Tencent, Jingdong And Vip.Com'S "Three Armed Forces Meeting" Established The Duopoly Competition Pattern Of The Electricity Supplier Industry.

From now on, he has been alone in the Beijing Teng camp.

Transformation shows our position.

According to the world clothing and shoe net, in December 18th, Tencent Holdings Ltd, Jingdong group and vip.com Holdings Limited jointly announced that Tencent and Jingdong will invest about $863 million in vip.com, holding 7% and 5.5% shares respectively, and vip.com will also be in the same position as vip.com.

Alliances, cooperation in flow alliances and so on are looking for win-win results.

Analysts believe that the Tencent,

The influence of vip.com's three parties is just like the "star collision" triggered by Ali's stake in Suning, which means Tencent, Jingdong and vip.com's "three armed forces meeting", which has established the duopoly competition pattern of the electricity supplier industry.

The new coalition camp is established.

According to the equity subscription agreement, Tencent and Jingdong will spend $604 million and $259 million respectively to subscribe vip.com's new class a common stock.

The subscription price is $65.4 for each class a common stock, equivalent to $13.08 per vip.com depositary share, which is about 55% higher than the closing price of vip.com's last trading day in December 15, 2017.

After the completion of the paction, Tencent and Jingdong will hold 7% and 5.5% of all issued shares of vip.com respectively, and there will be a two-year lock in period for the subscription of class a common stock.

It is reported that within two years of the lock up period, Tencent has the right to appoint a member of the board of directors of vip.com. Jingdong can appoint an observer of the board of directors.

While signing the equity subscription agreement, Tencent and Jingdong reached a strategic cooperation agreement with vip.com respectively.

According to the strategic cooperation agreement, Tencent will give vip.com entry to the WeChat wallet interface.

Jingdong will connect vip.com to the main interface of mobile App and WeChat shopping first level entry to help vip.com achieve certain paction volume targets in Jingdong channel.

After accepting Tencent and Jingdong's stake, vip.com will continue to operate independently, while vip.com's chairman and chief executive, Shen Ya, remains the largest shareholder in the company, holding absolute control.

Shen said that through this partnership, Tencent and Jingdong will make full use of the complementary advantages of all parties to form a strategic alliance of deep win-win cooperation and better serve Internet users and consumers.

At the same time, vip.com will cooperate fully with Tencent on WeChat platform. Both sides will continue to expand strategic cooperation in more extensive fields in the future.

Vip.com will also seek win-win cooperation with Jingdong in the field of brand alliance and traffic alliance.

A long-standing Coalition

The Tencent, Jingdong and vip.com's "three armed forces meetings" are both unexpected and reasonable.

What is unexpected is that vip.com had maintained a neutral attitude in the face of competition between Ali and Jingdong in various aspects such as business and public opinion.

The acceptance of Tencent and Jingdong's stake also means that vip.com has demonstrated its position in the choice of camps.

But in fact, the ambiguous relationship between vip.com and Jingdong has been reflected in the middle of this year.

In July this year, vip.com stood for the first time. Jingdong accused Tmall of requiring businesses to sign "exclusive" cooperation and issued a joint statement with Jingdong.

According to sources, Jingdong is in talks with vip.com about mergers and acquisitions, or eventually through cooperation in the form of acquisitions, shares or equity swap.

Although Jingdong and vip.com both denied the cooperation at the capital level at the time, it was hard to avoid speculation among the industry.

An anonymous Electric Business Observer told reporters that the reason why it did not combine the "6. 18" or "double 11" hot issue to release this heavy news is probably not yet negotiated on the purchase price.

According to the equity subscription agreement, the premium of Tencent and Jingdong subscribe to vip.com shares is about 55%.

Vip.com said it was a cooperation at a fair price.

Prior to vip.com's position, the company's share price was severely underestimated by the capital market. Under the strategic layout of "three carriages" of electricity supplier + Finance + logistics, vip.com will have more imagination in the future.

Search for traffic breakthrough

The joint efforts of Tencent, Jingdong and vip.com three parties are obviously what they need.

As far as the two business enterprises are concerned, under the current market environment, there is little chance of finding an explosive growth volume, and finding a partner with the same "spleen" is the most appropriate choice.

For vip.com, the three quarterly bulletin from now on can also be seen. In the background of the electricity supplier industry generally facing the problem of traffic dividend subsiding, although vip.com has set a profit record for 20 consecutive quarters, it has also shown a slowdown in revenue growth.

