"Online + Online" Mode Waiting For Jingdong To Buy Shop No. 1 Prospect Geometry?

The once dark horse has become a heavy burden.

The shop No. 1, which has been silent for several years, has been pferred again. Jingdong has become the "disc player".

In June 20th, Jingdong and WAL-MART announced a series of in-depth strategic cooperation, including the replacement of 5% Jingdong equity with assets of shop No. 1 of its 1 store.

Affected by the good news, Jingdong's stock price rose more than 8%, but it was down. At the end of the week, the Jingdong quoted 21.06 dollars, or 4.62%.

Since it was held in 2012, its performance has not gone backward, it has run in bad with WAL-MART, and executives have left.

The 1 shop, which is in a negative situation, has not really played its real role in the system of super retail giants.

And WAL-MART's "cut off" exchange with Jingdong is seen as the last step to enter the Chinese electricity market.

In the industry, though

The potential of tycoon + traditional retail giants is promising, but there are few successful examples of online and offline cooperation, and WAL-MART's online and offline integration has been suspended for a while. It is hard to decide whether the Jingdong will succeed.

The 1 mall is incorporated into the Jingdong.

The strategic cooperation between Jingdong and WAL-MART includes WAL-MART's replacement of Jingdong stake with 1 mall, followed by logistics cooperation.

A joint announcement from Jingdong and WAL-MART showed that the assets of the No. 1 store's 1 mall replaced 5% of Jingdong shares, including 145 million class a common stock, or about 9 billion 500 million yuan.

The brand name and market position of shop No. 1 will not change. Jingdong will own the main assets of mall 1, including the brand, website and APP of "1 shop".

And WAL-MART will continue to operate Shop No. 1 proprietary business, and into the 1 mall.

Taking the assets of mall 1 only, Cui Yu, a consultant at CIC, seems to avoid increasing Jingdong's integration costs and revenue costs.

It said that the No. 1 store is now losing money, and taking over all the business will drag Jingdong's earnings. Secondly, the main business category 1 is business super products, while Jingdong's core competitiveness is still in the category 3C products, and the super products are relatively competitive. WAL-MART, as the largest retailer in the world, has rich business experience and resources, and has more advantages than Jingdong's super products. In addition, if Jingdong takes over the 1 shop's proprietary business, it will need to adjust the resources and staff of two platforms. In order to avoid internal competition, it also needs to build a unified price standard, which will increase the cost of integration.

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

The two sides expressed the hope that through online and offline integration, on the one hand, to attract more online passenger flow to WAL-MART's physical stores, on the other hand, they can also provide fresh food for WAL-MART's physical stores for "Jingdong home", and provide users with 2 hours of fresh supermarket delivery service.

Among them, WAL-MART's "Sam member store" will also set up an official flagship store on the Jingdong platform and use Jingdong logistics system.

The cooperation between the two sides in the supply chain is also in the strategic cooperation, but the details have not been disclosed.

The deal is called "a war without smoke." there have been rumors that WAL-MART's strategic cooperation with Jingdong has been several times anxious because Ali and Hainan group have also been interested in bidding for shop No. 1.

Cooperation between the two sides, Du Yanhong, a researcher at the CIC retail industry, seems to be an all-around sniping against competitors.

Over the past few years, Tmall supermarket has eaten a lot of market share in store 1 through the crazy price war in eastern China, and in the Beijing market, it is threatening Jingdong foundation by the same means.

On the other hand, it can also consolidate Jingdong's market resources in East China.

Retail analyst Hu Chuncai believes that shop No. 1 is relatively strong in the Shanghai market, plus it can supplement the department stores that Jingdong is not good at, and put the number 1 shop under its command, so that it can shorten the gap with its competitors in the shortest time.

Mo Daiqing, director of online retail department of China Electronic Commerce Research Center and senior analyst, said that from the perspective of the electricity supplier industry, the battle against the former "assu group" has evolved into a contest between "ascent group" and "Beijing tengwo group", and the respective teams will be clearer in the two camps.

