Is The World'S Largest Asset Manager, Blackrock, Investing Heavily In Three Hundred Million Chinese Consumers' Wallet?

On the evening of February 7th, according to the documents submitted by the group of BlackRock and SEC, the Blackrock group held more than 40 million 42 thousand and 900 shares, with a shareholding ratio of 6.2% as of December 31, 2019. This is the first time that the group has disclosed many shares.

In addition, according to documents submitted to SEC by Gao Rong capital on 6 February, it has a 13.71% stake in a lot of shares.

Public information shows that the Blackrock group is also known as the black rock group, which is different from TheBlackstoneGroup, one of the largest private equity funds in the world. BlackRock group (New York Stock Exchange: BLK) is the largest listed investment management group in the United States. The group is headquartered in New York, USA, through its offices throughout the United States, Europe and Asia, providing services to customers. In December 2018, the world top 2018 brand of the world's top 500 brands was announced in January 22nd. In January 22nd, BlackRock ranked twenty-fifth in the 2020 fortune global the Most Admired Companies list.

In 2015, it became the third largest electricity supplier platform in China in 3 years (according to GMV). Since the 2 quarter of 2018, the number of active buyers has exceeded the number of active buyers in Jingdong (JDUS, superior to big city) and reached 483 million in the two quarter of 2019. With the increasing number of active buyers and the annual consumption per capita of active buyers, the number of GMV increased by 171% over the 2 quarter of 2019 to 709 billion 100 million yuan.

Ye Sheng, an analyst with Dongxing securities, believes that although the amount of money spent in the past few years has shown a very strong GMV growth rate, the annual consumption expenditure of its active buyers is 1468 yuan in the 2 quarter of 2019, still far below the level of Alibaba and Jingdong. However, with the continuous optimization of product mix and customer stickiness and repeated customer growth, the annual consumption volume of active buyers will reach RMB 1831 yuan / RMB 2546 yuan in 2019 /2020.

Founded in 2015, it took many three years to become the third largest e-commerce platform in China (calculated by GMV). According to e-Marketer statistics, as of June 2018, the number of spells in China's e-commerce market is third, with a market share of 5.2%. Through the use of social network to fight the purchase mode, the number of active buyers has experienced explosive growth and surpassed Jingdong in the second quarter of 2018. By the end of 2018, the total volume of market orders increased from 11 billion 100 million in 2017 to 11 billion 100 million, an increase of 158% over the same period last year. According to the Questmobile data, as of 2018, 52% of the consumers were three and three line rural residents.

Ye Sheng said that unlike Tmall, Jingdong and vip.com, many products were mainly sold to low-level cities to sell their own brand goods. By making use of the low unit price of private brand products, it will spoil more than 483 million active buyers in less than four years.

However, at the same time, the annual expenditure of active buyers is lower than that of their competitors due to the low unit price. In order to further stimulate the per capita annual expenditure of active buyers and expand the consumer base from a second tier city, more than 2018 has reached an agreement with more than 500 domestic and foreign brands, and plans to invest 500 million yuan subsidy in 2019 to promote the sale of brand products on its platform. Establishing partnership with these brands will help to increase the annual expenditure of many active buyers. According to the report of the 19 quarter and the two quarter, the annual expenditure of active buyers is almost two times that of the same period last year, reaching 1468 yuan. So far, most consumers are focused on budgetary price sensitive consumers, which means that sales can be affected once subsidies subside. At the same time, consumers still worry about the history of selling fake and low-quality goods on many platforms, so they may choose other e-commerce platforms to buy brand goods.

By the end of 2018, China's population reached 1 billion 400 million, accounting for 18.4% of the world's total population. According to the statistics of China's National Bureau of Statistics (NBS), China's residents in the three tier cities and rural areas account for more than 70% of the Chinese population. Recently, Questmobile reported that the number of active Internet users in China was 110 million, of which 55. 5% comes from low level cities.

By the end of 2018, China's rural online retail sales amounted to 1 trillion and 400 billion yuan, accounting for 15% of China's online retail sales. Ye Sheng expects that as the low line Market (1) has a sufficient daily use of mobile Internet, (2) consumption and consumer demand are rising, and (3) the penetration rate of e-commerce is rising. (4) with the continuous improvement of e-commerce logistics infrastructure, online retail in China's low line market will gradually become the backbone of online retail in China.

The announcement shows that as of the second quarter of 2019, the total number of tradable shares was 4 billion 559 million shares. The main shareholders include a lot of founders, chairman and CEO Huang Zheng, holding 45.1%; Tencent holding 17.1%; BanyanPartners fund holds 8.5% of the shares, and Sequoia Fund holds 7.3% of the shares.

In the first three quarters of 2019, the total revenue was 7 billion 513 million 900 thousand yuan, and the net loss was 2 billion 335 million yuan. Sales and marketing expenditures amounted to 6 billion 909 million yuan, reaching the highest level since the listing. In terms of user and transaction scale, the company has sped up a lot of earnings reports. As of the 12 months in September 30, 2019, the GMV of the platform was 840 billion 200 million yuan. The number of active buyers on the platform is 536 million 300 thousand.