Wen Chengzhen, Suning Tesco's acquisition of the red child finally settled.
On the afternoon of September 25th, Sun Weimin, vice chairman of Suning Appliance, announced that he had purchased Red Child for US$66 million. At this point, Suning Tesco spent about 400 million yuan to include Redbaby.
In the past, during the eight years of development, the war between investors and entrepreneurs has never stopped, and the end result is that entrepreneurs have successively withdrew, and VC has suffered heavy injuries. This merger case is also worth A typical example of separating entrepreneurs from investors.
"When mature VCs and immature entrepreneurs meet, they become dead when they don't invest in an entrepreneur. After VC, they don't know when they can taste cooked ducks." This sentence from Red Kid CEO Xu Peixin explains it. The reason for the 8 year war of the Red Children.
Hematopoietic capabilities and profitability are the essence of the company. In the past eight years, the red children have been filled with shocks and changes, bloodshed and sacrifices. Since then, their fate has been dominated by Suning.
Red Children sell for $66 million
On the afternoon of September 24th, Li Bin, executive vice president of Suning's Tesco, said on Weibo that “Dust has settled and tomorrow is destined to shock the e-commerce industry. It is a major event for the industry and a major event for consumers. E-commerce is a big deal."
The market speculated that Suning's successful acquisition of red children was not unreasonable. On September 25, Sun Weimin, vice chairman of Suning Appliance announced this afternoon that Suning Tesco spent US$66 million on the acquisition of Maternal and Child Products, a long-standing Red Kid Company.
Li Bin said that after the acquisition of the red child will achieve full integration, Suning Tesco will set up a special Red Kids Channel, red children can share Suning Tesco's national logistics system, but the two sides will remain relatively independent in terms of operations.
For the reasons for choosing children in the red, Sun Weimin said: "Red children have formed a comprehensive and full integration in the professional vertical website, and at the same time formed a sales approach and sales philosophy for the maternal and child market. In addition, this M & A is also based on the same retail background and sales philosophy.
According to statistics from iResearch, the transaction volume of China's mother-infant online shopping market in the first half of 2012 exceeded RMB 20 billion, and it has completed 2/3 of the total market transaction volume in 2011. It is expected that the market will maintain rapid growth in the second half of the year and will increase 86.0% in the year to reach 61 billion yuan, accounting for approximately 4.3% of China's overall online shopping market.
The red child is the old wave of the mother and baby market. Red Baby Maternal and Child Products has established multiple platforms such as B2C websites, call service centers, community websites, and special channel alliances, as well as branch offices in 9 provinces and cities and more than 3 million users.
From this perspective, red children have great potential for development in the maternal and child market. After the acquisition, Red Child continues to operate independently as an independent company brand and maintains an independent domain name. Only in the logistics system, Suning's e-commerce and Red Kids are integrated, and the purchase and operation of products are independent.
Obviously, in addition to integrating the logistics system, Red Kids still operates independently. As a veteran e-commerce provider in the maternal and infant market, why is Suning eCommerce committed when there is a good prospect in the maternal and child market?
According to public information, Red Children has carried out multiple rounds of financing in the past eight years, accumulatively exceeding US$120 million. At the same time, some media claimed that in addition to the funds disclosed on the books, the Red Kid Founding Team also privately borrowed 90 million from shareholders. Dollars. This also means that investors have already laid nearly $200 million in red children.
At the transaction price of $66 million, the red children were obviously sold off.
Eight Years of Bloodshed and War
The outcome of the $66 million sale of the Red Kid reflects the eight-year war between entrepreneurs and investors, and the war ended with the bloodshed of both parties.
"Red Kid's funding chain is broken, and the shot is helpless, investors have not seen the return, they do not want to go inside to burn money." Well-known IT commentator Ding Dao told the 21st Century Network.
The full name of the red child is Beijing Red Kids Interconnection Technology Co., Ltd. In March 2004, Red Kid Company was officially established in Beijing.
At first, the registered capital of Red Children was RMB 2 million: Xu Peixin and Guo Tao each contributed RMB 400,000; Li Yang and Yang Tao each invested RMB 600,000. The shares held by four people in Red Kid Company are limited to their respective capital contributions.
Since its establishment in 2004, Red Child has conducted a total of six rounds of open and closed financing. The six financings were mainly completed by investment agencies such as Aurora Borealis, NEA, and Triumph Ventures, with a total financing amount of US$120 million.
However, in the process, the entrepreneurs left one after another. In 2007, Guo Tao left for another business opportunity. In 2008, Li Yang was expelled from the red child by VC. In January 2011, Yang Tao, Executive General Manager of Red Children, left the company on a "long-term vacation." The only one founder and CEO, Xu Peixin, was considered by the Red Kid insiders as having faded out the management of the Red Kid.
