Internal reference: Carrefour's "second venture"

"It is not the opponent who beats you, but the cross-border." Carrefour must have a deep understanding of this sentence. As a representative enterprise of foreign supermarkets, Carrefour has witnessed the changes of China's retail format in the past 25 years, from "lying down to making money" in early hypermarkets to closing stores frequently under the impact of e-commerce and instant retailing.

2065438+In late June 2009, Suning plans to acquire 80% shares of Carrefour China for 4.8 billion yuan. Three months later, the delivery formalities were completed, and Carrefour China officially became an important puzzle of Suning's smart retail.

Now, it has been a whole year since Suning transformed Carrefour. Looking back on the changes of Carrefour this year, in the words of its CEO Tian Rui, "Carrefour is still the flying eagle."

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Looking back on Carrefour this year

2065438+In late June 2009, a heavy news blew up the industry: Carrefour and Suning reached an agreement, and Suning International acquired Carrefour China.

The reason for the heated discussion is the price. According to the announcement, Suning International plans to acquire 80% shares of Carrefour China for 4.8 billion yuan. In other words, the total value of Carrefour's business in China is 6 billion RMB.

According to the data, Carrefour has 2 10 large general supermarkets, 24 convenience stores and 30 million members in China. This price makes people feel a little cheap. But for Carrefour, price was not the primary factor, and "survival" was the main goal at that time.

On the one hand, changes in consumer habits have changed the retail format.

After the rise of 20 14 take-out, there is a voice saying that since catering can be delivered immediately, supermarkets, fresh food and other categories can also be sold through offline distribution. In 20 16, after Ma Yun proposed new retail, new models such as front warehouse and store warehouse integration came into being.

The traditional hypermarket is gradually being ignored, and it is replaced by the "online+offline combination" mode of box horse, which can be visited and delivered. According to statistics, on the retail channel side, the share of hypermarkets dropped from 23.6% in 20 14 to 20.2% in 20 18.

In fact, in the face of changes in users, Carrefour also made an attempt. From 20 16, Carrefour began to make various attempts in China, such as building an online mall, opening a "Jiafu" convenience store, and testing the O2O life in Beijing and Shanghai. , but it can't do this. In just 20 18 years, Carrefour closed 19 stores in China.

Looking back at the actions of friends, RT Mart sold it to Ali for 22.4 billion yuan, becoming the bridgehead of Ali in the field of fast-moving consumption; Wumart access to multipoint Dmall system; Wal-Mart invested USD 50 million in Dada Group at the end of 20 16; Seeing that old rivals have successively won the "boat tickets" in the new retail era, there is really not much time left for Carrefour.

On the other hand, Suning's full-scene retail needs more offline downloads.

In Suning's view, Carrefour will enhance Suning's core competitiveness from four aspects: it will help Suning accelerate the development of the company's FMCG categories; It will help Suning expand consumer groups, enrich member ecology and enhance user value; Infrastructure construction conducive to the establishment of a national storage supply chain for fast-moving consumer goods; It will help Suning obtain Carrefour's high-quality property resources and enhance the competitiveness of offline stores.

Hou Enlong, president of Suning.cn, also said that Suning's acquisition of Carrefour is based on the demand of Suning's whole scene, all categories, globalization and perfect layout of global logistics network.

2065438+On September 27th, 2009, Suning.cn announced that Suning International acquired 80% shares of Carrefour China for 4.8 billion yuan to complete the delivery procedures. Carrefour officially entered the "Suning era".

In Suning's retail planning, Carrefour, as a hypermarket model, should complement the consumption scene of Suning store online and offline; Ecologically, create a full-scene retail format of "Carrefour store+Suning store +Suning.cn APP".

The first thing to do is to combine the three channels.

20 19, 10 In late June, Suning put forward "1 hour scene life circle" at the "Double Eleven National Carnival Conference" in Suning. Based on Suning's offline layout, it is intended to comprehensively, stereoscopically and systematically solve all the needs of users in shopping, service, content and social interaction within 1 hour. This also means that many formats of Suning will take "1 hour scene life circle" as the core, give full play to their respective advantages and make concerted development.

For Carrefour, the hypermarket, what it undertakes is the improvement of supply capacity. To this end, Carrefour has launched "fulfillment centers" in some stores in Nanjing and Shanghai, which will not only access Carrefour applets, but also access Suning Store APP and third-party platforms. Consumers who place orders through these online portals will be served by Carrefour's performance center.

Suning relies on Carrefour's 2 10 store layout and the city's core business district to meet the home service needs of users within 3 kilometers. The improvement is also reflected in performance. Less than half a year after Carrefour China was merged into Suning, it turned a profit in the fourth quarter of 2065438+2009, which is the first time in seven years that it achieved a single quarterly profit.

