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Suning 4.8 billion acquisition of 80% shares of Carrefour China, a new round of retail war

Original title: Suning's 4.8 billion acquisition of Carrefour China and Tencent Ali launched the "FMCG" field

Suning Tesco announced today that Suning international, a wholly-owned subsidiary of the company, plans to invest 4.8 billion yuan to acquire 80% of Carrefour China.

This is following the acquisition of Wanda Department store at the beginning of the year. Recently, Suning Tesco launched another attack on offline high-quality retail resources.

In November 2017, Alibaba announced that it had invested about US $2.88 billion to acquire 36.16% of the shares of Gaoxin retail, the parent company of RT mart, and its previous participation in Lianhua supermarket.

In June 2018, Tencent announced its deep strategic cooperation with Wal Mart China. Today, Suning Tesco acquired Carrefour China, which shows that Internet giants are laying out FMCG retail.

Who has better two-line integrated operation ability is the key for the three Internet giants of cat, lion and goose to win the Internet scene. According to the analysis, Suning's acquisition of Carrefour China shows its determination and ambition to develop the FMCG category.

Suning, which has been laying out o2o smart retail, has great advantages in scene interconnection. Winning Carrefour China can promote the development of its whole scene and category and make up for its shortcomings in the FMCG field.

From the perspective of the industry, Tencent, Ali and Suning will lead the three countries of FMCG, which will also usher in a new round of race and reshuffle in the domestic FMCG field and even the whole retail market.

Take Carrefour China, Suning FMCG 'triple jump'

It is reported that in recent years, it has continuously increased its layout in the field of retail FMCG: five years ago, the online FMCG platform 'Suning supermarket' was established; Three years ago, the first Suning store opened; In 2017, the first Su Xiansheng boutique supermarket opened. Suning FMCG's' latecomers' development speed has impressed the industry.

Especially since 2018, the construction of Suning FMCG supply chain has been further accelerated, and offline scenes have begun to break out. In 2018 alone, more than 4000 Suning stores have been added;

At the beginning of 2019, Suning added weight again and announced the establishment of FMCG group, integrating unified functions such as commodity planning, supply chain management, double line operation, market and service to further intensify. In the past 618, Suning Tesco's Omni channel orders increased by 133% year-on-year, of which the large FMCG orders increased by 245% year-on-year.

Unlike traditional supermarkets and traditional e-commerce online and offline, Suning FMCG relies on Suning's overall smart retail strategy, and o2o integration is its inherent gene.

Online, it gathers the main station of Suning Tesco, 'Suning supermarket', 'Suning shopping', 'red child' entrance, Suning store independent app, etc., forming a systematic online traffic entrance matrix; Offline, it integrates Suning small store, Su Xiansheng, Suning red children, Suning retail cloud and other formats to improve service experience and ensure user stickiness through the layout of scenarios. At the same time, it takes advantage of the irreplaceable nature of physical stores to greatly reduce the fulfillment cost and improve the efficiency of FMCG supply chain.

Suning's acquisition of Carrefour China and its overall integration of 210 large comprehensive supermarkets, 6 storage and distribution centers and 30 million members covering 51 cities will be another force of Suning FMCG group army.

In combination with Suning's small stores that Suning is making every effort to build, there are now more than 6000 stores, covering 70 cities and more than 35000 communities, serving more than 120 million consumers. The integration with Carrefour may lead to chemical reaction, improve the last kilometer distribution network, improve the efficiency of the home mode and save logistics costs, so as to realize the supply chain, scenario Operation capability 'triple jump'.

Supply chain is the key to smart FMCG

The core competence of retail is the integration ability of commodity supply chain, which is particularly important for FMCG.

In order to speed up the construction of its own supply chain, Suning FMCG will buy online Suning supermarket and Suning, integrate the supply chain of offline Su Xiansheng, Suning store and Suning red children, and establish a smart FMCG system of multi-channel integration, localized online shopping and social brand marketing;

In order to ensure quality and price advantages, Suning has formulated a systematic strategy of direct purchase of origin to open up global supply chain channels, especially fresh supply chain channels, through overseas direct purchase and domestic distribution.