In the turmoil, the red children's performance turned bad. According to public information, in 2008, Red Children's sales revenue was nearly 1 billion yuan. In 2009 and 2010, the revenue was about 1.5 billion yuan. However, the Red Child stopped growing in 2011 and its income was also 1.5 billion yuan. In 2012, it was a loss.
According to the “2011 China B2C Online Retailer TOP3O†published by iResearch, in 2011, Suning’s e-commerce transaction volume was 5.9 billion, ranking 4th; Red Child’s transaction volume was 1.5 billion, ranking 11th.
In addition to leading the negative growth of China New Egg Network, Red Child is the only zero-growth e-commerce B2C platform on this list.
At the same time, the competition faced by Red Kids is also becoming increasingly fierce. Dangdang.com, Jingdong Mall, and Taobao are all rivals of the Red Sea. These large platforms manage the mother and baby as an important category and continue to occupy the red child's market share.
Dangdang.com established the Baby Products Division in 2011. In November 2011, sales reached 30 million, and the growth rate exceeded 300%, which also surpassed that of red children. Its monthly trading volume in 2012 climbed to 100 million, and the growth rate remained at 300%.
In May 2010, Jingdong Mall was involved in the maternal and infant business. In 2012, Jingdong announced that its mother-baby channel sales exceeded 100 million yuan in March, becoming the first mother-baby B2C industry in China.
The next thing is to Suning Tesco, the new owner of the red child. In the eight years of the growth of the Red Child, Xu Peixin has been deeply impressed by the collisions and changes of entrepreneurs and investors, bloodshed and sacrifice.
“When mature VCs and immature entrepreneurs meet, they become die-off entrepreneurs. VCs do not know when they can taste cooked ducks.†Xu Peixin’s presentation in a media interview in early 2012 was bleak but again penetrating.
“Regardless of VCs and entrepreneurs, the trend of passers-by knows that everybody tends to be rational and return to the essence. Hematopoietic capacity and profitability are the essence of the enterprise. The entire market tends to be more rational and normative, large and small or will Reshuffling, everything is possible.†This is Xu Peixin’s wisdom.
And this time the red child has committed to Suning Tesco, whether its eight-year dream can become a reality still needs to wait and see.
On the afternoon of September 25th, Sun Weimin, vice chairman of Suning Appliance, announced that he had purchased Red Child for US$66 million. At this point, Suning Tesco spent about 400 million yuan to include Redbaby.
In the past, during the eight years of development, the war between investors and entrepreneurs has never stopped, and the end result is that entrepreneurs have successively withdrew, and VC has suffered heavy injuries. This merger case is also worth A typical example of separating entrepreneurs from investors.
"When mature VCs and immature entrepreneurs meet, they become dead when they don't invest in an entrepreneur. After VC, they don't know when they can taste cooked ducks." This sentence from Red Kid CEO Xu Peixin explains it. The reason for the 8 year war of the Red Children.
Hematopoietic capabilities and profitability are the essence of the company. In the past eight years, the red children have been filled with shocks and changes, bloodshed and sacrifices. Since then, their fate has been dominated by Suning.
Red Children sell for $66 million
On the afternoon of September 24th, Li Bin, executive vice president of Suning's Tesco, said on Weibo that “Dust has settled and tomorrow is destined to shock the e-commerce industry. It is a major event for the industry and a major event for consumers. E-commerce is a big deal."
The market speculated that Suning's successful acquisition of red children was not unreasonable. On September 25, Sun Weimin, vice chairman of Suning Appliance announced this afternoon that Suning Tesco spent US$66 million on the acquisition of Maternal and Child Products, a long-standing Red Kid Company.
Li Bin said that after the acquisition of the red child will achieve full integration, Suning Tesco will set up a special Red Kids Channel, red children can share Suning Tesco's national logistics system, but the two sides will remain relatively independent in terms of operations.
For the reasons for choosing children in the red, Sun Weimin said: "Red children have formed a comprehensive and full integration in the professional vertical website, and at the same time formed a sales approach and sales philosophy for the maternal and child market. In addition, this M & A is also based on the same retail background and sales philosophy.
According to statistics from iResearch, the transaction volume of China's mother-infant online shopping market in the first half of 2012 exceeded RMB 20 billion, and it has completed 2/3 of the total market transaction volume in 2011. It is expected that the market will maintain rapid growth in the second half of the year and will increase 86.0% in the year to reach 61 billion yuan, accounting for approximately 4.3% of China's overall online shopping market.
