What Did Jingdong Buy 1 Shop?

On the morning of June 21st,

The group publishes internal information, announces

Reaching a deep strategic cooperation, as part of the agreement, WAL-MART will receive 145 million shares of class a common stock issued by Jingdong, about 5% of the total share capital issued by Jingdong, while WAL-MART's 1 shop includes

All assets of website, App and so on are packaged into Jingdong.

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Jingdong lightning to buy Shop No. 1

Rumors of Jingdong's acquisition of shop No. 1 were finally settled. At this point, No. 1 shop is the main owner.

What is different from the expectation is that the price is far less than 40 billion yuan of speculation, and what is more emphasized behind the acquisition is the strategic cooperation between WAL-MART and Jingdong.

The two sides did not disclose the discount amount and cash input of shop No. 1. As part of the agreement, WAL-MART will receive 144952250 shares of class a common stock issued by Jingdong. According to the Jingdong's current market value, 5% of the shares will be less than $1 billion 500 million.

All the information does not show that WAL-MART has invested cash in Jingdong.

When Ping An pferred shares to WAL-MART, the highest valuation did not exceed $500 million.

In 2010, when Ping An bought shares in shop No. 1, the valuation of shop No. 1 was nearly 100 million yuan, while Jingdong's valuation at that time was only four hundred million or five hundred million.

At first, when WAL-MART wanted to launch an e-commerce business in China, he chose to walk on two legs while looking for a takeover opportunity in TOP10's electronic business platform, and he was hesitant to form his own e-commerce team.

Interestingly, WAL-MART's first choice was Jingdong, but Liu Qiangdong categorically rejected WAL-MART's holding requirements.

In TOP10's e-commerce platform, No. 1 is the most suitable acquisition target.

The two founders all had a foreign business background and talked very well. WAL-MART and No. 1 were cladding, and in a short time the purchase intention was finalized.

"At that time, the idea was to expand the number 1 shop as soon as possible. The ultimate goal is to go public. Choosing peace is a helpless move. It can also be said that there has been a lack of gambling.

If he and Liu Qiangdong insist on not letting out of the controlling stake, and the cold business of the electricity supplier, we may be able to attract financial investment.

A founder who is close to shop No. 1, the founder of the gang, said to reporters.

What did Jingdong look at?

WAL-MART's cross border supply chain

In early 2015, Liu Qiangdong publicly stated that he would invest more than ten billion yuan to develop cross-border electricity business in the future.

But in the explosive growth of cross-border electricity providers, Jingdong international has been very calm.

In this action, the strategic cooperation between Jingdong and WAL-MART is very outstanding. The 1 shop is more like a burden or a pardour.

Reporters in the shop with 1 shop executives exchange, many people said that 1 shop did not make good use of WAL-MART overseas supply chain and feel pity, and overseas supply chain is exactly what Liu Qiangdong most valued.

According to the cooperation between the two sides, the "Sam member store" will set up an official flagship store on the Jingdong platform. At the same time, it will access Jingdong's warehousing and distribution integrated logistics service, so that it can promote its high-quality imports in a wider range in China and provide its customers with the most efficient commodity distribution service in China.

Jingdong and WAL-MART will work together at the supply chain to provide more abundant product choices for Chinese consumers, including the expansion of the richness of imported products.

Complementary advantages of "last mile"

This year, O2O burned the logistics war to the "last mile". Whether it was Jingdong, Tmall, WAL-MART or offline supermarkets, it all started the "lightning distribution war", competing for the O2O City Distribution Service of this 100 billion level market.

In order to achieve the speed of 2 hours of service, Jingdong has built a "Jingdong to home" self logistics distribution team outside the original distribution system.

But in May 4th, the team officially disbanded. All Jingdong's businesses came to crowdsourcing, which was also the real purpose of Jingdong's "Da Da" distribution.

Shop No. 1 also tried to achieve the best allocation of categories and distribution speed through warehouse consolidation.

The original frozen storage placed in the distribution site is incorporated into the nearby WAL-MART supermarket.

WAL-MART builds a small express delivery team responsible for idle user orders.

However, compared with crowdsourcing, the self run mode will still face higher human cost.

At the same time, Alibaba's rookie has gathered nearly four sites nationwide as rookie post stations, providing consumers with collection services, of which chain supermarkets account for a large proportion.

