Chinese new egg mass layoffs may be acquired, Suning's new target

Suningyun, with more than 20 billion yuan in cash, has been looking for new acquisitions after buying red children.

March 11, Shenzhen electric shock E-commerce company founder Shangxiang in his personal media, said that China's new eggs to start mass layoffs, the company's office from Shanghai Jingan opened the building moved to Jiading, China's new eggs streamlined body after the whole by suning easy to buy mergers and acquisitions.

In this respect, suning easy to purchase content Product Operation Center Deputy Director Min response to this newspaper: "The listed companies will have a major purchase notice, there is no information can be released." ”

Zhou Zhaowu, president of China's new egg, said: "China's new eggs and suning is completely different form, there is no possibility of acquisition, at present, our operation and personnel are stable." ”

A power industry Headhunter told our correspondent: "In the fourth quarter of last year, many of the new eggs in China's management staff began to find the search company to seek a chance to jump, which shows some of the Chinese new eggs." ”

and E-commerce Observer Ruzenwang also revealed on Weibo, last October invited Josunin and new eggs to discuss mergers and acquisitions, but there are some differences between the two ideas have not reached the acquisition agreement.

The decline of the new egg China

2012 through a A-share directed issuance and issuance of corporate debt to the cash surge to more than 20 billion yuan, Su Ning openly announced to seek diversification through the means of mergers and acquisitions, and then, all kinds of vertical network of the plight of the internet and Su Ning's merger scandal. Last September, Suning easy to buy 66 million dollars to complete the merger of the Red Children, Massamasso, good music to buy or even the IPO of the resistance of all customers prudential goods are once a potential acquisition of the purchase object.

New egg China's mergers and acquisitions have naturally caused a lot of controversy in the industry, and the same as the Beijing East, the fate of the 3C electric dealers also let people sigh.

Public information shows that the Taiwanese Fred Chang, who founded the American New Egg net in Los Angeles in 2001, has been profitable from the start, and is now a leading company for 3C electric companies in the United States, with sales reaching $2.5 billion in 2011. More importantly, the American new eggs in the 2001 entered the Chinese market, the establishment of Tai-Wen Information Technology Co., Ltd., Shanghai New Egg E-commerce Co., Ltd., 2006, the New Egg China's monthly sales reached more than 10 million yuan.

As a veteran of China's business, the pace of expansion in China has slowed markedly in recent years, especially when it gained a few rounds of investment in Jingdong Mall and the rapid expansion of suning from the physical commercial to the electric dealer, and the new eggs that coincide with their businesses are obviously dumped in the back.

An electrical appliance supplier's marketing director told the newspaper reporter, "2008 Beijing East and the size of the new eggs close, but last year, the size of Beijing east reached 60 billion yuan, and the size of the new egg China is still hovering in the scale of a billion of yuan, and even fell out of the top ten of the business, because the size of the small we narrowed the scale of cooperation with the new ”

The Chinese market is the focus of the U.S. market for new eggs, although the United States new eggs are profitable, but because its IPO plan has not been completed, and lead to financial squeeze, coupled with China's new eggs in the short term also difficult to see the dawn of profit, so its investment in China's new eggs is far lower than

Sources said that since the fourth quarter of last year, the United States new eggs have been continuously injected into the new eggs in China, the main investment in marketing, platform development and after-sales service system upgrade, but with Suning easy to purchase and other local electricity dealers at a billion of yuan of marketing investment far.

In order to reduce the operating pressure of Chinese new eggs, the new egg China has been settled into the cat platform. Last October, the new egg China in the middle of the introduction of the agency and Suning easy to purchase a contact, and even with Su Ning also established a strategic cooperative relationship, the news has been the approval of the people of Suning easy to buy, but the two sides did not reach a merger agreement.

The surplus value of new eggs in China

On the reasons for the failure of the two sides to reach an agreement, Ruzenwang analysis that both sides can achieve a mutual benefit if they can cooperate. On the one hand, the development of new eggs in China is difficult, on the other hand, Suning can be acquired through the acquisition of the expansion of the electric business, but at that time the idea is not the same, the new eggs may just want to business cooperation, easy to buy a full acquisition, because its founder does not want to

"New Egg China's main business is 3C, its main area of user coverage is also Shanghai and other East China region, in the product and user coverage area, the two sides are highly coincident." "Suningyun Business related people told our correspondent:" Suning purchase is to expand the department stores, clothing, footwear and other areas of their own lack of procurement and operation advantages of the field, 3C is not the focus of suning expansion. ”

and Gome online general manager Handepeng also told our correspondent, "Su Ning Yi buys the red child although has not obtained the effect at present, but the goal of the merger is clear, but for has already appeared the business decline the Chinese new egg, Suning does not have the acquisition necessity." ”

However, some people in the industry pointed out that new egg group in China has four major business, including China's New Egg network (online shopping mall), Olin Logistics, new egg software and the United States new eggs for the Technical Support Center, its management experience and technical reserve is Su Ning easy to make up for the short board required.

But to this Suningyun business people also pointed out that suning easy to purchase logistics with small pieces of logistics short board is the best in the country, while the technical and electrical business experience of the new egg 10 years of operation does precipitate, this is our only optimistic about the reason for the merger.

However, the success of this merger is not only the decision of Su Ning, because the new American eggs based in Los Angeles and their Taiwanese founder's attitude is equally important, in the face of China's 3C electric business complex situation, China's new eggs in the shrinking business will indeed be in personnel and business adjustments, But it is still a hard choice to sell the Chinese business for more than 10 years.

It is reported that in the United States, Intel chips in the DIY market 50% of sales from the United States new eggs, new eggs and the world's leading it digital manufacturers have established a very strong global strategic partnership and have the advantage of purchasing low-cost, but in the Chinese market this advantage has not continued, This is why its Chinese business has struggled to reach the growth rate of new American eggs.

Some people in the industry pointed out that American new eggs are also facing fierce competition, to be listed, its loss in China is also a key factor in the business, and Suning easy to buy how the price is also the key to the sale of Chinese new eggs, after all, both sides are still in contact, do not rule out the next two sides to reach an agreement. (Lang)