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In this regard, Jingdong responsible person interviewed by reporters said that WAL-MART and Jingdong optimistic about brand value and market opportunities of shop No. 1, and will maintain the independence of brand 1 and business operations.

Shop No. 1 will continue to maintain its strong brand advantage, its category advantages in grocery and home products, and its leading layout in important regions such as East China and Southern China, greatly complementing and enhancing Jingdong's product richness and competitiveness in key areas.

Jingdong will strongly support shop No. 1 to continuously enhance its brand influence, support the 1 store to keep its original flavor, and give more support to shop 1 in all aspects including logistics advantages.

The head of the Jingdong said that the Jingdong and WAL-MART have reached a deep strategic cooperation with both sides for mutual benefit and mutual benefit, with a milestone strategic significance.

WAL-MART is in the leading position in the supply chain and exclusive products, such as the supply of private brand products of Sam's member stores.

This will greatly increase the number of Jingdong's global supplier networks and distributors.

Jingdong and WAL-MART will cooperate at the end of the supply chain.

The prospect of "traditional retail + electricity supplier"

In those days, WAL-MART hoped to take advantage of the momentum of "black horse" in store No. 1, which occupied the Chinese electricity supplier, but the situation was not smooth.

The change of chess with Jingdong this time is considered by the industry as the last step to enter the Chinese electricity market.

However, due to the previous failure cases, in the industry view, it still takes time to see the depth of cooperation between the two sides, and do not take the old road of No. 1 shop.

In 2012, WAL-MART announced that it would increase its investment in shop No. 1, raising its shareholding ratio from 20% to about 51%, replacing Ping An Group as the largest shareholder in 1.

WAL-MART's support has led Shop No. 1 to start a series of layouts. In addition to the promotion campaign, online advertising campaigns have almost never stopped.

In the past few years, shop No. 1 has been happy to attack Guinness's sales volume and repeatedly challenged Jingdong and other electronic business platforms at a low price.

But these efforts did not bring more market share. According to the China online retail market data monitoring report released by China Electronic Commerce Research Center in 2015, China's B2C network retail market in 2015 (including open platform and self sale type, excluding brand electric business), ranked sixth in number 1, with a share of only 1.4%.

1 shop burning money at the same time, WAL-MART's financial data also appeared to decline, and the 1 shop continued loss is WAL-MART listed companies can not stand.

More importantly, like the choice of an electric company in the country, WAL-MART also began replanning its strategy in China in 2013 - contraction and integration.

Public information shows that since 2014, WAL-MART plans to close about 30% of existing Chinese stores.

Cui Yu, a consultant at CIC, believes that one of the purposes of WAL-MART's strategic cooperation with Jingdong is to get rid of the burden of shop No. 1.

Since the acquisition of shop No. 1 by WAL-MART, its development has not been satisfactory, and it has continued to lose money and the scale of its losses is still expanding. WAL-MART has failed to achieve its strategic goal when it acquired the 1 shop.

Shop No. 1 has become increasingly awkward in the strategic layout of WAL-MART, especially in terms of O2O. Jingdong is obviously more powerful than the 1 store, so WAL-MART is selling at 1.

The "dark horse" of the year became a "burden". Shop No. 1 did not play its real role in WAL-MART's system.

In an interview with reporters, Du Yanhong pointed out that during the period of cooperation between the two sides, the synergy between online and offline cooperation was not well played, and both sides had reservations.

Although WAL-MART holding No. 1 store, the first store is basically independent of WAL-MART, while WAL-MART's e-commerce business has not been effectively carried out.

The cooperation between shop No.1 and WAL-MART is more reflected in commodity purchase and logistics, but the commodity is less.

Hu Chuncai believes that the development of WAL-MART's e-commerce business in China is not smooth.

The difficulty of interaction is blindly distributed through various outlets, but in fact it is not.

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.

Whether this can bring vitality to WAL-MART's business in China, and it takes time to see it.

In addition, it is worrying whether the 1 shop incorporated into Jingdong can live well.

The above analysts believe that the merger will take some time.

For example, before the easy fast network and the pat Network merged into the Jingdong, it was unknown. Since then, the pformation of Yi soon network and the closing of the pat Network were finally seen.