In the first week after the Spring Festival in 2014, the dust of a merger and acquisition was destined to make the home industry no longer calm-Red Star Macalline, which ranked first in the scale of the home distribution industry, ranked Jisheng Weibang, which ranked third in brand influence Wholly-owned M & A. It is understood that the alleged acquisition of more than 2 billion yuan in mergers and acquisitions will affect the home industry is still unknown, but Red Star Macalline's intention to swallow Jisheng Weibang has triggered three big speculations in the industry. Along with these three big conjectures, the development pattern of the home distribution industry will be more concerned.
Conjecture one: M & A scheme "one big company"
The acquisition of Jisheng Weibang by Red Star Macalline is a typical case of big fish eating small fish.
Red Star Macalline, founded in 1986, can be said to be a well-deserved "boss" in the field of home distribution. According to its official website, as of now, 124 stores have been opened in 90 cities including Beijing, Shanghai, and Tianjin, with estimated sales in 2013 exceeding 60 billion yuan. Founded in 1989, Jisheng Weibang now has only 6 stores across the country, including 3 in Shanghai, 2 in Guangzhou, and 1 in Changchun. Compared with many home furnishing chain brands, it is nothing more than a "small character".
Red Star Macalline authorized the spokesperson Runyan Investment to send a report to the Beijing Business Daily reporter on February 11th that no matter the assets, profit scale or number of stores, this acquisition will not have a significant impact on Red Star Macalline. However, for the purpose of the acquisition, the email stated that it was to "improve the brand concentration of the Chinese home furnishing industry" and "improve Red Star Macalline's" big brand system ". This triggered people's conjecture: Red Star Macalline indirectly eliminated its competitors through mergers and acquisitions, thereby consolidating its position as the "boss" of its industry.
China's home distribution industry has eliminated a large number of brands in more than 20 years of brand competition, such as the local home world sold, the collapse of the Oriental homeland, the withdrawal of foreign home Depot, Leroy Merlin cool support, and B & Q barely maintained. , Red Star Macalline is dominated, and local brands such as Jimei and Chengwaicheng are supplemented by an oligopoly pattern. In business competition, only the largest companies have long-term development opportunities. If Red Star Macalline takes the opportunity of annexing Jisheng Weibang as an opportunity to initiate a merger and acquisition strategy, it will not rule out that it will eat more brands in the future and thus become "a big company."
Conjecture 2: Add weight to the operation of listing
In December 2013, the China Securities Regulatory Commission announced on the official website of the initial public offering (IPO) company audit list and audit process table, Red Star Macalline first entered the list of companies listed on the Shanghai Stock Exchange declared basic information, which means that listing Enter the substantive stage. The time when Red Star Macalline acquired Jisheng Weibang was the crucial moment for it to sprint its IPO. It is speculated that the important purpose of mergers and acquisitions is to strengthen its own plate and add weight to the listing.
Red Star Macalline stated that the acquisition was mainly for the consideration of the long-term strategic development of the group. It is a normal behavior of the company's business and is not directly related to the listing. However, General Manager Xue Jiongwen of Ruixin Zhicheng believes that M & A will help Red Star Macalline increase its market share and bargaining power with consumers and suppliers.
Red Star Macalline's acquisition of Jisheng Weibang began in 2009, but no actual action has been seen. When the IPO door opened again in China at the end of 2013, the thirst for listing once again aroused the great enthusiasm of home furnishing companies, and they all moved closer to the capital market. Red Star Macalline, which has been seeking listing for many years, naturally increased expectations. Dragon is not short of money. Public reports show that Red Star Macalline has received 2.6 billion yuan of investment from Huaping, CITIC and other institutions. With so much money entering Red Star Macalline, they are all looking forward to earning a premium through listing and facing the capital of wide open The door of the market, the progress of the listing of Red Star Macalline will surely speed up.
Conjecture 3: Use the furniture village model to avoid risks
Compared with Xiyingmen, Ouyada, and Jane, which are also home furnishing chain brands, Jisheng Weibang can't be compared in terms of scale. The reason why it is considered to be the third brand influence in the country lies in its unique furniture village model. Red Star Macalline said that after the merger and acquisition, it is necessary to not only add building materials to the "furniture village model and become a direct sales center of the world's home furnishing factories", but also promote the "national layout" of the model. Industry speculation that Red Star Macalline's move is to develop a new model to avoid the risks of the traditional store model.
In Qingpu, Shanghai, Jisheng Weibang ’s “international furniture village†covers an area of ​​450,000 square meters. Each one has a relatively independent space and a display mode combining flagship store and theme pavilion. It feels more experiential. Insiders in the furniture industry revealed that this original model of Jisheng Weibang did not operate well, but was chased by the brand, and Red Star Macalline just lacked this model, forming a differentiation and complementation with the traditional model.
Earlier, Red Star Macalline entered the business field and implemented a new chain of "Aegean Sea" across the country, which was considered by the industry to avoid the risk of a single household format. After this merger and acquisition, the brand of Jisheng Weibang will be retained, and the furniture village model will be carried forward. It is considered to be a new risk avoidance method for Red Star Macalline, not groundless.
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