United States mother and child price war squeeze out the weak profit margins


technology news on July 30th news, jumei.com in 2015 to expand the cross-border business category for a year. Poly America last week announced a $250 million (1 billion 550 million RMB) strategic investment in the baby trees, this is the first investment in the United States to complete the cross-border after transformation, and this round of financing will be used for baby tree business development, especially in business.

, according to the United States and the United States co founder Dai Yi, in addition to capital investment, the United States and the United States on the baby tree has three aspects of business support.

first, the supply chain, the cross-border supply chain poly beauty will support the development of the electricity supplier baby tree; second, warehousing and logistics, warehousing and logistics in the United States over cross-border, cross-border warehouse one hundred thousand flat at cost price to support the baby tree; third, team, wearing amamori will lead to give the baby tree in the experience and process support.

since the end of last year, jumei.com transformation of cross-border electricity supplier, and will expand the field of maternal and child as a key direction category.

"mother is the largest category in the cross-border electricity supplier, said the one hand, Dai Yusen talked about and why the baby tree, the United States itself has a lot of mother and baby tree users, most users are in the period of pregnancy, child birth or time after one year, so seize the baby tree is users. They caught the next few years the consumption trend.

on the other hand, the baby tree is the mother and child community, poly America is the electricity supplier. In front of strong maternal community of users and traffic aggregation, but weak in commodity supply chain construction, especially the mother category, Hai Tao sources mostly, and more demanding on the quality and stability; and although stronger than the pure electricity supplier commodity procurement, logistics and distribution, but weak in front of drainage, only to have the community user stickiness.

, jumei.com CEO Chen Ou also said earlier, and the baby tree cooperation in the hope that users based baby tree and the United States cross-border supply chain, logistics experience, enhance the ability of the United States in the field of child.

yesterday, the baby tree CEO Wang made an internal e-mail show, with the United States and the United States has been a substantial result of cooperation in the 24 day of the promotion of the harvest of orders of 350 thousand".

Wang Huainan also said in an internal letter, "from this promotion, hope the cooperation between the two sides will end the war, the maternal electricity supplier" and put amamori hope consistent.

"at the beginning of the price war will certainly fight, but not the ultimate goal, in his opinion amamori, the price war is that strength is relatively low, the funds are not sufficient, small game player out of the way of the low operation efficiency of the industry, but also squeezing industry profits bubble.

according to him, the next, the United States will continue to expand the category, through strategic investment, expand the user scale and market share. Specific to the category, except mother and cosmetics, will expand to the entire cross-border electricity commodity, such as light luxury goods, food, health care products, car etc.."

"is what you go abroad to bring home,"