Suning Announces $66 Million Acquisition Of Red Children

In September 25th,

Executive vice president Li Bin described as the "shock of the electricity supplier industry" this day is finally coming.

In the afternoon, suning.com held a news conference in Beijing. Sun Weimin, vice chairman of Suning, announced that suning.com would buy red children for 66 million dollars, and suning.com's mother and infant category would be operated by a red child as a channel.

Li Bin, executive vice president of suning.com, said the acquisition of red children is a milestone in suning.com's development history.

Sun Weimin said that in 2009, Suning online and offline developed suning.com to undertake the mission of enterprise pformation and technology reconstruction. Suning made clear the strategy of merger development and independent development on the first day of its start.

There are two reasons for choosing to buy red children.

First, red children have a long history and outstanding brands.

Through the sale of all kinds of shops without shops, we have formed a full integration of the industry, and their team is unattainable. This is what we value very much.

Two is the red children entrepreneurs and top management team, for the electricity supplier and

The development has the same retail background and business philosophy.

Sun Weimin said: "in the recent communication with the red children, the two sides have further understanding, the idea of consensus has been synchronized, which has strengthened our confidence in cooperation."

Public information shows that the red child started with mother and infant products and was founded in Beijing in March 2004.

At first, the registered capital of red children was 2 million yuan: Xu Peixin and Guo Tao contributed 400 thousand respectively; Li Yang and Yang Tao invested 600 thousand yuan respectively.

However, with the gradual departure of management team, the performance of red children has been declining continuously, and selling seems to be the best way out.

According to data released in 2011 by China's B2C online retailer TOP3O, released by AI consulting, in 2011, suning.com traded 5 billion 900 million, ranked fourth, and red children traded at 1 billion 500 million, ranking eleventh.

"De electrification" is a strategic measure launched by Suning this year.

The acquisition of Tesco in June 28, 2011 and the establishment of a comprehensive shopping mall in the whole country are the masterpiece of Suning's strategy.

The acquisition of red children indicates that Suning Appliance will expand the strategy of "de electrification" online.

Li Junhua, senior investment manager of Zhejiang venture capital, believes that the products sold by red children have no price advantage, while the profits of mother and baby products have been very low. Even if they are bought at a low price, it will be difficult for suning.com to achieve a big breakthrough in sales.