a sense of security through low-key".

In fact, scolding people, strong or not, is not the key to Suning's success or failure, this is actually an old story of an old player meeting the new era.

1

Founders are everything

Suning's transformation, from the initial independence to the later cooperation with Ali, every step in the middle is wrong.

In the view of an industry insider, the cooperation between Suning and Ali has always been a mistake. Suning Tesco is an independent online platform that opens stores on Alibaba's e-commerce platform, which is a strategic mistake.

He believes that Suning opened a cat Ning store, which is similar to Jingdong opening a store on Ali's platform, similar to McDonald's opening a counter in the KFC storefront, which belongs to the tactical and spiritual double surrender, which is the effect that Ali can't achieve how much money it spends, "The result was given to Ali by Suning", which can be called a strange thing in China's business history.

Some people are puzzled, with Zhang Jindong's appeal in the 3C field, they should open a brand flagship store on their own platform and develop a platform-based e-commerce similar to the Tmall model, so as to maximize the use of Suning's brand assets and supply chain assets. Therefore, he could not understand that such a strong man, a strong man who had to stand up in internal meetings, could make such an operation of "enemy".

In fact, it may be that no one has seen that when a person or an old man enters an unfamiliar field, he will have a sense of fear from the heart.

If the "sense of belonging" is a high luxury product within Suning Group, then the legend of decision-making power is inaccessible to employees. Interestingly, it is precisely because of the inability to contact, so there is a lot of gossip.

For example, some former Suning insiders believe that Zhang Jindong is only responsible for the overall strategy of the group and is not responsible for the details of the company, so he and Ren Jun are excellent complementary, and the old employees who have been in Suning Group for a long time have even heard a version of the rumor that Ren Jun is Zhang Jindong's brother-in-law.

But another part of the former employees did not think so, they believe that Zhang Jindong and Ren Jun belonged to the changing relationship between the early Kangxi and Yin and Yin to the late Kangxi and Yin.

In the early days, Ren Jun was a typical group elder, who had been in Suning Group since graduation and entered Suning, and had previously served as Zhang Jindong's assistant and secretary, and knew Zhang Jindong's temper and hobbies very well. Suning Group is almost the same as ren jun, so Zhang trusts Ren very much, and because of this, to a greater extent, Zhang has done enough authorization, in the eyes of outsiders, most of Suning's affairs are responsible for Ren Jun.

However, in the middle and late stages, Suning's life became more and more bumpy, and when Zhang Jindong found that his decision-making and authority were no longer so reliable, the relationship between Ren Jun and Zhang Jindong became very delicate. A former Suning management person told Leifeng That in the case of only his work report with Ren Jun and Zhang Jindong, Ren Jun was silent most of the time, letting Zhang Jindong listen to the report himself, he said that this is "Ren Jun through the low profile in front of Lao Zhang to obtain a sense of security", which is also the case in some investment and merger business, the main decision, more is Zhang Jindong's approval of the authorization behavior.

In 2018, Suning chose to clear Ali's stock because of its lack of money, which led to a more tense relationship between the two sides that already had a gap. And in the middle, Li Bin, the former head of Suning Tesco, was also forced to leave Suning Group after the cooperation between Suning Ali and ali. The cooperation between Suning Ali, if it is based on the floating loss of stocks, Ali has not taken advantage of Suning's stocks. After Ali bought Suning stock in 2015, Suning's stock price has been falling in volatility, and this trend was more pronounced after Suning's liquidity crisis in March 2021.

At present, suning's overall transaction scale has shrunk significantly after the liquidity crisis, and the risk of run from suppliers is getting higher and higher. The transformation has not been effective, and some enterprises in the recession have been invested, which has made Suning's development into a crisis. The gamble on Evergrande's secondary listing of Hui A and the exchange of a glass of wine with Xu Jiayin are more of a booster for Suning's development into a crisis.

"Slow" and "stupid" are the evaluation of outsiders and Suning Group. Although Suning is an enterprise with a 30-year development history, the current Suning and Zhang Jindong can only wait for rescue, and the outcome of the game around the main creditors Ali, Suning and Shenzhen state-owned assets is still unknown.

