While proceeding with large-scale financing, Suning Appliance (002024) broke news that it would soon expand its mergers and acquisitions. Sun Weimin, deputy chairman of the company, said that they are contacting some vertical e-commerce brands.
Suning Appliance is proceeding to raise RMB 5.5 billion through a private placement, with an issue price of RMB 12.15 per share. However, the stock price of this company is currently around RMB 8.5 per share.
In Suning Appliance's e-commerce plan, Suning's e-commerce is not the only platform. According to Suning's plan, Suning will implement a multi-brand strategy online after Suning's team system has been set up: there will be integrated e-commerce companies like Suning Tesco and vertical e-commerce.
According to Sun Weimin, this is what many investors have suggested they do and they need to accelerate the pace in these areas. At present, China is in the period of cooling down in e-commerce investment. The prospect of this business model in China was once questioned.
As of this writing, the newspaper failed to understand the list of vertical e-commerce companies Suning is in contact with.
Multi-brand strategy
Mergers and acquisitions related news, Sun Weimin told reporters at Suning headquarters in Nanjing after Suning's first non-electrical appliance supplier conference ended on July 5.
At this supplier conference, Suning Tesco announced its open platform strategy to accelerate the process of Suning’s de-electrostaticization. At the meeting attended by more than 1,000 suppliers, Suning announced the killer "three exemption policy", which means "free annual fee, free platform fee, and free deposit." These charging items are usually the major profit models of other e-commerce open platforms.
Suning Tesco has great significance for Suning. In the planning of Suning Appliance, they hope to create a virtual Suning equal to the physical storefront by 2020. Therefore, Suning Tesco is one of the keys to Suning Appliance's continued rapid growth in the next eight years.
In the Suning 2012 quarterly regular meeting in May, Zhang Jindong, chairman of Suning Appliance, proposed that “where there is Suning, there will be Suning Tescoâ€, requiring local branches to promote Suning’s local operations as the largest flagship store of the year. In preparation, Zhang Jindong will also include the sales data of Suning's Tesco into the performance assessment of general managers of each branch. In 2012, Suning Tesco's sprint target was still sales of 30 billion yuan.
Of course, the key to Suning's e-commerce is not the only one of Suning Appliance's online platform.
The positioning of Suning Tesco is integrated e-commerce, and Suning Appliance Online Channel will expand its multi-brand strategy. Sun Weimin said that Suning will not be the only e-commerce platform for Suning Appliance. Just like the department store industry, there are high-end luxury department stores, mid-range, low-end, and online multi-brand e-commerce platforms as well. It will definitely take into consideration the mix and characteristics.
Of course, solving the competition and conflicts between these multiple channels is a real problem. At present, Suning's suppliers can share different channels under Suning online and offline, including Suning, offline shopping malls and so on. Li Bin, executive vice president of Suning's Tesco, stated that there would be no conflict between these channels. “The whole group has a concept of 'headquarters procurement' and the procurement costs are the sameâ€, of course, the stage is now mainly Suning.
At present, it seems that Suning will build vertical e-commerce brands and will expand more through mergers and acquisitions. "We are actually also touching on some vertical portal e-commerce brands," said Sun Weimin. In his opinion, investment in e-commerce companies is now cooling down in the capital market, which provides a good opportunity for investment and acquisition.
At present, there are also crossovers between vertical e-commerce and platform e-commerce. In fact, they have cooperation and competition with each other. According to industry sources, Belle E-Commerce and the major platforms are all negotiating cooperation. Gao Lan Diamond CEO Guo Feng said that their cooperation with Suning began last month, mainly the brand implantation, and also cooperated with other platforms. “We do business, just like opening a store, and cooperate with the big e-commerce platform. It is equivalent to open the store to the downtown area." Guo Feng said.
