Red child layoffs storm behind Tesco acquisition strategy challenges

last September on the vertical electricity supplier website red children after the merger, suning.com now encountered the first challenge, recently the media broke suning.com’s acquisition of red child has laid off 15% of the message, the upcoming Tesco management performance in 2012 applied pressure.

Although suning.com

in the first time to give a response, a red child in 2012 annual sales revenue of 1 billion 620 million yuan, 1 billion yuan far more than expected, the obvious effect of resource integration with suning.com’s four quarter; on the other hand, the red child in the senior team stability, no one left, also need to increase the broad strokes of the Magi double the number of personnel in accordance with the 2013 sales target.

Deputy director of suning.com

market management center January 16th Min Juanqing also told reporters, "red child had team are basically left before the merger, but after the merger is very few, suning.com in the team and the team compared the original red child happy."

red child COO Chen Shuang said that in 2013, red children will be in the supply chain, logistics, customer service, service platform, and Suning especially suning.com full docking. At present, all of the children have been settled in the parent child Suning supply chain system, the red child suppliers will be expected to Su Ning platform landing.

It is reported that

, in the Su Ningxin Expo super flagship stores and Tesco official life Plaza, baby products and other non electrical category is also planned at the same time, the red child has all turned to Beijing warehousing logistics base in Beijing Suning, two staff currently implements unified allocation and management, while Wuhan, Chengdu, Shanghai and other places docking in logistics.

but these claims is a response to Su Ning to deal with the crisis, there are electricity supplier industry insiders told reporters in January 16th, "red child indeed the original team in September last year before the merger has left many, appear in the post merger layoffs is actually suning.com redBaby’s bin purchase beauty and personal care business team not interested, then bound to the weakening of red children also have the advantage of business, these business personnel may in the structure adjustment of passive leave."

, the person said, "red child of the original business operating costs are too high, although the maternal electricity supplier behind Tmall and Jingdong independent business, maternal and child products of high margin suning.com is most needed, it is normal for bin purchase business Suning acquisition gradually eliminating."

however this integration will inevitably lead to the adjustment, for suning.com, after the merger is mainly in the store of Japan LAOX and Hongkong citicall mergers and acquisitions, and the electricity supplier in the field of redBaby acquisition is the first time, due to the lack of business experience in mergers and acquisitions, not only the $66 million merger the price is a little high, the subsequent integration problems now also gradually exposed.

Gome before the acquisition

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