Carrefours first single quarter profit integration into Suning in 7 years

 Carrefours first single quarter profit integration into Suning in 7 years

Since taking over Carrefour, Suning e-commerce group has spared no effort to support Carrefour. Tian Rui said, I think Carrefour will be the core business segment of Suning fast consumer in 2020. Suning group has made it clear that it will devote all its resources and strength to help Carrefour build its next core business model.

Emergency online home mode during the epidemic

At the beginning of the epidemic, in order to meet more demands for online orders, Suning e-commerce connected to Carrefours 1-hour delivery service. Through the shopping experience of 1-hour delivery of online orders, Suning e-commerce endeavored to protect consumers material needs at home. Within a few days, Suning Carrefour service was upgraded again, and Carrefours City matching service was launched, extending the service scope to 10 kilometers of Carrefour store life circle.

In terms of commodities, Carrefours matching in the city service covers seasonal fresh food, grain and oil seasoning, alcoholic beverages, leisure snacks, mother and baby products, personal care and cleaning, household general merchandise, various imported commodities, etc., to comprehensively guarantee the supply of consumer goods.

There are three traffic entrances for Carrefours home service, namely, Carrefours one hour arrival, Carrefours app, Suning e-shopping app and Suning store app, which means that Suning Carrefour brings three different services to consumers, the first one is based on one hour arrival, the second one is based on half day arrival in a 10 kilometer life circle, the third one is pre-sale system, and the first one is only picked up the next day, Equivalent to the next day. Suning Carrefours home can be understood as the superposition of three modes, i.e. 1-hour arrival + half day arrival in the same city + more accurate community pre-sale group purchase. Tian Rui said frankly that no one mode can solve the problem of the whole link, whether its one hour delivery, half day delivery and pre-sale group purchase in the same city.

Carrefours 1-hour arrival positioning is high-quality, small quantity and fast arrival, which is closer to the current popular pre warehouse mode. It aims at home delivery of high-frequency core products to meet the immediate and convenient needs of users. Suning will conduct diversion for users of 3-10km and half a day of the same journey, classify the users of Carrefour online shopping mall and store as the same kind, and perform the contract.

Carrefour recently set up a special home business team to support the smooth development of various businesses. During the outbreak, Carrefour also launched cross-border sharing of employees to solve the problem of insufficient personnel. In a specific period, through the short-term deployment and support of employees from different departments and systems, the efficiency and efficiency can be improved.

Tian Rui said that the core idea of recent actions is to develop standardized and cost-effective products. The results are also very significant. According to Suning e-commerce, on the day of Carrefours February 21 promotion, the single volume on the small program end rose by 329% on a month on month basis, and the average single volume on the small store end of the home business income rose by 202% on a month on month basis. Suning e-commerce app first launched a 3-kilometer 1-hour service, and recently rapidly upgraded the same city distribution service, expanding the service scope to 10 kilometers of Carrefour store life circle, covering Build 51 cities in China. In addition, the growth rate of single volume of Suning e-commerce channel has reached 60% month on month.

According to Tian Rui, by the end of February, Sunings own channels can account for 30% of the total Carrefours one hour orders.

Carrefour transformation

Carrefour completed transformation. According to Tian Rui, this is not only the result of Carrefours own strengthened operation, improved quality and efficiency, but also thanks to Suning smart retails empowerment to carry out full scene integration and transformation of Carrefour.

After the acquisition, Carrefours management team focused on the user demand and carried out timely repair and maintenance of stores and sublease areas, which led to a decrease in the cost rate over the same period. In addition, Carrefour also strengthened the construction of commodities, operation, market, membership and other aspects, and strengthened the assessment and incentive. Data shows that in the fourth quarter of 2019, the overall human efficiency of Carrefour increased by more than 10% year on year.

In terms of commodity management, Carrefour will give full play to the advantages of the supply chain of imported commodities, accelerate the integration with Suning fast consumer supply chain, increase more healthy and organic products in the future, upgrade the products, increase the proportion of fresh products, so that consumers can buy, eat, pack and other ways to take away food in the store.

Carrefours 209 stores across the country have completed the transformation of smart retail, creating a new model of store warehouse integration. As an important part of Sunings whole scene retail, Carrefour stores after digital upgrading will break through the scene barriers among consumption, entertainment, life and social contact with other businesses such as Suning small stores around, so as to make the scene life circle richer and more complete and provide greater value for users.

In terms of logistics and warehousing, Carrefour has integrated with Suning logistics and warehousing resources, and achieved the performance of home business with the help of Suning logistics terminal capacity network. In the future, Carrefour will cooperate with Suning logistics to establish its own fresh and cold chain service capacity and better control the quality. In addition, Carrefours 40 million members have made contact with Suning members to further strengthen their membership rights and interests through various promotion methods and linkage with Suning e-commerce and other formats.

At present, Carrefour has been completely localized. In Tian Ruis view, Sunings culture has been fully embedded in Carrefour, which is the core of localization. Carrefour really acts according to the market rules of China and participates in the competition of the whole market.

It can be seen that Carrefour and Suning group have basically completed the integration of supply chain and digital transformation within four months. Tian Rui said that the biggest goal of Carrefour in 2020 is to improve Suning groups home business, integrate with Suning small shops, Suning vegetable farms and other business forms, and become the core of the fast consumer sector.