Red Children Encounter Difficulties, Suning Offers Big Possibilities

As the most likely to take the lead in the listing of mother and baby e-commerce companies, Beijing red children Internet Technology Co., Ltd. (hereinafter referred to as the red child) has been up to 300% annual growth rate for the industry.

Today, with the news that is easy to host, the red child's business model has come to the industry's query.

According to an anonymous e-commerce insider, suning.com has made new progress in its acquisition of red children.

"Suning.com's financial personnel have been stationed in the red child for nearly a month, and the cooperation between the two sides is in the audit and accounting stage. Once the specific quotation is calculated, it should be officially announced."

Min Juanqing, deputy director of suning.com market management center, told reporters that there is no definite information on the acquisition of listed companies.

Mother and baby pure electricity providers can not get through?

"As long as the price is right, Suning will have great possibilities."

For the news of the acquisition of red children, Zhuang Shuai, senior expert of China Electronic Commerce Association, commented.

As an early batch of Chinese enterprises involved in the mother infant market, the red children, founded in 2004, have had quite brilliant achievements.

Public information shows red children in 2008.

Approaching 1 billion yuan, the income in 2009 and 2010 was about 1 billion 500 million yuan.

But in 2011, the performance of the red child began to regress, and this year it was even a burst loss.

At the same time, corporate executives are also in turmoil.

It is understood that in the 4 co founders of the red children, Guo Tao left in 2007. Li Yang was expelled by the investors in 2008. In 2011, general manager Yang Tao left the office on a "long vacation". The only remaining founder Xu Peixin was recently relegated to the second line by the media. The executives elected by VC were responsible for the daily operation of the company.

The last straw that really crushed the red children may be the comprehensive B2C predators such as Jingdong mall and Dangdang.

In May 2010, Jingdong mall announced its involvement in mother and infant business.

In 2011, Dangdang also set foot in this field.

When Jingdong mall and Dangdang enter the field with the strength of users and traffic scale, brand and other resources, as the subdivision of websites in the vertical field, the pressure of red children is increasingly obvious.

At the end of 2011, Dangdang CEO Li Guoqing announced publicly that sales of Dangdang mother and infant category had surpassed that of the red child's mother and infant online business.

In fact, compared to online business, China

The market is much better off the line.

Recently, the maternal and infant old brand baby friendly room in Shanghai has announced applications for IPO with nearly 100 direct stores, while the red kid IPO has been mentioned for many years, and now it seems hopeless.

In contrast, Yun Yingtong, another professional mother and child B2C company who also originated in Beijing, has invested in the construction of physical stores in recent years.

Earlier, some industry figures showed that the growth rate of mother and infant stores in China was more than 30%, with an average gross profit of 50%.

In contrast, red children have little action on offline business.

In this regard, Zhuang Shuai told reporters that "mother and baby business model should be from online to offline, the network can not form a killer under the category."

In the view of Zhuang Shuai, in addition to missing the opportunity to develop under the line, the red child also has criticism in the exploration of the comprehensive mall.

In 2008, the maternal and infant enterprise started with catalog sales began to consider the comprehensive pformation of e-commerce and try to integrate B2C.

But until 2010, catalogue sales remained the biggest contributor to the performance of red children.

With the extrusion of catalog sales market and the rise of marketing costs, in February 2011, the new shopping mall of red children was finally launched.

But in Zhuang Shuai's view, such a new comprehensive web site is too few and the structure is not comprehensive enough.

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At the end of 2011, the red child announced that the directory division was canceled, and merged into the marketing department of the mother and infant and the shopping mall, and pformed into an e-commerce company.

"Red children gave up directory sales, but they did not innovate in e-commerce."

Zhuang Shuai looks at the pformation of red children in recent years.

In addition, in the view of Zhuang Shuai, internal management has become a big problem for red children in recent years.

Most of the executives of red children have the work experience of Huicong net. They have experienced the pformation from B2B to B2C and from directory sales to B2C management mechanism. The adjustment of personnel structure and management structure does not match.

Suning.com's "merger" conjecture

For the upcoming merger of suning.com, the reporter called the red child many times.

Headquarters, but the phone number is always busy.

At present, suning.com also has mother and child channel, but its influence is still inferior to Jingdong mall and Dangdang.

In this regard, Lu Zhenwang, an e-commerce researcher, told reporters that the platform brand of red children is not very meaningful to suning.com. Suning.com should focus on the team and supplier resources of red children.

"Maternal and child market supplier resources are more complex, requiring a long time of accumulation and integration. Taking over the team and resources of red children is conducive to suning.com's rapid promotion of maternal and infant strength."

In April this year, red child CEO Xu Peixin has released such a set of data: red children's old customers maintained at 70%, red children started from 2005 to build community websites, now has about 700000 members.

For the retention of the red children website, Zhuang Shuai believes that suning.com culture should not adopt double brand operation.

After taking over suning.com, the website of red children may be retained in the short term. After all, the children of red children have good stickiness in their mothers and babies.

But Lu Zhenwang believes that in the long run, suning.com will definitely incorporate the brand of red children, similar to the way of cooperation between Gome's electronic mall and Coba network.

"At present, suning.com is developing the rapid development of all kinds of standard products through mergers and acquisitions. In the industries where mothers and babies are complex and healthy, the products are time-consuming and labor-intensive, suning.com is willing to buy relationships and buy team expansion through mergers and acquisitions."

Lu Zhen Wang added.