Shop number 1th breaks the peeling dilemma

Absrtact: While other electric business platforms are vigorously developing proprietary third party operations, shop 1th (Yhd.com) has had to operate independently of this part of the business, mainly because of the restrictions on access to Wal-Mart Investments by the Ministry of Commerce. As the concept of the FTA spread in Shanghai,

While other electric-commerce platforms are aggressively developing proprietary third-party businesses, shop 1th (yhd.com) has been forced to operate independently of the business, mainly because of the restrictions on the Commerce Department's access to Wal-Mart investments. At the time of the free trade zone concept in Shanghai, shop number 1th, with the help of a new company in the FTA to recover the platform business unified operation, breaking the dilemma of 1.5 stripping operations.

The helplessness of foreign holding

The supermarket chain giant Wal-Mart originally wanted to build electricity in China, but later abandoned the strategy to seek investment, after the 500 million U.S. dollar holdings with the BoE refused, Wal-Mart and shop 1th came together.

Wal-Mart gained a stake of 1th in May 2011 by buying a 20% stake in Ping An (Ping an 1th store 80%), and Wal-Mart wanted to become a controlling shareholder at the end of 2011 with the rapid expansion of shop number 1th, but the plan needed approval from the Ministry of Commerce.

After 9 months of waiting, the Ministry of Commerce approved Wal-Mart to increase its shareholding from 17.7% to 51.3% for holding, but called for the inclusion of a restrictive clause in the deal, which stipulates that Wal-Mart's acquisition of the company's NIU holdings of 1th stores, no open platform business for third parties, Wal-Mart is also prohibited from engaging in value-added telecommunications services through the VIE structure.

The Ministry of Commerce has made this restriction on the grounds of antitrust competition and restrictions on the relevant foreign capital operations regulations.

It also means that Wal-Mart's holdings of store 1th assets can only be proprietary. But at that time the big environment is, all the electronic business consumer platform, have seen the cat Third-party platform to make money, all recognize that whether the expansion of the category, improve turnover or profit, all need to rely on the development of Third-party platforms.

This is also the 2011 store 1th, the most important strategy, before the Ministry of Commerce approval, 1th stores introduced books, clothing and other categories, and disclosed the "platform of" transformation of the signal.

But there is no denying that Wal-Mart has become a controlling shareholder, and store 1th will get a lot of experience in resources, supply chain management and branding. In the interests of the balance, shop 1th finally chose the original platform involved in the third party platform business, such as shopping malls, 1th Regiment, famous special selling, etc., integrated into the independent domain name 1mall.com (1th) of the Web site, stripped Independent to Shanghai Performance Electric Co., Ltd. operation.

After more than 1 years of time, the self-employed and platform business by two different teams operating, although in the 1th shop yhd.com platform has 1th mall entrance, but consumers in shopping, shopping cart and settlement are separate, for consumers is very inconvenient. The year 1th stores in the external publicity, but also rarely mention the development of platform business.

Curve Recovery Platform Business

Just a few days ago, the 1th Mall website quietly launched a bulletin, said "the original 1th mall through the www.1mall.com business, now by the NIU E-commerce (Shanghai) Co., Ltd. through the Www.yhd.com website operation", and the site directly to the 1th shop home, which is the most important, User shopping carts, settlement can be merged, store 1th regain control of the platform business Operation rights.

One of the key companies is the aforementioned Niu Electric Company, this is a company set up in Shanghai since November 14, the registered capital of 10 million yuan, the shareholders for the independent operation of the 1th shopping malls, "Shanghai Chuan Electric Co., Ltd.", as well as 1th stores wholly-owned subsidiary of "New Hillock Ridge Co., Ltd.". The scope of business includes information service business, online data processing and transaction business in value-added telecom business.

It is unclear whether the two companies have a stake in the new company or the role that Wal-Mart plays.

According to 1th store insiders revealed that the future will be the whole operation of the new company 1th stores and 1th Mall. The official reply of shop 1th is, "NIU is the main business of shop 1th, Wal-Mart is still the investor of store 1th".

Whether this is to allow the Wal-Mart curve to gain the right to operate the Platform No. 1th store related people did not give a positive answer, only stressed that there is such a restructuring of the company must be in compliance with the situation, and the original 1th store staff and management team, through the new company to provide services for the settled business.

The change was the official propaganda of the No. 1th Store "2.0 Times", 2.0 times in the 1th store not only contains the original 1th shop site business, but also open the platform to the merchants, and for the settled businesses to provide various platforms and value-added services, and will continue to significantly expand the wealth of goods in the future.

In addition to the unified operation of the resumption platform business, the 1th stores entering the FTA will also receive policy support in the areas of import trade, international settlement costs and cross-border electricity business.

Wal-Mart behind store 1th

Although Wal-Mart held the number 1th store, but in the past more than a year to do a low-key, has never disclosed the progress of integration with shop 1th, and 1th stores in various media activities, also rarely answer questions related to Wal-Mart.

But in fact, store 1th is already starting to get resources from Wal-Mart. For example, Wal-Mart's High-profile foray into Beijing's fresh market this year relies on Wal-Mart suppliers and cold chain systems. Without the Wal-Mart channel, store 1th will not be able to enter the Beijing fresh market as fast as it can.

According to Sina Science and technology, in addition to business cooperation, Wal-Mart will also share some good products and experience to share with the 1th store. For example, Wal-Mart high-end store Sam member shop has a business, there are many fresh fruit, Wal-Mart on these fresh quality requirements are very high, including the diameter of how big, sweet to what level, this set of quality control system will be 1th store for reference.

And then Wal-Mart will have a variety of cooperation with store No. 1th. 1th shop executives have disclosed to Sina Technology, Wal-Mart in this area and 1th stores have a lot of discussion, such as the user in shop 1th place orders, and then give a lot of choices, one is through the whole cold chain door-to-door, and the second is directly to the Wal-Mart entity stores or Sam member store to mention.

Even farther, in the future food, Wal-Mart and store 1th can work with gas stations to make some drinks from the self. "The future innovation model does not rule out the attempt, because the Internet is related to innovation." ”

Of course, these are some planning and discussion, there is no substantive measures. Store No. 1th the most direct collaboration with Wal-Mart is the ability to use Wal-Mart's supplier system to negotiate directly with these suppliers, while others will find it difficult to contact the supplier at the first time.

Wal-Mart, for example, has a subsidiary in the UK called Aista, the top three supermarkets in the UK, with tightly screened brands including cookies, milk and red wine, and shop number 1th can be introduced directly.

According to Sina Science and technology, every quarter of store 1th and Wal-Mart Asia-Pacific CEO have a meeting, is to talk about how to cooperate at the strategic level. The implementation of the end of the time, the two sides will set up a number of working groups, such as health and fresh cooperation, talk about European cooperation, will be assigned to the professional team to join the joint.

For store 1th, the current competition in the electric business industry is very fierce, and shop 1th in the import of food this part of the very advantages, they hope to be able to do faster and different from other electric dealers to retain users. Next, how Wal-Mart's resources are embodied on third-party platforms and quickly scaled up to profitability is a problem for shop No. 1th.