Alibaba CEO Zhang Yong: Reconstructing Traditional Formats, Entity Retailers Can Create New Value.

Recently, Yintai business (9.62, -0.02, -0.21%) announced that Yintai will be privatized at the HKEx, including the wholly owned subsidiary of Alibaba group.

Investment, and the wholly owned company of Shen Guojun, founder of Yintai business, amounted to HK $19 billion 800 million (about 17 billion 700 million yuan), a premium of 42% over the last trading day before the suspension.

The line between online retailing and physical commerce is increasingly blurred.

Up to now, Alibaba has already invested.

Yun Shang, Sanjiang shopping two companies.

In July 2014, Alibaba changed its initial investment and convertible bonds, and Alibaba currently owns about 28% of Yintai.

After privatization is completed, Alibaba will become the controlling shareholder of Yintai, and its shareholding ratio is expected to increase to about 74%.

Alibaba CEO Zhang Yong once said that Yintai is Alibaba.

Online and offline integration and innovation platform, in the era of integration of the real economy and digital economy, "if Alibaba is the air force, then we need to find an army partner to form an integrated force, and this army partner is Yintai".

For the sudden announcement of privatization, Zhang Yong believes that there is no entity or virtual distinction between the economy and the new economy.

If we integrate the power of mobile Internet, real-time user data and technology to enhance operational efficiency, entity retailers can create new value.

Over the past year, the layout of Alibaba online has obviously accelerated.

At the end of last year, Ali acted as a strategic investor to subscribe for shopping in Sanjiang. Ali's Yi Guo Sheng took over all the shares of Lianhua Supermarket (3.03, 0.00, 0%) held by Yong Hui supermarket.

In addition to the promotion of supermarkets in O2O, Yintai business is the exploration of new retail.

As of the end of June 2016, Yintai operates and manages a total of 29 department stores and 17 shopping centers with a total construction area of 2 million 920 thousand square meters, including 20 general merchandise stores, 10 shopping centers and other foreign stores in major cities of Zhejiang province.

Its property is about 1 million 700 thousand square meters, and NAV is about 24 billion yuan, which is basically close to the market value of the acquisition.

In a series of offline partners of Alibaba, relying on the personal relationship between Ma Yun and Shen Guojun, the cooperation between Alibaba and Yintai business is the most thorough and thorough.

The cooperation between the two can be traced back to May 2013. The Alibaba led the rookie network, Yintai Group invested 1 billion 600 million yuan, accounting for 32% of the shares, becoming the second largest shareholder.

In March 31, 2014, Ali Group invested strategic investment in Yintai business with HK $5 billion 370 million, and set up a joint venture company.

In less than three years, Alibaba has completely incorporated Yintai business.

The logic behind it is the increasingly fierce competition in the O2O industry.

Whether Jingdong mall or Baidu, is accelerating integration with the offline.

Alibaba will take Yintai as the carrier, or explore a sample of cooperation between real economy and online retailing.

The announcement said that under the pformation environment of retail industry, Alibaba plans to launch more in-depth cooperation with Yintai, explore new opportunities for development and implement a series of long-term development strategies.

Related measures may affect the short-term development momentum of the company. After privatization, the company can focus on long-term interests and avoid fluctuations in share prices.

At present, Alipay, word of mouth, meow street and other products have conducted in-depth cooperation with Yintai stores.

Lu Zhenwang, a senior business observer, said in an interview with reporters that the mode between Yintai business and the electricity supplier is quite different. Yintai is a simple commercial real estate mode, which receives commission from shops and some commodities.

The difficulties facing Alibaba will be the integration of information in shops. It will take a long time to build O2O ecosystem.

"It is a good thing for Alipay to expand its mobile payment scenario, and it is also useful for other shopping malls and supermarkets."

Recently, Ma advocated

Aroused many doubts.

However, Ma also strongly counterattacked that China is not a real economy, but a lack of pioneering spirit in those real economies. Competition will be more intense in the next 30 years, but there will also be many new entities coming out.

In essence, enterprises do not have physical virtual distinction, only good enterprises are divided into bad enterprises.

Ma Yun's bottom line comes from the strong growth of the electricity supplier industry.

The latest official statistics show that in 2015, the volume of e-commerce pactions in China exceeded 20 trillion yuan, and online retail sales amounted to 3 trillion and 880 billion yuan, of which the retail sales of physical goods amounted to 3 trillion and 230 billion yuan, accounting for 10.8% of the total retail sales of social consumer goods, and 26 million 900 thousand of e-commerce employees.

In the past, the rapid growth of high and large department stores in recent years has gone.

From the TOP15 of the total performance of domestic department stores in 2015, there were 9 negative growth year-on-year, and the largest decline was 15.2%.

In order to seek pformation, the whole channel has become an important strategy of department store brand.

Wangfujing department store has developed a new channel with its own online shopping mall mode.

Although the effect remains to be seen, it can be regarded as an attempt.

In addition, the company has launched cooperation with Tencent (199.1,0.30, 0.15%) in the field of mobile payment. The two sides have integrated and linked business mode, and plan to conduct more in-depth cooperation in data sharing and analysis, business development and other fields.

Difficulties also mean opportunities.

Zhang Yong said that the total scale of China's retail industry has reached 4 trillion and 500 billion US dollars and is growing at an annual rate of 10.7%.

Alibaba group is working with offline retailers to restructure traditional formats and face the long-term development opportunities brought by new retail.

However, in the field of e-commerce, major platforms are also facing the ceiling of weak growth in performance. The dividends of population and traffic are decreasing, while the offline market is a blue ocean waiting for development.

In the view of Liu Xingliang, a senior Internet analyst, there are varying degrees of pressure on online e-commerce companies and offline retail entities. Mutual heating is also an option.

Although the road of integration between the two will not be smooth sailing, for them, it is also an attempt to do.

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