First, Suning.Com Merger Should Break Through Two Categories: Mother And Baby And Shoes.

Verma Gaja Ma Xun's Suning Appliance [6.15 2.16% shares research report] 002024.SZ

New progress in mergers and acquisitions.

According to media reports, suning.com's acquisition of children's vertical business like red children is coming to an end. At present, it has entered the stage of financial audit, with only the final price difference.

Although Suning official did not have a clear recognition of the news, but with the liquor channel, mother and child channel, business travel channel and other on-line launch, Tmall targeting suning.com will soon begin large-scale mergers and acquisitions in the second half of the year.

This is only the beginning of mergers and acquisitions.

The merger, which was rejected by both suning.com and Red Kids last month, has made new progress.

Media reports said suning.com's acquisition of red children has entered the stage of financial audit, and the red children will be integrated into the suning.com platform after the acquisition.

It is reported that the paction will be completed in the three quarter of this year.

Suning executives have not yet made a clear statement about the merger.

Suning chief executive Kim Ming told reporters that Suning is indeed considering acquiring vertical websites, but there is no definite takeover target.

He stressed that Suning has no specific acquisition targets.

In fact, Suning announced its acquisition plan in the second half of July.

Suning Appliance vice chairman Sun Weimin (micro-blog) has said that the current capital market valuation of domestic electricity providers has fallen to a low level, but there are still more professional electric business teams and better vertical e-commerce projects.

Suning will buy some vertical businesses in the second half of the year.

Suning.com CEO, Ren Jun, announced that the first thing suning.com should break through is mother and baby.

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It is clear that Suning's acquisition is intended to expand the category, enhance user stickiness and increase traffic.

According to the reporter, suning.com's mother to child channel was launched before June 1st this year. Its front is Tmall, Jingdong and Dangdang.

"Time is crucial to Suning," said Lu Zhenwang, an electricity supplier.

He said that in the field of B2C, entering any category will take a long time to accumulate the market.

Suning.com is busy with price war. On the one hand, there is no time to accumulate. In the meantime, the price of red children is certainly not high.

According to people familiar with Suning, suning.com has been in contact with several vertical electric providers, and the form of cooperation is not limited to complete acquisitions.

Cosmetics website, CEO Li Jing and clothing supplier, Fan Cheng pin CEO Chen (micro-blog) visited Nanjing Suning headquarters during the price war.

At the same time, in August 23rd, BELLE's excellent purchase network (micro-blog) CMO Xu Lei said on micro-blog that suning.com settled in the strategy of waiting for the best purchase network.

Zhang Jindong said Suning was not bad money.

According to suning.com's goal of reaching SKU150 million at the end of the year, it is the most convenient option to expand the category in the form of mergers and acquisitions, but it also means a lot of money.

According to reporters, these acquisitions were implemented by Suning's investment and Acquisition Department.

Suning Appliance currently owns 60% of suning.com and the remaining 40% is owned by Suning group.

The capital chain of Suning Appliance is the focus of the market.

The previous 12 billion 700 million yuan huge financing plan and the decline in performance growth made the market skeptical of its capital, and its share price was also affected.

At the time of press release in August 31st, Suning's stock price was 6.05 yuan, which fell by about 50% compared to its 12.15 yuan issuance price.

Zhang Jindong, chairman of Suning Appliance, mentioned the outside world's doubts about its "lack of money". "It is hard to imagine how anyone would question Suning's lack of money. Our debt to asset ratio is only 50%, and two consecutive rounds of financing are based on the next ten years' plan.

Because according to their own level of profitability is relatively difficult to obtain tens of billions of funds in the short term, the enormous pressure faced by the electronic business platform is user experience, and in order to improve this aspect, we must complete logistics construction and financing is imperative.

Zhang Jindong said Suning group's operation of Suning Appliance has started, and as of now, the increase has exceeded 100 million yuan.

Suning Appliance's semi annual report released in August 30th showed that at the end of the second quarter, Suning Appliance's Monetary Fund amounted to nearly 20 billion yuan.

Ren Jun said: "at the end of this year, the money will be around 30 billion yuan.

Our current asset liability ratio is less than 55%, even if 8 billion yuan of debt financing is completed, the asset liability ratio is also less than 60%.

Tmall is the ultimate goal.

"If the growth rate of Jingdong is faster than that of suning.com in the first half of the year, then I will send Suning to him."

Zhang Jindong's remark also made CEO Liu Qiangdong, a Jingdong mall long selling in micro-blog, respond again.

According to Zhang Jindong, the growth rate of suning.com in the first half of the year was 120%.

But obviously, Jingdong mall is not the ultimate goal of suning.com.

"Suning's future goal is Tmall."

Zhang Jindong spoke bluntly at the shareholders' meeting.

Data released by Analysys think tank showed that in the second quarter of 2012, B2C online retail market, Tmall accounted for 41.5% of the market share, Jingdong 15.5%, suning.com 3.4%.

The Tencent, which has always been ranked behind, has acquired more than 3.6% of suning.com's market share.

Lu Zhenwang said suning.com could hardly challenge Tmall's market share in a short time.

"Tmall has now formed a technological ecosystem.

Suning has no such strength.

At present, the open platform can only serve as a supplementary variety of Suning, and it will be difficult to grow. This will take a long time to accumulate. "

However, in the highly centralized B2C market share, the acquisition of one or two small and medium-sized vertical electricity providers has no obvious effect on Suning's market share.

According to data from Analysys think tank, in the second quarter of 2012, the electricity market share of the top nine B2C online retail market accounted for only 27.7%.

There is no doubt that suning.com's acquisition is not just about red children, but after the acquisition of red children.

And Tmall will also have a heavy competition between heavy asset business and light asset business.