Suning red children and the annexation of vertical electric solution samples


can be like Suning giant annexation, is the best destination of red child, it became the solution samples and lucky thousands of exhausted Chinese vertical electricity supplier in the.

Sina Technology Zhang Nan

months of rumors finally settled yesterday, Suning announced the acquisition of $66 million in the field of maternal and child vertical electricity supplier in the field of red children.

the acquisition includes the "red child", "bean purchase" two big business. After the completion of the transaction, in terms of procurement, logistics, services, information, human resources, Suning will be a comprehensive integration of the red child company. Red children will operate as maternal channel, while retaining the "red child" brand and independent domain name.

vice chairman of Suning Appliance Sun Weimin said that the current financial situation, logistics capability of red child company has certain constraints, after the completion of the acquisition, through the integration of operations on the platform Suning, red children can get a lot of traffic and new users, the advertisement marketing investment will drop significantly, the level of input and output will rapidly enhance.

in addition to online integration, Suning also introduced a special cooperation between the two companies online. The future, Expo super stores, Suning Tesco official life Plaza will be set up redBaby maternal area, sales of children’s Park, early education, maternal and child products, children’s food, toys and other products.

China’s e-commerce market is entering a period of intensive integration, Suning acquisition red children opened a prelude to this." ECapital CEO ran Wang of Sina Technology said, red children will on the category, bring female users, improve the supply chain, especially the mother, merchandise supply chain management ability.

Wang Ran said that the transaction means Suning completely get rid of the positioning and image of traditional retailers, began to become the same category of Jingdong, Alibaba, the electricity supplier. Compared with the Alibaba and other electricity providers, has a unique advantage, he can depend on the depth of interaction in online and offline, to highlight the advantages of large ground based retail. Yi Kai capital as a financial adviser to red kids.

B2C for vertical

the focus of this transaction is valuation methods and prices. It is reported that the use of the current electricity supplier industry trade market sales rate (P/S) valuation method. Wang Ran said that in the negotiations between the two sides of the valuation is not the most time spent in the part, considering the comparable transaction, market supply and demand situation, the two sides are more recognized this valuation.

, according to data released by Suning, the red child has 7 million 500 thousand registered members, repeat purchase rate of more than 2011 members of the annual shopping membership. Red child has established a relatively sound national sales network, the total number of employees more than 1500 people.

based on the operation of this year is expected, Red Kids 2012 annual sales will reach 10 to 10>

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