For Suning Group, founder Zhang Jindong and the "1200 Pipe Training Gang" are everything. Zhang Jindong is responsible for the overall strategy, and the rest are responsible for the specific implementation, which almost constitutes the most important organizational structure of Suning, and at the same time, this also leads to the closure of Suning Group. Zhang Jindong's use of people to supervise people not only completed the construction of the internal supervision system, reduced management costs, but also completed the stability and control of his own rights.

When Suning Group introduces talents from the outside, there are natural contradictions and conflicts between the new and old forces, which actually makes it difficult for external talents to grow up inside Suning. Zhang Jindong's fiery temper is also well known in Suning Group. There is also a saying inside Suning, "When Zhang Jindong walked into the elevator, the entire elevator was silent." When Suning's performance was not developing, Zhang Jindong directly scolded Hou Enlong at the executive meeting of Suning Group. In Suning Group, being scolded is a frequent thing, which even directly forms a "scolding culture", and some employees think not about how to better complete the work, but how to avoid being scolded.

For Suning Group, there is actually no second business leader, although Ren Jun is a rare, unanimously praised, energetic and intelligent person, who is also the CEO, CFO and CTO of the three important positions, considering things very carefully and understanding the problem very thoroughly.

However, more former employees of Suning reported that the relationship between Zhang and Ren is not a relatively equal No. 1 and No. 2 position relationship, nor is it a tacit understanding of the management direction and the division of labor relationship of management execution, in the end, it is still a relationship between the boss and the employee.

This led to the fact that although Suning was in Ren's field of vision, he finally grasped it in Zhang's palm and never let go for a moment.

Therefore, a former business leader commented, "Zhang Jindong has always felt that he is a super cool person, in his eyes, the market pattern should be Ali-JD.com-Suning, but the reality has not developed as expected." ”

This top-down way of doing things, in a way, is enough to ruin a business.

For example, this leads to people under Suning, who only know how to execute, do not know how to think, and even understand that there is a deviation, but also just bury their heads in the car, preferring to stand still and not to communicate upwards, because not only there is no communication channel, but more importantly, there is no communication power.

2

Suning employees are not happy

Once, a Suning consultant visited Suning's IT system around 2014 or 2015, and when he found that the underlying IT architecture used SAP-R/3, which was launched in 2006, he couldn't help but explode.

This foul mouth is really meaningful.

Sap-R/3 can be said to be the most famous, it is called "the first ERP system of mankind", is the first large enterprise management software to get rid of the mainframe and run on the UNIX workstation of hp5000.

Suning's SAP-R/3 was launched in 2006, and it is said that this is also recommended by IBM, which is an IT consultant for Suning. As an important milestone in Suning's informatization process, it has made great contributions to Suning's rapid development, but with the rapid development of diversified businesses, it has not been able to meet the variability of business and support the development of new formats.

The consultant's surprise was to realize that Suning did have a superiority, after all, in 2006, it was a few companies that asked IBM to be a consultant and deployed products such as SAP-R/3, especially private enterprises, which can be said to be a handful in that era. It reflects that Suning's bones are valuable to digitalization, but also willing to invest, to some extent is also open.

As far as micro technology is concerned, SAP-R/3 is not connected with the pre-management links such as commodity planning and selection, and cannot carry out procurement business on this basis; as far as macro is concerned, there is no one-time solution in the world, with the development of business, new technologies emerge in an endless stream, and even the best solutions cannot withstand the test of time, and it is the best solution to change the strain!

The existence of fossil-level SAP-R/3 illuminates Suning's extraordinary and inadequacy.

Zhang Jindong is very polite and courteous to these consultants from the background of international IT companies. This is very similar to Liu Qiangdong, both of whom are very eager for these technology bulls from their bones, because they know the inherent shortcomings of their enterprises in technology and the significance of digital transformation.

Therefore, they have some habits that are more similar, such as liking to personally contact these high-level technical masters, and for example, once they are invited to join, they must issue the first invitation by themselves, which can be described as giving enough face and making a full commitment.

This attitude has allowed Suning to recruit many technical executives and experts from foreign companies, although it is difficult to say that they are happy in the Suning years after that, but at least when they joined, they were happy.

