What's wrong with me being a rich man?

Chapter 196 Situation Analysis

JD.com is developing very fast. Now that it has entered the fourth quarter of 2009, industry estimates show that its annual revenue is expected to exceed 40 billion.

This is more than three times the 13 billion last year, which is amazing!

However, despite its rapid growth rate, Suning and Gome, which have successively topped the domestic electrical appliance chain list, are still much larger than it.

Suning's annual revenue this year is expected to be close to 600 billion, and Gome will still have no problem getting at least 400 billion in revenue despite problems with its internal management.

The revenue of either company is more than ten times that of JD.com.

So, Yixun.com suddenly popped up...

Compared with the tricky Suning and Gome, JD.com felt that there was no problem in using this small shrimp as a sacrifice.

However, the appearance of penguins immediately attracted attention.

Not only did JD.com's top management re-examine Yixun.com, a new player, but Xu Xin of Today Capital also led a team to Beijing.

The first thing that needs to be confirmed is the authenticity of the news. Has Penguin really invested in Yixun.com or is it just a smokescreen?
Liu Qiangdong asked Xu Xin in person. After all, he had never heard of any contact between the two before, and he didn't pay much attention to Yixun.com. However, this company was established in Shanghai, so perhaps Xu Xin might know more about it.

"I don't know if this news is true or not," Xu Xin said honestly. "What I can be sure of is that Yixun.com has not received any financing since its establishment in 2006. This move is quite strange."

She added: "It is possible that Yixun.com competed first and then took the money. I asked around in the industry these days. Yixun has approached many venture capital firms, but because of JD.com, they didn't get good results. On the contrary, there was news that Foxconn had raised funds, but it obviously failed. Penguin may be considering its e-commerce layout this time."

Liu Qiangdong couldn't help but say: "Is there anything that penguins can't do?"

He shook his head again and said, "That's why I wanted you to remove Yu Xing's price comparison website. This thing of his is likely to intensify competition."

For the same product, if it is cheaper here and more expensive there, except for a small number of people, everyone will choose the former.

It’s just because of the lack of information that many people don’t know about it.

It’s not that JD.com doesn’t want to compete, but it doesn’t want to engage in intense competition at this stage. It still hopes to further increase its size to avoid being sniped by powerful rivals.

Although the cash flow has improved this year, it is still quite tight due to infrastructure investment. It has not even been a year since JD.com last sought financing. That feeling is too unforgettable for Liu Qiangdong.

Xu Xin frowned: "How can we withdraw? Are you willing to pay for it?"

Liu Qiangdong was silent.

After a while, he shook his head and said, "It would have been better if I had just bought it before."

The price comparison website once made an offer, but it looked like extortion, so it was dropped.

"Price comparison websites were a trigger, but we don't need to think about them now." Xu Xin said calmly, "Suning has certain transformation needs. I don't know if Gome's chaos will be used to divert conflicts. Penguin's investment in Yixun.com is indeed a similar threat, but I don't know how strong it will be. Others like Amazon and Dangdang.com are unlikely to appear. Amazon's domestic team has no autonomy, and Dangdang.com's first goal now is to go public."

The main reason why Amazon China has failed to localize is that the domestic team is not trusted. Without power, they cannot engage in large-scale price wars. In Xu Xin's opinion, Dangdang.com should have carried out the transformation of all product categories earlier, but the couple in this company are relatively conservative, and they will certainly not get involved on the eve of the listing.

Liu Qiangdong nodded, these judgments were consistent.

Xu Xin pondered for a while and talked about his thoughts on the situation: "Penguin is indeed very influential, not only in terms of funding, but also in terms of the traffic it can provide. However, even if Yixun.com gets the traffic from Penguin, it is just a latecomer JD.com. As long as JD.com does not make mistakes, Yixun.com will never catch up."

She judged: "Once such a situation is formed, Penguin will reconsider the positioning of Yixun.com."

Penguin made its fortune through social networking. Its previous platform Paipai.com has already failed. Now it wants to enter the market through investment. How well can it do?
Xu Xin attaches importance to the emergence of Penguin, but is not afraid of its capabilities in e-commerce.

She concluded: "On the contrary, Alibaba's Taobao Mall will definitely be a strong competitor in the future."

Liu Qiangdong asked: "What about Suning and Gome?"

Xu Xin shook her head slightly: "They rely on offline chain stores to succeed, so they cannot abandon their existing interests. I have only one idea: JD.com can withstand the pressure, but JD.com must not make any mistakes."

Liu Qiangdong took a sip of tea, as if he had taken a reassurance pill.

