On the evening of February 26, Suning.com released its 2020 performance report. The express report shows that in 2020, Suning.com achieved sales of 416.315 billion yuan, and online sales accounted for nearly 70%. In the fourth quarter, Suning Tesco's operating income increased by 13.75% year-on-year, and the scale of product sales on the Yunwang Wandian platform increased by 33.67% year-on-year.
Strong business growth in the fourth quarter, Yunwangwandian explores independent listing
With the gradual maturity of Suning’s smart retail capabilities, the company further determined the independent development strategy of Yunwangwandian, comprehensively benchmarked the Internet retail platform, integrated online business and introduced strategic investment, planned to increase employee equity incentives, and explore independence Listed. In the fourth quarter, the scale of product sales on the Yunwangwandian platform increased by 33.67% year-on-year.
At the same time, through the rapid expansion of retail cloud franchise stores, Suning.com has established a leading channel advantage in the third and fourth tier markets, and more and more brands choose to strengthen cooperation with retail cloud and develop the sinking market. In 2020, the retail cloud business will maintain rapid growth, with 3,201 new stores opened throughout the year. It is expected that the annual sales volume will increase by more than 100% year-on-year and achieve profitability.
The announcement shows that with the completion of the cloud network Wandian strategy, the financial strength and external cooperation resources will increase, which will help improve the service capabilities for users, merchants, and small, medium and micro retailers. The revenue from self-operated retail and logistics business is expected to be able to Achieving rapid growth, and the decline in the share of listed companies in Yunwangwandian has reduced the impact of losses caused by Internet investment on Suning.com.
The proactive development strategy has brought about a strong recovery of Suning.com's overall business. In 2020, Suning.com's open platform will increase the proportion of non-electrical products merchants to 86.81%. In the fourth quarter, Suning.com further increased its online user operation subsidies and commodity operation subsidies to increase user scale and improve user experience. In the fourth quarter, user activity increased significantly, and active buyers increased by 52% year-on-year. In December, Suning.com The number of monthly active users of purchases increased by 68% year-on-year.
In addition, the company has increased the Internet-based operation of stores, and through the development of social marketing such as Suning Twitter, store live broadcast, and Su Xiaotuan, the online sales volume brought by store Twitter in 2020 will increase by 145.70% year-on-year. At the same time, as Carrefour's home-to-door business continues to promote the two-line integration and further expand the scope of delivery, the number of home-to-home business orders in 2020 will increase by 139% year-on-year, and traffic from the Suning ecosystem will increase quarterly.
Cost reduction and efficiency enhancement + business focus and scale effect highlights
The announcement also shows that in 2020 Suning.com has carried out a series of work arrangements for cost reduction and efficiency enhancement and business focus. In 2020, Suning clearly put forward the development requirements of focusing on the main retail business. Suning.com actively implemented cost reduction and efficiency enhancement, strengthened personnel performance appraisal, and improved input and output efficiency. During the reporting period, the total rate decreased by 1.15 percentage points year-on-year.
Since last year, Suning Logistics has further clarified its development strategy, focusing on providing integrated warehousing and distribution services for suppliers and merchants on the Suning Tesco platform. In particular, Home Logistics has successively expanded the scope and depth of cooperation with leading home furnishing brands such as IKEA and Gujia. User service experience. At the same time, it cooperates with Carrefour and retail cloud stores to provide diversified services such as home service, store delivery, and door-to-door delivery. As of December 31, 2020, Suning.com has put into operation 67 logistics bases in 48 cities, and 17 logistics bases are under construction and expansion in 15 cities.
"Focus on retail, focus on commodities, and focus on users." Judging from the performance forecast and the actions in the past month, Suning.com's development is in a stage of steady development and quarterly improvement, coupled with the recent blessings of a series of strategic partners. Suning's financial strength and external cooperation resources have been further enhanced.
Suning.com said that with a series of cost reductions and efficiency enhancements and business focus efforts appearing, as well as the market recovery and the completion of the company's Yunwangwandian capital introduction, it is expected that the sales scale will achieve steady growth in 2021, and the deduction of non-net profits will be obtained. Significant improvement.