For example, in March, Suning FMCG signed a strategic agreement of 300 million yuan a year with Jingzhou, Hubei Province to establish a 4000 mu crayfish base; In April, Suning FMCG went to Thailand and contracted 20 million coconut greens, 20 million durians and 20 million kg of mangosteen.

Up to now, Suning has more than 100 direct mining bases overseas, with buyer teams in 147 countries and regions around the world, covering many categories such as fruits and vegetables, seafood and aquatic products.

On the other hand, in 2019, Suning FMCG continued to cooperate with FMCG giants at home and abroad. Unilever, Yili, Nestle, Maotai, Coca Cola and three squirrels quickly strengthened the supply chain through strategic signing.

Taking 618 as an example, the data show that in just 12 hours since June 18, online Suning supermarkets and offline Suning stores have sold 2.3 million cans of coke called 'fat house happy water'.

Acquisition has also become an important way for Suning FMCG to supplement the supply chain. Through the absorption of mature subjects, Suning FMCG can realize the rapid fission of supply chain and users, as well as the rapid absorption of operation experience.

In April 2018, Suning announced the acquisition of dia China, incorporated more than 300 stores and more than 2 million members of dia China, and realized the intensive layout of more than 500 stores in a single city in Shanghai.

Now it has bought Carrefour China again, and Suning FMCG has added 'recruits' and' veterans'.

Carrefour China entered the Chinese mainland market in 1995, and is the leading brand in the fast moving products industry. It has strong supply chain capability, rich offline operation experience and high brand awareness.

Suning's acquisition of Carrefour China can combine the latter's mature operation experience and professional procurement ability with Suning's full scene retail model, three-dimensional logistics distribution network and technical means to improve Suning's o2o layout in the FMCG category.

In addition, with the acquisition of Wanda Department Store in the first half of the year, the full product capacity of Suning's home appliances, consumer electronics, FMCG and department stores may be realized quickly to enhance market competitiveness.

Some analysts said that from the perspective of transaction price, Suning's acquisition is very cost-effective. Carrefour China has 210 hypermarkets in China, with a revenue of nearly 30 billion yuan last year, accounting for about 12% of Suning Tesco's operating revenue in 2018.

After the acquisition, it can be predicted that the sales scale of Suning Tesco will be improved. At the same time, Carrefour China holds a large number of high-quality property resources in the first and second tier cities, which plays a good role in ensuring the operation stability and controlling the cost of Suning.

In addition, Carrefour has nearly 30 million high-frequency consumption members, which can improve the existing membership ecology of Suning and improve user stickiness.

A survey shows that in 2018, China's total consumption of FMCG continued the rebound trend of the previous year, with a growth rate of 5.2%, but the growth of e-commerce penetration hit the ceiling for the first time, and the growth slowed to 30.6%. At the same time, offline retail integrating online technology began to turn for the better. Ali has arranged Gaoxin retail and Yintai, and HEMA fresh has been upgraded to an independent business group. It can be seen that the intelligent FMCG integrated online and offline has become an industry trend.

In March this year, Bian Nong, President of Suning FMCG group, defined 2019 as: "through the layout of the whole year in 2018, Suning has laid a complete power track for smart FMCG. This year will be the time for wisdom FMCG to make a full sprint. "

In recent years, it has become an indisputable fact that online traffic has peaked, and offline has returned to the focus. As a core consumer category with high frequency and high viscosity online and offline, FMCG has become a blue ocean for giants. Whoever catches the high viscous consumption will catch the users. It is inevitable that high-frequency band, low-frequency band, FMCG band, durable products and services.

To some extent, Suning FMCG has made vigorous layout in the past two years, and now it has won the FMCG giant Carrefour China again, with great ambition