Of course, some people quickly left because of cultural discomfort, but others stayed and sat in high positions. But when Lei Feng asked what he had learned, a big guy said meaningfully: "There are two things I have learned, the first is to be patient, and the second is to succeed." Patience means that you have to adapt to Suning's culture, and 'to succeed' means that if you don't have real performance, your life in Suning is very sad. ”

Suning itself is also aware of its own IT architecture deficiencies, from 2015 began a "two-step" approach, designed a phased replacement of the old SAP system plan, intriguingly, a former Suning employee commented that Suning's IT construction before 2015 as a whole was responsible for the group vice president Ren Jun, at that time "more like a business layer of information construction", and lack of overall planning. He seems to be saying that Ren Jun has limitations in his technical vision.

After entering 2015, Suning's business and data have achieved rapid growth in the price war with JD.com, but the Suning system at that time was old and overwhelmed, which led to frequent downtime of promotion and daily operation, and problems continued.

In this case, Suning enabled new technology executives, and began the second step of architectural transformation from 2016: removing sap transit, with the procurement platform as the core scheduling, and truly undertaking the scheduling of logistics and inventory.

However, in the process, due to the rush to improve the user experience, the project cycle is compressed very short, so that although the impact on existing functions is reduced, the complexity of operation and maintenance is increased geometrically, development is easy to miss, and testing is also painful.

Architectural optimization of system functions is on the agenda.

However, there is a controversial issue that, according to the view of the big guy that Leifeng has interviewed, super e-commerce produces super cloud, and Suning has naturally good conditions for generating cloud in terms of scale, team and data. At that time, within the Suning Group, the voice of the self-research cloud was not endless, after all, Suning still had many people who understood.

However, this idea was directly rejected by Ren Jun and Zhang Jindong on the grounds of "no money to do it".

However, the reversal is that Suning Group began to prepare for the establishment of Suning's retail cloud business in July 2017.

During the epidemic in 2020, Suning's retail cloud business became one of the fastest growing businesses in the business segment.

This actually reflects a problem from a deep level - Suning is not an enterprise that wins by organizational strength, and its decision-making and a certain leap depend entirely on Zhang Jindong's thoughts.

Suning needs technology, and the big boss also shows the demeanor of Corporal Lixian, but Suning is known for its harsh management of technical personnel.

Some former employees recalled that Suning's technical personnel, probably the only batch of "code farmers" in the country who need to wear formal clothes when they need to work, also have to collectively stand up and applaud when Zhang Jindong participates in the meeting.

At the same time, the "996" that has been criticized has long been the norm of Suning, or the norm of this generation of private enterprises. However, Suning cannot provide the same remuneration and treatment as Internet companies, so this culture cannot be recognized as a value.

Some people recall that at that time, this overtime atmosphere was actually caused by employees using disguised fish to passively cope, there were policies on the top, there were countermeasures under it, and many employees were in a state of full lying flat or half lying flat.

Even so, the work is also intense, a former employee who has joined Suning and is in charge of new business revealed to Leifeng Network, "On the day I joined, an architect who was only 27 years old died suddenly in the process of returning to the working floor in the canteen, and this engineer was working overtime for the past few days. "Of course, this is an isolated case, and it doesn't tell the story, but it at least reflects an uncomfortable feeling."

As a result, Suning's reputation in the local labor market in Nanjing is also poor, and there is a joke circulating in the local area, "I would rather let my children be at home than let my children go to Work in Suning." ”

Because Suning is located in Nanjing, its own talent is relatively small, coupled with the alibaba in Hangzhou at that time to use the "high salary + options" approach, which triggered the siphon effect on the talent, a large number of outstanding talents in the package area are concentrated in Alibaba or Shanghai. This leads to Suning's personnel capacity and replacement mechanism being a continuous problem. An interesting thing is that Suning employees do not have many job hopping opportunities in Nanjing, and many Suning people choose between Suning and Tuniu, two Internet companies in Nanjing.

In terms of employment, the management of general Internet companies is also thirty or forty years old, but most of Suning's management is fifty or sixty years old, which objectively leads to suning's internal elderly people in charge, controlling important resources, many excellent and self-motivated young people are difficult to grow up in Suning, most of them have been employed for a year, or even half a year.

Suning's culture is very strange and unreasonable, is to prohibit employees from "eating back grass", that is, internally prohibit the return of former employees, as long as you leave Suning, you can no longer return to Suning.

