Citic Press has ceased to be a supplier

More than 10 days ago, Huang (a pseudonym) in the Dangdang on a single purchase book unexpectedly found that their choice of Citic publishing house books are under the shelf.

Huang is a loyal user of Dangdang, because for many years continued to buy, is already a VIP member. By asking a friend familiar with Citic Press, Huang learned that Citic Press had ceased to be a supplier. As of press, the two sides have been released before the shield, normal sales.

The news is quite "explosive". In the electric business promotion war is not as hot as June 2012, the channel vendors and suppliers of the "bitter", is not the electricity business "gospel", continued to sink into the loss of the mire of second-line electric business platform How to lose money, is a concern.

Citic "lying Gun"

In the final analysis, Dangdang and Citic Press "friction", the latter number of "lying in the gun" means, Citic Press is not the origin of the initiative.

The person who did not want to be named told the China Business News reporter, domestic electric business channel "warring" in the Amazon market share, since the beginning of late April, Amazon launched the annual sales promotion, as its acquisition of the original outstanding network books, audio and video business, the Citic Press to supply Amazon Book discount strength is also not small.

Considering that a year ago "6 18" electric business war phone-in will be staged again, Dangdang as occupy the current domestic electricity market nearly half the share of the "Boss", it is difficult to "swallow this tone."

As a result, the strong power of the electric business channel and strong content provider between the war. First Dangdang emergency shielding the platform of their own website, Citic Press most of the books, informed the situation of Citic Press also do not show weakness, the initiative to stop when the supply.

"According to our internal understanding, when the book department, the E-book department and CITIC Press, the cooperation between the normal, in addition, CITIC Press publishing books are also in the normal sales." We are a bit confused about the ' shielding ' you mentioned, which may be anecdotal. Dangdang Public Relations senior manager Yumen said.

Citic Press, a middle-class who declined to be named, also denied the "cessation of co-operation" news, but the person did not deny the two sides of the recent "friction" behavior. The person also explained that Dangdang has shielded the Citic publishing house books have been removed from the shield, the normal sales.

In this respect, Yumen also said, Dangdang is a channel, Citic Press is a supplier, Dangdang has other suppliers outside Citic, Citic Publishing house there are other channels outside Dangdang. Citic Press in other channels to promote sales, because the price is lower than the Dangdang price, when the initiative to take these goods off the platform, wait until the other party activities completed, and then the product online.

"After all these years of cooperation, the bumps are inevitable." "Yumen said.

0 for grudges

Life will continue and cooperation can be maintained, but the truth behind the facts is by no means as simple as it seems.

As we all know, 0 of business cooperation is not uncommon. Whether it is a strong channel business, or strong suppliers, in business cooperation with a strong voice, once the "two strong encounter" and "disagreement", the war is difficult to avoid.

March 2004, Gree air-conditioning because and Chengdu Gome failed to reach a consensus on sales policy, a full withdrawal of gome retail outlets, since then, the Self-built channel has become one of the core competitiveness of gree.

Dangdang is the domestic electricity quotient book market share about half of the strong channel business, CITIC Press is the domestic leading book supplier, the cooperation between the two is a "strong combination", but for many years 0 for the relationship between the game, contradictory grudges have not a day.

Dangdang's "Network Book Festival" has been held for 7 consecutive sessions, in mid-April each year, 10 percent, 20 percent of books abound, but when the supplier or other channels of electricity sales discounts, Dangdang shielding its products. This is Huang more than 10 days ago in Dangdang buy Citic book reason, this also let Citic Press "unbearable."

It is worth emphasizing that, in the Electronic Business platform, the strategic layout of mobile Internet also let when, Citic 0 for the "border" more blurred, and then more easily "wipe the gun off."

In mid-May, Dangdang released its first-quarter earnings, saying its overall gross profit margin was 17.2% in the first quarter, its highest since the second quarter of 2011. When chairman Yu said in a conference call, when the gross margin promotion there are several major factors in the publication media business, when the market position to ensure that the purchase of products bargaining power, when there are other platforms do not have, high profit margins, their own operation of the publication products.

The information provided by Dangdang also shows that in order to speed up the transformation of the original vertical electric business platform to the integrated type of electric business platform, Dangdang not only in the original book business based on the opening of clothing, large household appliances, pregnant babies and other new categories, but also actively using mobile interconnection to seize the way consumers, "in such a category layout, When focusing on the development of mobile business, according to the latest statistics show that mobile phone when the industry ranked top three. ”

Citic Press has also targeted the mobile internet's "proprietary channel" opportunities. At the beginning of the year, a financial magazine executive was being tapped by Citic to run its new media business.

It is not difficult to find, dangdang procurement in the strong "bargaining power" and proprietary publications products, Citic Press in the mobile Internet layout in advance, so that both sides of the "competing" relationship more complex, the friction or game of the beginning of the press, rather than end.

"It's harder to make a loss."

Excluding this friction accidental factors, let the industry worry is, Dangdang "turn" to a good plan will be with the electric quotient competition increasingly complex and be interrupted.

As described in the first quarter of Dangdang reported, Dangdang 2013-year 17.2% gross profit margin set a 2011-year high of two quarters, net deficit of 72.7 million yuan, also compared with the same period in 2012 losses 27%. Combined with Dangdang to the big department store Platform transformation, revenue increase, category more and more difficult to increase the operation of the trend, this performance is not easy to achieve.

In a quarterly conference, Yu said that in daily necessities, when the supplier has done a lot of work to help businesses improve trading processes, improve profits. In the platform business, revenue from trading commissions, promotional advertising fees, and so on, these are good performance. This development trend is expected to continue in 2013. When CFO Shang pointed out that when the margin was raised another reason was that price wars were much less competitive.

Even so, it was the eighth quarterly loss since the second quarter of 2011. 2 years, when the total loss of about 740 million yuan, although the loss has narrowed trend, but the cat, Jingdong, suning easy to buy, Xun and other leading electric sales promotion will directly affect when the report.

Therefore, when and Citic's this "friction" is not sensitive. And in June Suning easy to buy the launch of "line with the same price" measures, Dangdang CEO guoqing that "more difficult." "Indeed, as Lee said, it is more difficult to make a profit, but when it does, and the performance is good, Wall Street also used the stock price to give back to when the performance of recognition." "Yumen said.

As of this newspaper, Dangdang's higher than the 2012 low share price doubled, the current price is only about 2010 to the high point of one-fifth.