What is the difference between Gome and Suning s marketing model?

They are also not fundamentally different when it comes to services. Because Suning was born in air conditioning, selling air conditioners is more mature than Gome, and air conditioning is a semi-manufacturing and semi-service product, so Suning will provide its own services. However, many services are now undertaken by manufacturers, so although they are different on the surface, there is not much difference in substance, because they have more types of products, except for air conditioners, other household appliances do not need to be installed, so there is not much difference.

The first is to strengthen products and services and pursue differentiation. The second is to strengthen the ability to dialogue with the market.

Last weekend, Suning opened two new branches in Guangzhou at the same time, and Gome also launched the "air conditioning ** war" at the same time, which can be described as-for-tat. Yesterday, Mr. Luo Qingzhong, senior director of Parler Consulting, conducted a review on the marketing model of Gome and Suning.

Although they are fast and slow, their expansion styles are not fundamentally different. In 2001, Suning proposed to open 1,500 stores within a year, and the industry was stunned. Last year, they accounted for only 5% of China's home appliance retail share, which shows that China's electronic macro peiqing ware retailers are still large in number and small in scale.

Gome and Suning, one grasps service outsourcing, earning the difference in service wholesale prices. The other is self-service.

There are also differences in management structures. Gome is the separation of procurement and sales, while Suning believes that procurement and sales should be separated from each other, and the marketing center is the core department of Suning.

There are two ways of enterprise marketing, one is to establish the best advantage; The second is to establish product advantages. It is impossible for a purely commercial enterprise like Gome to establish an absolute advantage in terms of products. Because it is impossible to develop and develop unique new technologies and new products, and it is impossible for other enterprises to have competitive advantages in products that are only sold to Gome monopolized.

For example, if Qi Danguo wants to make the rapid development of the enterprise and have a competitive advantage, it can only work the characteristics of the first and distributed products. 1.Low-price entry, low-price operation, fast in and fast out, and less risk, Gome takes first-class competition as a basic business strategy.

**Being at a low level is recurrent, it is a norm, and it is used as a business and marketing strategy. The product is set low from the beginning, and from the beginning it takes the initiative to attract customers to the consumer.

The business strategy of Gome** competition can be summarized in two points: first, the sales of all commodities start at low prices from the beginning, and maintain relatively low prices in the business process; Second, once the price of the product is priced, it will no longer be significantly reduced. Before other enterprises take price reduction measures due to seasonal, technical, unsalable and other reasons, the purchased goods have been sold or basically sold.

This management method is based on the premise of fast entry and fast exit of goods. It avoids the risk that the backlog of goods is difficult to sell, and the price has to be greatly reduced due to technical problems, accelerates the speed of capital flow, makes the operating products more flexible, and more adapts to the requirements of product upgrading.

2.The basic condition for low-price entry and low-price operation is low cost.

For a commercial enterprise like Gome, the operating cost mainly depends on two factors: first, the purchase cost of the distributor's goods; The second is various transportation and operating costs. Including the purchase cost of goods, transportation costs, wear and tear, storage costs, store rental costs, employee salaries, financial costs, etc.

Lowering any of these costs can have a certain impact on reducing costs.

Profit model: eat ** business.

The profit model of foreign retailers is mainly to "eat the difference", that is, by expanding the scale of outlets and increasing the scale of sales, forcing merchants to reduce procurement, and by compressing costs and expenses, obtaining the difference between the purchase price and the retail price to achieve the purpose of making a profit.

In contrast, on the basis of taking into account the "price difference", Gome and Suning emphasize the profit model of "eating the best business", that is, by expanding the scale of outlets and maintaining the low-price preferential market strategy for consumers, and continuously improve the market influence of their channel terminals.

The profits** and composition of the two companies are the best proof of this.

According to the announcement, from 2001 to 2004, the profits of other businesses of Suning Electric and Gome Electric Appliances grew rapidly with the growth of main business income, and the growth rate was much higher than the growth rate of main business income: the profit growth rate of other businesses of Gome Electric Appliances in 2002 was twice the growth rate of its main business income; By 2004, although the profit growth rate of Gome's other businesses had declined, it was still twice the growth rate of its main business income. In 2002, the profit growth rate of Suning Electric's other businesses was as high, which was twice the growth rate of main business income; In 2004, the profit growth rate of Suning Electric's other businesses reached twice the growth rate of main business income.

At the same time, the profits of other businesses have become the main profits of Gome and Suning. According to the announcement, from 2001 to 2004, the profits of other businesses of Gome Electric Appliances accounted for more than 100% of the net profit; Since 2003, Suning Electric's other business profits have accounted for more than 100% of net profit. This means that if there are no other business profits, the two companies will actually be loss-making.