Suning Appliance Purchase And Purchase Of Red Children To Test The Water Business Push The Industry Shuffle

As expected in the market,

Yesterday, it announced that it would take 66 million dollars to acquire the red children of e-commerce enterprises, get the brand of "red children" and "colorful purchase", expand the B2C business of maternal and infant products, cosmetics, food and so on.

This is Suning's first attempt to merge in the field of e-commerce, and it is also the specific implementation of its "super electrification" strategy.

According to the announcement, in September 24th, Suning Appliance signed a takeover agreement with Tianjin red child trading company and so on. It intends to fully purchase the sales and related assets of mother and baby products and cosmetics, such as "red child" and "colorful purchase", which are purchased by the red children company in China. The basic purchase price is 66 million US dollars (including equivalent RMB).

Statistics show that the red child company was founded in 2004, the earliest in the form of direct mail directory sales of maternal and infant supplies, followed by the launch of the B2C website "red child", and in 2011 launched a cosmetics, food sales of women online shopping brand "colorful purchase".

At present, the red child company has become the most professional mother and infant vertical cosmetics business in China. Its annual sales volume exceeds 1 billion yuan, and its registered member reaches about 7500000. In 2011, the rate of repeat purchase exceeded 50%.

Suning Vice Chairman Sun Wei Min said yesterday that the acquisition was in line with Suning's "super electrification" and multi brand expansion.

According to Ren Jun, vice president of Suning Appliance, suning.com started many vertical lines with the industry earlier this year.

Electricity providers launched in-depth cooperation.

Among them, the negotiations with the red child company began in June, to the end of September to confirm the acquisition plan, the progress is very smooth.

Li Bin, executive vice president of suning.com, revealed that the brand of "red children" and "colorful purchase" will be a brand of Suning, maintaining a certain independence in marketing and customer marketing, and entering the channel of the Suning line.

Among them, the online part, suning.com mother to child channel will be renamed the red child channel, and retain the red child, the purchase of the independent domain name, the formation of the front two major entries; under the line, Suning will expand the mother child category in the Expo super store, Tesco life square, set up the red child zone.

According to Sun Weimin, the red children team has been stationed in Suning on September 24th, planning the next step to integrate.

Aiming at the fertile soil of female user groups

According to the third party testing agency, Ai Rui statistics, the first half of 2012, the domestic maternal and child products online shopping market paction scale has exceeded 20 billion yuan, is expected to grow by 86% throughout the year, reaching 61 billion yuan, accounting for about 4.3% of the total online shopping market in China.

According to Li Bin, consumption of cosmetics and other female related markets outside the mother and baby products is even more astonishing, which is the goal of suning.com.

The sales volume of suning.com wants to hit 20 billion yuan this year. The development of female user groups is an important strategy to achieve this goal.

Suning Appliance sold about 47 billion yuan in the first half of the year.

In this regard, Sun Wei Min also said: "red children's customers are mainly female consumers, which will complement each other with suning.com's existing customer groups.

In addition, with the help of Suning's leading national storage and distribution network and high osmotic marketing resources, we can significantly reduce the operating costs of the children's backstage.

And the red children's professional team and supply chain advantages can enhance Suning's fine management ability and product development ability, and form complementary operation advantages.

According to introducing, at present, suning.com has 88 distribution centers and nearly 2000 express points in the whole country. The red children can take advantage of this and change the market layout dominated by parts of Beijing, Shanghai and Guangdong.

The two sides plan to cooperate with suppliers in the fourth quarter selling season, and jointly launch a series of promotional activities to expand market share.

Relying on the above operation, the sale of maternal and infant products on the line of Suining line is expected to achieve rapid growth, and strive to achieve a total sales scale of 10 billion yuan in 2015.

Chen Shuang, chief operating officer of red child, believes that the advantages of Suning and red children complement each other, giving the red child greater development platform and space. After the team's efforts, this goal can be achieved.