Red child electricity supplier is not completely difficult to break the low profit dilemma

had a moment of maternal and child electricity supplier, the red child recent frequency trap negative rumors. The first is rumored to be acquired by suning.com, the two sides denied, and reports that the company was investing control, internal management confusion. The red child was ambitious to IPO in 2011, after being stranded now no longer mentioned.

at the same time, also a focus on the big business line under the king of the children but mother Tong business venture favored. The company recently announced that the United States Warburg Warburg’s $55 million equity investment. It is also China’s largest investment in the industry, so far the largest one-time private placement.

a dilemma for the mother and child electricity supplier is the lack of high profit goods sales advantage. E-commerce observers Lu Zhenwang told reporters, milk powder and other standardized maternal electricity supplier sales better, but these varieties of relatively low profit margins, and clothing, toys gross profit high variety people are more willing to buy online.

low profit trapped

maternal and child market has developed rapidly in recent years. It is reported that the number of infants and young children in China amounted to 108 million, of which 0~3 years old infant conservative estimate of about 70 million.

insiders pointed out that, in the promotion of Chinese GDP sustained high growth, 80 parents thought fashion, children demand and other factors, the current China baby market demand at least 1 trillion yuan, in 2015 reached 2 trillion yuan scale.

thus, many capital have entered the maternal and child market. Red child as an early focus on maternal and child market electricity supplier, has been developing rapidly.

at the end of 2010, the red child made it clear that in 2011 the United States IPO, the investment market is unanimous about the development of red child, NEA, northern lights, Kai Penghua Ying (KPCB) and other investment institutions have entered, and additional capital. But the company’s performance decline since 2011, the IPO process is not stranded.

"mother field is special, milk powder and other standardized commodities sales better, but these varieties of relatively low profit margins, and clothing, toys gross profit of the varieties with higher line did not sell well, still in the line of sales, because customers are more willing to look at the scene experience." E-commerce observers Lu Zhenwang told the plight of earnings in an "investor" interview with reporters, maternal and child electricity supplier.

and another focus on maternal and child market, the company recently received a $55 million U.S. equity investment in Hua Ping, but also shows the capital market confidence in the industry’s offline market.

child Wang said, Warburg investment of $55 million (about 349 million yuan) will be used to accelerate the company’s business development, expanding the number of stores and regional distribution, rather than for the expansion of its online business.

"we are the main store, electricity supplier is only one of the stores"