Many former Suning employees hope to return to Nanjing after years of hard work outside, and find that it is already impossible to return to Suning to work. This actually blocked a lot of excellent talents, and it was rumored that this was only because a departing Suning employee offended a Suning executive, which led to the emergence of this talent policy in Suning.

In addition, the vice presidents of Suning Group are all elderly people who grew up with Zhang Jindong and belong to the management trainee system.

In Suning Group, the personnel department belongs to a strong management model, and it can directly dismiss personnel without the opinions of the employing department, but in fact, all this is Zhang Jindong's behavior that Zhang Jindong knows behind his back and acquiescies. A former technical director of Suning directly evaluated Suning's HR system as "garbage", and also had a very bad evaluation of Meng Xiangsheng, the head of human resources, believing that his team building and organizational cohesion did not do much, but various moths and various perverted regulations continued.

For example, Suning recruits a person to come in, focusing on the professional ability and practical value of this person, but it will not be fully authorized, but it will pass a long test period. If this can be said to be out of caution, then what is more serious is that Suning's personnel replacement mechanism has not been formed, and people are superfluous and ineffective.

Of course, Suning's senior management is not unaware of the employees' fish, on the contrary, it is well aware. But the pity is that they do not examine the underlying reasons for this phenomenon from the mechanism, but are more willing to play the role of internal caretaker, in order to prevent employees from touching the fish, not only will use various means to monitor employees, and even directly send people to check the employees' computers to see if they are playing games or installing games.

The aforementioned technical director told a story that Suning fired a technical leader on the grounds of insufficient ability. Then, the technician started a business, and the entrepreneurial results were very successful, and it turned out that there was no problem with his technical and management capabilities.

If these small things are constantly consuming the patience of Suning employees and the sense of belonging to the unit, then the bigger problem is that it is difficult for them to be given a "sense of belonging". This is reflected in the fact that within Suning Group, except for the group vice president and above, most of the rest of the employees are pure workers without shares and options.

Later, in order to improve the stability of the team, Suning carried out an employee stock ownership plan, but this was not like the Internet company that granted and distributed to the management and technical team at a lower price, but created a set of logic - Suning was based on the average stock price of the past 30 days, based on this, and then assisted employees to purchase Suning Tesco options by handling commercial loans.

002024 Suning Tesco's share price reached a peak of 23.14 yuan per share on June 11, 2015, and the stock price has been fluctuating since then. This also leads to the fact that, except for the first batch of people who held options, the subsequent batches of Suning's option holders were almost all loss-making.

Similarly, Suning Group has also mandatorily required employees to swipe orders, that is, employees must make purchases on the Suning Tesco platform. A former Suning Tesco pipe trainee said, "In 2018, Suning Group issued an instruction to force employees to use their Suning account to place fifty orders within two months, and not to be reimbursed, and after purchasing fifty orders, they also had to submit the order number to the company." When this directive was issued in 2018, Suning had nearly 180,000 employees, which brought GMV growth in a short period of time to Suning at that time. But this practice, which was called "brushing orders" by Suning management trainees at that time, was really of no benefit to Suning's long-term value, which even opened a very bad revelation for employees - the original company culture allowed opportunism and cleverness.

If Suning's internal measures have made many employees lose their good feelings for it, then its multiple external behaviors have also caused it to fall layer by layer in the market.

3

Rush to make a rash move and achieve an opponent

"You have acquired Daily Express, but you have achieved Pinduoduo." In order to roughly obtain traffic and race to the ground, Daily Express subsidized the market, and as a result, the buyers of Pinduoduo benefited in the end. Ren Jun once scolded directly in front of many executives.

This story is a silhouette of Suning's transformation from Suning Yunshang to Suning Tesco.

Since the end of 2017, in terms of business, Suning has strengthened the offline scene, and Suning Auto Supermarket and Suning Plaza have begun to enter the expansion stage.

At the same time, Suning has acquired Tiantian Express, Wanda Department Store and Carrefour China. From 2015 to 2019, Suning's total outbound investment reached a staggering 70 billion yuan.

It seems to be full of life, but in fact, it is full of strategic mistakes.

At that time, Suning's estimation of its own financial situation was overly optimistic, and in 2017, Suning's Alibaba shares showed tens of billions of floating profits. This gave Suning a lot of confidence in the transformation at that time, that is, Suning was not bad money.