Point to point delivery in the same city has become a rigid demand. The deep cooperation between Jingdong and WAL-MART will enable them to have mutual advantage in the last mile.

East China has always been the soft spot of Jingdong, and the area centered on Shanghai is the base of the No. 1 store for many years.

After the cooperation, WAL-MART's entity stores in China will access Jingdong's China's largest crowdsourcing logistics platform "dada" and O2O e-commerce platform "Jingdong home" and become its key partner.

Through online and offline integration, including attracting more online passenger flow to WAL-MART entity stores, and providing users with "Jingdong home", WAL-MART offers a very rich selection of fresh products for WAL-MART's physical stores. It provides users with more than 2 hours of fresh supermarket delivery service.

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Department stores are just needed for Jingdong.

Jingdong started from 3C products, playing a life and death with Suning on household appliances, and making books dangled. When Alibaba hit Shop No. 1 and smashed money to fight the department store, Jingdong began to decline.

The radiation radius of FMCG is relatively small. If a bottle of coke and a packet of paper are distributed from Shanghai to other areas, the freight cost may exceed the cost of goods.

So we have to build our own warehouse locally and distribute locally, but this expansion speed is far from that of 3C and other digital products.

Now Jingdong has bought 1 shop directly, making up the short board in the department store.

If we accelerate the construction of logistics and warehousing and rapidly expand the category, Jingdong will make profits in the next one or two years.

Will WAL-MART give up its self built electricity supplier?

After abandoning the 1 shop to join Jingdong, WAL-MART may completely abandon its self built electricity supplier.

WAL-MART took over shop No. 1 during this time, and did not carry out deep integration.

According to the relevant data, at present, there are nearly 1000 kinds of WAL-MART's direct picking products and WAL-MART's own brand SKU (category) in shop No. 1.

However, compared to the millions of SKU sold by WAL-MART, this is a drop in the ocean.

"WAL-MART electric business and offline hyper business are two teams, each with different assessment indicators. The system is ancient and complex, and has put forward such an idea internally, but it has not put the integration of online and offline on the agenda."

The former chief executive of shop 1 told reporters.

Under the difficult development of WAL-MART's offline supermarket, WAL-MART has placed higher expectations on e-commerce business.

WAL-MART used to spend 1 billion US dollars to buy the offline supermarket chain Mart. It took several years to complete the integration. After that, it encountered various expansion problems.

More reason is that we do not understand China's national conditions.

China's overall cost structure is changing, competition is becoming more intense, Chengdu has red flags, Changsha has BBK, Fujian has Yonghui, and multinational companies have not eaten so much when dealing with local governments.

The practice of WAL-MART's US electricity supplier is the O2O experience store. Consumers can buy online, take delivery and repair under the line, or buy online, and distribute orders online.

WAL-MART wanted to push this mode to cities and towns in China. In the first quarter of 2015, WAL-MART China launched O2O service platform at 23 stores in Shenzhen.

However, it is very difficult to push forward. Now, on the 1 shop, we only see the O2O project of "Lei Lei".

In China, WAL-MART had high hopes for shop No. 1, but the pace was too conservative.

WAL-MART has also been using its international supply chain to increase the proportion of imported food in shop No. 1.

In cooperation with Jingdong, WAL-MART will cooperate with Jingdong on its online shopping mall and offline resources. This may mean that WAL-MART will abandon its self built e-commerce platform in China in the future.

Will shop 1 become the next XXX?

Square: the fate of shop No. 1 will not be the same as that of Yi Xun, because Yi Xun and Jingdong are overlapped, while the 1 stores and Jingdong are complementary.

However, shop No. 1 has been sold, and the prospect of internal employees is dim.

The opposite side: Jingdong got the strategic investment of Tencent before listing, at the same time, it had accepted the hot potato business of Tencent business, but the main body of the Tencent electric supplier, the pat net and Yi soon network, have now been out of sight.

The outcome of shop No. 1 is likely to be the same as that of Yi soon network. After the assets were incorporated into Jingdong, the Jingdong system was slowly marginalized.

The real paction volume of shop No. 1 is unknown, but after losing many times, the shop No. 1, which was too early to lose its founder's control, has lost momentum.

There is no need for the outside world to expect Jingdong and shop No. 1 to produce different chemical reactions. The commercial losers in the world are Kou. It doesn't take long for Jingdong to lay off shop 1.