This is not only an analysis of the situation, but also a statement from the investors, which will be converted into usable funds when necessary.

JD.com's last round of life-saving financing was led by Xu Xin. It was she who introduced Liang Botao, her former boss at Peregrine, and also brought in Liang's apprentice Li Xufu. The three companies together gave US$2100 million.

Which Chinese e-commerce company can succeed in the B2C market?
Judging from the attitude of investors alone, a consensus has gradually been reached.

Yixun.com entered the market with the shadow of a penguin, JD.com announced its intention to take on the challenge, and soon after, Suning responded. The marketing director of Suning.com accepted an interview with the media, saying that all home appliances sold at Suning.com must be lower than those sold at JD.com, and that if there were any products that were higher, the price would be adjusted immediately, and the most intense promotion in history would be launched!

Many media reported this news, using the word "Suning".

However, Suning and Suning.com are completely different.

"What a shame. I thought Suning could really fight a resolute price war."

Yu Xing noticed the intentions of "Suning.com" and shared his idea of ​​the price war with Xiaoying with some regret.

If it were Suning, it would be an offline giant. If it were Suning.com, it would just be using price wars to attract small amounts of traffic. It simply wants to develop some e-commerce markets.

"Penguin has joined the battle. Can Yixun.com seize the market? I think it has a chance." Liu Wanying likes to discuss these things. She smiled and said, "You are so disappointed with Suning. You can find an opportunity to verify it with the stock price in the future."

Yu Xing shook his head: "Suning's decline will definitely take a long time. Besides, when we short it, we are still looking for their mistakes and frauds."

Liu Wanying reminded: "Penguin?"

I don’t know who was shouting about creating bad news before.

Yu Xing smiled and said, "Penguin... is different. Hey, we don't have to be so serious when chatting."

He thought for a moment and then said, "As long as there is capital and traffic, e-commerce will definitely develop. However, you either go public, get acquired, or fail. The competition in the domestic market is getting more and more intense. There are only these three options."

"You value Yixun.com only because you see Penguin. If there was no Penguin, who in the industry would invest in Yixun? JD.com already has a huge first-mover advantage."

"So, the future of Yixun.com will definitely depend on Penguin's strategy."

"What will be Penguin's strategy?"

Yu Xing paused here, thinking about the attributes of Penguin, and then thinking about the cooperation between Penguin and JD.com, and shook his head and said: "Yixun.com can only be the second JD.com in e-commerce at best, and the money earned is also hard-earned. How can it be as profitable as Penguin's own business?"

"This is even more obvious when you look at Baidu. It's so easy for them to make money with advertising that other businesses have become a lower priority. Who wants to work so hard when they can make money so easily?"

"Penguin is probably not looking for a share of the e-commerce market, but to continue to expand its influence and radiation range."

"Easylink made some moves because of Penguin, and it is very likely that it will also disappear because of Penguin."

Liu Wanying thought the analysis was quite clear and logical, but she still joked: "Oh, only Boss Yu, who doesn't do e-commerce, understands this. He has a set of ideas and doesn't even need to make a draft."

Yu Xing smiled and said, "I am speaking to you in the name of Guo Shanfeng's partner. Our goal is not the same industry, so let's find more commonalities between different industries."

If the general situation in the industry is like this, and suddenly a company shows obvious differences, that is an abnormal signal, and it is worth going beyond the mountain to explore in depth.

Just as Yu Xing was about to continue the conversation, a call came in on his cell phone.

When he put down the phone, his face looked a little strange: "Xiaoying, you will never guess who called me."

Liu Wanying guessed: "Xu Xin? Liu Qiangdong?"

Yu Xing shook his head: "Bu Guangqi, the boss of Yixun.com, you see, he might really want to hear my opinions..."

Liu Wanying was really surprised.

She became interested and mentioned her identity: "Since I can find you, I want to hear it too. After all, you are the boss of Red Falcon Capital."

So, when e-commerce veteran Bu Guangqi invited Yu Xing to meet him, two people showed up. What surprised Yu Xing and Liu Wanying was that there were even executives from Penguin present.

"Mr. Bu, I'm quite surprised to receive your call. I don't do e-commerce." After greeting, Yu Xing made his qualifications clear.

Bu Guangqi said enthusiastically, "Mr. Yu, don't be modest. I read your judgment and discussion on vertical e-commerce, which is very interesting. There is also a verification of Letao.com, which is also very interesting. I took the liberty to invite you this time because I really want to chat with you."

Yu Xing was smiling at Bu Guangqi, and his eyes unconsciously glanced at the penguin man.

Gu Sibin, one of the persons in charge of Penguin e-commerce.

(End of this chapter)