After the retail beach fight entered the white-hot phase and after the announcement took over the seaborne house, ali baba (ali) announced that he had joined the house。
On 11 february, together with ali, the house announced a new strategic collaboration on retail sales: ali and the associated investment direction invested $5,453 million in the home, holding 15 per cent of its shares. At the same time, in addition to ali, the family has received joint investment of up to $13 billion from 16 investment institutions, including redwood capital, nine dixies, and boco capital, the country's first single billion-dollar strategic financing partnership in 2018。
Ali, for its part, disclosed to the economic watch network journalists that, according to the agreement, he would assist in the overall digital upgrading of the shop, based on a system of digitization of membership and the digitization of goods by both sides, with a view to re-engineering and upgrading the experience of consumers in choosing building materials, buying furniture. At the same time, the parties will work together to create a cloud-refurbishment platform to re-engineer the business model from the design of the renovation, the purchase of materials and the management of the construction of the entire chain。
Home board competition
From an industry point of view, there is a large market for home-based clothing and there is considerable room for integration on and off-line。
According to data from the national statistics institute, sales of commercial houses fell in 2014 as well as in the area under sale. In 2015, the market was just in need, with sales of commercial houses growing by 14. 4 per cent over the same period, with a 6. 5 per cent increase in the area under sale and a 63. 5 per cent increase in the number of second-hand houses in 10 major cities of china. New houses and second-hand houses have just been sold, leading to an increase in the market for renovations。
Statistics from the china research centre for electronic commerce show that online sales in the home sector were 70 billion yuan in 2013, and that the country-wide share of electricity traders was 1197. 7 billion yuan in 2014 and around 200 billion yuan by 2015。
According to the analysys easy-to-see analysis, in 2016, the overall market for domestic clothing in china rose steadily, the volume of new and retrofitted housing will continue to grow, and internet domestic clothing will continue to pervade, with the internet accounting for about 10 per cent of the total domestic clothing market in 2016. According to the china architectural and decoration association, in 2015 alone, the domestic market for construction materials reached 4. 2 trillion yuan, and in 2016, according to the above-mentioned meta-analysis algorithm, the domestic internet market was nearly 400 billion yuan。
Behind the large market is a myriad of problems. The industry believes that the industrial chain of the home-based garment market is long and that the home-based clothing and the home-based soft-decorative layers are marketed with less transparency. At the same time, local services, such as renovation companies, designers and construction teams, are uneven and the construction process lacks industry standards and regulation, leading to a generally inefficient home-based clothing market. Problems have resulted in the current state of industry not meeting market demand. This gives the giant online a chance。
The other side of the market is that ali faces strong competition in kyoto. In march last year, the xinli army, vice-president of the gyeongdong group and president of the home economics department of gyeongdong business city, publicly stated that the internet had arrived and that kyeongdong would become the first home-based retailing channel under the line in five years. “the supply chain, online traffic, etc., are our strengths.” at that time, the sla told journalists so。
On the other side, ali maintains a market advantage. The cbndata (first financial and commercial data centre) report on consumption trends in household suits, 2016, released in 2015, shows that in the face of a marked slowdown in the growth of the down-line industry, the skycats are home-filled in a high market of hundreds of millions, maintaining high growth for five consecutive years. Of these, the annual compound growth rate for the design category of renovations was as high as 534 per cent, and in 2015 it was approximately 1619 times the size of 2011. At the same time, using internet players as an example, skycats already account for nearly 80 per cent of the market。
“we have not only early entry, but also ecological advantages, at least i don't see the possibility of over-cars.” in april last year, the general manager of skycat's costume said to the press in winter。
This time, the head of the stock-taking industry, ali, injected a strong needle into the home-based garment industry. According to ali data, by the end of 2017, 223 shops had been opened in the country, with sales exceeding $60 billion。
Investment logic
The greater point of view of ali's share in the house this time lies in the investment logic of ali's retail block。
According to ali, with strategic investments coming to an end, this means that the new retail eight-way layout is in the preliminary stages。
In an internal speech, ali ceo zhang yong revealed that ali had formed a new, market-wide, retailing army, with its original treasures, with its entire market and its entire economy's resources: brand shops, which operated in an integrated manner, including the skycat and the line; the department of shopping experience and shopping retail business, which had been built with silver twigs; the digital power force from urban to rural, which had worked with sunin; the army of food fast-moving, which was represented by box horses and large-eating, including a combination with the skycat supermarket; the army of unique consumer experiences, driven by technology, data and the resources of the economy as a whole; the village that was able to access urban and rural supply chains and consumption chains; the mini-shops that had been transformed into internet-enable smart shops; and the family economy, which was now being built by building on the 8th avenue home-based landscape。
According to ali, the formation of a new retail eight-way column will lead to a convergence of points and lines, bringing together the overall upgrading of urban business infrastructure。
With regard to ari's investments, csi believes that ari is an active participant in the restructuring of physical retailing and the creation of a full-source commercial empire based on his on-line commercial endowment. “ari's core business is that of the electrician, who earns 85 per cent of its revenue in the financial year 2017. With its full business infrastructure covering retail, trade, data and logistics, ali has a high shareholding in the new retail sector and is deeply involved in business management, based on its strong commercial advantage. It's not the same
Investment in ali's retail segments is more strategic in terms of a centralized distribution business system, a remodelling and a closed circle。
Zhang yong has also publicly stated that ali wants to foster a new business model that will help retail partners to digitize and restructure their businesses. Zhang ma's team went to sanjiang's shop, kosheng's retail sales; their cooperation with the central mall was based on gin tae-tae, whose joint-venture subsidiary held 71 per cent of the shares; and ali baba ceo zhang yong and vice-president chen joon, who served on january 30, respectively, as chairman and non-executive director of the goshu retail board。
As a result, the national letter analyst believes that, in the future, ali will be a retailer or will share data, resources and be managed by ali in an integrated manner to form an ali-centred system。
Even the distribution of retail boards has contributed, to a certain extent, to the acceleration of the underground distribution of ali. “it seems as if the quest was being sold under the line of entry, but to some extent it was also a defence against the scene of the fall of the ali frequency harvest line, which did not necessarily follow.” this is the way in which people in the industry analyse journalists from the economic watch network。
