Pioneering state: Founder Zhiquan on integration after Bowser merger

Zhiquan on integration of Bowser after merger: insufficient interviews with Gome Resources | Lingwenting and Anecdotes | After Lingwenting was merged by a giant, what lessons did Bowser have in the process of integration? "Entrepreneurial State": 2010, why do you choose to sell Bowser to Gome? Zhiquan: It's a good bowser. This project is not something that we entrepreneurs should do. With my resources, to enter such a huge market, and need huge resources to support, I can not die on the good. The innovation of the Entrepreneurial project or business model itself is not strong, nothing more than a change of sales channels, improve the consumption efficiency. In this case, enter such a big market, how to survive? And then it happened not to good luck, we decided to finance the time is 2008 years, when the financial crisis can not get investment, so we lost by financial investors, rely on their own fast-driving development point of time. By the beginning of 2010, Jingdong had dumped us very far, at this time take the investor's money, both sides became the pure capital game, must be I lose. So then decided not to take financial investment. I need new resources, but I don't have much choice. In E-commerce, resources are nothing more than 3 kinds: capital, supply chain and flow. There were also some state-owned enterprises, such as airlines, banks, some big manufacturers, brands want to invest in us, but we do not think it is a good resource. Finally chose Gome. "Entrepreneurial State": many people think that at that time 48 million dollars sold to gome a little cheaper. Zhiquan: The point of the problem is right here. 48 million of course is not high, but in fact there are more than 48 million. Gome after the merger, give us put so many goods, Bowser occupied the country a few billion funds, took them so many resources, at that time Point, which VC willing to give a few billion funds? 48 million is a form of expression that allows both sides to sit down and achieve cooperation. "Entrepreneurial State": That Bowser and Gome integration mainly around what? Zhiquan: Mainly supply chain this piece, said the popular point is the source. We are the first domestic electric appliance manufacturers, but the source of the problem is very large. At that time, a large number of suppliers to E-commerce is not the case, so support is not enough. On the one hand they will disturb the price, and give you a poor supply, two times do not give you supply, how do you play? And the price of home appliances changes very quickly, it is difficult to suffer one thing. Gome can guarantee us a lot of sourcing, although we still take goods from outside, but others are willing to cooperate with you, because we belong to the United States. But we are not well integrated in sourcing. After all, we are not gome employees, not to do traditional retail, the policy of Gome is not very clear, and do not know how they operate offline. Perhaps the product you choose, the price is not good enough, because Bowser and Gome is a settlement relationship. "Entrepreneurial State": The acquisition of Bowser, Gome itself has made a "gome online," is not a bit of the right hand mutual bo? Zhiquan: Gome is online more than we did before, starting from 2005, was not called "Gome online", called "Gome Mall." They did not do it for many years, and the reason is that they are not short of people, not lack of funds, not lack of supply chain, but they lack a good mechanism, because internal entrepreneurship is very difficult. So they decided to buy a home, and they had to keep improving it. For this person is the so-called right-hand man, but for the market is not, the market is not just your two hands. Of course, there is competition inside, which is normal. "Entrepreneurial State": Since Gome can help Bowser solve the big problem of supply chain, why did you leave Bowser? Zhiquan: We and major shareholders in the direction of business will have some different views. There is another, Bowser and Gome running-in, after all, is a very difficult thing. Starting from the end of 2010 to receive 2011 Years a year, although Bowser from a few billion income to 2 billion, the staff from 140 to 1700 people, the growth rate is very fast, but objectively speaking, we are not deep enough for gome resources. Because when you do this thing as a claim, the premise is to know what the other party has. So this one needs someone who knows a lot about Gome's marketing system and resources to do this. At this time, Gome sent a person to be CEO, is a good thing for business. I also do not need to care about the CEO of this position, this enterprise is my founder, at that time there are 20% of my shares, the best for this enterprise is the optimal choice. "Entrepreneurial State": Was the lock regularly? Zhiquan: I did not sign a lock-up period with Gome. At that time, after the merger, the reason to stay in Bowser, because the agreement clearly stipulates that Bowser is entirely our own business. Gome has a 80% per cent stake in the board and three seats, we have two seats. Major matters must be over 70%, so Bowser is still under our control. We still make our own decisions. If I want to appoint an executive, my votes are not enough, but if I don't want a senior executive to be dismissed, I have enough votes. "Entrepreneurial State": Why should this clause be signed in the agreement? Zhiquan: After all, this enterprise is our founder, spent so many years of painstaking efforts, so hope that enterprises to develop better. Just at that point in time, we are worried that the good wishes of the country will happen wrong. Gome as a traditional retailer, he knows how to retail, but may interfere with Bowser too much, affecting its development. So a pact was made, and it was embodied in the legal system. Wang total mergers and acquisitions experience sharing it is more important to do business well than anything else. Whether it's good for the business, is the only criterion you measure. Personal interests are not important, there is nothing to protect.