Lei feng’s network (search for “Lei feng’s network” public attention) by writer Li Chengdong, business angels, pre, Jingdong business strategist, and Tencent. Welcome to search “dgjdds” concern Li Chengdong micro letter public, “East reading electric business.”
Wal-Mart recently announced and East on strategic cooperation agreement, the first strategy is mentioned “Jingdong Mall, will have a 1th major assets, including” 1th store “brand, website, APP. 1th shop Wal-Mart will continue to own the business and incorporated into standing 1th Mall. “So, 1th, shop in the transnational marriage mean? How much value it can bring to the East?
Jingdong acquired 1th shop yet? No
Are actually acquired, but in the strict sense does not. If acquired, you should see the disclosure 1th shop revenue and GMV data – to be incorporated into the East reported. So it’s exactly East shares before the judge:, take the initiative to buy 1th Beijing East shop. Even if it was, Wal-Mart strategic stake in Jingdong, 1th, shop assets are packaged to East of Beijing.
If no acquisition is also necessary on the 1th of Jingdong buyers shop how much you value? In fact, 1th, shop the most important asset is user and brand, called Wal-Mart continues to import is not possible. User traffic is East of Beijing, also let Beijing East merged, integration of warehousing and distribution but also to the East of Beijing, and make the continuation of the 1th store import impossible. Price on 1th shop, of course, want to talk about.
So, this is just an approach. 2014 its strategic stake in East Beijing, electrical contractor company (ECC) package to the East of Beijing, but the terms did not contain trade quicker Inc Monrovia network. Jingdong trade quicker Inc Monrovia network of minority shareholders, Jingdong earnings thereafter, and did not take into account trade quicker Inc Monrovia net income. The merger approach, and fast network like because your guess. Impairment of assets goodwill is mainly tap, QQ online shopping, and no trade quicker Inc Monrovia Net impairment of assets goodwill, because trade quicker Inc Monrovia NET has never been incorporated into the East. So, should not worry about consolidation of 1th Beijing East, shop and make cheating impairment of assets goodwill has dragged down profits.
Wal-Mart stores, why get rid of first? Thanks so much
Currently, 1th, shop revenue 10 billion less than a year, assuming a loss rate of 10%, lost 1 billion a year. Not just business losses, business is still shrinking, exactly is a cliff fall, more and more marginalized in the market. Scale is fully able to meet Wal-Mart’s strategy on appeal, or even dragged down the performance of Wal-Mart in China as a whole.
In fact, the first core management team left early 1th, shop, shop, precisely, Yu Gang and Liu Junling before leaving is no backbone. Money gathered people scattered inside gossip news from 1th, shop the establishment to be packaged, but Yu Gang and Liu Junling made money, followed by brothers a fortune, even started his business from scratch, and finally made the CXO level.
Obviously, lack the core backbone of the 1th shop without cohesion, external managers, unable to reverse the predicament, Wal-Mart had shuaibaofu. Do not dump, asset values will be zero!
5% equity to kidnap Wal-Mart? Not kidnapping, the interests of the community
Wal-Mart shuaibaofu is a fact, but East is not stupid. In 2014, Jingdong disk access Tencent (ECC), know early it will trade quicker Inc Monrovia NET Pats and frozen. Pat is not market position, even the Tencent were not focusing on the Pat. In addition, not only business and trade quicker Inc Monrovia network overlap Jingdong, user total–highly price-sensitive customers. Tencent’s business is frozen is not surprising at all.
Jingdong buyers ECC has two demands, first of all, get Tencent traffic resources, funds and public endorsement. Secondly, only buyers, company does not do business, Jingdong can rest assured that Tencent may flow to the East, and a safe. To put it bluntly, this is Jing dong wanted to kidnap one of Tencent’s business strategies, it is clearly related to the requirements of the contract. Of course, Tencent haven’t voted B2C retail electric business, but a lot of app service providers, O2O, domestic services electrical contractor, Jing dong is only part of the Tencent business ecosystems and not all of it. Six months ago, heard only in the East will contact in Tencent, hope Tencent shares, solve traffic woes and rumors there is no then!
