Hui Cong net and Zhongguancun really can achieve a double win?

Last week, the Hui Cong net suddenly announced plans to 1.5 billion yuan merger Zhongguancun, the industry was surprised. We all have a doubt, a veteran of the Business-to-business Web site, a traditional It media site, the two sides together really can be old trees open new flowers, finally really can achieve a win to happiness? We may as well from the two sides in the product, the business, the customer, the team and so on four levels to analyze and interpret this "marriage".

(1) Can product integration help both sides to transform?

First, in a rapidly changing industry environment, both sides are seeking a transformation. Before the merger, Zhongguancun is transforming into the direction of the media, and the HC net also hopes to speed up the adjustment of the internal structure of the company, making the business model be transformed from b2b1.0 to b2b2.0.

As we all know, Zhongguancun's advantage also lies in having the professional IT industry database and the data structured product storehouse, as well as more than 10 years accumulated IT industry media operation Experience, and as a typical B2B2C website, Zhongguancun has built up a relatively complete mature business model, Especially in the business, Zhongguancun's Zhongguancun mall has been hoping to use its media advantages to build the country's largest 3C electronic mall. If the integration of Zhongguancun team, can help HC network to restructure the Web site business model as soon as possible, HC network will become the 2.0 era of leading media dealers.

(2) is the degree of complementarity of the business sufficient?

Second, as domestic after Alibaba industry Business-to-business website, the product covers chemical energy, metallurgical steel, rubber tree material, machinery industry, building materials, home furnishings, clothing underwear and other industries, but only in the IT digital rarely involved. This is because as early as the last transition, HC has completely stripped it business. After this acquisition Zhongguancun, Hui Cong can take this to return to the IT field, perfected its almost all vertical big industry coverage.

Moreover, the reason that HC net will be in the transfer of the main board of the stock market soon to start the acquisition of Zhongguancun, obviously is to introduce a can activate the HC network to accelerate the pace of transformation of the "catfish." HC also wants to be able to replicate Zhongguancun's it digital experience to other vertical industries. And with the Zhongguancun this "catfish" agitation, HC network can also activate its eight vertical industry e-commerce companies, thereby enhancing the overall performance of HC net.

(3) Will the client scale eventually expand?

Also, in the HC Network CEO Guo sent to all the staff of the internal letter, in fact, it is very clear that the eight vertical e-commerce companies under the HC will not only learn Zhongguancun business model from business-to-business to B2B2C change, but also mentioned more services to large enterprise customers.

As the industry business-to-business Web site, HC Network was mainly focused on SME business procurement services, and Zhongguancun as the largest IT professional media website, mainly serving large enterprise customers, and users are ordinary consumers, its Zhongguancun mall is the Web site, there is no big competition between the two. The addition of Zhongguancun, which means that a large number of brand customers to join, will make the overall brand of HC network in the major customers and small and medium-sized customers can be covered, which undoubtedly to expand both sides of the revenue scale have great help.

(4) is the team integration progress smoothly?

Finally, the success of mergers and acquisitions depends on the product integration between the two sides is smooth? And the more smooth the integration of the more early to see the results of integration. From the HC CEO Guo and Zhongguancun CEO Liu to employees of the internal letter can be seen, the same as the old Internet sites, are coming out of Zhongguancun, are now facing a business transformation, the two sides can be described as the same, this time the two sides so much determination to walk together, is sure to open the big scene together. The so-called decisive, the starting point is consistent and common vision, integration will be more smooth.

And this important point is disclosed in the merger agreement, after the merger, Zhongguancun will also maintain an independent operation, and Liu and management team and Zhongguancun joined the HC net, and the two sides also signed the agreement on Gambling, in the acquisition of the completion of the three years, the Zhongguancun tax revenue reached 100 million yuan, 130 million yuan and 170 million yuan. This means that, after the merger, the overall performance of HC will not be affected by business integration, instead Zhongguancun and management team have a greater incentive to contribute more revenue.

To sum up, for the Yu Huicong NET, this merger whether from the product integration and complementarity, or from the business-driven promotion, as well as from the increase in customer base, are expected to be an incremental effect. The biggest difference between the Zhongguancun and other acquisitions is that it does not seem to be about complementing and strengthening existing businesses, but more like looking for an intimate "ally" that is more easily integrated in the consumer industry and complements both business and customers.