Therefore, Zhang Jindong believes that Suning's expansion of scale and development at that time can be described as a complete set of heaven and place.

But in fact, it is easy to pull eggs when the step is big, and this law is also suitable for Suning, in fact, Suning made more than one mistake in 2017.

Suning has received a lot of business before and after, either the project itself is in a recession period, or its own business is not doing well, but in order to buy these non-high-quality assets, all of Suning's own funds have gone in, and the cash flow is also very tight.

And burning money loss for development, which is a routine operation in the Internet industry, but Suning's operation is too sloppy, so that it has not developed itself, but cheapened its opponents.

In order to run the race, Daily Express has adopted a strong subsidy policy, which has led to continuous losses of Daily Express. More importantly, most of the dividends of these subsidies have been eaten by Suning's opponents.

For example, Pinduoduo's sellers, focusing on the fourth- and fifth-tier consumer markets, eat the waybill subsidies of Suning's Daily Express, and achieve Pinduoduo's GMV. The core is to expand GMV, but this kind of money-burning expansion is not related to profitability.

At that time, after the acquisition of Daily Express by Suning Group, Ali, who was in the sweet period, also provided business support for Daily Express, and the orders of the Rookie department were sent to Daily Express first.

Therefore, Suning's ambitious acquisition is more of a self-righteous bottom-reading sweep. Among them, no good financial skills are just appearances, and the essential reason is that Suning, as a relatively traditional chain enterprise, is very conservative, and a particularly prominent performance is that Suning has never introduced venture capital institutions in the process of enterprise transformation, which is not unrelated to the importance that founder Zhang Jindong attaches to control.

Zhang Jindong is openly temperamental, and so is Ren Jun, vice president of Suning, who also directly scolded his subordinates when the development of the acquisition project Daily Express was deteriorating. In line with this, Suning's HR system is also dominated by Meng Xiangsheng, a former management trainee, with great power, and the personnel system can directly dismiss employees without the opinion of the employing department.

In this regard, Lei Feng Network does not think that this is the pattern and character problem of Zhang and Ren, this state of anger at every turn is the externalization of the inner crisis of the two people, and to some extent, it is also the resentment of Suning Group and Zhang Jindong himself that the development is not as expected.

The Internet is only a tool in Suning's hands, and it has not penetrated into the blood of the tissue, forming an inseparable part of the organization. More bluntly, this is the inefficiency at the business level and the fast cattle pulling the car. Suning's final transformation result is not the same, "the appearance is a comprehensive transformation, online transformation, but in essence, Suning is still a traditional enterprise, business efficiency has not been improved in time from beginning to end."

In the business transformation in 2015, many of the new businesses developed by Suning Group are ahead of the times. Suning Pinchao is very typical, and its business development time is even earlier than Pinduoduo, but this product ultimately failed to develop, and even became a chicken rib.

The core consumer groups of Suning Pinnacle are positioned in the third and fourth lines, so as to drive the crowd and traffic of the sinking market. But this is not simple, the most important traffic of Suning Tesco comes from the main station Suning Tesco, which causes the traffic of Suning Tesco's main station to be directly leaked, and the high-frequency, high-quality customer base is directly transferred to Suning Pinchao. This is a serious departure from the original intention of the business.

At a deeper level, the strategic significance of Suning's purchase is to sink the market, which needs to reverse the diversion of Suning Tesco, and find an upward passage for consumers in low-tier cities who have the desire to upgrade their consumption, rather than pulling out the users of Suning Tesco with high unit prices to buy bargains.

More importantly than this, the e-commerce platform that dares to play the sinking does not need to deepen the industrial belt and cooperate with a large number of white-brand high-quality production capacity. This matter is very difficult, so the original intention was to achieve more than one pinduoduo for this purpose, Taobao's Taote, which has a low-end supply chain foundation, is also energy efficient, while the supply chain is relatively high-end Beijing Tokyo Hi is difficult to do, and for Suning, which does not have the basic ability of this supply chain, it is too difficult.