According to the earnings information, vip.com's revenue growth in the past 3 quarters was 31.1%, 30.3% and 27.6% respectively.

Li Yongjian, director of the Financial Strategy Research Institute of the Chinese Academy of Social Sciences, said that although the turnover of vip.com has kept rising, vip.com's share price in the US stock market has been dropping more and less, and it is not embarrassed by the capital market, which has led to the undervaluation of the market value.

In Li Yongjian's view, vip.com has advantages in selecting products and brand management and operation, but the number of SKU in the platform is limited, so it is difficult to meet the diversified and diversified consumption needs of consumers. Therefore, the slower growth rate is also a manifestation of insufficient stamina to some extent.

As for Jingdong, the market has always been ambitious, but limited by the market structure, it has not been able to open up the situation.

This joint vip.com, as Liu Qiangdong, chairman and chief executive officer of Jingdong group board, said that the management team owned by vip.com and the strength shown in flash buying e-commerce and clothing business will bring this strategic cooperation to life and create a good synergy effect.

With this cooperation, we will accelerate the pace of Jingdong entering the female consumer market and further expand the breadth and depth of the fashion business.

In addition, according to the data released by vip.com, more than 80% of vip.com's users are female users.

For 3C and digital Jingdong, vip.com will not only bring a large number of female users, but also enable Jingdong to expand the female consumer market rapidly.

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Seize the advantage of mobile terminals

Apart from Beijing East, Tencent, as another important member of the three party cooperation, is also carrying the role of expanding vip.com mobile terminal channel.

Vip.com said Tencent has a comprehensive ecosystem that will provide vip.com with traffic and content support.

According to the "China electricity supplier vitality report" released last December by AI consulting, vip.com mobile end users accounted for 90% of that time.

Liu Chiping, President of Tencent, further said that the Tencent has become a strategic investor and partner of vip.com, and is looking forward to helping vip.com to provide brand clothing and other product categories for China's rising middle class by means of user traffic, marketing and payment schemes.

In addition, with the accumulation of technology in marketing, payment and machine learning, Tencent will promote the construction of a healthy online retail ecosystem with diversified health.

For Tencent, this is actually another step to increase the retail industry in a month after investing in Yonghui supermarket.

In addition, in the current business investment territory of Tencent, it has also assembled mass players, such as the US group review, 58 cities, Jingdong and so on.

Li Yong insists that social networking has become a new direction for the layout of the electricity supplier. For the Tencent, which is the core of social networking, it has always hoped to make some contributions in the field of e-commerce. Vip.com will join forces with Jingdong to make strategic investments.

Obviously, Tencent also wants to use vip.com to accelerate its social traffic to cash in.

Sword finger Ali Suning

As early as in 2015, when Ali announced its purchase of Suning, it once caused an industry earthquake.

From the Tencent, Jingdong, vip.com's cooperation content, the sword means the meaning of Ali and Suning alliance camp is self-evident, which also means that the electricity supplier industry "duopoly" pattern formally formed.

According to the "China online retail market data monitoring report" issued by the China Electronic Commerce Research Center, the proportion of the domestic B2C network retail market in the first half of 2017 accounted for 50.2%, 24.5%, 6.5%, 5.4% and 4.1% respectively of Tmall, Jingdong, vip.com, Suning and Gome respectively.

After joining the Jingdong and vip.com, though not as good as Tmall's share, it will have a stronger market competitiveness in the 3C, digital, home appliances, women's clothing and other subdivision markets.

Zhao Zhenying, vice president of Beijing Qingqing Research Institute of information technology, and national engineering laboratory researcher of electronic commerce paction technology, seems that Jingdong has been Tmall's top competitor for a long time. After this joint effort, Jingdong will speed up its market share with the influence of vip.com, and the big data and cloud computing technology behind it will also become a tool for vip.com to seek new growth points.

As a sharp weapon in the Tencent market competition, vip.com will speed up the monetization of customer assets, enhance the efficiency of traffic realisation, and increase the new channel of cash flow.

The three party joint operation is actually the layout of Wai Rao traffic and upgrading the layout of the three market share in the e-commerce field, which will also compress Ali's market space.

Li Yong insisted that Jingdong, Tencent and vip.com's three parties might not be able to shake the current electricity market structure in the short term, but in the long run, they will have an impact on Ali.

Whether it is Ali or Beijing Teng, they are looking for the differentiated layout of their respective network systems. However, the formation of differentiation is not easy, and both sides are focused on the layout of consumer demand.

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