Camel high-priced mergers and acquisitions Bumblebee rice Amoy brand accelerated integration

September 16, 2020

As the first brand of Taobao Women's Clothing, the development of bugs also encountered the same bottleneck. For big Cs, in addition to the pressure on companies to enter the B2C, they also face the issue of how to build big brands and integrate resources. Most of the Amoy brands originate from grassroots, from 10 million to 100 million, from 100 million to several hundred million, and operate a company with hundreds of people. The challenge to the overall management ability of big C is already great, if we add the brand and Resource integration will be overloaded and difficult.
Recently, the rumors that Taobao's first brand Bumblebee Meeko was acquired at a high price spread in the e-commerce circle. Recently, Wan Jingang, general manager of Guangdong Camel Clothing Co., Ltd., formally confirmed to the media that Zergzi was added to the camel family, and after the integration of the Zerg insects, it maintained its original independent style in product development and design, but it was in operation. And management will be more standardized.

In fact, this phenomenon of big fish eating small fish is not surprising at Taobao. Previously, Han Dui She, Yin Man, and Pipa had previously acquired large or small mergers and acquisitions. "Exporting" has become a hot phenomenon.

The ecological environment of Taobao is changing. After 10 years of development, Taobao quickly became a super carrier, and at the same time, the golden growth of the Amoy brand has long gone. In the face of Taobao Shanghai tactics and rising traffic purchase costs, Amoy brand's profits are getting thinner and thinner, and Amoy brand's accelerated integration and upward development is imperative.

Camel high price merger bug

As the leading brand of outdoor casual wear, the number of traditional camel Camel stores exceeds 3,600, and annual sales exceed RMB 3 billion. Camel officially laid out its e-commerce business in 2008. It took only six months to become the first brand of Taobao's men's and outdoor apparel. At present, the camel has 4 stores on Tmall, and it only reached 215 million in 2012 on a double 11 day.

“We have been looking for a good brand with a story, a soul and a lifetime to build, and finally one day when it appears in front of you, you will be feeling 10 years in fact and soon.” That year, Wan Jingang acquired " "Camel" trademark, when creating a camel brand, so emotion. In his opinion, Taobao women's first brand insects rice no doubt have the same potential.

Insect rice was launched in 2005. In 2009, it became Taobao Women's Store TOP1, and in 2011-2012, it was retired Taobao Women's Store TOP3. According to official data from Taobao, in 2012, the bug's turnover exceeded 260 million yuan, and Bumblebee Meiya only managed to achieve this scale with a team of less than 100 people. The same is true for other e-commerce companies of this size, with fewer operating teams. Hundreds, as many as thousands. At the same time, in the absence of participating in the Double 11 event and the cost-effective circumstances, beyond Inman, split, became Taobao Women's brand.

In this transaction, camels and beetles were completed in the form of equity swaps, and camels will actually control the insects. According to high-level camel internal sources, the camel is optimistic about the bug's product design and R&D capabilities. After the acquisition, Bug Mezi’s product operation basically maintains the original independent style, but it will be more standardized in the operation and management of the organization.

Insect rice child Taobao official shop

Amoy brand goes upward

For insects like rice worms, equity swaps and the use of external forces to become bigger and stronger are a more rational and realistic choice.

At the beginning of the year, Angel City, the famous brand of Taobao, known for its “real world shooting”, was sold out because of the increasing pressure of business. During the growing development of the Taobao platform, the cracks earlier than the City of Angels smelled the trend of e-commerce brand differentiation and integration. Sales between them had been very close, but in 2012 the two sides opened the gap. Clothing industry insider "E-commerce Shaman" once disclosed, "The price difference between the two products is not big, but the transformation of the city of Angels is a little late, and the supply chain has a better chance of cracking."

As the first brand of Taobao Women's Clothing, the development of bugs also encountered the same bottleneck. For big Cs, in addition to the pressure on companies to enter the B2C, they also face the issue of how to build big brands and integrate resources. Most of the Amoy brands originate from grassroots, from 10 million to 100 million, from 100 million to several hundred million, and operate a company with hundreds of people. The challenge to the overall management ability of big C is already great, if we add the brand and Resource integration will be overloaded and difficult.

The only way to solve the plight of being chased by the market is to integrate their respective resources and experience and to deal with the increasingly fierce competitive environment. The combination of wormy rice seeds and camels will allow the insects to gain further opportunities for growth.

As the insiders of worms say, they need to complete this transition, break the habit of fighting alone, learn to integrate resources, and bring the experience of brand operation into the new stage of bug development.

Camel founder Wan Jingang said that Taobao's competitive environment is not a problem, and the key is brand operation; Amoy brand is the only way to grow and grow if it is a big brand. After the completion of the merger, the Camel e-commerce team will be responsible for the creation and operation management of the Tmall B store. Industry analysts said that the marriage of camels and bugs is conducive to mutual complementarity between the two sides. While addressing the bottleneck of the bug development, for the camel, the use of capital means to achieve resource integration and expand the business map is an important step in the diversified development of the market.

Amoy brand's ten ambush

Taobao Big C “out of Amoy” and mergers and acquisitions are not new topics. With the continuous development and expansion of the Taobao platform, the former Blue Ocean has become more competitive. More and more enterprise-level Bs are constantly entering and forming tremendous pressure on Big C. Limited traffic has been unable to meet the needs of rapidly growing sellers, and the average purchase cost of online passenger flow has increased rapidly, even rising at a rate that doubles every half year.

In the search box for Taobao, enter keywords for “Women's Wear” + “Autumn Dresses 2013”. There are 23,632,800 products, showing a total of 13 categories of “Slim Fit”, “Pastoral Fresh” and “Bat Bat”. There are 6.7721 million pieces of light "Slim Fit".

In order to increase transaction volume and conversion rate, most Taobao brand sellers will increase sales by discounting sales. Those sellers who cannot face the ever-increasing operating pressure can only choose to give up. For some of the big C who are well-known in the rankings, it is either a good idea to sell a good price, or rely on external forces, relying on the successful experience of a strong brand, and following the trend, bigger and stronger, it is a good Way out.

For the “bugs”, there is no shortage of money. What is missing is the successful experience of brand operations.

Zhong Qingsheng, an industry brand consultant, is a consultant of the Guangzhou Electronic Commerce Association and has conducted in-depth research on the electricity supplier industry. He said: "The first phase of e-commerce platforms such as Taobao is a barbaric growth era. At the very beginning, as long as you dare to try to enter, you will be able to survive and develop rapidly. After you enter the mature stage, you will compete with the strength of brand and scale, and the small sellers in the past. It is difficult to adapt itself to the current situation. It is inevitable that big brands have been acquired in succession."

A PR publicist at Taobao once admitted to reporters that compared with previous years, the opportunities and advantages brought about by diligence are not obvious. With the entry of large companies, these elephants are bound to impact the entire ecological environment. "This is the inevitable result of the development of China's e-commerce environment."



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