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Recently, Gome plans to carry out live streaming on short video platforms such as Douyin and Kuaishou. This is another step by Gome to try to open up the Internet market. Through cooperation with these platforms, Gome can take advantage of the platform's huge user base and traffic advantages to promote the sales of its own products and provide consumers with richer purchase channels and services.
From the Internet
However, we have to admit that Gome's current financial situation is not very good. The P/E ratio is TTM-0.80, indicating that the company's operating income and other performance indicators are not performing well. Earnings per share were -0.0900, indicating that the company is currently at a loss. The net profit price attributable to the parent was -3.472 billion, down 46.31% year-on-year, and the net interest rate price was -27.01%, indicating that the company's profitability was weak.
In addition, Gome has been reporting wage arrears since 2021, and store employees have felt that the customer flow of Gome stores has begun to decline rapidly. Gome's salary cuts, wage arrears, and layoffs continue to ferment. Seven subsidiaries started to lay off employees significantly, and the online layoffs were as high as 40%. Some employees were owed provident funds, performance bonuses, etc. by Gome; Even the severance indemnity payments for some employees will not be settled until this year.
From the Internet
In order to alleviate the pressure of employees being owed wages, Gome introduced a bank credit loan and suggested that employees take out loans, and the company would compensate part of the interest before the company's normal payroll, but this caused employees to have to go to work with debts. At the same time, Gome's capital chain crisis has still not been completely resolved, and suppliers and lenders have also chased debts to catch up. Gome's total liabilities reached RMB58.568 billion, nearly half of which needed to be repaid within one year, while Gome's current assets were only RMB25 billion, and more than half of them were secured bank deposits and restricted cash, greatly reducing cash flow pressure.
Although Huang Guangyu and his wife have repeatedly "transfused" Gome through share placement financing, reducing holdings and cashing out, debt-to-equity swaps, etc.; Gome itself has also tried to increase revenue through APP name changes and live streaming. But Gome lacks Internet genes, walks on a stone to cross the river, and accidentally falls into the river. More than 70% of the users in the live broadcast room are Gome employees and relatives and friends, leaving a group of friendly messages, but no one buys the goods. Gome already lacks Internet genes, and instead of "catching ducks on the shelves" to do a model that it is not familiar with and is not good at, it should open its supply chain and cooperate with platforms such as Douyin and Kuaishou, rather than "non-private domain traffic".
From the above materials, it can be seen that Gome has fallen into a financial crisis and a word-of-mouth crisis. The company's revenue decline and losses have become more serious, and the treatment of employees is also worrying. At the same time, Gome faces great challenges in trying to explore the Internet, and lacks Internet genes and market operation experience.
In order to address these issues, we believe Gome should take the following measures:
1. Improve employee salary, timely fulfill promises, eliminate employee salary arrears, improve employee morale, and increase company cohesion.
2. Adjust the company's business structure, transform and upgrade, and seek new profit points. Gome should strengthen brand building and product research and development while drastically reducing employees, and make efforts in product innovation and service to enhance the company's core competitiveness.
3. Strengthen digital transformation and enhance Internet genes. Gome should increase R&D and investment in Internet technology, broaden online sales channels, and enhance marketing effects and user experience through digital means.
4. Cooperate with platforms such as Douyin and Kuaishou to open up the supply chain, open up sales channels, and increase sales. At the same time, Gome should also pay attention to brand image building, establish a good reputation through positive publicity, and establish a long-term relationship of trust with consumers.
To sum up, Gome is currently facing a serious financial crisis and word-of-mouth crisis, and needs to take effective measures to save the situation. Through improving employee treatment, adjusting business structure, strengthening digital transformation, and cooperating with platforms such as Douyin and Kuaishou, Gome is expected to gradually get out of difficulties and achieve sustainable development.
【In the process of Gome's exploration of Internetization, how to balance digital transformation and the development of traditional services? [Dog head] welcome to leave a message in the comment area to discuss]