Electric war fire to be rekindled

Jingdong's business model determines that it is difficult to avoid price wars, and again successfully financed 700 million of billions of dollars, so that it can be more calmly deal with the new round of fierce competition in the electricity market

Herald reporter Wu Shujuan jinan report

When confined to the logistics of slowing down only the majority of the electricity dealers, in the year of the snake envy of traditional shopping malls in the consumption potential of the national retail and catering consumption of 7 days to reach the staggering 539 billion yuan, after a work, Jingdong Mall again successfully financing 700 million of dollars of news, Instantaneous and the eyes of all walks of life back to last year since the Battle of the electric dealers.

Fourth round of financing 700 million dollars

On the evening of 16th, Jingdong Mall confirmed the completion of the fourth round of about 700 million U.S. dollars of common equity financing, including the new shareholder of the Canada Ontario Teacher Pension Fund and the Saudi billionaire Prince Alwaleed holdings of Saudi investment company Kingdom Holding company, and Jingdong Mall, some major shareholders such as Tiger fund to continue to vote.

It is understood that Jingdong Mall this part of the funds will be used for operation, future investment and development of new business, and continue to strengthen the logistics system construction and so on. Jingdong Mall will continue to open the Web, logistics, information systems, while the layout of the financial platform business.

As early as November 2012, Jingdong confirmed the fourth round of financing, including the Ontario Teacher Pension Fund, but did not disclose the specific amount. Industry news showed about 400 million dollars.

According to the Economic Herald reporter understand, before this, Jingdong Mall has completed 3 rounds of financing, including 2007 to obtain capital of 10 million dollars today, at the end of 2008 to obtain today's capital, bear cattle capital and Leung of 21 million U.S. dollars, 2011 to obtain DST, tiger funds, such as 1.5 billion dollars. 4 rounds of financing down, Jingdong Mall a total of 2.3 billion U.S. dollars financing.

In fact, after the last year after the price of the war, the Spring Festival holiday, the major electric companies have not died down, to relax the competition for the market. Herald Reporter noted that in addition to the Jingdong Mall launched "Spring Festival shopping constantly" outside, from Suning's "New Year seven days" to the United States "Valentine's Day romantic special", from Dangdang "The first month does not close" to the days of the Cat "electrical Festival all over the city", a few big electric business giants are every minute

Jingdong Mall chose to work on the day after the announcement of the success of the financing of the news, no doubt once again highlighted the Liu marketing art.

Calmly deal with a new round of electric business war

The continuing price war since last year has led to huge financial pressure on the electricity dealers. Dangdang CEO Guoqing has publicly joked that Jingdong Mall's money only enough to burn to August 2012 to October. In the third quarter of last year, Suning appliances (002024, shares) and Ctrip successively issued 8 billion yuan and 140 million dollar corporate bonds to raise long-term development funds. Red children to 60 million of dollars sold to Suning, suning by this in the Mother and Infant category subdivision field enclosure, accelerate the realization of "go to electrical".

For 700 million of dollars in financing success, allegedly Liu in the internal Mail "the future of business disputes must be platform war, behind the War of value", "Spring has come, Yamahana will be far away," revealed its confidence in the development of the electric business.

In this respect, e-commerce observer Ruzenwang to the reporter interviewed, said that the Jingdong model decided it is difficult to avoid price war, and to melt into the funds, so that it can be more calmly deal with the new round of fierce competition.

CIC Consultant Retail Industry researcher Du Yan Macro told the reporter, Jingdong Mall scale continued to expand the benefit of the investment fund behind the support. Hold high the price sharp weapon to the competitor to carry on again and again the challenge, is the Jingdong mall all along the scale expansion development present important means. But with the competition more and more strong, price competition more and more fierce, Jingdong Mall's scale-driven model to increase its thirst for funds, and constantly external financing become its inevitable choice.

"Jingdong Mall This financing 700 million dollars, further enrich its cash flow, for long-term investment and to achieve profitability provides the basis." To promote business platform, and strengthen the logistics system investment construction, Jingdong Mall will become the main capital. "DU Yan macro."

Eric Consulting Electric business analyst Su Yanyan that Taobao is likely to carry out an IPO in the four quarter, Jingdong Mall announced new financing, both to create pressure on competitors, enhance investor confidence, pave the way for IPOs, but also to find ways to cash flow, to obtain more profit income.