In third- and fourth-tier cities, the selection strategy of 5 yuan and 20 pairs of chopsticks is almost difficult to ascend to the sky for Suning Shopping. Therefore, there are great problems in the selection of products and supply chains purchased by Suning. "Suning Pinchao's development to the later stage, goods and traffic are from the main station Suning Tesco, which also makes Suning Pinchao's differentiation strategy frustrated."

Another pioneer project, the unmanned store, is similar to this. Suning itself is a large-scale home appliance chain enterprise that started offline, and has rich experience in offline store operation, so at that time, Suning Technology Research Institute followed Amazon Go and did Suning unmanned stores and smart stores."

At that time, Suning's unmanned retail stores were mainly aimed at young consumer groups, and they sold sports products with high unit prices, which enabled Suning unmanned stores to recover their costs within a year and a half. But in fact, there is also a congenital shortcoming, when the technical cost of an unmanned retail store is not low, requiring a large number of sensors to participate in it, which are hard costs. When the number of people in the unmanned store increases, the immaturity of the technology also begins to stand out, and the "face recognition + goods matching" needs to be calculated in real time at high speed, which is very easy to lead to false judgment and deduction.

In addition, Suning also did unmanned delivery robots and intelligent customer service at that time, but in the end, it also failed to promote a large area due to technology and other reasons.

Suning has also developed cloud stores and small shops, which are in line with Suning Group's retail positioning.

A number of former Suning employees sighed to Leifeng Network, "The positioning of Suning Xiaodian is more of a comprehensive service, if it shrinks, it is a pity." Suning Xiaodian has experience in offline traffic operation, but it is still inexperienced. Suning was a major appliance before, which led to Suning not having an advanced first-out system, and Suning Xiaodian itself took the most difficult fresh as the core category, but due to the lack of experience and the ability of refined management of the supply chain, the loss of some short-term shelf life food goods such as milk and leafy vegetables was very serious. At that time, in the process of development, the small shop also had the problem of expansion and development chaos.

"Suning headquarters let the executive staff expand the point, the bottom feedback suggested that the property lease cycle is six months, but the headquarters must sign a contract for one year." This eventually led to the fact that this side had not yet signed the contract and had not yet entered the decoration, and the headquarters sent someone to prepare for the inspection of the store," said a former employee.

In the view of a Suning insider, Zhang Jindong was reluctant to let go of the new project Suning Xiaodian, which also led to Suning's lack of suitable operating talents at that time, and also led to the inability of relevant interested investors to enter. If the openness of the project is sufficient to the outside world, this can alleviate Suning's financial pressure. In fact, what is more consistent with the rumors is that Zhang Jindong planned to spin off and list and capitalize separately at that time. In fact, this is also reflected in the business adjustment in 2019, when Suning has begun to focus on the development of the main business, and many marginal projects have also been shut down and transferred. In June 2018, Suning Group completed the spin-off of Suning Xiaodian, with Zhang Jindong holding 35% of the shares and Prince Zhang Kangyang holding 65% of the shares.

Taking Suning Xiaodian as a business grasp is one of the few correct decisions of Suning Group. As a chain enterprise that started offline, Suning's human efficiency is very low in the process of transformation and development, and Suning has 12,000 IT personnel at the peak of team development, but Pinduoduo's human efficiency in 2019 is 120 million.

In 2018, the entire market is very crazy, and the money is bold, so the market as a whole is an expansion trend. At that time, the market pattern was Ali-JD-Suning. However, objectively speaking, there is still a big gap between Suning and Ali and JD.com, which directly leads to Suning's desire to increase the time and frequency of contact with consumers by expanding consumption scenarios to make up for its inherent shortcomings in e-commerce. This was also reflected in Suning's internal speech at that time, and Zhang Jindong repeatedly emphasized that Suning's advantage is service and quality.

However, different consumption scenarios, different consumer groups, the business model and mechanism behind it are not the same, the service and quality required are not the same, Suning wants to use the old way to deal with the new scene of the way to fail, which led to the transaction efficiency and GMV at that time is difficult to improve, the development of the business is not smooth.

Of course, all this is only a local mirror image of Suning's sloppy decision-making.

Today, Suning Group and its founder, Zhang Jindong, have lost control of the company. At the same time, Suning, under the leadership of the Shenzhen State-owned Assets Supervision and Administration Commission, revitalizes the business, but everything in Suning is still unknown.

END