Electric Shanghong Children: commitment to suning easy to purchase or the best destination

The red Child, which was founded eight years ago, was once the most anticipated star of the retail electric business, but now its fortunes may end up being acquired.

Multi-information sources confirmed that suning purchase of red Children's trade has been close to reach, suning easy to buy or will be officially announced this afternoon to the red Children's wholly-owned acquisition.

The source told Tencent technology that the price of Suning's purchase of red children was about 400.05 billion dollars. The purchase price has not been confirmed, but if true, these people pointed out that this will be a very cost-effective Su ning easy to buy, and red children investors lose a heavy deal.

The fact that red kids have been financing for eight years is still a mystery. Before 2007, Red children had completed three rounds of financing, the investment side is the Northern Lights, NEA and Kleiner, the well-known investors Joe from Kleiner after leaving the project to the triumphal venture, the tripartite total investment of more than 30 million U.S. dollars. After this, the incumbent Red Child CEO Xu Xianxin in 2010 announced that red children refinancing 50 million-100 million U.S. dollars, the funding provider for the above three old investors and an unnamed new investors. Last year, it was rumored that GGV Capital invested 20 million of dollars in red children, but Tencent's technology survey learned that GGV Capital did not invest in red children.

A source to Tencent technology points out that the founder of the media in Jiangnan spring investment in red children tens of millions of of dollars. But yesterday, Tencent Science and technology to Jiangnan spring to verify this argument, Jiang did not respond directly, but called himself a lot of funds LP, it is not clear whether these funds invest red children.

Red Child was founded in June 2004, from the Maternal and child products catalog sales started, gradually developed to cosmetics, daily necessities, clothing and other comprehensive department stores, and in the latter part of the overall transformation of E-commerce. Early last year, red children start the dual brand strategy, its Plantronics shopping network mainly focused on female online shopping, red children's brand is focused on mother and child products, electricity quotient.

Red children have been planning to go public and are scheduled to complete in 2011. But because the capital market is cold, the Chinese Concept shares window closes, red children finally abandoned the listing plan. Red children have claimed the success of the transformation of electric power, online sales reached 50%, last year, the estimated sales will reach 152 billion yuan, of which the mother and child Han purchase a network of about half. However, some insiders pointed out that the red child last year, the scale of more than 1 billion yuan, red children's mother and child product ratio is not very high, most of the sales are the company's products.

The negative evaluation of the red children is continuous, the founder leaves, the capital control company, the diversification strategy failure, the serious loss and many other problems in the past few years has plagued the appliance business retail enterprises. Public information shows that red children have tried to enter the field of luxury goods, and launched the high-end magazine "Insider Social Circle", the project so that red children lost tens of millions of after the split. Red Children then try to cooperate with the Bank credit card project, and the project ended in tens losses. Red children have also planned to launch a 3D shopping website, the company has planned to build the project with 80 million dollars, although there is no specific loss of the project, but the project is still a failure.

As the day-to-day management of red children gradually taken over by professional managers, investors are more and more eager to set up now, if it can be bought by Suning easy to buy, now it seems that the red child is a good way out.

Red Kids: Selling for the best way to face huge losses

What are the reasons for Suning's purchase of red Children? In 2008, Red Children, the co-founder of the Red Child, Li Yang told Tencent technology that Suning was seeking to strengthen its northern market.

Li Yang analyzes that the headquarters of Chinese retail enterprises rarely have outstanding performance in both North and South China, such as Beijing's physical beauty, the United States in the southern market in the competition in the disadvantaged position, and Shanghai Lianhua, Lotus in the northern market also encountered the same problem.

He believes that suning as a strong rooted in the East China region, in the North acclimatized, so need to establish a regional center in the north, as the red children after the acquisition of Shanghai Xiao Hua quickly occupied the Shanghai market, Su Ning also hopes to complete the distribution of the northern market through the acquisition of red children.

In addition, the Red Child now management team are all professional managers, in the face of the current operating conditions also need to find buyers, Suning needs to face Gome, Beijing and east of the fierce competition, the need for a team with experience in the electrical business, so both sides hit. On the other hand, red children in the mother and infant, cosmetics and clothing these vertical areas still have advantages, so can be complementary with suning.