The game of electric dealers in finance, platform and logistics

Before Christmas last year, Liu just told the media that there were no plans for 2014 years, and that an IPO prospectus from Beijing East had been handed over to the SEC (the Securities and Exchange Commission) on New Year's Eve. Still remember 2012 just a rumor, the Beijing East was Su Ning, Ali and Tencent, the power of the fierce sniper, hit the brutal "8 15" price war. Now, facing from the listing only one step away from the Beijing-east, the road friends are more eyeing. And before the difference is, because the timing is not, the money is not many, in this campaign, for the price of the war will not appear to the company, replaced by the electricity dealers in the financial, platform and logistics links game.

Encirclement and Suppression Field 1

Self-electric dealers: the pursuers

Tragic degree: ★★★

2012 a "8 15" price war, still remember. Whether it is Jindong and Liu "gamble", or the national Development and Reform Commission of a paper ban, reflect the price war and the stalemate. Although Jing Dong sits in the position of the boss of the self-employed, the profit of 60 million dollars is accused of "playing a dozen."

Some insiders believe that from the Beijing-east to submit an IPO application to its road performance in this period of time, Alibaba, Suningyun, Tencent and other enterprises will be in the electric business facing Beijing-east, and strive to knock off its profitability and valuation. However, a person close to Jingdong believes that on the one hand, in the electric business environment has not seen better, the enterprises have no spare money to fight price war; On the other hand, Beijing and east to choose the Spring Festival before the submission of F1 documents, April Road Show, the entire IPO preparation period for the electric business season, there is no price war time conditions, Therefore, the field of self-electric power will not become the hardest hit by friends.

But for Jingdong, the rivalry between friends and market share has never been relaxed. The data from the Analysys think-tank showed that in the three quarter of 2013, China's independent sales of the market accounted for the share of the business, Jingdong to 38.8% of the absolute advantage of the top, and suning easy to buy, Amazon China and Xun followed closely. According to the prospectus, Beijing East believes that China's online retail competition is very fierce, the development of the mature Ali Group, with international background of the Amazon China, from the offline layout of the line of Suningyun, Wal-Mart holding 1th stores, the main home appliances Gome and Tencent has easy to express the network will affect its listing performance.

Electric business consultant Ruzenwang said, as Jingdong, Suning, Gome are focusing on the development of household electrical Appliances category, the Beijing-east listing will have negative impact on these enterprises, the electric business circle set off what wave is still unknown.

Encirclement and Suppression Field 2

Internet finance: Ali Tencent Suning attack

Tragic degree: ★★★★★

In the context of the hopeless profitability of the business, electric companies are scrambling to raise financial services, hoping to rely on internet finance to improve their business chain and bring profits. At present, Ali has a small loan Ali, Alipay and the balance of treasure, Tencent relies on micro-letter payments to make money, and Su Ning also has its own bank, Yi Bao and change treasure.

By contrast, although Jingdong bought online banking in October 2012, it also set up its own payment system last year, but the first advantage has vanished. Although Liu to the outside world, the internet finance will become Beijing East 2014 years of one of the five strategic planning, but looking at the "balance treasure" are out of the limelight, Beijing East can only choose a way out.

At the end of last year, Jingdong launched its own supply chain finance business, including the "3 minutes financing to account" Kimbobe, the line one months after the total amount of lending over 1 billion yuan. Recently, Jing-dong also will be the public test "Jingdong white" credit consumption services, and perfect user data is also the advantage of the self-employed big Beijing East. "In China, we have recently begun to participate in Internet financial services and have developed a variety of financial products." But because of the unfamiliarity of Internet finance, we may not be able to predict the demand and preference in the market. Jing Dong also modestly admits in the prospectus that it has "limited experience" in Internet finance.

But it is the point of encirclement and suppression for rivals. In addition to Jingdong, Suning and Ali are very experienced in supply chain finance, and "Beijing-East White Stripes" also have Ali credit payments, suning "personal credit consumption" and other potential competitors. In the future, these small loan products in the credit rating model, handling fees, interest rates and concessions will be another war.

Encirclement and Suppression Field 3

Open platform: Scramble for Merchant resources

Tragic degree: ★★★★

Liu How much do you pay attention to open platform? Look at what he said six months ago--"The open platform does not do well, the Jingdong will surely die." "How much does Liu care about merchant resources?" he said on the same day, "The open platform is gradually becoming a monopoly, I hope you can sell the sales to a number of platforms, sellers in a single platform sales accounted for 50%, the equivalent of fate in the hands of others." This was also interpreted by the media as a blatant "Bank of the Day" for the cat. During the "6 18" price war last year, Beijing East blamed the cat for forcing merchant "two to choose one".

Because of higher margins and lower operating costs, the open platform has been considered a stop-loss tool by the electric business enterprise, the reason why Beijing East can be profitable, because the last year to achieve 25 billion yuan turnover of the pop platform to a certain extent to fill out the big pit of proprietary business. IPO documents show that as of December 31, 2013, Jingdong has more than 6,000 suppliers, the number of Third-party sellers on the platform is about 23,500.

The operating mode of the open platform is to collect the employment money from the third party merchant. To attract users, BoE reduced the Commission to 1/10 of the day's cats, however, as the operating capacity of Jingdong platform has entered the mature period of the cat still has a gap, the cat is still the first choice for most businesses; on the other hand, suning easy to buy, Amazon and 1th stores and other enterprises have already built an open platform, which suning even gave "free annual fee, Platform-free use fee, free margin "three-discount competition for users." Some analysts believe that, as the major electric dealers to the open platform to enhance the level of attention to the future focus on the open platform of the electric business war is also imperative. Analysys analyst Zhao Saijun said that diversification is the inevitable trend of the development of the electric business, but with the gradual maturation of the market, Beijing-East listing will promote competition to benign, healthy.

Encirclement and Suppression Field 4

Logistics distribution: fast and not broken

Tragic degree: ★★★

With the financial, platform business after the status of the different, logistics is undoubtedly the core competitiveness of Beijing-east. "We have the largest logistics infrastructure in all of China's power companies," he said in an IPO document. "Admittedly, jingdong to the logistics to achieve a full coverage from the main line to the terminal, but this is not enough to be spent spending money to create the rookie network and in some cities faster distribution of Xun network ignored."

Rookie network in last year's "Double 11" first show quite successful, reflecting the large data on logistics guidance. However, compared with Jingdong, the open idea of the novice network makes it difficult to achieve "step-by-step control", stability and lack of control. Tencent Electric Shang Network early in the morning to play "Lightning send" the brand, although the coverage is less than Jingdong, but in Shanghai and other parts of the city's distribution speed and stability both. However, in the Beijing-East development for "one day two send" support, an easy to network insiders frankly, the user for the "one day three send" and "one day two send" feeling difference is not small, distribution system stability is the logistics speed at the same level of the competitive focus.

The IPO documents show that Jingdong has 82 warehouses in 34 cities, 460 cities to establish 1453 distribution sites, the number of distribution staff is as high as 180.05 million, while the total number of Beijing East staff of 38,325, the number of distribution staff accounted for up to 47%. In 2014, Jingdong will also expand the logistics system, accelerate infiltration of the three or four-line cities, and recruit 10,000 employees for talent supplement. BEIJING-East admits in its prospectus that continuous investment in logistics may tighten its investment in management, finance, operations and other resources.

Beijing business newspaper reporter Lu Yishang chong Xiao Meng/Wen Song Yuanhua/comics