This year's Wuzhen Internet Conference 'Dongxingju' has another name - 'anti-Ali Alliance'. At the beginning of this dinner, Jingdong Group founder and CEO Liu Qiang East spent a lot of time 'accusation' Ali, Ali this year Jingdong clothing category fierce exception blocking.
Not only Jingdong, Tencent significantly deepen the anxiety in the second half of this year Ali Ali aggressive in the new retail area, while Alipay and reputation in the rapid development of this year, which gives micro-channel payment and applet pressure for Tencent, if you do not pay attention to business , There is no pricing right to liquidate.If you do not do new retail, overpayments, data and traffic entrances will be affected Ali's growing new retail business.
In the face of strong Ali, Tencent need to support Jingdong, and Jingdong need only product. 'Jingdong is in early 2017 and Vipshop negotiations, but Shen Ya (Vipshop founder) high-spirited, ambitious, leading to slow progress in the negotiations The recent decline in the share price of the only product will be, coupled with the intervention of Tencent coordination and eventually to negotiate. "A person close to the transaction," Caijing "reporter said.
A person close to the Vipshop said Vipshop always believes that it has the opportunity to grow into a Beijing-based company. "We do not want to invest in Jingdong after the domination." So the end result is Tencent invest more, this After the transaction, Tencent holds 7% stake in Vipshop and 3% stake in Jingdong, while Jingdong previously held 2.5% stake in Vipshop. After the transaction, Jingdong owns 5.5% of the total and Tencent won the Vipshop board seat At the same time, Tencent opened WeChat's first-level entrance to the only product will be.
'Jingdong only pull Tencent, only the chips with the game will have enough chips.' The above person, 'Finance' reporter said that if Tencent does not intervene, the only product will have a small probability 'sell' Ali.
Finally, the People's War .Keeeee CEO Min Jie on the "Finance" reporter said that in the past, Jingdong Ali fight against a single platform for the single-platform campaign, certainly passive. And the essence of this transaction is - multi-platform on a single Battle of the Platform. Station Krypton is an active marketing SaaS platform for large retail users, just recently completed the B round of 20 million US dollars financing Tencent and JD.com.
'For Jingdong and Vipshop, if we face the common enemy, it is only an internal contradiction among the people, from the masses to the masses and mobilize the masses to fight tyrants,' said one E-commerce entrepreneur.
As a result, JD.com jointly invested US $ 863 million in Vipshop Ltd. Pursuant to the Equity Subscription Agreement, Tencent and Jingdong will respectively subscribe for VDP's newly issued Class A ordinary shares of US $ 604 million and US $ 259 million, US $ 65.40 of common stock, equivalent to US $ 13.08 per VipAmerican ADS (ADS equals 0.2 shares of Class A common stock), which is less than the last trading day of December 15, 2017 ADS closing price, a premium of about 55%.
Equity investment, Tencent and Jingdong will also bring urgently needed traffic to Vipshop, Tencent will give you the VIP Portal in its WeChat wallet interface, while Jingdong will also be in its mobile phone APP main interface and WeChat shopping entry level Interface access to the only product will be.
The only product will be the bottleneck
Fashion brand 'Yong Ye' founder, CEO Liu Shichao told reporters that the only product in the past two years after the gradual disappearance of the mobile Internet dividend, operating pressure is greater, in recent years the share price decline is facing greater pressure on the capital, making the only Goods will have great needs for external financing.
A VIP product company said that over the past year and a half, the only product itself will not have its own business development problems encountered in the face of competition for a full class e-commerce can not find a direction for a time. The new operating team did not Good support for the next step in development, the new strategy that we want to push forward, operates the non-standard category with the idea of a standard product, and changes the transaction situation.
One e-commerce entrepreneur who had been in contact with Shen Ya said: "Shen Ya was very strong in the narrow sense of the transaction. It did a good job of profiting from the profits and details. However, the" motive flow "of the transaction level upwards and the" Delivery, 'he said, but Shen Ya is not an easy to compromise one of the things that shows that he has never sold a Vipshop penny stock, which means that if you're not forced to do so, Seek its own independent development.
For the first time in Q3 2017, Vipshop's revenue increased 27.6% YoY and fell 30% for the first time while its net profit fell 1.4% YoY and 14.42% YoY in the previous quarter, while the number of active users and total orders The growth of core business indicators is also slowing down, the decline is more obvious.
Reaction in the capital market, is the continuous decline in stock prices, the only product will have from the beginning of 11.23 US dollars / share, down to 8.44 yuan / share, 'This makes the Board under great pressure on the' said the source.
In his research report released in January 2016, Nomura Securities, a researcher at Nomura Securities in China, predicted the possibility of the deal. He believes that the unique advantages of Vipshop's female customer base and apparel category make it attractive to those who are willing Balanced their portfolio of e-commerce, while Jingdong is one of the few companies with this demand.
Jingdong urgent
Jingdong and Ali are confronted with growing bottlenecks in 2017 as both the scale of e-commerce expansion and the retail industry weaken, and the two sides fiercely confront each other in a number of fields. In conjunction with Suning's attack on the core categories of Jingdong: 3C and home appliances, Jingdong is devoted to those Can increase the consumer frequency and female user groups category, such as fast consumer and apparel. 'Clothing as high-frequency, high-profit category, Jingdong is not a short board to fill the issue, but can be the next growth point. Shi Long said in an exclusive interview with "Finance".