One of the players in the footwear B2C is the vertical e-commerce merchant, which is said to have been talking about new financing since the beginning of the year. Prior to this, Suning was interested in inviting good music to buy an open platform in Suning. The cooperative model was to supply music as a supplier to Suning. Afterwards, the delivery and after-sales service were all done by Suning. This cooperation was over. Good music buyers said that Suning's traffic is very large, cooperation will certainly help increase sales, but the mode of cooperation for their own damage is relatively large, or hope that consumers come to their platform to buy shoes.
Low tide
As Sun Weimin said, compared with 2011, the e-commerce industry in 2012 appears to be very sluggish, and there are no special cases on the market that are refreshing. Song Chung Capital Investment Director Zhang Chunhui said that the current market is relatively cool, it should only be staged. Over the past few years, Taobao and Jingdong have made large sums of money, and they have not been able to earn enough money. Therefore, they are now in a more embarrassing position.
The profitability of the e-commerce industry may not be predictable. This business model was even questioned at one time. According to Guo Yingzhe, a Jingwei venture analyst who tracks this area, for them, the instability of the e-commerce of channels and platforms will make our investment insecure. Once companies stop large-scale propaganda, It is very likely that traffic will drop dramatically.
In reality, the prices of commodities on the e-commerce platform are indeed relatively low, which is considered to be a competitive advantage of e-commerce. However, the existence of price advantage is a problem in itself. Li Bin, executive vice president of Suning's Tesco, said that the cost of e-commerce is lower than the physical store. This is a misunderstanding. This is an irrational stage product.
Li Bin said that, for example, a physical store landing, after paying the corresponding cost, it naturally takes the flow of 100,000 to 200,000 people around the store. E-commerce providers also face the problem of getting traffic, but they need to pay the corresponding online costs. After the store pays the rental cost, it can automatically obtain the store's traffic. If the e-commerce provider is only an IP address and a server, it cannot obtain traffic. For e-commerce, traffic is sales, and it corresponds to the cost of leasing (and others). E-commerce must also pay for traffic costs. Li Bin said, “This kind of traffic cost is considered as compared with physical stores, in fact, there is not much advantage.†In addition, in the logistics costs, the physical store to save much.
Kaipeng Huaying Investment Manager Chen Junyu said that the overall investment enthusiasm is declining, but it does not mean that e-commerce investment has been denied, this industry is still optimistic about the future. According to Guo Yingzhe of the aforementioned Jingwei Venture Capital, they attach great importance to brand-name e-commerce, and they are also looking for some very stable sales channels online and have accumulated a large number of users of such e-commerce.
In Chen Junyu's view, e-commerce certainly has a future. One trend is Hengda's law of the elders, and the other is the survival law of the fittest. Evergrande Evergrande means that only large-scale enterprises win market competition and earn most of the money in the industry; survival of the fittest refers to specialized, vertical, small and strong e-commerce, and they acquire through the intensive cultivation of subdivided fields. The relative monopoly position of market segments. Chen Junyu said that Kaipeng Huaying preferred the best e-commerce in both modes.
Suning's Challenge
Suning Appliance's e-commerce strategy is more like the above-mentioned Kaipeng Huaying's model: On the one hand, Suning's e-commerce as the flagship, trying to gain market position through scale; on the one hand trying to acquire market segments through mergers and acquisitions Absolute share, get relatively monopoly position.
This direction seems reasonable, but in fact it is a huge challenge. His competitors are equally powerful. Platform-based e-commerce companies are all involved with big players. Latecomers have few opportunities. So far, e-commerce is still a "burning money" industry.
This is an industry with high investment intensity, such as logistics. Suning's logistics is one of the most important support for Suning. According to Sun Weimin, Suning's four-level logistics system will complete 70% to 80% of construction by 2015, including 2 to 4 national hubs, 10 to 12 regional picking centers, 60 to 70 urban distribution centers, and more than 5,000 The high-density community outlets have a total investment of more than 20 billion yuan.
The competition in the vertical field is actually fierce. In particular, some standardized categories, such as 3C, books, etc., do not have technical barriers to the products themselves, and they must rely on prices and relations with suppliers.
