Suning’s sales on Tmall in the third quarter increased by nearly 50% year-on-year. How will it be deployed after joining hands with Meituan?

Following the strategic cooperation with Meituan, announced the latest transcript.

On the evening of October 28, ST Tesco (002024.SZ) announced that from January to September this year, the company achieved operating income of 55.538 billion yuan, a year-on-year decrease of 51.95%; net loss was 4.953 billion yuan, a year-on-year decrease of 38.97%.

Driven by the new management, the company’s business segments have been continuously adjusted. Offline, as of the end of September this year, the company had 1,510 home appliance 3C home life specialty stores, 151 Carrefour supermarkets, 37 Suning Tesco Plazas (department stores), and 9,796 retail cloud stores. said that the company focused on the development of large stores and aimed at the first- and second-tier markets. In the third quarter, the company launched the “Suning Yijia” storefront model to provide integrated solutions for home appliances and home improvement, integrate commodity supply chain and service capabilities, and realize scenario-based operations. , to drive the promotion of mid-to-high-end products. The sales revenue of comparable stores in the 3C home life specialty stores of home appliances turned positive after the growth in June. In the third quarter, the sales revenue achieved a year-on-year increase of 12.18%, and the sales of offline stores continued to recover.

According to the financial report data, the company is still in a state of net profit loss. A very important factor is that Carrefour’s business is affected by multiple factors, resulting in a rapid decline in scale and difficulty in sharing higher fixed rental costs. In the third quarter, the company has carried out a comprehensive adjustment of Carrefour’s business. On the one hand, it closed some regional stores and focused on the operation of advantageous cities to improve economies of scale; on the other hand, it integrated the 3C business of electrical appliances in Carrefour stores to increase profits by taking advantage of the crowd flow advantage of hypermarkets. In addition, Carrefour has accelerated the adjustment of product structure, and the operation of local e-commerce and community e-commerce has accelerated to adapt to market changes and achieved a month-on-month improvement in scale.

In terms of online business, focusing on the 3C business of home appliances, through the advantages of supply chain and service, it has extensive open cooperation with the platform and obtained traffic. The scale increased by 47.81% year-on-year. With the help of offline store brand recognition, mobile phone, computer storefront network, and professional management capabilities, the company and Meituan tried to develop local business in the same city.

A few days ago, and Meituan reached a strategic cooperation, with over 600 stores across the country settling in Meituan, covering a total of 175 cities. Since October 21, users can log in to the “Meituan” or “Meituan Takeaway” APP and search for “” to place orders for mobile phones, computers, and household appliances, which will be delivered in as fast as 30 minutes.

The reporter entered the Meituan APP and searched for “”. The results showed that the delivery fee from 49 yuan is zero, and the newcomer’s red envelope is 15 yuan. The categories sold are divided into mobile phones, mobile phone accessories, household appliances, computer office, etc. The order volume of goods in most stores is still in single digits.

At the beginning of its listing in 2018, Meituan was positioned as “the largest food delivery platform in China”. Afterwards, food delivery became the entry point, expanding into the fields of wine travel, grocery shopping, medical and health care, etc., and gradually grew into a super platform for local life services.

The basis for the cooperation between and Meituan is that Suning has a mature and stable 3C home appliance product supply chain system, rich product categories and quantities, and sales outlets in large and medium-sized cities across the country. Meituan has many years of professional localized operation and service capabilities, a huge user scale of nearly 700 million, and a mature flash delivery logistics network system.

“After is settled, Meituan Flash can quickly enrich the category coverage of digital home appliances, meet consumers’ diversified consumption needs, and further enhance market competitiveness; enjoys Meituan’s massive traffic channels, improving the last The service efficiency of kilometers is expected to achieve rapid growth in performance.” Guo Tao, an Internet analyst, told that the current cooperation between the two is mainly in the field of 3C small household appliances, which faces competition from other e-commerce platforms and traditional household appliance retail companies. Intense, it may have a limited effect on performance improvement in a short period of time; in the future, both parties need to continuously optimize the cooperation model, further reduce operating costs, improve service quality, and enhance price competitiveness.

Before the cooperation with Meituan, in July this year, the APP launched “Suning Suda”. Consumers who have a store within 3-5 kilometers can choose the flash delivery service, no delivery fee, and average 3C delivery for mobile phones. The time should not exceed 1 hour. Compared with the implementation of “Suning Suda”, the company’s choice to cooperate with Meituan will be more efficient and can better control costs.

Previously, Suning also wanted to use its own logistics system to cut into the local business in the same city.

In March 2020, Suning launched “Anytime Membership”, focusing on home-based services, covering multiple formats such as Suning Store, Carrefour, Suning Redbaby, and electrical appliance stores, achieving 1km delivery in 30 minutes, 3km delivery in 1 hour, and 1 hour delivery. home service. For home-delivery services, Suning Logistics uses a rich warehousing network and a terminal network that penetrates into the community to realize instant home-delivery services for goods such as fast-moving consumer goods, department stores, maternal and infant products, digital products, and household appliances.

It remains to be seen how the addition of Meituan will affect the Suning Daojia service sector.