Dangdang gradually marginalized, has been to find the "Godfather" stage

February 27, 2014, Dangdang released the fourth quarter of 2013 and the full year earnings: Dangdang in 2013q4 finally ushered in a long-lost profit, net profit of 21.66 million yuan; Dangdang's share price soared. More embarrassing is that, although Dangdang's share price has risen by more than 3 times times a year, but Dangdang's market capitalisation is currently only 1.1 billion U.S. dollars. An interesting phenomenon when, in the last four quarters, every time a fortune Dangdang will employ a number of large for forward transmission. Jing Dong's senior vice president Xu a meaningful microblog on the evening of February 27: "Now fortune reports are using big V resources, interesting, the earnings are not for investors to see?"

Dangdang hired large publicity is for the capital market to see, but more for the potential investors or buyers to see. Over the past year, Dangdang has contacted almost all potential buyers, including the traditional tyrants such as suning, and internet bosses like Amazon. But after a year of pent-up, the current result is only Dangdang will and No. 1th store signed agreement, two of each other settled. However, Dangdang CEO Guoqing in Su Ning released 2013 full year earnings through Weibo fully expressed their goodwill, this may prove that Dangdang and Su Ning also maintained close contact.

Dangdang has not finalized strategic investors or buyers, the fundamental difference is that the guoqing and the valuation of Dangdang and investors or buyers to the huge gap. As a matter of fact, Dangdang is a listed company, which is fair and reasonable according to the stock price and market value. But the soaring share price of Dangdang over the past year has intimidated potential investors or buyers. Dangdang if the current value of 1.1 billion of dollars to find investment or sales, objectively speaking, the price is fair; This is still undervalued compared with the market capitalisation of only 7.3 billion dollars.

As a founder, Guoqing's evaluation of Dangdang has a strong sense of sensibility; from a guoqing point of view, the idea of finding strategic investment is greater than selling the company; even if the sale of the company, Guoqing will ask to ensure a certain right of speech. But for the investors or the sellers, the reason for their eventual determination is to guoqing the person. In the past 15, Guoqing showed his hard side, the Dangdang to lead the listing is enough to write history, but guoqing lack of ambition to become a big guy, not to make Dangdang a higher level, and a few years ago, and Liu Equal guoqing, to now has not been the media as a big guy treatment.

Guoqing and Dangdang are the declining nobility, and now have their own proud, but in fact has lost the proud capital. In the past few years, Dangdang because of the comprehensive experience poor results in many old users run away from other platforms; Guoqing in May 2012 through Weibo to the consumer letter to acknowledge Dangdang in the delivery, packaging and other deficiencies, promised to improve the service of various aspects of the shopping experience, but the loss of the old user has not been fundamentally reversed. 2012, Dangdang has 15.7 million active users (including new users 8.6 million), order volume 54.2 million, 2013 Dangdang has 20.9 million active users (new user 10.7 million), order volume 63.6 million. Seemingly active users have grown by 33%, but orders have risen by only 17%, and active users have declined significantly.

Dangdang platform attraction in the decline is the fact that 2013q4 realize the quarterly profit, but Dangdang 2013 years of revenue (6.32 billion) and 2012 (5.19 billion yuan) compared to only 21.8% growth. In the eyes of investors or buyers, this growth rate is more important than the profit and loss data. Dangdang category expansion and open platform has been shouting for many years, although some small results, but apparently failed to support Dangdang as a platform for the status. Dangdang at the end of 2010 just listed that will have the opportunity in the logistics construction and open platform to make a difference, but unfortunately, Dangdang finally failed to keep up with the Chinese electric business development pace.

Dangdang is gradually marginalized in China's electricity quotient pattern, and now it is time to find the "Godfather" stage. Dangdang is the only consolation is more than 10 years of painstaking accumulation of a well-known, but Dangdang lack of money, lack of logistics warehousing capacity, lack of technical strength, these need a lot of capital and resources to regain drive. As mentioned earlier, strategic investment is a more acceptable option from the perspective of Guoqing and Yu. However, the current initiative is not in the hands of Dangdang, the more time to push back, Dangdang's value is smaller. In particular, 2014 Jingdong and Ali will be listed, then Dangdang to the market's imagination will be further compressed, Dangdang best to rush to the two giants before the IPO decisively finalize strategic investment or achieve prostitution.