Is Dangdang really going to sell? Guoqing to let go?

Absrtact: Dangdang in the mobile end and O2O ability is very weak, it is best to rush before the two big companies decisively finalize strategic investment or achieve prostitution.

Wen/Huang (co-founder of billion European network)

A few days ago, some industry insiders told Pugo, "This time, Dangdang may really want to sell, two giants and Dangdang is talking about", for such a message line in the industry most people have been familiar with, or even a bit sad is that most people have not much concern about Dangdang's next step, Dangdang as a declining aristocracy in the eyes of the media has long ago. Coincidentally, April 14, "financial world" of a long article on Dangdang Online appeared, Dangdang founder and CEO Guoqing admitted "once had the idea of selling Dangdang."

Dangdang once wanted to sell, now? Certainly more in the want to sell! Beijing East is unavoidable to go alongside Tencent, through giving up shares to obtain micro-letter portal and take over Tencent's electric business. Dangdang once refused to Tencent, and now may be in the original decision regret. Jing Dong Liu is a good place to be flexible, open the mind at least to the east to the hundreds of billions of sales of the quantity level; guoqing need to reflect: their own lofty has let Dangdang missed enough opportunities, the narrow pattern has made Dangdang increasingly marginalized.

Guoqing to let go?

As the founder, Guoqing's evaluation of Dangdang has a strong sense of sensibility; from a guoqing point of view, the idea of looking for strategic investment is certainly greater than selling the company, and even if the sale of the company, Guoqing will also demand to ensure that the dominant voice. 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, put Dangdang into the market enough to write history, but guoqing lack of boldness, not to let Dangdang a higher level, and a few years ago and Liu Equal Guoqing, and now has not been the media as a big guy treatment.

Dangdang overall decline is an indisputable fact, 2013q4 Dangdang despite the quarterly profit, but 2013 years of revenue (6.32 billion yuan) and 2012 (5.19 billion yuan) compared to only 21.8%, far behind the old rivals Jingdong and an up-and-comer only goods will. Guoqing couples in deciding whether to sell Dangdang, should be sold after Dangdang can get better growth as the principle. Dangdang is a guoqing couple, but now the development of Dangdang has been limited by the vision and ability of guoqing couples, it is time to rebuild Dangdang, the introduction of new capital resources and management members.

What is the lack of capacity of Dangdang?

Dangdang market before and after a short period of time by investors and the media that is "China's Amazon"; until recently, Guoqing also promoted the approach of Dangdang rather than Jingdong and Amazon, but commented that "the only real similarity between Dangdang and Amazon is that two companies started off selling books". Also started with books, Dangdang far from learning Amazon's boldness and layout ability.

Electric business industry has long been from the front of the sale of goods to the overall PK, competition is including warehousing logistics, technology and comprehensive strength. From the point of view of logistics storage construction, Dangdang obviously and Jingdong gap is far, and Amazon China, Suning, etc, Dangdang is also in the leeward, from the technical strength, and Jingdong Mall, the cloud, the technical input is not enough, its technical content cost rate hovering around 3%, and Amazon over 6% The gap is more obvious than the technical cost rate.

As the earliest layout mobile end of the electric business enterprise, Dangdang did not grasp the trend of mobile Internet development, to the current mobile end of the flow accounted for more than 40%, but the sales accounted for only 10% more; like Jingdong, Dangdang lacks the mobile end of the flow source; Dangdang is still in the PC Internet age. More pessimistic, Dangdang's competitors with warehousing logistics capabilities began to penetrate the line. Pugo in an article titled "Do not Pay attention to the O2O of the online electric business enterprise will lose the future" articles mentioned: compared to online, offline is a greater flow of the entrance, compared to the electricity quotient, local business O2O more efficient, offline is a much larger than the online market. The sky Cat Jing Dong do o2o, on the one hand can expand the sale, on the other hand is the offline user circle into own mobile end. Dangdang after the prophet, very early thought of O2O, helpless without the traffic advantage of the day cat, and there is no such as the line of Jing Dong.

Dangdang should sell to who?

Dangdang and the online giants have spread gossip, and offline large traditional retail companies have also been contacted. Objectively speaking, although Dangdang also lacks the money, but obviously to complement own short board's demand is bigger. Dangdang on the one hand is to look for the flow of the entrance, especially the mobile end of the traffic, on the other hand Dangdang want to enhance the offline capabilities, including offline warehousing logistics capabilities, O2O offline capabilities. To these two factors, Dangdang online giants can be selected is Baidu and Ali (Tencent has a stake in Beijing east), online under the Giants can be selected for Wal-Mart and Suning; the line of ability and offline ability are also good in Jingdong is also possible.

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. On the other side, Dangdang is a listed company, which is fair and reasonable according to the stock price and market value. But Dangdang's share price has risen over the past year, which has guoqing couples ' expectations of Dangdang, which in turn has intimidated potential investors or buyers. Dangdang if the current value of 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 7.5 billion dollars.

Dangdang 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 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.

Extended reading: When is it not long? Listing, layout, competitive reasons, or guoqing personality and pattern problems? The electric trader is difficult to save when the cold end of the winter when Ctrip, when the website set up alliances, sharing large data