According to industry sources who do not wish to be identified, the vertical competition between red wine and luxury goods is also fierce. Red wine e-commerce, such as buying wine, wine still has formed a certain market structure, the price is also very opaque factors, and now this category has not much access to the market space. There are also many bottlenecks in e-commerce for luxury goods. Luxury consumers are increasingly pursuing consumer experiences. The advantage lies in the fact that Coach recently opened an online shop at Taobao, but did not continue after testing the water.
Suning Tesco itself is a huge investment. At the supplier conference, Suning Tesco pushed its platform system. These systems include an information platform that includes the provision of consumer data, forecasts and guidance for the design and production of suppliers; providing suppliers with funding platforms for trade advances, supply chain financing, and contract financing; claiming to be able to achieve industry-wide minimum storage and Logistics cost logistics platform.
The formation, expansion, and optimization of these platforms do not require huge investment, so that the raised funds are crucial for Suning. The current private placement plan of Suning Appliance has been approved by the China Securities Regulatory Commission's Issuing Committee. In terms of financing, Suning Appliance has announced its new plan and plans to raise RMB 5.5 billion, but its issuance price is nearly 50% higher than the market price.
However, it is not a wise choice to start a large-scale merger before it is ready. In the expansion of multi-brand strategy, Sun Weimin said: "Although many investors have suggested that we must speed up the pace in this area, we still insist that we must wait until the completion of Suning's team structure is completed."
For the news about Suning M&A, investors are actually welcome. “Of course, if you have the opportunity to meet with Suning to talk about the price,†said Yan Hui, senior investment manager of Detong Capital, Detong Capital is one of the major investors in the footwear B2C Letao.com. However, Yan Hui said that he had not heard about the news that Suning had wanted to acquire, but he felt that it was not the best time to sell. On the one hand, it was not anxious to withdraw. On the other hand, the market is not good, and it is estimated that it will not be able to sell a good price.
Suning Appliance is proceeding to raise RMB 5.5 billion through a private placement, with an issue price of RMB 12.15 per share. However, the stock price of this company is currently around RMB 8.5 per share.
In Suning Appliance's e-commerce plan, Suning's e-commerce is not the only platform. According to Suning's plan, Suning will implement a multi-brand strategy online after Suning's team system has been set up: there will be integrated e-commerce companies like Suning Tesco and vertical e-commerce.
According to Sun Weimin, this is what many investors have suggested they do and they need to accelerate the pace in these areas. At present, China is in the period of cooling down in e-commerce investment. The prospect of this business model in China was once questioned.
As of this writing, the newspaper failed to understand the list of vertical e-commerce companies Suning is in contact with.
Multi-brand strategy
Mergers and acquisitions related news, Sun Weimin told reporters at Suning headquarters in Nanjing after Suning's first non-electrical appliance supplier conference ended on July 5.
At this supplier conference, Suning Tesco announced its open platform strategy to accelerate the process of Suning’s de-electrostaticization. At the meeting attended by more than 1,000 suppliers, Suning announced the killer "three exemption policy", which means "free annual fee, free platform fee, and free deposit." These charging items are usually the major profit models of other e-commerce open platforms.
Suning Tesco has great significance for Suning. In the planning of Suning Appliance, they hope to create a virtual Suning equal to the physical storefront by 2020. Therefore, Suning Tesco is one of the keys to Suning Appliance's continued rapid growth in the next eight years.
In the Suning 2012 quarterly regular meeting in May, Zhang Jindong, chairman of Suning Appliance, proposed that “where there is Suning, there will be Suning Tescoâ€, requiring local branches to promote Suning’s local operations as the largest flagship store of the year. In preparation, Zhang Jindong will also include the sales data of Suning's Tesco into the performance assessment of general managers of each branch. In 2012, Suning Tesco's sprint target was still sales of 30 billion yuan.
Of course, the key to Suning's e-commerce is not the only one of Suning Appliance's online platform.
