On September 22,Suning TescoThe Open Platform Appliance & Consumer Electronics Business Conference was held in Nanjing. A big discussion on how the 3C home appliance industry developed in the latter stages of the pandemic ensued. The participating top industry brands and merchants agreed that the development of open platforms is more conducive to fulfilling the business demands of merchants, and the platform model where open and self-operated coexist is the most popular.
He Xiaowei, assistant to the president of Suning Tesco Open Platform Management Group, proposed that the 2020 Suning Tesco Open Platform is based on the original B2S2B2C model, integrates Suning's full-scenario resources through diversification, full-scenario, high efficiency, and extended upstream and downstream links, and will work with major brands and merchants to promote market growth in the home appliance industry through traffic support, operation improvement, KA merchant support, and service support plans.
Only by building the comprehensive capacity of an open platform can we guide merchants in the industry to restart healthy growth
In recent years, the saturation of China's home appliance market has gradually increased. In addition to the double suppression of the Chinese real estate market by policies and the epidemic this year, the incremental home appliance market is weak, and various brands and channels have fallen into deep competition in the stock market. In a context where income is shrinking while expecting revenue to be tightened, consumers have shown an extremely calm and rational consumption trend for durable consumer goods such as home appliances.
In the context of channel reversal, the online window dividend period ushered in. According to Aowei Cloud Network (AVC) monitoring data, the online structural share of all categories has increased. In the first half of 2020, online retail sales of white electricity reached 58.8%, kitchen appliances reached 46.9%, environmental appliances reached 86.9%, and small household appliances reached 81.1%. The explosion in online demand gave a boost to brand management. According to Aowei Cloud Network (AVC) research data, more than 65% of brands have achieved a revenue increase of less than 20% in online channel operations this year.
Seen from another perspective, there is also an implicit shadow of a price war behind this growth. According to research data from Aowei Cloud Network (AVC), close to 80% of online merchants are facing difficulties in increasing customer unit prices, and more than 50% of online merchants are seriously facing a situation where no sales are promoted. As a platform side, how can we guide merchants from growth driven by price wars to healthy growth that relies on refined operations? There is only one answer, which is the comprehensive ability to build an open platform to empower merchants in all aspects of all scenarios and links.
The hard core support of the Suning Tesco open platform empowers omni-channel merchants in multiple dimensions
In order to fully empower merchants and build comprehensive capabilities for open platforms, Suning Tesco fully upgraded its open platform in 2020. Looking at traffic lines, Suning Tesco uses an AI+BI+ strategy to build an intelligent traffic distribution mechanism. Problems are discovered through full-process monitoring of business data, and integrated systematic intervention to improve traffic distribution efficiency and help merchants obtain traffic resources accurately and efficiently.
In terms of social marketing, the Suning Tesco open platform proposes stabilizing a two-level model, actively expanding multi-level management, and speeding up the promotion of Suning's promotion channels; making full use of current live streaming trends, integrating forms such as platform star broadcasting, store broadcasting, merchant self-broadcasting, and live streaming in production areas, etc., and linking multiple platforms to subsidize high-potential products and create influencer explosions.
In terms of product promotion, the Suning Tesco Open Platform proposes to rely on declining channels such as Suning Merchandising and Suning Retail Cloud to carry out reverse C2M customization through industry belt and large order collection; seize the trend for quality iterative products, and improve mental education and scene experience online and offline. In terms of merchant support, the Suning Tesco Open Platform will provide core merchants with venue traffic support and advertising promotion, establish a 1:1 exclusive service organization to help merchants operate on a daily basis, and at the same time fully empower the financial side of the supply chain to provide services such as interest-free installments and integrated warehousing and distribution.
What is worth focusing on is that Suning Tesco also plans to promote the development of e-commerce retail clouds. Through the Suning e-commerce retail cloud platform, suppliers will collaborate with suppliers upstream in the industrial chain to build a “one package” model, and the midstream will build the three core competencies of goods organization, supply chain and finance, and comprehensively empower small and medium-sized businesses with the advantages of Suning Tesco brands and products.
The conference for merchants in the major appliances and consumer electronics industries received a lot of attention. In the post-pandemic period, the Suning Tesco Open Platform opened up clouds and indicated goals for the development direction of 3C home appliance merchants. Suning Tesco's open platform construction this year has pioneered an unprecedented breakthrough. Against the backdrop of the external environment still uncertain, it has completed an open ecosystem transformation from the inside out with extremely strategic insight and rapid execution and promotion.