Lonely Xu Xianxin: Sell "8 years old" Red child

PE unwilling to bury the Changong children trapped in the fund lonely Xu Xianxin: Sell "8-year-old" Red child Han Fei when Jindong led the Su Ning many senior executives and media, Xu Xianxin all the way down, after 240 acres of suning Nanjing headquarters building is away from him. I gave the red children to suning very relieved. "Although the voice is very small, the tone is very calm, but this is the Xu Xianxin to attend the whole campaign issued a few sentences." It was also the first meeting of Xu Xianxin and Jindong. Just a few hours ago, Xu Xianxin was sitting on an airliner returning from the United States. And a few months ago, no one would have thought, a domestic electric business in the early leader, and a domestic household appliances industry, the current king, in such a way, should appear in such an occasion. September 25 3 o'clock in the afternoon, here-suning Appliance Nanjing Headquarters Building, Suning Appliance announced the purchase of 66 million U.S. dollars for red children wholly-owned. 8 years bumpy Road in June 2004, in Beijing West Three ring in the Central TV Tower complex building, red children were born. At that time the office room was two floors, total 500 square meters. Xu Xianxin and his entrepreneurial partner Li Yang, Yang, Ma Jianyang, four like the red Child's father and mother care as carefully as it grew up. Red children also from the beginning of the creation of the 20 people, developed into the current thousand-person scale. On the road to growth, red children pay the price. In September 2009, the Red Kid just walked through the fifth year after it came online. Xu Xianxin at an executive meeting to move to a department store. Senior executives recalled that Xu Xianxin at the meeting at that time gave a string of data, said that according to the annual birth of the law calculation, the mother and child industry will soon see the ceiling, red children want to grow better, must turn to other categories. 2009 to 2010, is also the most serious domestic electric business bubble, under the help of the capital abuse, a lot of electric entrepreneurs in the heart, only the "size" of the word. Xu Xianxin's idea quickly gained the approval of the capital side. At that time, Northern Lights partner Deng also supported Xu Xianxin to do so. During this period, the Red children online a large number of unrelated to the mother and child category. "To red children to buy 3C" has become the industry joke. But under the banner of expansion, red children not only not get better development, but the loss is serious. Category expansion is not previously imagined so good to do, all of a sudden, inventory pressure, supply speed and so on, and not enough user flow to digest. During the expansion phase, Xu Xianxin drastically cut the proportion of Red Children's catalogue marketing, making short-term sales affected. This, in the view of some internal opponents, is a result of the excessive conceptualization and enforcement of Internet understanding. Against the view that catalog marketing is also a link in the marketing of electric dealers, the cost is not necessarily higher than the current network promotion costs, and for the category of milk powder, catalog marketing more accurate. Milk powder is a consumption path-dependent category, the mother of pregnancy in the catalog marketing of milk powder, more easily make them in breast-feeding also become their customers. And many pregnant mothers are not often online, but will go to the hospital every week to check aTimes, this situation, in the hospital to do DM launch, it is very effective. In the 2011, Xu Xianxin had realized that the route was wrong and had begun to adopt a tightening strategy, but the change in the financing environment made it relatively difficult to turn around. This means that sales will be reduced in the short term and it will be even harder to raise capital once the sales scale declines. In this year, it is not only the fault of the strategic route that Xu Xianxin is challenged, but the most serious problem comes from "people and". In the early stages of the red Child's development, because of the business of all aspects of the start-up companies need entrepreneurs to resist, so the red child in the management of the 4 founders of the joint management system. But after the company has developed to a certain scale, this management pattern has arisen the question. 4 co-founder, 4 are joint general manager, each person has no clear management boundaries, the authority of ambiguity, so that the founder of the differences between the larger and bigger. In 2011, the 4 founders of Red Children walked 3, and Xu Xianxin became the only family to accompany the red children. No choice for sale in the second half of 2011 and the first half of 2012, most of the time, Xu Xianxin in the United States, for red children to seek a better way out. 2011, after the red children to take austerity, in order not to affect sales, Xu Xianxin in the promotion of red children in their own brands, but also on the line of female cosmetics-oriented Plantronics Shopping Network. The logic of its expansion is that the red kids are going to start with a pregnant mother, stretching along their age-changing shopping needs. But even so, red children are not immune to the double blow of sales and loss rates. In the first half of 2012, red child revenue fell 33% from a year earlier, with a negative gross margin. It's a way to cash in, not sell and profit, and Xu Xianxin can only stick to it in this manner before new financing comes in. The reluctance of the old investor to pay for the red child Xu Xianxin into trouble. One investor said the red child's investors had asked Xu Xianxin to find a new investor before they would be willing to go with the vote. Change to become Xu Xianxin's top priority during this period. Hope finally came, this March, online development of the Jindong has been in the internal resolution to the electric business as a breakthrough to suning channel reform. Once in the United States, Jindong and the red child of an investor met face, both sides germination of the intention of capital cooperation. Previously, the red children have six financing, including the Arctic light, Grace Investment, Kai Peng Hua Ying, triumphal investment, the total amount of financing reached 90.5 million U.S. dollars. According to the media, in addition to the book announced the funds, the Red Children's founding team also privately to shareholders to borrow 90 million of dollars. It also means that investors have paid nearly 200 million dollars for red children. And from the 66 million-dollar deal price, investors floating loss is obvious. But eager investors and Xu Xianxin eager for new money will not care too much. And Suning in the brand and supply chain, will give red children to bring strategic help. For the red children after the acquisition, Suning will ask them more, such as the team scattered, responsible for suning easy to buy more than 3C electrical appliances category? But these operational details have not been discussed specifically in the acquisition negotiations. However, XuShanxin, the importance of these acquisitions is no longer in the first place. To Su ning, "Flesh and Blood" red children's future growth has finally confessed, and for their future road, Xu Xianxin still face some uncertainty. It might be a return to investment, Xu Xianxin said in a recent interview.