The positioning of Suning Tesco is integrated e-commerce, and Suning Appliance Online Channel will expand its multi-brand strategy. Sun Weimin said that Suning will not be the only e-commerce platform for Suning Appliance. Just like the department store industry, there are high-end luxury department stores, mid-range, low-end, and online multi-brand e-commerce platforms as well. It will definitely take into consideration the mix and characteristics.
Of course, solving the competition and conflicts between these multiple channels is a real problem. At present, Suning's suppliers can share different channels under Suning online and offline, including Suning, offline shopping malls and so on. Li Bin, executive vice president of Suning's Tesco, stated that there would be no conflict between these channels. “The whole group has a concept of 'headquarters procurement' and the procurement costs are the sameâ€, of course, the stage is now mainly Suning.
At present, it seems that Suning will build vertical e-commerce brands and will expand more through mergers and acquisitions. "We are actually also touching on some vertical portal e-commerce brands," said Sun Weimin. In his opinion, investment in e-commerce companies is now cooling down in the capital market, which provides a good opportunity for investment and acquisition.
At present, there are also crossovers between vertical e-commerce and platform e-commerce. In fact, they have cooperation and competition with each other. According to industry sources, Belle E-Commerce and the major platforms are all negotiating cooperation. Gao Lan Diamond CEO Guo Feng said that their cooperation with Suning began last month, mainly the brand implantation, and also cooperated with other platforms. “We do business, just like opening a store, and cooperate with the big e-commerce platform. It is equivalent to open the store to the downtown area." Guo Feng said.
One of the players in the footwear B2C is the vertical e-commerce merchant, which is said to have been talking about new financing since the beginning of the year. Prior to this, Suning was interested in inviting good music to buy an open platform in Suning. The cooperative model was to supply music as a supplier to Suning. Afterwards, the delivery and after-sales service were all done by Suning. This cooperation was over. Good music buyers said that Suning's traffic is very large, cooperation will certainly help increase sales, but the mode of cooperation for their own damage is relatively large, or hope that consumers come to their platform to buy shoes.
Low tide
As Sun Weimin said, compared with 2011, the e-commerce industry in 2012 appears to be very sluggish, and there are no special cases on the market that are refreshing. Song Chung Capital Investment Director Zhang Chunhui said that the current market is relatively cool, it should only be staged. Over the past few years, Taobao and Jingdong have made large sums of money, and they have not been able to earn enough money. Therefore, they are now in a more embarrassing position.
The profitability of the e-commerce industry may not be predictable. This business model was even questioned at one time. According to Guo Yingzhe, a Jingwei venture analyst who tracks this area, for them, the instability of the e-commerce of channels and platforms will make our investment insecure. Once companies stop large-scale propaganda, It is very likely that traffic will drop dramatically.
In reality, the prices of commodities on the e-commerce platform are indeed relatively low, which is considered to be a competitive advantage of e-commerce. However, the existence of price advantage is a problem in itself. Li Bin, executive vice president of Suning's Tesco, said that the cost of e-commerce is lower than the physical store. This is a misunderstanding. This is an irrational stage product.
Li Bin said that, for example, a physical store landing, after paying the corresponding cost, it naturally takes the flow of 100,000 to 200,000 people around the store. E-commerce providers also face the problem of getting traffic, but they need to pay the corresponding online costs. After the store pays the rental cost, it can automatically obtain the store's traffic. If the e-commerce provider is only an IP address and a server, it cannot obtain traffic. For e-commerce, traffic is sales, and it corresponds to the cost of leasing (and others). E-commerce must also pay for traffic costs. Li Bin said, “This kind of traffic cost is considered as compared with physical stores, in fact, there is not much advantage.†In addition, in the logistics costs, the physical store to save much.
Kaipeng Huaying Investment Manager Chen Junyu said that the overall investment enthusiasm is declining, but it does not mean that e-commerce investment has been denied, this industry is still optimistic about the future. According to Guo Yingzhe of the aforementioned Jingwei Venture Capital, they attach great importance to brand-name e-commerce, and they are also looking for some very stable sales channels online and have accumulated a large number of users of such e-commerce.
