The integration of the home distribution industry has just begun

On February 12, 2014, Red Star Macalline officially confirmed that it will acquire wholly-owned Jisheng Weibang, which ranks third in the industry. The relevant person in charge of Red Star Macalline said that the acquisition was based on long-term strategic development considerations. It is reported that after the completion of the acquisition, Red Star Macalline will continue to retain the "Jisheng Weibang" brand. At the same time, the management of Jisheng Weibang will be localized and the original team and talents will be retained. Some media reported that the capital of the acquisition will exceed 2 billion yuan. However, the payment details have not been disclosed.

Although Red Star Macalline and Jisheng Weibang reported the “gossip” of the marriage as early as 2009, they have not been confirmed by both parties, but the media quoted insiders, and they were “under negotiation” at the time. After the Spring Festival this year, the news was like a bombshell, causing a stir in the industry.

There are three reasons why this acquisition caused such a sensation. First, the long-rumored rumors have finally been confirmed. This deal that became so popular in 2009 has finally become a reality. Second, the transaction The influence of both parties in the industry is huge. Red Star Macalline and Jisheng Weibang ranked first and third respectively in the home circulation industry; third, the transaction occurred against the background of the impact of the Internet on home circulation, especially last year ’s Double 11 During this period, there was an incident in which the home industry boycotted Tmall. In the author's opinion, among the above three reasons, the latter two reasons are more important.

During the Double 11 period last year, due to dissatisfaction with Tmall's practice of directly brushing transaction payments onto Alipay, 19 home stores jointly signed the "Opinions on Regulating E-Commerce Work" when the media exposed the chairman of Red Star Macalline Che Jianxin ’s WeChat screenshot, which reads, “It is strictly forbidden for any merchant to distribute or promote other e-commerce online“ Double 11 ”activities in the store in any form; strictly investigate and punish merchants using Tmall POS machines for online sales; strictly prohibit merchants For the delivery and installation of factory orders on other e-commerce lines. " At that time, new requirements for car construction were carried out, and the national stores were thoroughly investigated. Jisheng Weibang also participated in the boycott.

In fact, as far as the current situation is concerned, the impact of e-commerce represented by Tmall on the traditional home distribution industry is not that great, but the industry has smelled a wolfish taste, because in recent years e-commerce has performed in other industries If the home distribution industry is a little careless, it is likely to face a huge impact. Therefore, the author believes that the merger of Red Star and Jisheng Weibang may be a response to this impact.

As the leading brand in China's household distribution industry, Red Star Macalline has opened 124 malls in more than 90 cities nationwide since its establishment in 1986. Jisheng Weibang ranks third in the industry in terms of influence, second only to Red Star Macalline and Actual House. It has opened 6 chain stores in Shanghai, Jilin Changchun, Guangdong, Guangzhou and other places. Its "international furniture village" has gathered 1,000 More than domestic and foreign home furnishing brands. Because of its high-end positioning, Jisheng Weibang is almost the first-tier brand in the home furnishing industry and has a good reputation in the industry. The alliance between the two giants is the reintegration of their respective superior resources. After joining forces, they can complement each other and occupy different market segments, so that the concentration of the home distribution industry is rapidly increasing.

It is foreseeable that the integration of the home distribution industry has just begun. To resist the impetus from e-commerce and logistics companies, the integration among giants in the industry will continue.

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