Especially during the epidemic, Suning.cn APP launched the service of "Carrefour 1 hour". From February to June, Carrefour's home business sales increased by 7 10% and orders increased by 468%.

Second, improve the supply chain.

After the acquisition, Suning set up a long-lost commodity management center in Carrefour's commodity system, and optimized SKU according to Carrefour's sales situation. For example, in Q4 of 20 19, more than 4,000 FMCG products with low turnover for more than three months were cleared; The Mao Lijiao of department stores and textiles is high, but the sales are not good, so the SKU of homogenized goods is adjusted, and the business mode is actively transformed into life and home; Strengthen the construction of fresh supply chain, improve the efficiency of supply chain, and actively promote the integration with Suning Group's FMCG supply chain.

Finally, the supply chain is connected to Suning Store.

As the two main bodies of Suning's offline services, they are combined through the supply chain system. On the one hand, the access of Carrefour supply chain has expanded the SKU types of small stores and reduced the shortage rate of small stores. On the other hand, as the super entrance of Suning's format and as a low-cost customer acquisition channel for Carrefour, the small store platform brings additional traffic and sales promotion to Carrefour, and superimposes community traffic applications.

In addition, Suning's original traffic and logistics advantages can also fully empower Carrefour, and the high-frequency commodity attributes of Carrefour FMCG can further enhance Suning's traffic pool and enhance Suning's comprehensive competitiveness.

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What to do next?

The data shows that the fresh MAU reached 70 million one month after the Spring Festival, compared with 44 million in the same period last year. At the same time, the average daily usage frequency and duration increased by more than 20%. Home business has also become the next competition point for retail giants.

After nearly a year of integration, Carrefour has become the bridgehead of Suning's home furnishing business. From the recent internal email sent by CEO Tian Rui, we can also see Carrefour's next move.

First of all, comprehensively promote the construction of small warehouses and improve the coverage radius and delivery timeliness of home service.

The essence of getting home is efficiency. How to deliver goods faster and deliver goods faster is a problem that enterprises are constantly solving.

In terms of shipment, Suning's "Quick Warehouse Picking System" can automatically plan the best picking route for pickers, and can also calculate and set the corresponding replenishment demand according to the sales volume in different periods to ensure the consumer experience.

In terms of distribution, Carrefour shortens the delivery time by increasing the coverage rate of the front warehouse. At last year's "Double Eleven Conference", Gong, vice president of goods in China District of Carrefour, said that in the future 1 year, there will be new 1000 community fulfillment centers in five core cities across the country.

At present, Carrefour's home business has formed a combination of "1 hour+half a day+pre-sale".

It is worth recalling that Tian Rui's statement this time is to promote the construction of "small warehouses". As mentioned above, Carrefour has been used as a front warehouse for the past six months because of its advantages in location and area.

With the increase in the cost of opening a store, big stores don't make money, and the giants have also started the "small shop model". Box horse mini has become the key goal of box horse this year. This time, Carrefour's "small warehouse" is similar to the front warehouse that only provides warehousing every day, or the super store of Box Horse mini, which is also the next expectation of the retail market.

Second, increase subsidies.

Any internet economy is inevitable, and users' habits are cultivated by subsidies, and the same is true when they get home.

In this regard, Carrefour said that on the basis of the 20% discount subsidy for on-site service launched during June18, an additional 500 million yuan of commodity subsidies will be added. At the same time, Tian Rui also said, "There is no online subsidy and no deadline. Carrefour has sufficient ammunition in the hand-to-hand combat of household clothes. "

Finally, accelerate the integration with Suning Store and Suning.cn App.

Over the past six months, we have clearly felt that the combination of Suning and Carrefour is accelerating. At the beginning of February, Suning.cn APP launched Carrefour's "1 hour" on-site service; On February 6, Carrefour entered the Suning store platform; In late February, Carrefour launched the "matching in the same city" service, and placed an order online in Suning.cn APP Carrefour Home Channel, which can be delivered to the door within half a day within 10 km.

For the next integration, Tian Rui mentioned in the letter that we should use the supply chain capability to provide more goods for small stores and select better and better goods for Tesco member stores.

At the end of the internal letter, Tian Rui wrote that the great torrent of the times has passed and cracks will appear in rock-solid rocks, which is undoubtedly the best interpretation of Carrefour's first 24 years; But every change in the field of consumption is also an opportunity for enterprises to evolve themselves. As an important part of Suning FMCG, Carrefour can provide better solutions for Suning's home furnishing business on the one hand, and strengthen the supply chain and offline strength of Suning FMCG on the other hand.

How much energy can the iron triangle combination of Carrefour +Suning. cn+ Suning Store generate in the second half of the retail market? Wait and see.

Source/Logistics Information (ID: Wuliu Wenzhi)

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