Ali has always been the core category of apparel, but also profit center. Ali naturally saw the increasing threat of Jingdong. A Lynx company told Caijing this year Lynx's key task is to hit the Jingdong, from 3C days Cats supermarkets to the field of apparel have related planning, one of the important task is to stifle Jingdong growth in the field of apparel signs.
A director of Jingdong fashion division told Caijing reporter that Vipshop will have advantages in sales of garments, cosmetics, shoes and bags and other products by selling brand apparel and cosmetics, and Vipshop and Jingdong Alliance can help Jingdong solve The core issue of the apparel supply chain, the previous Jingdong alone Ali 'alternative one' under great pressure after the Union bargaining power to businesses will be enhanced, Jingdong clothing is no longer as passive as before.
Liu Qiangdong said in Q3 2017 earnings conference call that Jingdong really faces a very difficult 'one of two' unfair competition in the apparel category. Since the second quarter, more than 100 Chinese local apparel brands have been forced to withdraw Jingdong platform, 'second quarter clothing is the fastest growing Jingdong category, but the third quarter and fourth quarter of its GMV growth is almost stagnant.'
Jingdong CFO Huang Xuande said that this quarter's advertising revenue growth rate is the fastest in calendar year, the second largest logistics revenue.While the apparel category faces 'second choice' growth stagnated, the main loss is the GMV and commission rates, but Jingdong ARPU value, repeat purchase rate and the growth of the number of visitors are not affected.
Liu Qiangdong also analysts predict Jingdong has a series of measures in the field of apparel, will resume growth in the first quarter of 2018, but did not disclose the specific details nowadays, the only way to invest in investment is the 'space for time' strategy Move.
Liu Shichao said Jingdong entire sales and marketing structure of the company are based on the business logic 3C products to build, which led to Jingdong investment and operation of clothing categories and traditional clothing brand is not compatible with the other Jingdong page display and interactive design , Also followed the characteristics of standardized products, the current operation Jingdong own clothing category encountered some difficulties.
Min Jie told Caijing that this transaction will not have any impact on Ali in the short term, but will shake the confidence of businessmen in Ali because the biggest issue now is the traffic problem in Ali and the tax on Ali is getting higher and higher. Businesses will have their own way out of the plan.
Tencent's united front
'This transaction is a win-win situation between Tencent, Jingdong and Vipshop, which means that the future will always be the relationship between the three parties. The short-term goal is to enhance the online trading volume, Tencent in charge of business executives said.
Liu Shichao said that for Tencent, firstly, companies that compete positively with Ali will be willing to seek his asylum, and it is easy to form a competitor with Alibaba to actively seek an alliance with Tencent. The second V-ACCESS stock price After the slide on the Tencent for a high price, with their own way to advantage of the funds into their own is not good at e-commerce business is in line with Tencent strategy.
In the last two years, with the online trading volume slowing down, Alibaba.com has invested heavily in offline entities under the concept of 'new retail'. The listed companies that have invested include Intime Commercial (after the takeover), Suning Cloud Business, Sanjiang Shopping, Xinhua all, Lianhua supermarket, retail and other high-Xin, in different regions and different formats have layout, rich layers.
This year Jingdong in the field of apparel Ali hit very passive, after all, businesses will not offend Ali, a single platform for a single platform less chance of winning.But if the Jingdong provide retail infrastructure, Tencent solve the problem of decentralized traffic, the only product will provide Customers complement each other, multi-platform fight against a single platform, the situation on both sides may be reversed.
In these three, Jingdong is suppressed by Ali to seek asylum, Yonghui and Vipshop actually seek Tencent as the eldest brother to coordinate Tencent is support.In addition, Tencent also shares mushroom Street, as well as the Allies in the United States Group reviews.
In December, Tencent invested 5% stake in Yonghui with RMB4.2bn and will increase its investment in Yonghui Yunchuang, a holding subsidiary of Yonghui Supermarket, to acquire 15% of the shares, the latter being Yonghui Fresh Brand ' 'The main operation.
Jingdong wants to exert its power in the fresh area and invested in Yonghui, but because there is still a rivalry between the two parties and Yonghui has its own ambitions to expand itself, there has been a problem with the cooperation between both parties. Subsidiaries can play a strategic coordinating role, as do the only products.
Tencent's investment strategy is rarely interfere with the day-to-day operations of enterprises, invested enterprises can maintain a certain degree of independence, and can get the help of Tencent traffic.
'This is a strong and loose alliance,' an investment community told the "Financial" reporter, at the time of the hard battle, facing the strong control of Ali, the combination may not have absolute advantage.
Group strategy will be successful? According to historical experience may not, electricity supplier practitioner Xie Pu believes that 5 years ago Tencent invested in good music to buy, eLong, Kelan diamonds, the public comment, easy Xun, more independent 5 years later, Tencent has changed a number of companies to invest in Jingdong, 58 city, promoting the United States swallowed up and comment, investment in the only product, the effect of how to wait for the test of time.
The investment community sources said the new retail this battlefield has actually quickly 'converged', the war situation has been very clear in a short time - Ali rival Tencent. The future in this area, there will be very few grassroots entrepreneurial opportunities for the rise. , The new retail area, Ali and Tencent war will intensify.