Dangdang biggest problem, is not it can hold long, but there is no need to re-stays. The book business is highly competitive, and has been loss of loss. To the expansion of the department store category, platform, and now the game is, the future did not.Now that you have left behind, then when another swing for the boat – such as Jingdong from the side through, whether you are on not on Li Guoqing anyway at the meeting.
Dangdang, selling is really good
Dangdang shareholders or investors, the first Chinese book net hat has already been blown away. As early as the end of 2011, its stock was brutally Morgan Stanley, IDG five institutions emptied, it is rare.
On the book business, indeed profit achieved in 2009 and 2011, but in Jingdong book business in 2011 and triggered a price, Dangdang immediately plunged into a loss.Reason told countless times, the picture is Dangdang’s main industry, accounting for 80% of revenue last year due to the increase in department store products, this proportion may be slightly reduced. Whereas for Jingdong it, the book is only for customers of the subsidiary business losses a little limited impact on the overall business. Sprinkle a little bait, and then sold a large home appliance, after all, is cost-effective. But Dangdang, the book business for a long time the price war was fatal.
Natural weaknesses of the existing business structure, Li Guoqing countermeasures to rely on the platform, the expansion of the department store products, but the road to go elsewhere. No role in positioning theory of Tencent, there is a deep-seated reasons for its users a large enough scale, and to control the Internet channel, and it could be conveniently slide to a wide variety of services sold to all kinds of people, and these a strong correlation between the services. Dangdang, however, in the minds of consumers, is always a sell books, being established in this mental cognition, it is extremely difficult to change. In Dangdang last resort settled Lynx draw traffic.
Dangdang poor only money? I believe Li Guoqing still has some money, However, even if Dangdang the hands of the money really can burn a year or so, but then how to do it? Refinancing its current situation, but also how much it?
Jingdong and Dangdang’s story, all capital from Liu Qiang East in 2010, just five years, the book business, why year after a high-profile fight against Dangdang it? I believe that this is a bureau of the the strong brother elaborate cloth, the aim is to win Dangdang, ultimate meaning, of course, is to enhance the valuation.
In many B2C vertical class electric supplier, Dangdang’s becoming a the Jingdong coveted object, there is a special reason. According to Liu Qiang East: Dangdang founded in 1999, its users oldest user is online shopping, Taobao users old, by striking Dangdang, attract dangdang users. According to Analysys International’s data, the first half of 2012, Dangdang 21 million active users, second only to the Lynx Jingdong, ranking third in the industry, the orders also ranks third. So, regardless of quality or quantity, Dangdang has its special advantages.
Despite the large-scale users, but the books off the lower unit price, which is Dangdang earnings difficulties. On the other hand, to limit the expansion of the size of the company, that the company’s total revenue and other electricity providers will be small compared to some of the valuation will naturally lower. However, if allowed to Dangdang lord it over in the book business, Amazon’s reputation in China is getting louder and louder It would be a bad thing. So, even if you want to buy Dangdang, should give dead pixels.
Dangdang price of $ 35 when the highest market capitalization of $ 2.6 billion, in order to acquisition easier said than done. And now the stock price is less than $ 5, the market capitalization of a mere $ 365 million acquisition of the difficulty of natural greatly reduced, and self-built than Jingdong book business costs may also be lower.But this process may not all providential, East Columbia is a lot of manpower.
The implementation of the privatization of listed companies, and most will be ahead of the layout, own earnings do ugly point, IDRC joint research institute reported that business and bad-mouthing doubled valuation is naturally low. Jingdong directly price war against you and hit your losses, play your stock price declines, the market value of greatly reduced, and let your shareholders, investors do not see hope, and then won a small price.
Jingdong acquisition of online banking online, outside reviews, view of the sheer number of users to use a third-party payment instruments, and have been using Alipay, will weaken the competitiveness of its Lynx, so this acquisition helps Jingdong enhance user experience, improve the business chain the last foothold is eternal in its pre-IPO target: increase the valuation of the company.
Why is Jingdong to acquire a few potential buyers. Amazon, although the business is the most overlap, most stable pace, work style does not match. Big Ali Group, has been accustomed to doing platform, own shop this live, not willing to dry. Suning, light 3C products online business enough it is anxious to get angry.