Therefore, Jingdong buyers Wal-Mart mess, 1th may also have some value, but mainly to make Wal-Mart China’s bet upon Jingdong, so Wal-Mart supply chain resources to put in place. To tell the truth, Wal-Mart China has certainly been no better strategy. Wal-Mart supply chain not Jingdong want to kidnap, but 1th shop has given Beijing East, Wal-Mart China on line business Jingdong want to bet on it. Is a community of interests on both sides, expand the scale of business in each other’s interests, there is no one who kidnapped!
Why don’t you fund shares of Wal-Mart? Each not bad money
Someone said that Wal-Mart dumped a big burden, can also take 5% stake in the East, it’s pie in the sky. Jingdong want to take 5% of the stock exchange resources, such as Wal-Mart’s supply chain, but also wishful thinking.
First of all, Wal-Mart, 5%, $ 1.5 billion, Wal-Mart is not seen in 2015 alone profit in the fourth quarter of $ 4.57 billion (equivalent to 30.2 billion yuan) that directly kill BAT. Financial investments and strategic investments, which cares about is not a direct financial return. Wal-Mart certainly has more money to direct investment, other than the holding, percent more shares and not too much change the nature of strategic cooperation.
In addition, they have asked East if more money is needed, after the end of the first quarter of 2016, Beijing East account for almost 35 billion, operating cash flow was positive in were the lowest and spend more money to dilute their stakes, Liu will not dry, high water jar capital, Tiger is not dry.
1th shop ending? Refrigerate immediately but not
May be refrigerated? There is a high probability, but it’s certainly not right away.
Previously, Jingdong have had considerable investment and acquisition, so far no successful integration cases. In March 2010, the acquisition of Korea Chihiro SK Group’s e-commerce website network (qianxun), May 2011 restart Chihiro network, comes online, and then it’s not.
January 2012 “mini pick” was officially acquired by Jingdong, operating a year later, due to trade disputes there and then.
Then the January 2014 to complete acquisition of hotel tonight, Deng Tianzhuo, founder and Ren Xin joined Beijing East, hotel business has dropped. Deng Tianzhuo home Jingdong strategic, Ren Xin Mars left Beijing East founder get to raise tens of millions of.
Then the 2014 its strategic stake in East Beijing Jingdong merged Tencent QQ network purchase, Pat and trade quicker Inc Monrovia networks. Two front site is closed, basic refrigeration trade quicker Inc Monrovia network.
So, shop 1th, what will happen? Cold not cold storage is one thing, but reckon Jingdong may not have the confidence to operate two separate brands. Acquisitions, East brother micro Avenue friend East wireless Department boss Xu Lei, followed by how to take over the shop 1th, user and brand? Of course, company secrets, Xu Lei did not say anything. Internal message, Xu Lei this week will be back in charge of the Beijing Eastern market of alternative bears qingyun, starting back in 2007 he set up departments. Core demands of shop bought 1th, not East, but by no means say wasted, 1th shop thousands of active users and reputation influences in East China.
On the category, 1th outlets are just a subset of Jingdong, completely overlap, but according to 1th, store data, most users and Jing dong did not overlap. Shop 1th, active users, user quality (viscosity) to one order of magnitude higher than trade quicker Inc Monrovia network, so not bled shop 1th, the last drop of my blood, Jingdong is never refrigerated it. Xu Lei now back in charge of the Marketing Department, and rhythm you want to reuse again, perhaps, and the Wal-Mart strategic stakes, integrate 1th shop has something!
1th stores can squeeze as much oil? 20.03 trillion
Last July, said Wal-Mart for $ 760 million from minority shareholders to buy the company without a shop 1th, 49% shares. Of course, the $ 1.5 billion valuation, is a thing of the past, the current 1th store price on thousands of active users?
Just register to purchase the user, according to their marketing costs to spend about 2 billion due to the higher the stickiness and customer loyalty can be given to 3 billion market value, sell is the price. If Jing dong 10 billion acquisition of 1th shop, it’s too expensive. Trade quicker Inc Monrovia when the net price to the East that year, PS,30 billion is about 0.3 times times the valuation. Jing dong, 1th, shop how much oil can be squeezed out? How much value can bring to the East of Beijing, and how many sales or contribution?
