How do Gome and Suning make money?

Other traditional four kinds of electrical appliances brands, such as white electricity, black electricity and ice-washing air conditioners, are generally operated by Suning Gome itself, also called direct brands! The business model of this brand is that Suning directly talks with manufacturers about the big single contract of national sales, so the price obtained is relatively low. In addition, the current electrical industry has close contact and cooperation with manufacturers' purchase channels. Generally, Gome and Suning will book goods in the next peak season in the off-season of electrical appliances sales, and purchase goods by paying part or simply on credit. The advantage of this method for manufacturers is that it can predict part of the output and will not cause unsalable sales. Therefore, under this cooperation mode, national home appliance predators like Suning Gome can get it. The profit of Suning Gome's direct brand is not only reflected in the price. In fact, if you pay a little attention, you will find that the price difference between Suning and Gome is not large, which means that the profit of goods is actually similar! Buying more can make more money, so promotion is the biggest means of profit. People who often dare to report will find that every Thursday, Suning Gome will advertise and promote sales. On the one hand, Suning Gome hopes to sell more things in this way. On the other hand, manufacturers also hope to take this opportunity to promote their own brands and sell more goods. The resources used for promotion, from discount coupons to promotional products to advertising media expenses, are generally borne by 3 (Suning): 7 (manufacturers), which means that Suning can make more profits in this way. This is also the reason why Gome Suning keeps promoting sales all day. It only takes nine Niu Yi cents to make money from store rent! In fact, in the early years of Gome Suning's development, the money for opening a store was generally its own money. After they have made a certain scale, all the costs of this part have been transferred to the manufacturers! At present, the chain store opening modes of Suning and Gome are almost the same. When they found a new store address, they used their huge funds to rent the store. After that, the decoration of the store was basically just a basic decoration, and other counters, promotional materials and other decorations were decorated by the manufacturers themselves. Excluding this part of the cost, plus the entrance fee charged by Suning Gome, the cost of opening a store in Suning Gome is very small! This is also the reason why Suning Gome can open more than 100 branches a year! The reason is also very simple. For the chain industry, more market share is a resource weapon for Suning, Gome and manufacturers to compete. The greater the share of their stores in the country, the more resources they have to compete with better manufacturers, and the more difficult it is to negotiate with them. On the other hand, the more manufacturers and commodities are attracted, the greater the cash flow of Suning and Gome, and the profits will roll in with the speculation of the stock market! Of course, not all brands will rely on chain predators like Suning Gome. Gree in China is a good example! As we all know, Gree Air Conditioning is the largest brand in China, with the largest number of self-operated stores in China! Due to the successful shaping of her own brand and her years of self-operated brand store management. Therefore, he relies less on the channel power of Gome Suning. Anyone who has done sales in Suning Gome knows that Gree brand manufacturers are very bullish, and basically Gome Suning can't interfere with Gree's price! Many Gome stores in the country don't even have Gree air conditioners. Wuhan is an example! The profit model of Wal-Mart and Carrefour is basically the same as that of the electrical appliance industry, but they also have many products of their own brands. These products are basically contracted by small and medium-sized manufacturers in their supermarkets, just to be a supermarket brand! In supermarkets, there are also differences between direct selling and consignment. Basically, the profit model is the same as that of electrical appliances! It's just that supermarkets rely on selling products with a little more gross profit! Where is the profit point? The profit points of chain industries are similar. To sum up: entry rent-promotion resources-gross profit-year-end rebate-cash flow operation-stock market operation. In terms of management, chain enterprises generally adopt vertical management mode. Company bosses and financial bosses everywhere are generally not from their own cities, and more than 90% are senior managers sent by the headquarters. Chain enterprises are very strict about financial management. For example, Suning, in order to control financial management, spent hundreds of millions looking for IBM to design its own SAP system. Since 2005, Suning has become the first chain commercial organization in China to use the SAP sales system. From this aspect, we can see their strict requirements for financial management! In the management system, all the management systems in the country are a model! They are all unified, and all departments are managed vertically by the line departments of the headquarters. Therefore, it is generally difficult to find opportunities for corruption within the company. But it does not mean that there is no corruption. In a position like Suning Gome, there are many opportunities for corruption, and it is also easy to appear in the process of negotiating with manufacturers. As long as the manufacturer cooperates with the insiders, it is easy to get the money! Especially in the promotion of resource costs! Suning Gome's marketing buyers will engage in 10 tens of thousands of people a year! Therefore, the personnel flow speed of commercial chain is also very fast!