Suningyun to complete "genetically modified" by acquisition

As the traditional retail empire, "Suning appliance" in the Change Flag banner as "Suningyun business", in order to speed up the reconstruction of the Internet gene and transformation, the use of resources to change the time increasingly obvious.

In August 2013, Suningyun announced to enter the financial industry, determined to bid for private banks, to provide more adequate infrastructure support to its electric business, at the same time, in the release of customized mobile phone "hive" pre-sale information, about the Suningyun business will apply for virtual operator rumors also uproar. September 24 Hao throw 400 million U.S. dollars bid PPLive News, will Suningyun the stock price again to the limit, the entire September, Suningyun business in a shares on the overall rise as high as 69.1%, almost reborn.

Although the internet was born in freedom, but at the commercial level, particularly pay attention to "gene theory", like the Western folk culture and the history of the once popular pure blood effect, internet companies to determine the starting point of their areas of expertise. Microsoft is difficult to overcome the mobile internet, Google can not do social, Baidu repeatedly defeated by the electricity business, Sina do what is the media, are "genetic theory" by the dictates.

Even if the rich and rich Suning, in the hope that the offline retail advantage to the online, also was hit by a wall-last August, the electric business War, Liu on Weibo on the micro-Bo Sun "dozen Suning headquarters" scene photos, and put words in with the shareholders meeting said to spend a lot of cash to play suning, shareholders encouraged him, said "we have nothing but money, You can fight it, hit the dead! ”

In the more than 20 years of electrical expansion in the history of retail sales, Jindong I am afraid never heard of him and Su Ning "to die in the fight" of Hao, even the heyday of Huang Guangyu did not dare to despise him, but was small his 10-year-old Liu underestimated.

Even if you go back to a market that relies on performance, suning easy to buy 2011, 2012 consecutive two years did not reach the established sales target, in the case of huge sums of blood transfusion, has not been able to enter the Chinese industry's first three camp (Iris data), which officially announced the transition line under the multi-channel integration of the Suningyun business will inevitably be weak.

Acquisition, is to catch up with competitors, expand market share of the fast channel, suning 2012 66 million U.S. dollars to acquire the mother and child category of Electronic Business website Red Children. In addition, Suning also played a curve to save the nation's idea.

After all, the focus of E-commerce, while in "business", however, "electronic" is a metaphysical category, even if the main business with the Suningyun, the acquisition can still be pushed to the Suningyun because of the internet to help the trader, especially those who are in the desperate to sell the mentality of the internet companies.

When the PPS was bought by Baidu for 370 million dollars this summer, it has been living in unease with the pplive of its market size, with PPLive's big shareholder SoftBank as the source of anxiety. 35% of the soft silver is anxious to leave from PPLive, and PPLive until 2012 is still in the bank loans borrowed 200 million yuan of funds, not only in the foreseeable future, the profit structure of copyright amortization is also not conducive to supporting long-term revenue model.

must overlap with accidental factors, finally contributed to the Suningyun PPLive City, the former is almost in holding the horn separated chanting words, 1.1 points of add weights, decoy open the gate, until this weight to 400 million dollars-this is a number over PPS committed Baidu, PPLive self-esteem is met, The tense atmosphere of tension has suddenly become a teaser for the Phoenix.

However, the meaning of pplive for Suningyun business, is not simply the Internet gene oral capsules, but also a GM catalyst, under the Suningyun business model transformation of "three products" in one, that is, "content products", the value of three:

1, the digital cultural map fill the value: compared to physical goods, digital category (online video, music, film) the amount of goods although there is insufficient, but the latter has a very low marginal cost, completely do not consume inventory, do not rely on the characteristics of logistics so that Suningyun in the "cloud" concept to find a way to landing.

As early as 2008, Wal-Mart began its own digital music store, and in 2010 bought a video-on-demand start-up, Vudu, to allow Wal-Mart members to complete the consumer behavior of digital goods in Wal-Mart stores, including online sites. As a result, pplive, which occupies the advantage of copyright purchase and reserve, is also regarded by Suningyun as a key to expand the commodity category and build the consumer demand library.

2, Intelligent TV Entry card value: There are rumors, there are more than color TV hardware manufacturers are willing to work with channel resources Suningyun to jointly develop smart TV, but in the content costs of negotiations deadlock-most intelligent television (including box products), are open ecological, Through the access to Third-party film and television applications to complete the content coverage, for small and medium enterprises, this may not be anything, but nearly the Suningyun of the market value of hundreds of billions of people do not want to occupy the hardware, channels, the real contact with the user's content area.

Le view mode is the route of Suningyun business, by a powerful online content library as the front-end user access to information, and then take out the smart TV to enter the living room from the back end, to continue the independent content of the ecosystem, take all hardware and content sales of the integrity of the benefits. PPLive's PC experience can be translated into the user's living room, it will bring great competition for Suningyun Smart TV, so Suningyun vice chairman Weimin said, "Video companies, we are most interested in mergers and acquisitions, we think is the most valuable." ”

3, cheap flow Import Replacement value: 2012, Suning easy to buy in the fourth quarter of the income than the two or three quarter plus higher, this is the original in the electric business after the war in order to make up for the gap and a large number of promotional, procurement flow effects. After acquiring PPLive, the flow from PPLive can reduce the unit financial expenditure and improve the promotion efficiency of Suning's easy purchase.

This idea, in fact, with Alibaba investment Sina Micro Bo is consistent, now, Sina Weibo advertising window is basically Taobao and day cat merchandise occupation, in the face of Low-cost flow platform, even Ali can not control the "for me to use" the desire, not to mention Suning easy to buy?

The risk of GM lies in the control and operation of the acquired assets, PPLive CEO Tao is the personality of the people, once pplive really be included in the Suningyun, his escape a few become inevitable, there have been media reports red children in the Suningyun merged into Suning easy to buy, bring daily sales halved the bad effect, This is the Suningyun business needs to face up to the first issue.

The merger and restructuring of Internet products as a lightweight asset is a big difference from the traditional industry, which is also being bought by Google, where Android and YouTube are vastly different ways of being treated, the former deeply integrated into Google's brand and business, while maintaining a relatively independent and independent development, The root cause of this discrepancy is still to be attributed to the starting point of the enterprise itself. As for PPLive's acquisition, Suningyun believes it is a relief to the end, or a pressure to multiply the starting point, is vital.

It is worth mentioning that Jingdong Mall in 2012 at the end of the cooperation with the music, in Jingdong Mall opened a "video shopping" zone, citing music video resources, at the same time implanted in Beijing-East homemade shopping guide video. Nearly a year ago, jingdong "video purchase" has always been tepid, Jingdong also put it in the "feature column" of the level two menu, did not take out to give a higher degree of entrance.

This to the Suningyun business, is a lesson, than Jingdong more willing to hit the money, not call the good, the Jing Dong did not do the thing dry became, just called the good.