Lack of supply chain, warehouse and distribution logistics covering East limit, no talent, areas such as operations management confusion cases, 1th, shop after a cliff fall continues to do the annual flow of billions. 2015 East Beijing GMV was 462.7 billion active users were 169.1 million, 1th, shop more than 10 million active users, according to the Beijing eastern standard, 10 million active users can create GMV is about 27.3 billion to 30 billion. According to 0.3-0.5PS, and capital values can be 10.015 trillion.
Then, take over the 1th, operating losses for its business will be expanded, please? Assuming 1th shop loss rate of 10%, the marketing budget of 600 million, Jingdong squeeze strategy, marketing budgets cut to 200 million, loss rate can be narrowed to 6%. In addition, 1th shop warehouse distribution fulfillment cost higher than the East, each about 17-20 Yuan. 1th, shop orders, mainly in cities such as Shanghai, according to the Kyoto criteria can control up to 12 Yuan, and reduce loss of 35 points. Overlapping most of personnel can be incorporated into the East, therefore, can also save administrative costs at least 2 points. 1th, shop in the hands of East Beijing, if you want to expand the 1th store business and user groups, of course, is very likely to make money, at least not lose money.
As regards the integration of what Sino-foreign enterprise culture is nonsense? 1th shop there was no Wal-Mart culture, 1th, shop their culture ceased to exist. To say simple, a flow is equivalent to the East front entrance, commodity switch background to the Jingdong, warehouses of the customs clearance and the cutting of cutting, the Merge Merge. Jing dong had already put together a more complex ECC (Tencent), today a little later, 1th shop at first. Internal message, CEO haoyu Shen Jingdong lead consolidation 1th, shop, don’t leave Jing dong, gossip and rumor haoyu Shen prior to leaving. Haoyu Shen 1th to Shanghai store warehouse on Friday also, estimates the next shutdown integration soon. Simple things, without complications.
Shop 1th, what value? Improved category say increases gross profit
Buy 1th Beijing East, shops, from then on, the proprietary Super B2C Jingdong more opponents, although cat supermarkets trying to increase the import of the day category. Buy 1th Beijing East, store value, in addition to the potential for Jingdong consumer products division more than about 20.03 trillion of revenue, but also wiped out a competitor. Reinforce Jing dong in the commercial category (FMCG) say! VR Shinecon
2015 East almost 50 billion consumer products division sales, 2016 800.1 trillion, count the 1th, shop 20 billion, is 1000.12 trillion. 2015 China Retail chart, CRC 82.7 billion, Lianhua 68 billion, RT 61.5 billion. Jingdong now than lines’s largest supermarkets, is also China’s largest online supermarkets. Scale is the right to speak, have the right to speak is qualified to talk about gross margins and profits!
Yiqian, Jingdong shop vendors take 1th, checks and balances, proprietary production pin type of commercial electrical contractor now, just east of Beijing was left home, strengthens East of Beijing in the category say, ultimately can help elevate the Jingdong overall in the commercial category of the gross profit margin and profitability. The acquisition will boost profits instead of losses. From this level, brand-name suppliers, will be the interests of the acquisition. No brand suppliers like channel dominance, lines on the line are the same, because the channel is a virtue. VR Shinecon virtual reality glasses
Chat with an international brand milk powder business boss yesterday, milk powder currently on the line has accounted for about 30% overall, Jingdong’s market share is close to half of them, 1th, shop is similar to cat’s market share, Jingdong merged 1th shop now, it is even more powerful. In other words, Ali not to go too far, this year’s double ten clothing brands to choose, East of Beijing is not without means to counter. Give a piece of body. East view was that channel monopoly alone is not always a bad thing, adverse to the consumer, adverse to brands.
However, East to emphasize it again, Wal-Mart’s strategic stake in East Beijing this time, focus will not be on 1th shop. 10 billion strategic cooperation, 1th characteristically shop up alone was. Don’t put all the focus on the 1th shop.
Don’t underestimate the IQ of Wal-Mart and Jing dong, as 2014, East Beijing certainly will not be the only electrical contractor to buy Tencent, unsolicited offer for shop 1th, such things also spend 10 billion, Jing dong was absolutely dry out.