The red child is the old wave of the mother and baby market. Red Baby Maternal and Child Products has established multiple platforms such as B2C websites, call service centers, community websites, and special channel alliances, as well as branch offices in 9 provinces and cities and more than 3 million users.
From this perspective, red children have great potential for development in the maternal and child market. After the acquisition, Red Child continues to operate independently as an independent company brand and maintains an independent domain name. Only in the logistics system, Suning's e-commerce and Red Kids are integrated, and the purchase and operation of products are independent.
Obviously, in addition to integrating the logistics system, Red Kids still operates independently. As a veteran e-commerce provider in the maternal and infant market, why is Suning eCommerce committed when there is a good prospect in the maternal and child market?
According to public information, Red Children has carried out multiple rounds of financing in the past eight years, accumulatively exceeding US$120 million. At the same time, some media claimed that in addition to the funds disclosed on the books, the Red Kid Founding Team also privately borrowed 90 million from shareholders. Dollars. This also means that investors have already laid nearly $200 million in red children.
At the transaction price of $66 million, the red children were obviously sold off.
Eight Years of Bloodshed and War
The outcome of the $66 million sale of the Red Kid reflects the eight-year war between entrepreneurs and investors, and the war ended with the bloodshed of both parties.
"Red Kid's funding chain is broken, and the shot is helpless, investors have not seen the return, they do not want to go inside to burn money." Well-known IT commentator Ding Dao told the 21st Century Network.
The full name of the red child is Beijing Red Kids Interconnection Technology Co., Ltd. In March 2004, Red Kid Company was officially established in Beijing.
At first, the registered capital of Red Children was RMB 2 million: Xu Peixin and Guo Tao each contributed RMB 400,000; Li Yang and Yang Tao each invested RMB 600,000. The shares held by four people in Red Kid Company are limited to their respective capital contributions.
Since its establishment in 2004, Red Child has conducted a total of six rounds of open and closed financing. The six financings were mainly completed by investment agencies such as Aurora Borealis, NEA, and Triumph Ventures, with a total financing amount of US$120 million.
However, in the process, the entrepreneurs left one after another. In 2007, Guo Tao left for another business opportunity. In 2008, Li Yang was expelled from the red child by VC. In January 2011, Yang Tao, Executive General Manager of Red Children, left the company on a "long-term vacation." The only one founder and CEO, Xu Peixin, was considered by the Red Kid insiders as having faded out the management of the Red Kid.
In the turmoil, the red children's performance turned bad. According to public information, in 2008, Red Children's sales revenue was nearly 1 billion yuan. In 2009 and 2010, the revenue was about 1.5 billion yuan. However, the Red Child stopped growing in 2011 and its income was also 1.5 billion yuan. In 2012, it was a loss.
According to the “2011 China B2C Online Retailer TOP3O†published by iResearch, in 2011, Suning’s e-commerce transaction volume was 5.9 billion, ranking 4th; Red Child’s transaction volume was 1.5 billion, ranking 11th.
In addition to leading the negative growth of China New Egg Network, Red Child is the only zero-growth e-commerce B2C platform on this list.
At the same time, the competition faced by Red Kids is also becoming increasingly fierce. Dangdang.com, Jingdong Mall, and Taobao are all rivals of the Red Sea. These large platforms manage the mother and baby as an important category and continue to occupy the red child's market share.
Dangdang.com established the Baby Products Division in 2011. In November 2011, sales reached 30 million, and the growth rate exceeded 300%, which also surpassed that of red children. Its monthly trading volume in 2012 climbed to 100 million, and the growth rate remained at 300%.
In May 2010, Jingdong Mall was involved in the maternal and infant business. In 2012, Jingdong announced that its mother-baby channel sales exceeded 100 million yuan in March, becoming the first mother-baby B2C industry in China.
The next thing is to Suning Tesco, the new owner of the red child. In the eight years of the growth of the Red Child, Xu Peixin has been deeply impressed by the collisions and changes of entrepreneurs and investors, bloodshed and sacrifice.
“When mature VCs and immature entrepreneurs meet, they become die-off entrepreneurs. VCs do not know when they can taste cooked ducks.†Xu Peixin’s presentation in a media interview in early 2012 was bleak but again penetrating.
“Regardless of VCs and entrepreneurs, the trend of passers-by knows that everybody tends to be rational and return to the essence. Hematopoietic capacity and profitability are the essence of the enterprise. The entire market tends to be more rational and normative, large and small or will Reshuffling, everything is possible.†This is Xu Peixin’s wisdom.
And this time the red child has committed to Suning Tesco, whether its eight-year dream can become a reality still needs to wait and see.
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