In Chen Junyu's view, e-commerce certainly has a future. One trend is Hengda's law of the elders, and the other is the survival law of the fittest. Evergrande Evergrande means that only large-scale enterprises win market competition and earn most of the money in the industry; survival of the fittest refers to specialized, vertical, small and strong e-commerce, and they acquire through the intensive cultivation of subdivided fields. The relative monopoly position of market segments. Chen Junyu said that Kaipeng Huaying preferred the best e-commerce in both modes.
Suning's Challenge
Suning Appliance's e-commerce strategy is more like the above-mentioned Kaipeng Huaying's model: On the one hand, Suning's e-commerce as the flagship, trying to gain market position through scale; on the one hand trying to acquire market segments through mergers and acquisitions Absolute share, get relatively monopoly position.
This direction seems reasonable, but in fact it is a huge challenge. His competitors are equally powerful. Platform-based e-commerce companies are all involved with big players. Latecomers have few opportunities. So far, e-commerce is still a "burning money" industry.
This is an industry with high investment intensity, such as logistics. Suning's logistics is one of the most important support for Suning. According to Sun Weimin, Suning's four-level logistics system will complete 70% to 80% of construction by 2015, including 2 to 4 national hubs, 10 to 12 regional picking centers, 60 to 70 urban distribution centers, and more than 5,000 The high-density community outlets have a total investment of more than 20 billion yuan.
The competition in the vertical field is actually fierce. In particular, some standardized categories, such as 3C, books, etc., do not have technical barriers to the products themselves, and they must rely on prices and relations with suppliers.
According to industry sources who do not wish to be identified, the vertical competition between red wine and luxury goods is also fierce. Red wine e-commerce, such as buying wine, wine still has formed a certain market structure, the price is also very opaque factors, and now this category has not much access to the market space. There are also many bottlenecks in e-commerce for luxury goods. Luxury consumers are increasingly pursuing consumer experiences. The advantage lies in the fact that Coach recently opened an online shop at Taobao, but did not continue after testing the water.
Suning Tesco itself is a huge investment. At the supplier conference, Suning Tesco pushed its platform system. These systems include an information platform that includes the provision of consumer data, forecasts and guidance for the design and production of suppliers; providing suppliers with funding platforms for trade advances, supply chain financing, and contract financing; claiming to be able to achieve industry-wide minimum storage and Logistics cost logistics platform.
The formation, expansion, and optimization of these platforms do not require huge investment, so that the raised funds are crucial for Suning. The current private placement plan of Suning Appliance has been approved by the China Securities Regulatory Commission's Issuing Committee. In terms of financing, Suning Appliance has announced its new plan and plans to raise RMB 5.5 billion, but its issuance price is nearly 50% higher than the market price.
However, it is not a wise choice to start a large-scale merger before it is ready. In the expansion of multi-brand strategy, Sun Weimin said: "Although many investors have suggested that we must speed up the pace in this area, we still insist that we must wait until the completion of Suning's team structure is completed."
For the news about Suning M&A, investors are actually welcome. “Of course, if you have the opportunity to meet with Suning to talk about the price,†said Yan Hui, senior investment manager of Detong Capital, Detong Capital is one of the major investors in the footwear B2C Letao.com. However, Yan Hui said that he had not heard about the news that Suning had wanted to acquire, but he felt that it was not the best time to sell. On the one hand, it was not anxious to withdraw. On the other hand, the market is not good, and it is estimated that it will not be able to sell a good price.
Withstand high voltage up to 750V (IEC/EN standard)
UL 94V-2 or UL 94V-0 flame retardant housing
Anti-falling screw
Optional wire protection
1~12 poles, dividable as requested
Maximum wiring capacity of 4 mm2
4 mm2 Terminal Blocks,high quality terminal strips,high performance terminal barriers,BELEKS T04 series terminal connectors,3 amp connector strips
Jiangmen Krealux Electrical Appliances Co.,Ltd. , https://www.krealux-online.com