Liu Chunsheng: Suning, staring at the distance in the transformation

　　Zhongxin Jingwei client January 5 title: "Liu Chunsheng: Suning, staring at the distance in the transformation"

　　Author Liu Chunsheng (Associate Professor, School of International Economics and Trade, Central University of Finance and Economics, Special Expert of Sino-Singapore Jingwei)

　　Since 1990, Suning has always stood at the forefront of Chinese business for 30 years with its keen business tentacles, participating, promoting and even leading the transformation and upgrading process of China's retail industry, and epitomizing China's commercial transformation in the past 30 years.

　　Three transformations in thirty years, flashing and moving in the torrent of the times, Suning has stepped on the rhythm of change. In fact, being able to actively embrace the changes of the times and actively seek their own changes requires considerable courage and wisdom for any huge enterprise.

　　Some people say that China's more than 40 years of reform and opening up is equivalent to more than 100 years of other countries, although it is not completely accurate, but it is also quite reasonable. The ever-changing business environment, the market demand that may erupt today, the overwhelming application of technology, the huge business opportunities that are pregnant with risks, and the hidden forces of opportunities that may tear apart an enterprise at any time, these are the norms of the Chinese market in the past for more than forty years.

　　In the ups and downs of the business sea, the only constant is the change itself, in three or five years a business model may be completely out, new business ideas follow, entrepreneurs do not even have time to feel the pain of transformation must go to the next battlefield, because of this, Suning in the stage of success after not resting on its laurels, can take the initiative to change, adapt to and lead the change of business, is particularly valuable.

　　Back in 1990, 27-year-old Zhang Jindong opened a small store in Nanjing, operating a fresh thing that is still very unfamiliar to many families - air conditioning, with a good reputation, service, Suning took advantage of the spring breeze of reform and opening up, fully absorbed the nutrients of the market economy, and quickly became the largest air conditioning dealer in the country.

　　After 2000, China's reform and opening up entered an accelerated period, with 2001 accession to the World Trade Organization as an important symbol, China's economy has been rejuvenated with unprecedented vitality, the market is fully open, and the competition and struggle between Chinese and foreign home appliance manufacturing giants in the Chinese market can be described as fierce. The outbreak of the market to Suning such a home appliance retail enterprises has brought great opportunities, Suning is no longer satisfied with the status of a brother in the air conditioning franchise, at the end of 1999, Suning carried out a heroic wrist-like strategic decision, cut the annual sales of billions of wholesale business, and then entered a stage of rapid development, through the "rent, purchase, construction, and" rapid expansion in the country, from first-tier cities to fourth-tier cities, to create a national large-scale chain of integrated electrical appliance stores and widely recognized by consumers. Quality, after-sales, channels, and home appliance companies, Suning in the electrical retail industry to ride the dust, but also become the "3C" product category worthy of the name of the hegemony.

　　In 2010, China's GDP surpassed Japan to become the world's second largest economy, infrastructure construction is thousands of miles a day, the torrent of Internet industry development has been unstoppable, traditional enterprises, whether manufacturing or service industry, whether retail or logistics industry, have felt the roar of the wheel of the times.

　　In 2009, sensitive Suning has sensed that a new business environment, new consumption patterns and groups are accelerating, and the advent of business changes is unexpected. In this context, Suning put forward the new ten-year development strategy of "scientific and technological transformation and smart services", and gained a firm foothold in the tide of the Internet economy. What is valuable is that while embracing the line, Suning has always focused on its core advantages and has not lost its strategic direction in the process of transformation. In the process of practical operation, Suning did not blindly abandon offline, nor did it stick to online, but adhered to the integration and development of online and offline, adhered to the origin of retail, conformed to the trend of the times, unswervingly took the road of Internet transformation and development of omni-channel integration, full-product operation, and all-customer service, and successfully created a new business model leading the future development of retail.

　　With China's Internet economy entering the second half, the competition in the business field is bound to be more intense, the competition for market stock and the mining of market increment is the scene that every retail company has to face, using big data, artificial intelligence and other cutting-edge technologies to promote online and offline integration, in live broadcasting, social marketing, social marketing have become a new outlet, only the initiative to change can not move. With the continuous advancement and wide application of 5G technology, it is foreseeable that in the near future, VR, AR and holographic technology will redefine the business environment and user experience, which is not only a challenge for retail giants, but also a new storm eye in the Internet field. Suning has provided a good model for commercial transformation and upgrading, standing at the tide of the times, and not forgetting the original intention, paying close attention to technological progress, implementing business model innovation, taking consumer demand as the center, and continuously improving the quality of goods and services with the help of Internet technology, in order to stand firm in the wave of the retail industry. (Zhongxin Jingwei APP)

　　Liu Chunsheng

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